HUL reports flat volume growth amid slow consumer demand recovery
Standalone net profit rises 8% to Rs 2,472 crore, revenue up 7% to Rs 14,931 crore
- Jul 20, 2023,
- Updated Jul 20, 2023 8:01 PM IST
Leading FMCG player Hindustan Unilever reported flat 3% volume growth of its products during the April-June quarter of 2023, signaling a slow recovery of the country’s consumer demand, according to its results declared on Thursday.
“FMCG markets are recovering gradually although the operating environment remains challenging. In the near-term, FMCG industry will continue to witness rebalancing of price-volume growth equation and a gradual recovery in consumer demand,” said new CEO & MD Rohit Jawa.
In the first quarterly result announcement under Jawa’s leadership, the consumer goods giant reported a 7% increase in quarterly revenue on year-on-year (YoY) basis to Rs 14,931 crore. Standalone net profit rose 8% to Rs 2,472 crore from Rs 2,289 crore a year ago.
The home care segment drove HUL’s performance with 10% revenue growth to Rs 5,425 crore and mid-single digit underlying value growth (UVG). Both fabric wash and household care grew in double-digits. The beauty and personal care saw 4% revenue growth to Rs 5,601 crore. Volume grew in mid-single digit, with skin care and colour cosmetics growing double-digits on the back of strong performance in premium portfolio.
The foods and refreshment revenue also grew 5% with near flat UVG. Tea saw modest volume led growth as the category continued to witness consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea. Horlicks Millet Biscuits, range of Knorr Chinese Sauces and Bru Cold Coffee were launched in the quarter.
The company raised advertising & promotion spends by 1.1%. “We continue to manage our business dynamically to drive savings harder and provide the right price-value equation to our consumers. We remain focused on building back our gross margin and investing competitively in A&P,” the firm said in its press release.
The firm announced the appointment of IT industry veteran Neelam Dhawan (63) as an Independent Director on its Board, effective 1 August 2023, for a period of five years. She is currently a Non-Executive Director at ICICI Bank Limited, Capita PLC, Fractal Analytics Pvt Ltd, Yatra Online Inc, and is the Chairperson of a startup, Capillary Technologies. She is also on the Governing Board of IIT Delhi and advises and mentors various organisations on business transformation. HUL also announced the reappointment of Leo Puri as Independent Director for a period of five years, from October 12, 2023, to October 11, 2028.
Leading FMCG player Hindustan Unilever reported flat 3% volume growth of its products during the April-June quarter of 2023, signaling a slow recovery of the country’s consumer demand, according to its results declared on Thursday.
“FMCG markets are recovering gradually although the operating environment remains challenging. In the near-term, FMCG industry will continue to witness rebalancing of price-volume growth equation and a gradual recovery in consumer demand,” said new CEO & MD Rohit Jawa.
In the first quarterly result announcement under Jawa’s leadership, the consumer goods giant reported a 7% increase in quarterly revenue on year-on-year (YoY) basis to Rs 14,931 crore. Standalone net profit rose 8% to Rs 2,472 crore from Rs 2,289 crore a year ago.
The home care segment drove HUL’s performance with 10% revenue growth to Rs 5,425 crore and mid-single digit underlying value growth (UVG). Both fabric wash and household care grew in double-digits. The beauty and personal care saw 4% revenue growth to Rs 5,601 crore. Volume grew in mid-single digit, with skin care and colour cosmetics growing double-digits on the back of strong performance in premium portfolio.
The foods and refreshment revenue also grew 5% with near flat UVG. Tea saw modest volume led growth as the category continued to witness consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea. Horlicks Millet Biscuits, range of Knorr Chinese Sauces and Bru Cold Coffee were launched in the quarter.
The company raised advertising & promotion spends by 1.1%. “We continue to manage our business dynamically to drive savings harder and provide the right price-value equation to our consumers. We remain focused on building back our gross margin and investing competitively in A&P,” the firm said in its press release.
The firm announced the appointment of IT industry veteran Neelam Dhawan (63) as an Independent Director on its Board, effective 1 August 2023, for a period of five years. She is currently a Non-Executive Director at ICICI Bank Limited, Capita PLC, Fractal Analytics Pvt Ltd, Yatra Online Inc, and is the Chairperson of a startup, Capillary Technologies. She is also on the Governing Board of IIT Delhi and advises and mentors various organisations on business transformation. HUL also announced the reappointment of Leo Puri as Independent Director for a period of five years, from October 12, 2023, to October 11, 2028.