STOCK MARKET BSE NSE

HUL profit up 17 per cent amid fear of rural slowdown

Price hike by FMCG firms impacted consumer spending, say experts.

Published: 21st January 2022 09:15 AM  |   Last Updated: 21st January 2022 09:15 AM   |  A+A-

Hindustan Unilever

Hindustan Unilever. (File Photo | Reuters)

By Express News Service

NEW DELHI:  FMCG major Hindustan Unilever, which on Thursday reported standalone net profit of 16.76% year-on-year (YoY) to Rs 2,243 crore for the December quarter, has warned the country is witnessing a rural slowdown.

While HUL has gained market share in both urban and rural areas in the concerned quarter, its chairman and managing director Sanjiv Mehta in a post-earnings virtual call noted, “We are now seeing a slowdown happening in rural areas from a volume and value perspective.”

“The rural economy is in slowdown mode and reversing it would require putting more cash in the hands of the consumer,” Mehta said. High inflation and increase in price by companies has impacted consumer spending, according to analysts. The company had reported standalone net profit of Rs 1,921 crore in December last year. Sales of the company rose 10% to Rs 12,900 crore as against Rs 11,682 crore in the year-ago period. HUL has also clocked 11% growth in domestic consumer growth.

Looking ahead, HUL said, FMCG market growths are moderating and inflation impacting volumes. “Commodities remain volatile and elevated, witnessing further sequential inflation in MQ’22.” Analysts have highlighted that continued commodity inflationary pressures may have impacted the performance of FMCG companies in the December quarter. The home care segment has grown 23%, beauty & personal care grew 7% and foods & refreshment grew 3%, HUL said in a statement.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp