MUMBAI: HUL on Friday reported a web revenue of Rs 2,519 crore on a standalone foundation throughout the Dec quarter – a 0.6% progress from the year-ago interval – amid sluggish rural demand. Gross sales declined marginally to Rs 14,928 crore from Rs 14,986 crore within the year-ago interval. That is the primary drop in gross sales for the FMCG main because the Covid-hit March 2020 quarter, Refinitiv knowledge confirmed.
“City (markets) has been usually extra resilient and has been main progress.We count on to see rural come again as nicely within the quarters to come back, particularly with higher Rabi sowing and stronger assist from the federal government,” CEO and managing director Rohit Jawa stated in a publish earnings media briefing. Rural revenue progress and winter crop yields are key elements that may decide the tempo of restoration, Jawa added.
Poor monsoon rains in some key agricultural states stalled the restoration of rural demand, weighing on the expansion of fast paced shopper items (FMCG) corporations. Rural areas account for a big chunk of FMCG consumption and corporations have been attempting to spur quantity progress within the markets. “The working surroundings has remained difficult throughout the quarter… the impact of uneven monsoon was felt on the Kharif crop output, impacting agricultural yields and rural incomes. Winter this 12 months has been delayed and fewer extreme, and this has impacted the winter classes. Additional, with rural shopper sentiment remaining subdued, the anticipated buoyancy from the pageant season didn’t materialise,” stated chief monetary officer Ritesh Tiwari.
Underlying quantity progress (UVG) for the quarter stood at 2%. Dwelling care and sweetness & private care (BPC) – which represent about 75% of HUL’s enterprise – proceed to see quantity restoration and had mid-single digit UVG throughout the quarter, the agency stated. “We begin to see volumes coming again on the again of corrected pricing,” Jawa stated. The corporate stated that it took “significant” value cuts, significantly within the laundry and pores and skin cleaning classes.
“City (markets) has been usually extra resilient and has been main progress.We count on to see rural come again as nicely within the quarters to come back, particularly with higher Rabi sowing and stronger assist from the federal government,” CEO and managing director Rohit Jawa stated in a publish earnings media briefing. Rural revenue progress and winter crop yields are key elements that may decide the tempo of restoration, Jawa added.
Poor monsoon rains in some key agricultural states stalled the restoration of rural demand, weighing on the expansion of fast paced shopper items (FMCG) corporations. Rural areas account for a big chunk of FMCG consumption and corporations have been attempting to spur quantity progress within the markets. “The working surroundings has remained difficult throughout the quarter… the impact of uneven monsoon was felt on the Kharif crop output, impacting agricultural yields and rural incomes. Winter this 12 months has been delayed and fewer extreme, and this has impacted the winter classes. Additional, with rural shopper sentiment remaining subdued, the anticipated buoyancy from the pageant season didn’t materialise,” stated chief monetary officer Ritesh Tiwari.
Underlying quantity progress (UVG) for the quarter stood at 2%. Dwelling care and sweetness & private care (BPC) – which represent about 75% of HUL’s enterprise – proceed to see quantity restoration and had mid-single digit UVG throughout the quarter, the agency stated. “We begin to see volumes coming again on the again of corrected pricing,” Jawa stated. The corporate stated that it took “significant” value cuts, significantly within the laundry and pores and skin cleaning classes.
