Hindustan Unilever, a leading player in consumer goods, expressed cautious optimism during the announcement of its third-quarter results. The company anticipates a sustained recovery in market demand in the near term.
Following the release of the results, the company conveyed in a conference call that premium products outperformed mass products. Additionally, it highlighted the ongoing subdued growth in rural areas. The company acknowledged the persistently challenging operating conditions faced by the FMCG industry during the third quarter.
“Looking forward we expect a gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realization. Rural income growths and winter crop yields are key factors that will determine the pace of recovery,” Rohit Jawa, CEO and Managing Director, HUL said in its investor presentation.
In the third quarter of the current fiscal year, the company experienced a 0.6 percent year-on-year increase in net profit, reaching INR 2,519 crore. Meanwhile, the revenue from operations saw a 0.3 percent decline compared to the previous year, amounting to INR 15,188 crore.
“Our focus remains on driving competitive volume growth whilst stepping up investment behind our brands and long-term strategic priorities. We remain confident of the mid to long term potential of Indian FMCG sector and HUL remains well positioned to unlock this opportunity whilst navigating the short-term challenges,” Jawa said.
HUL disclosed a 2 percent underlying volume growth, with its home care and beauty & personal care segments experiencing mid-single-digit UVG.
The foods & refreshments segment achieved low-single-digit UVG following the company’s implementation of pricing measures to counter increased commodity and input costs.
“HUL has delivered another quarter of resilient performance with strong operating fundamentals amidst a challenging operating environment. Our focus on providing the right consumer value, excellence in execution, increased investments behind brands and capabilities, premiumisation and market development continues to serve us well,” Jawa said.
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