HUL's Q1 Performance Highlights

MUMBAI: Hindustan Unilever Limited (HUL) has announced a 4% year-on-year increase in standalone sales, reaching Rs 15,747 crore in the June quarter. This marks an improvement in growth momentum, attributed to a steady recovery in rural markets and emerging signs of an uptick in urban demand.

Factors such as easing food inflation, low interest rates, and tax benefits have collectively enhanced consumer spending power, boosting purchases of soaps, shampoos, and packaged food items.

Urban Market Revival

Outgoing CEO and MD Rohit Jawa highlighted the gradual revival in urban markets, particularly in smaller cities and towns, though rural areas continue to outperform. Jawa emphasized the role of positive macroeconomic indicators and anticipated good monsoons in sustaining consumption recovery.

Leadership Transition and Future Outlook

As Jawa prepares to pass the leadership baton to Priya Nair, HUL's first woman CEO, he expressed confidence in the company's continued growth under her stewardship. HUL's strategic focus on high-growth demand areas and a competitive core portfolio has been pivotal in achieving a 3% underlying volume growth and an 8% rise in net profits.

With commodity prices expected to remain stable, HUL anticipates low single-digit price growth, reinforcing its position as a bellwether for domestic consumption trends.