Resurfacing April data: Hindustan Unilever revenue growth slowed to 3% amid premium competition
Resurfacing a figure from April 2024: revenue rose 3% in the first nine months of the fiscal year through December, versus 17% a year earlier. Advertising and promotional costs climbed to ₹48 billion from ₹36 billion as premium challengers and weak rural spending pressured growth, prompting personal-care restructuring.
The development
Hindustan Unilever recorded 3 per cent revenue growth in the first nine months of the fiscal year through December, down from 17 per cent. Premium challengers and weak rural spending are pressuring growth, prompting higher advertising spending and personal-care restructuring.
The numbers
- $33 billion personal-care market by 2027
- $20 billion personal-care market in 2022
- 3 per cent revenue growth
- 17 per cent year-ago revenue growth
- 4 per cent net profit growth
- 77 billion rupees net profit
- 14 per cent year-ago net profit growth
- 48 billion rupees ($576 million) advertising and promotional costs
- 36 billion rupees year-ago advertising and promotional costs
- 15 per cent stock decline
- 4.5 per cent consumer-stock index decline
- less than 92,000 Instagram followers each for Simple and Love, Beauty and Planet
- more than 1.3 million Instagram followers for Mamaearth
- More than 80 per cent of product lines growing or maintaining brand identity
- more than a billion rupees in premium beauty annual recurring revenue
Why it matters to operators and investors
Personal-care restructuring strengthens the case for screening premium challenger brands for partnerships or acquisitions that address portfolio gaps without overpaying for growth.
What to watch next
- Volume growth versus price and mix: does revenue acceleration reflect stronger underlying demand?
- Advertising and promotional spending as a share of sales, alongside operating margins.
- Premium personal-care market share, repeat purchases and new-product performance.
- Rural volume recovery relative to urban demand.
- Discount depth, retailer incentives and shelf-space changes across competing brands.
- HUL likely concentrates personal-care investment on priority premium brands and trims weaker initiatives.
- More differentiated launches and channel-specific promotions are likely as HUL seeks measurable returns from higher marketing spending.
- Affordable pack sizes and tighter price ladders likely remain important in rural markets.
- Smaller premium competitors may shift toward retention, specialist channels and distinctive product claims to reduce exposure to rising acquisition costs.
The counter-case
HUL may be spending more to defend its brands while premium challengers capture higher-value demand and weak rural spending limits mass-market growth. Advertising costs rising 33% against 3% revenue growth could pressure profitability if incremental spending fails to restore momentum. Personal-care restructuring may add execution risk before delivering benefits.