Hindustan Unilever Limited (HUL) has reiterated its long-term commitment to growing its Nutrition Drinks portfolio, with Horlicks and Boost positioned as strategic “Future Core” brands, despite subdued consumption trends and challenges in the broader fast-moving consumer goods (FMCG) sector.
In its FY2024 financial results, HUL reported a modest 2% growth in underlying sales, reaching INR 606 billion (US$7.16 billion), and a 5% increase in profit after tax to INR 106 billion (US$1.26 billion). CEO and Managing Director Rohit Jawa acknowledged ongoing pressures in the Indian FMCG market, citing volatile commodity prices and geopolitical uncertainty as key headwinds.
“We’ve seen inflation in palm oil, tea, and coffee, even as crude oil and skimmed milk powder prices have declined. Coupled with the rupee’s depreciation, we remain vigilant,” Jawa said during the company’s latest investor call.
Despite these challenges, HUL remains focused on revitalizing its Nutrition Drinks segment, particularly Horlicks and Boost, which were acquired in 2020 as part of the GSK Consumer Healthcare acquisition.
Jawa admitted that while penetration and market share for the brands have grown, particularly in regions where HUL leads the market, driving actual category consumption has proven difficult. “We’ve built strong cost synergies and profitability, but consumption has lagged,” he said.
To address this, the company has outlined three targeted strategies:
- Revamp Horlicks: HUL plans to modernize the brand to make it more relevant to today’s health-conscious consumers by focusing on nutritional benefits and rebuilding trust in health claims.
- Expand Adult Nutrition: With renewed investment in medical marketing and outreach through chemists, HUL is aiming to accelerate growth in adult-focused nutrition products.
- Elevate Boost: Positioned as both a chocolate malt and energy drink, Boost is central to HUL’s ambitions in ready-to-drink formats and wider geographical expansion. “Boost has dual levers—as a chocolate drink and as an energy brand—and we see strong potential in both,” Jawa added.
Chief Financial Officer Ritesh Tiwari echoed this focus, pointing out that average household consumption across the category has dipped, affecting both category-wide performance and HUL’s numbers.
To reverse the trend, HUL is adjusting its pack-price architecture by narrowing the price gap between sachets and larger packs, encouraging consumers to upgrade. “The last quarter was our first full one with these changes, and while discovery is gradual, we’re seeing early positive signals,” said Tiwari.
Spotlight on Kissan and Broader Food Portfolio
Beyond Nutrition Drinks, HUL also plans to strengthen its Foods portfolio, particularly its popular Kissan brand, which Tiwari described as a strong performer in the packaged foods segment.
“Kissan is a versatile brand with relevance across multiple Indian cooking occasions—be it mini meals or as a condiment. We see significant room to stretch it further,” he said.
Looking ahead, HUL expects a gradual improvement in demand, citing favorable macroeconomic trends such as expected monetary stimulus, lower inflation, and improved agricultural output. “We are optimistic that the first half of FY2026 will see better momentum compared to the latter half of FY2025,” Tiwari concluded.