HUL Q2: Mixed bag as rural recovery lags

24 Oct 2024 , 09:59 AM

Amid a slow rebound in rural demand, Hindustan Unilever (HUL) reported a 4% decline in earnings but a 2% increase in sales for the September quarter. However, because of the strong base, city growth stalled.

In India, the company’s performance is regarded as a stand-in for general consumer mood. Sales increased 3% in the base quarter, but net profit stayed the same due to a one-time indirect tax credit from a previous lawsuit.

In keeping with its global restructuring strategy, which is anticipated to be finished by the end of this year, the company recently announced that it will split off its ice cream division.

The largest consumer products business in India, Unilever, saw quarterly sales increase to ₹15,319 crore from ₹15,027 crore, but net profit dropped to ₹2,612 crore from ₹2,717 crore.

The second quarter saw a 3% increase in HUL’s volumes. The manufacturer of Dove beauty bars and Rin detergent attributed the urban slowdown to the market’s generally weak development, however it’s unclear if this is a temporary blip or a long-term trend.

In the last ten years, sales of branded everyday necessities have become more dependent on rural India, where consumer behaviour is closely related to agricultural productivity.

For feedback and suggestions, write to us at [e-mail]