HUL profit declines 1st time since Covid-hit March 20220 qtr
“If you see HUL’s segmental results, you will see pricing growth impacted for both their biggest categories – home care and BPC (beauty & personal care). It’s only positive for food and refreshments. So, they have been impacted by price cuts,” an analyst said.
Total sales for the quarter increased marginally to Rs 14,693 crore in Q4 FY24 from Rs 14,638 crore in the year-ago quarter, underlining subdued rural demand that the industry has been grappling with. In a briefing at its headquarters here, the company’s top management said that urban markets continue to lead overall growth for the industry although rural is “catching up” and showing some green shoots of recovery. The firm is betting on projections of a normal monsoon to lift rural demand.
“I’m optimistic of consumer demand gradually improving due to a normal monsoon and better macro indicators. The scale of growth will be higher when the macros are a bit better for rural areas, but urban areas have been more resilient,” said Rohit Jawa, CEO and MD of HUL. During the quarter, HUL delivered an underlying sales growth of 1% while underlying volume growth came in at 2%.
HUL’s revenues in the key beauty and personal care space declined to Rs 5,050 crore in Q4 against Rs 5,188 crore in the year ago period, a decline of 2.7%.
“Skin cleansing declined due to impact of price cuts coupled with drop in volumes in the mass and popular segments,” the company said. The firm’s strategy will be to drive competitive volume growth. It will also continue to invest in high growth driving spaces.