“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 mentioned.
Total gross sales for the quarter elevated marginally to Rs 14,693 crore in This autumn FY24 from Rs 14,638 crore within the year-ago quarter, underlining subdued rural demand that the business has been grappling with. In a briefing at its headquarters right here, the corporate’s prime administration mentioned that city markets proceed to steer general progress for the business though rural is “catching up” and displaying some inexperienced shoots of restoration. The agency is betting on projections of a traditional monsoon to raise 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,” mentioned Rohit Jawa, CEO and MD of HUL. During the quarter, HUL delivered an underlying gross sales progress of 1% whereas underlying quantity progress got here in at 2%.
HUL’s revenues in the important thing magnificence and private care house declined to Rs 5,050 crore in This autumn in opposition to Rs 5,188 crore within the yr in the past interval, a decline of two.7%.
“Skin cleansing declined due to impact of price cuts coupled with drop in volumes in the mass and popular segments,” the corporate mentioned. The agency’s technique will probably be to drive aggressive quantity progress. It may also proceed to spend money on excessive progress driving areas.
