Hindustan Unilever sets new margin targets and increases capex

Hindustan Unilever (HUL) has announced new medium-term financial targets during its Capital Markets Day. The consumer goods company is expanding its consolidated EBITDA margin guidance to a range of 22% to 24%, up from its previous target of 22.5% to 23.5%. This wider range is intended to provide greater flexibility for reinvestment into brand innovation, marketing, and distribution.

To drive growth and productivity, HUL plans to increase its capital expenditure (capex) from 2% to 3% of turnover. Managing Director and CEO Priya Nair stated that the company aims to capture growth opportunities in India by focusing on a richer premium product mix, operating leverage, and AI-led media effectiveness. The company seeks to unlock an incremental 5% of total revenue through these initiatives to fund priority areas such as market development and premiumisation.