Hindustan Unilever Lowers Prices, Reports Q3 Growth, and Increased Net Profit
Hindustan Unilever Reduces Prices on Products
Hindustan Unilever (HUL), a prominent player in India’s FMCG industry and the Personal Care Products sector, announced on Thursday that it is reducing prices on its products due to falling raw material costs. CFO Ritesh Tiwari stated that the price cuts are mainly observed in single and multi-packs within the soap and laundry sectors. In addition to the price cuts, HUL is also offering consumer promotions and making minor grammage recalibrations.
HUL’s Pricing Strategy
While HUL is reducing prices in certain areas, it has raised prices in others. Coffee and the health food drinks (HFD) portfolio, for example, have seen price increases due to rising raw material costs. HUL has implemented a series of price hikes over the past two years, primarily driven by escalating palm oil costs. As a result, the FMCG market has experienced a cumulative price growth of 25% in the last three years. Despite these dynamics, HUL has successfully maintained dividend payments for 23 consecutive years.
CEO’s Optimistic Outlook
Despite facing inflationary pressures, tepid rural demand, and advertising expenditures, CEO Rohit Jawa remains cautiously optimistic about future demand. Jawa’s optimism is fueled by the forthcoming festive season and the government’s emphasis on capital expenditure. Real-time data from InvestingPro supports this positive outlook, showing a 44.1% revenue growth for HUL.
Strong Financial Performance
In the third quarter ending September 2023, HUL reported a topline growth of 4%, reaching INR 15,027 crore ($2.02 billion). The company also disclosed a standalone net profit of INR 2,717 crore ($366 million), marking a 3.86% year-on-year increase. The EBITDA for the same period stood at INR 3,694 crore ($498 million), a rise of 9.4% YoY. HUL’s improved EBITDA margin of 24.5%, up by 130 basis points YoY, demonstrates strength in its premium segment.
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This article was generated with the support of AI and reviewed by an editor.
