Consumer goods major Hindustan Unilever while reporting its third quarter numbers, said that it remains cautiously optimistic in the near term as it expects the gradual recovery in market demand to continue.
During a conference call after the results, the company said that premium products have been faring better than mass products, as per ETNow. It added that rural growth continues to be subdued. The company noted that the operating environment remained challenging for the FMCG industry in 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.
The company’s net profit in the third quarter of the ongoing financial year rose 0.6 per cent on an annual basis, to Rs 2,519 crore. A poll of analysts by ETNow pegged the number at Rs 2,724 crore. Revenue from operations fell 0.3 per cent year-on-year to Rs 15,188 crore. ETNow estimated a topline of Rs 15,533 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 reported underlying volume growth of 2 per cent, even as its home care and beauty & personal care segment saw mid-single-digit UVG.
The foods & refreshments segment grew in low-single digit in UVG after the company took pricing measures amid higher 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.
