NEW DELHI: The demand for fast-moving consumer goods (FMCG) is recovering gradually though the operating environment remains challenging, said Rohit Jawa, CEO and Managing Director of Hindustan Unilever Ltd (HUL) as the company on Thursday reported an 8% rise in standalone net profit at Rs 2,472 crore for the quarter ending June 30, 2023.
“FMCG markets are recovering gradually although the operating environment remains challenging. In the near term, the FMCG industry will continue to witness rebalancing of the price-volume growth equation and a gradual recovery in consumer demand,” said Jawa. HUL noted that weather-related risk continues and its impact on inflation and rural demand is to be monitored.
Jawa added that in this environment HUL will continue to provide superior value to consumers and invest in brands. “We remain focused on driving our long-term strategic priorities including market development and building distinctive capabilities for the future,” he said.
In its near-term outlook, HUL said that if the commodity prices remain where they are, their price growth to be flattish/negative in the coming quarters. HUL, however, added that competitive intensity will go up further with smaller players eating up shares in certain segments.
For example, sales of branded tea have not recovered as consumers are opting for unbranded alternatives, the Brooke Bond Red Label tea maker said. HUL’s standalone total income increased 6% to Rs 15,333 crore in Q1FY24 as against Rs 14,409 crore in Q1FY23. On Thursday, HUL’s share on BSE rose 1% to Rs 2,700.