HUL’s sales decline for the first time since Covid hit in March 2020 quarter
Mumbai: HUL gave a report on Friday Net Profit Rs 2,519 crore on a standalone basis during the December quarter – an increase of 0.6% from the year-ago period – between sluggish rural demand, sales declined It fell marginally to Rs 14,928 crore from Rs 14,986 crore in the year-ago period. This is the first decline in sales for the FMCG major since the Covid-hit quarter of March 2020, Refinitiv data showed.
CEO and managing director Rohit Java said, “Urban (markets) have generally been more resilient and are leading the growth. We expect rural to also bounce back in the coming quarters, especially on the back of better Rabi sowing and government support.” With strong support.” said at a post-earnings media briefing. Rural income growth and winter crop yields are the key factors that will determine the pace of recovery, Java said.
Deficient monsoon rains in some key agricultural states hampered the recovery in rural demand, impacting the growth of fast-moving consumer goods (FMCG) companies. Rural areas account for a significant share of FMCG consumption and companies are trying to boost volume growth in the markets. “The operating environment remained challenging during the quarter… The impact of uneven monsoon was felt on Kharif crop production, impacting agricultural yields and rural incomes. Winter this year has been delayed and less severe, and this has impacted winter Besides, the expected bounce from the festive season did not come due to weak rural consumer sentiment,” said Chief Financial Officer Ritesh Tiwari.
Underlying volume growth (UVG) for the quarter stood at 2%. Home care and beauty & personal care (BPC) – which account for about 75% of HUL’s business – continued to improve in volumes and had mid-single digit UVG during the quarter, the firm said. “We are seeing a rebound in sales due to improved pricing,” Java said. The company said it had made “meaningful” price cuts, particularly in the laundry and skin cleansing categories.
CEO and managing director Rohit Java said, “Urban (markets) have generally been more resilient and are leading the growth. We expect rural to also bounce back in the coming quarters, especially on the back of better Rabi sowing and government support.” With strong support.” said at a post-earnings media briefing. Rural income growth and winter crop yields are the key factors that will determine the pace of recovery, Java said.
Deficient monsoon rains in some key agricultural states hampered the recovery in rural demand, impacting the growth of fast-moving consumer goods (FMCG) companies. Rural areas account for a significant share of FMCG consumption and companies are trying to boost volume growth in the markets. “The operating environment remained challenging during the quarter… The impact of uneven monsoon was felt on Kharif crop production, impacting agricultural yields and rural incomes. Winter this year has been delayed and less severe, and this has impacted winter Besides, the expected bounce from the festive season did not come due to weak rural consumer sentiment,” said Chief Financial Officer Ritesh Tiwari.
Underlying volume growth (UVG) for the quarter stood at 2%. Home care and beauty & personal care (BPC) – which account for about 75% of HUL’s business – continued to improve in volumes and had mid-single digit UVG during the quarter, the firm said. “We are seeing a rebound in sales due to improved pricing,” Java said. The company said it had made “meaningful” price cuts, particularly in the laundry and skin cleansing categories.
