Hindustan Unilever (HINDUNILVR) investor relations material

Strategic vision and market context

• Focus on winning in 'new India' by leveraging demographic shifts, rising affluence, digital penetration, and evolving consumption patterns across urban and rural segments.

• Growth strategy centers on volume-led growth, premiumization, market making, and entry into new high-growth categories, with 40% of incremental growth targeted from consumption/premiumization and market making, and 20% from new spaces.

• Portfolio structured to address diverse consumer needs by segmenting India by income, geography, and channel, targeting both affluent and value-seeking segments.

• Execution powered by crafting desirable brands, future-fit go-to-market strategies, and AI as a competitive moat.

• Talent, culture, and ESG principles underpin long-term value creation and profit growth.

Business segment strategies and execution

• Home Care: Growth through deep consumer understanding, R&D, premiumization, and format upgradation, leveraging a tiered portfolio and proven market-making playbook.

• Beauty & Wellbeing: Dual ecosystem approach serving both democratizers and premiumizers, scaling acquisitions, and targeting both affluent and mass segments.

• Personal Care: Driving growth via increased consumption, premiumization (notably with Dove and Pears), and market development in body wash and oral care.

• Foods: Reimagining core brands for lifestyle nutrition, flavor innovation, and beverage evolution, with a focus on health, convenience, and premiumization.

Financial performance, guidance, and capital allocation

• FY'26 turnover reached ₹63,763 crore, with over 90% of turnover from brands exceeding ₹1,000 crore.

• EBITDA margin at 23.6%, operating cash flow of ₹11,000 crore, and return on capital employed at 110.9%.

• Lifting CapEx guidance from 2% to 3% of turnover, with sharper capital deployment, portfolio reshaping, and bolt-on acquisitions in high-growth spaces.

• Raising upper end of EBITDA margin guidance from 23.5% to 24%, with a new range of 22%-24% to allow flexibility for investment ahead of growth.

• Maintaining 100% cash conversion, disciplined working capital management, and stepping up productive CapEx.