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<ul><li>FMCG giant HUL’s shares reported a decline of over 6% on Thursday.</li><li>This comes a day after the company reported a 2.33% decline in consolidated net profit in Q2.</li><li>The stock tanked 6.59% to ₹2,483.95 on the NSE.</li></ul>Shares of FMCG major <keyword id="20002610" type="General" weightage="20" keywordseo="Hindustan-Unilever" source="keywords">Hindustan Unilever</keyword> Ltd (HUL) on Thursday tumbled over 6% after the firm reported a 2.33% decline in consolidated net profit for the second quarter ended in September. The stock tanked 6.59% to ₹2,483.95 on the NSE. The stock emerged as the biggest laggard among the Sensex and Nifty firms during the morning trade. Hindustan Unilever Ltd on Wednesday reported a 2.33% decline in consolidated net profit at ₹2,595 crore for the second quarter ended in September 2024, impacted by moderation in demand from the urban market. The company had logged a net profit of ₹2,657 crore in the July-September quarter a year ago, HUL said in a regulatory filing. However, revenue from product sales was up 2.36% at ₹15,703 crore in the September quarter, from ₹15,340 crore in the year-ago period, HUL which owns power brands such as Surf, Rin, Lux, Pond's, Lifebuoy, Lakme, Brooke Bond, Lipton and Horlicks said. "In the September quarter, <keyword id="21419477" type="General" weightage="20" keywordseo="FMCG-demand" source="keywords">FMCG demand</keyword> witnessed moderating growth in urban markets, while rural continued to recover gradually. In this context, we delivered a competitive and profitable performance," HUL CEO and Managing Director Rohit Jawa said. HUL reported an underlying sales growth of 2% and underlying volume growth of 3%. Total expenses were at ₹12,581 crore in the September quarter, up 3.03% year-on-year. HUL's total income, which includes other income, was up 2.14% to ₹16,145 crore in the September quarter of FY25. Addressing an earnings call, HUL CFO Ritesh Tiwari said, "Two thirds of our business we do in urban areas, and one-third we do in rural areas … we are seeing growth in the urban market moderating. We are seeing rural growth recovery is gradual … it impacts all the categories that we have." On the outlook, he said, "In the near term, we expect demand trends to be stable with no further acceleration in pace of growth." In this context, Tiwari said, "Our focus remains on driving competitive volume-led growth, while continuing investments behind our brands and strategy priorities … If commodity prices remain where they are, we expect a low single digit price growth in the near-term." With inputs from PTI. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/webstories/afcons-infrastructure-ipo-gmp-risk-factors-and-all-you-need-to-know/slidelist/114490954.cms">Afcons Infrastructure IPO – GMP, risk factors and all you need to know</a> <a href="https://www.businessinsider.in/tech/news/upi-refund-scam-to-digital-arrest-scam-here-are-most-common-online-scams-in-india/articleshow/114428011.cms">UPI refund to digital arrest scam, here are some online scams you need to be aware of</a> <a href="https://www.businessinsider.in/stock-market/news/waaree-energies-ipo-allotment-how-to-check-allotment-ipo-gmp-listing-date-and-more/articleshow/114508632.cms">Waaree Energies IPO allotment – How to check allotment, IPO GMP, listing date and more</a>

Hindustan Unilever shares tumble over 6% post Q2 results

<ul><li>Price cuts taken in mass segments will erase pricing-led growth seen in FMCG companies.</li><li>Few analysts are confident that price cuts will add to volume growth in Q2.</li><li>Without a meaningful rural recovery, volume growth will remain slow. </li></ul>It might be a slow second quarter for FMCG companies with hazy volume recovery and tapering raw material effects. The rise of new and local players have been eating into the business of top FMCG players. And, they chose to <a href="https://www.businessinsider.in/business/news/soap-opera-fmcg-players-kick-off-price-war-to-bring-back-whats-lost/articleshow/103657469.cms">take price cuts in mass categories </a> during the quarter. Analysts are divided on how much price cuts will add to volume growth. A report by Centrum said that price cuts pushing are primary volumes but off-take lags. The demand for packaged foods is rising but hair oils, toothpaste categories saw falling volumes. “Selling prices have been rationalised given the drop in commodity costs but there has not been a commensurate increase in volumes yet,” said J M Financial. The pricing-led growth in FMCG companies is now a thing of the past. Without significant volume recovery, revenues are ecpected to remain subdued this quarter. “We expect low single digit volume growth and low-to-mid single-digit value growth for most FMCG companies, with the tapering of pricing growth due to price cuts and/or anniversarization of price hikes. The underlying rural demand remains subdued. Uptick, if any, would be optical off a low base,” said a report by Kotak Institutional Equities. Analysts believe that without a meaningful recovery in rural demand which is yet to pick up, volume recovery will remain slow. Even tapering inflation during the quarter has not improved the rural consumer sentiment due to unseasonal rains. Moreso, the festive consumption of discretionary items also comes with a lag this year due to the ‘Adhik Mas’ effect. Raw material benefits slip On the other hand, the margin growth seen last quarter due to lower raw materials will also taper off. The raw material index has moved up by 8-9% over the last three months. Between July and September, crude oil prices rallied by 20%, and commodities will not be as benign as they were in Q1. On a year-on-year basis however their costs will be lower, adding to margins due a favourable basis. “A favourable base would still drive strong year on year gross profit margin expansion and earnings for September quarter, but some of the margin gains would be in the base soon especially given the recent uptick in raw material prices,” said J M Financial. The stress of rising competition will also eat into margins in more ways than price cuts. Players will continue to ‘normalise’ brand-building investments that were run down during the hyper-inflationary phase in FY23. “Most companies have indicated that a large part of gross margin savings will be invested behind brands. Hence, operating margin expansion will be lower compared to gross margin expansion,” said Sharekhan. Investors will watch out for management commentary on how volume uptick in the second half of the year. And a picture on when rural India will see a full-fledged recovery. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div>

Price cuts might not bring in volume growth for FMCG majors in Q2 say analysts

<ul><li>HUL's Home Care grew 15% driven by high double-digit growth in Fabric Wash.</li><li>Household care continued to perform well and grew on a strong base. </li></ul>Hindustan Unilever Limited announced its results for the quarter ended 30th September 2021. September Quarter 2021: Robust broad-based performance in a challenging environment HUL delivered a strong performance in this quarter with Domestic Consumer Growth of 11% and Profit After Tax (PAT) growth of 9%. Performance was broad based with all 3 divisions growing competitively. Business fundamentals remained strong with more than three-fourths of the business gaining market share and penetration. Home Care: Home Care grew 15% driven by high double-digit growth in Fabric Wash. Household care continued to perform well and grew on a strong base. Liquids and Fabric Sensations continue to outperform. Calibrated price increases were taken across Fabric Wash and Household Care portfolios to partly offset the high inflation in input costs. Extending its Clean Future journey, ‘<keyword id="11860121" type="General" weightage="20" keywordseo="surf-excel-matic" source="Orion">Surf Excel Matic</keyword>’ has transitioned to bottles made from 50% recycled plastic while using 100% biodegradable actives in its formulation. Home Care also launched ‘Smart Fill’ machines to empower consumers to reduce plastic waste. Beauty &amp; Personal Care: Beauty &amp; Personal Care grew 10% led by Skin Care, Colour Cosmetics and Hair Care. Contextual communications in Hair Care continue to yield good results as it delivered another quarter of strong performance. Skin Care and Colour Cosmetics delivered high double-digit growths as mobility improved. Soaps grew on a high base led by strong growths in beauty and premium segment. Hand Hygiene portfolio declined against a strong prior year comparator. ‘VWash’ had another strong quarter. A calibrated approach towards price increase has helped protect the business model as vegetable oil prices remain at elevated levels. During this quarter ‘Pond’s Gold Beauty’ range, limited edition lip colours in ‘Lakme’ and ‘Vaseline Lip Therapy’ range were launched. Premium beauty brands ‘Lakme’, ‘Simple’ and now ‘Love Beauty and Planet’ are also available on dedicated D2C platforms. Lakme saw 30% of its sales come through digital platforms. Foods &amp; Refreshment: Foods &amp; Refreshment grew at 7% against a strong prior year comparator. Tea grew on a very strong base and further strengthened its market leadership. Focus on market development in Nutrition is yielding good results. Health Food Drinks volumes grew double-digit and it continued to gain penetration sequentially. Ice Creams recovered strongly driven by effective communications and innovations. Foods had a soft quarter on the back of high teens growth in the base period. ‘Kissan Peanut Butter’ and ‘Hellman’s Mayonnaise’ innovations are picking up momentum. In this quarter, ‘Horlicks’ expanded its high sciences range with the launch of ‘Horlicks Diabetes Plus’. Operating margins: EBITDA margin was stepped up sequentially vs JQ’21 and is at 25%. PAT at Rs. 2,187 Crores increased by 9% year-on-year. We continue to invest behind building our brands, portfolio and future-fit capabilities. Our focused actions on Net Revenue Management and savings have enabled us to manage inflationary pressures and deliver a healthy bottom-line performance.<a name="m_6344563292714055982__Hlk31014716"></a> Interim dividend: The Board of Directors has declared an interim dividend of Rs.15/- per share for year ending 31st March 2022. <a name="m_6344563292714055982__Hlk31014708" data-type="tilCustomLink">Sanjiv Mehta, Chairman and Managing Director said:</a> ‘September quarter witnessed a sequential improvement in trading conditions, albeit remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiments. In this backdrop, we have delivered a strong performance growing topline in double digits and stepping up profitability sequentially. Large parts of our business continue to gain market shares and penetration. Calibrated price increases and laser sharp focus on savings have helped us protect our business model while ensuring the right price-value equation for our consumers. Through our ‘Re-Imagine HUL’ programme, we have further strengthened the digital capabilities across our organisation. We are making significant progress in our sustainable living journey. We are on track to collect and process more plastic waste than we sell in our packaging this year through our network of partners. Looking forward, we remain cautiously optimistic about demand recovery. In these times of uncertainty and unprecedented input cost inflation, we continue to firmly focus on delivering Consistent, Competitive, Profitable and Responsible Growth.’

HUL spent Rs 2,255 crore on advertising between April and September this year

<ul><li>FMCG companies are expected to register strong margins in Q1 as they will see the full effect of earlier-taken price hikes playing out. Cooling raw material prices will help. </li><li>Demand for staples have been stable, but the beauty and personal care category has not yet recovered fully. </li><li>The summer has seen a decline or low growth in ice creams and juices due to unseasonal rains. </li></ul>With cooling raw material costs, the FMCG sector is expected to kick in the first quarter of FY24 with ‘good quality’ profits, backed by improvement in margins. Input costs have been cooling over the last few quarters and have either remained stable or seen mild moderation, and companies have not been passing them off very generously in the form of price cuts. “We expect most of the companies to register stronger sequential gross profit margin (GPM) improvement in 1Q24F with input cost inflation cooling down further, high-priced inventory getting consumed and the full effect of earlier-taken price hikes playing out,” said a research report by Nomura. Certain categories such as hair oils, edible oils and soaps had witnessed price cuts in earlier quarters, which will flow through in the first quarter, as per BNP Paribas. Also, new price cuts and promotions were seen in laundry, edible oils and other home care categories during the quarter but no major price cuts were seen in biscuits and salts. Double digit revenue growth expected Price cuts and volume growth for the sector are directly proportional for the sector, and as of now most of growth seen in the sector was pricing-led. But that’s changing, analysts say. Demand from urban areas has been stable, with slight sequential improvement in rural demand as well. Also, the demand for staples have been stable, but the beauty and personal care category has not yet recovered though improving due to the price cuts. All in all, the sector should be able to present a good revenue growth for the quarter – notwithstanding the cooler summer this April-June with unseasonal rains that affected sales of juices and ice creams. “We estimate staples/discretionary (ex-ITC) pack to register 10.2%/8.8% revenue growth. We expect a good quarter from Nestle, Godrej Consumers and ITC and a weak print from Marico,” says a report by Kotak. Antique Stock Broking also expects the FMCG sector (not including ITC) to report early double digit revenue growth with moderation in pricing led growth. ITC is expected to see a fall in revenue as its agri business is expected to see a drop due to high-base effects. Nomura expects Nestle, Tata Consumers and Dabur to report the highest revenue growth YoY, and with ITC and Marico to post lower value growth. FMCG sector revenue growth projections YoY <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nomura </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Institutional Equities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Antique Stock Broking </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HUL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> 9.1% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.1% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ITC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6.1% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.6%* </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Marico </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.2% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dabur </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Godrej Consumer </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.2% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NA </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Consumer Products </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.3% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NA </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nestle India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.6% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16% </td></tr></tbody></table>Source: Research reports *Kotak has considered standalone results for ITC Price cuts &amp; rising competition The street will closely watch management commentary on pricing, as analysts believe that the sector is poised for a good show in the first half of FY24 with a raw material cost tailwind. “However, in the second half of FY24 we expect revenue growth to moderate as pricing benefits should fade and growth would have to be volume-led,” said a report by BNP Paribas. There has been no aggressive price war as of now in the sector as of now, but if price cuts are not taken by large players in the segment, it might lead to unorganized players gaining market share. In the last one year, many consumers have ‘downtraded’ to unbranded products or local brands during periods of high inflation. “Prices of most stock keeping units (SKUs) have increased sharply over the last two years. Soap and detergent prices have risen 40-50% over that period. So far the price cuts have been limited and largely confined to the value segment. We believe price cuts might be needed to drive volumes,” said BNP Paribas. Without pricing strategies laid out, most FMCG players might see revenue growth challenges re-emerge this year, especially in the second half. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/it-companies-like-tcs-infosys-wipro-hcl-tech-q1-2023-24-earnings-preview/articleshow/101482733.cms">IT sector Q1 earnings preview: All eyes on deal wins, revenue guidance cuts</a> <a href="https://www.businessinsider.in/thelife/news/want-your-veggies-to-taste-like-chocolate-a-vr-glass-may-help-trick-your-mind/articleshow/101487079.cms">Want your veggies to taste like chocolate? A VR glass may help trick your mind</a>

FMCG sector Q1 preview — Caught between price cuts and volume growth

Encouraged by volume growth, margin improvement and recovery in rural sales, India's top fast-moving consumer goods (FMCG) companies are now back to their normal growth cycle as they step up investments as well as spending on advertising and marketing. <keyword id="84065" type="General" weightage="20" keywordseo="fmcg-companies" source="Orion">FMCG companies</keyword> are chasing volume growth again after a gap of a few quarters, offering higher grammage and price cuts thanks to inflationary pressures softening on key raw materials for everything from soaps to food items. Hindustan Unilever (HUL), Dabur, Marico, Godrej Consumer Products, ITC, Tata Consumer Products and Nestle reported volume recovery in the March quarter and said they expect a gradual pickup in consumption in FY24. "The prospects of a sustained recovery have strengthened. After five quarters of volume decline, the sector has posted volume growth," Marico MD and CEO Saugata Gupta said in the company's earnings conference call. "Urban consumption has been steady while rural is showing some convincing signs of having bottomed out." Foods continue to drive growth for the sector, while the home and personal care segment also entered positive territory after an extended slowdown. Marico, which owns popular brands like Saffola, Parachute and Livon, reported an 18.7 per cent increase in its consolidated net profit to Rs 305 crore for the fourth quarter ended March 2023 while sales rose 3.65 per cent to Rs 2,240 crore, driven by single-digit volume growth and moderation in commodity prices. HUL said rural areas have shown improvement with higher value growth sequentially. While HUL's volumes continue to fall, the extent of decline has reduced versus last quarter. "The slowdown in the FMCG market is bottoming out. This improvement was led by volumes, which have turned flat in this quarter, versus a mid-single-digit decline in the December quarter," said HUL CFO Ritesh Tiwari in its earnings call. The makers of popular brands such as Rin, Lux, Surf Excel and Pond's said it expects the price-volume growth to rebalance further. "We expect volumes to recover gradually due to high levels of cumulative inflation and the fact that consumption habits typically recover with a lag," he said. For the March quarter, HUL reported an increase of 12.74 per cent in its consolidated net profit to Rs 2,601 crore. Net sales rose 10.83 per cent to Rs 14,926 crore. However, HUL warned the near-term operating environment is likely to remain volatile due to global slowdown risk and uncertainty related to weather phenomena like El Nino and heatwaves. Abneesh Roy, Nuvama Group Executive Director for Institutional Equities, said the outlook for the <keyword id="495979" type="General" weightage="20" keywordseo="fmcg-industry" source="Orion">FMCG industry</keyword> was "positive" with volume growth and improvement in margins for most companies in FY24. "As raw material prices are cooling off, companies shall start paring prices via grammage increase or gradual price reductions. Price growth shall ease while volume growth will improve," he said. Roy also cautioned about the impact of El Nino and the "aggression" from billionaire Mukesh Ambani-led Reliance Industries Ltd, a known disrupter, which aims to be a big player in the USD 110-billion FMCG segment. Meanwhile, Godrej Consumer reported an 11.47 per cent increase in its India revenue to Rs 1,822.92 crore in the March quarter. This was led by volume growth of 11 per cent. Its home care segment, which consists of household insecticides and air fresheners, grew 14 per cent and 17 per cent, respectively. "We expect to build on the current momentum and deliver volume-led growth along with upfront marketing investments and improvement in profitability," said its Managing Director and CEO Sudhir Sitapati. Britannia Executive Vice-Chairman and Managing Director Varun Berry also expressed optimism. "Volume growth will be certainly much better than this year," he said. On commodity prices, Berry said there is deflation in prices of palm oil, laminates and corrugated material for packing but flour and milk prices are soaring. "There are certain brands and certain packs where we have already initiated price reductions or promotions," he said. In the March quarter, Britannia reported a 47.53 per cent jump in consolidated net profit to Rs 557.60 crore. Its revenue from operations rose 10.93 per cent to Rs 3,892.02. Similarly, Dabur reported volume growth of 11 per cent during the March quarter and 14 per cent for FY23. Its quarterly net profit was Rs 292.76 crore and revenue from operations stood at Rs 2,677.8 crore. "Despite near-term concerns around inflationary pressures, we plan to accelerate the growth momentum by continuing to invest in brand building, innovation, and capabilities that will drive growth," said Dabur India CEO Mohit Malhotra. Other companies also recorded growth. ITC's revenue from the FMCG segment rose 19.34 per cent to Rs 4,951.17 crore from Rs 4,148.62 crore while EBITDA jumped 76 per cent. Nestle, the maker of Maggi, Kitkat and Nescafe, reported an increase of 24.69 per cent in its net profit to Rs 736.64 crore in the March quarter. Sales rose 20.43 per cent to Rs 4,808.40 crore. Tata Consumer reported a 21.12 per cent rise in its consolidated net profit to Rs 289.56 crore. Its revenue from operations was up 13.96 per cent at Rs 3,618.73 crore. Tata Consumer said it recorded growth in the India beverages business and food. It had a "strong margin growth and strong topline growth driven both by volume and price," the company said in its earnings call. "We have started seeing volume growth coming back. The impact of inflation and monetary tightening on economic growth and demand seems to be slowing down, but I would keep my fingers crossed and monitor it closely," said Tata Consumer MD and CEO Sunil D'Souza. "In the near term, we are seeing stability." 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FMCG makers expect sustained recovery in volume and margins with price reduction in FY24

<ul><li>The FMCG giant HUL has released its financial statement for FY21. </li><li>HUL reported a 34% increase in its turnover. </li></ul><keyword id="178761" type="COMPANY" weightage="20" keywordseo="Hindustan-Unilever-Limited">Hindustan Unilever Limited</keyword> has announced its results for the quarter and year ending 31st March 2021. As per its financial records, the FMCG giant spent Rs 4,737 crore on advertising in FY21. Broad-based performance Growth in the quarter was competitive and profitable with reported turnover growth of 34% and Profit after tax growth of 41%. Domestic consumer growth* was at 21% with underlying volume growth of 16%. Health, hygiene and nutrition forming c.80% of business grew in double-digits for the third consecutive quarter, while discretionary and out-of-home categories improved sequentially. Home Care: Home Care growth at 15% was enabled by a strong recovery in Fabric Wash. Household Care continued its strong performance delivering double-digit growth. Liquids and Fabric Sensations continue to outperform benefitting from robust market development initiatives. Beauty &amp; Personal Care: Beauty and Personal Care grew 20% with Skin Cleansing, Hair Care and Oral Care delivering high double-digit growth. Skin Cleansing performance was led by ‘Lifebuoy’ and premium segment. A calibrated approach towards price increase has helped protect our business model even as vegetable oils continue to inflate at record levels. Consumer-focused innovations and contextual communications in Hair and Oral Care continue to yield good results. Skin Care portfolio registered strong performance in Hand &amp; Body Care and Face Cleansing segments. Color Cosmetics performance improved sequentially. Foods &amp; Refreshment: Foods and Refreshment delivered another quarter of strong performance and grew at 36%. All our Tea brands continue to grow in high double-digits. Ketchups, Soups and Ice Creams also performed well with double-digit growths. Ice Creams recovery in the quarter was aided by multiple product innovations. Nutrition volumes grew in double digits and we launched Rs. 2 sachets in Horlicks and Boost. Our goal remains to drive penetration in this category. Operating margins: EBITDA margins at 25% remain healthy. Profit after tax at Rs 2,143 Crore increased by 41%. HUL will continue to invest behind its brands and portfolio, and in future-fit capabilities. According to its statement to the press, HUL's focused actions on net revenue management and savings have enabled the compnay to manage inflationary pressures and deliver a healthy bottom-line performance.<a name="m_6766058920235297106__Hlk31014716"></a> Financial Year 2020-21: Growth competitive and profitable Turnover at Rs 45,311 Crores grew by 18%, Domestic Consumer Growth* was 6%. Profit after tax at Rs 7,954 Crores was up 18%. We managed COVID challenges well and sustained strong cash generation. The Board of Directors have proposed a final dividend of Rs 17 per share, subject to approval of shareholders at the AGM. Together with interim dividend of Rs 14 per share, the total dividend for the financial year ending 31st March 2021 amounts to Rs. 31 per share. During the year, a special dividend of Rs. 9.5 per share was also paid. Sanjiv Mehta, Chairman and Managing Director commented, “Our in-quarter performance was strong on both the top-line and bottom-line. Despite challenging times, in FY’21 our business ecosystem has withstood the disruption and demonstrated agility and resilience across the value chain. We have delivered on our multi stakeholder business model. Our purpose-led brands and capabilities were further strengthened during the year and this positions us well to serve our consumers during this turbulent period. Our focus firmly remains behind delivering volume-led competitive growth. The recent surge in COVID cases is of serious concern and ensuring safety and wellbeing of people remains our top priority. We will continue to work closely with governments, health authorities and our partners to support the needs of the society and the Nation to overcome this adversity. #HULStandsWithTheNation” * excluding the impact of merger of GSK CH and acquisition of ‘VWash’<table align="left" style="color: rgb(34, 34, 34); font-family: Arial, Helvetica, sans-serif; font-size: small; background-color: rgb(255, 255, 255);"><tbody><tr></tr></tbody></table>

HUL spent Rs 4,737 crore on advertising in FY21, saw a 41% increase in profit after tax

<ul><li>Redseer report on Digital Disruptor ranked 75 digital disruptors that currently generate $15 billion in sales online. </li><li>It also classified them into elephants, tigers, rabbits and turtles based on their category dominance and online focus. </li><li>Tigers and rabbits will have to enhance their focus on offline sales, while elephants and turtles will have to approach e-commerce aggressively, the report notes. </li></ul>The world is going digital and all companies – small, big, old and new are adapting to it. Come 2026, a quarter of all sales in the retail world (except grocery) will be online, predicts a Redseer report on Digital Disruptors. The report picked 75 companies in the crowded online space as digital disruptors, who cumulatively currently generate $15 billion in sales online, and ranked them based on the dominance in their category, and online focus. Surprisingly, traditional companies Hindustan Unilever and Aditya Birla Fashion &amp; Retail were ranked as top digital disruptors in grocery &amp; personal care, and fashion &amp; home categories, respectively. In the third category of electronics &amp; appliances, however, digital-first brand boAt was given the numero uno rank. The animal spirits In the jungle that is e-commerce, these 75 companies were also categorised as elephants, tigers, rabbits and turtles. No prizes for guessing who elephants are – typically legacy players who used to dominate their category offline, and have managed to build an online presence. “The sheer scale of elephants and brand pull has enabled them to get significant sales online, but e-commerce still contributes a relatively small share of their revenues,” the report said. Adidas, Zara, Nestle and Marico are some of the other brands listed under elephants. The next are the tigers – early movers in the e-commerce space that have scaled up rapidly. Licious, WakeFit, Mamaearth and Xiaomi are some of the brands in this part of the quadrant that is dominated by digital-first brands. But, Asus and BBK, which are not born digital also made it to this list. “Tigers have built online dominance in their categories. They drive a significant share of sales from e-commerce but have also built a strong offline footprint,” the report said. Rabbits: Yet to win the race The third category is rabbits, which are exclusively digital-first brands that have leveraged e-commerce to scale up but do not have a substantial market share. Most of the brands in this category, like Nothing, Beardo, Sugar Cosmetics, MyGlamm, Minimalist, Country Delight and more – are from the fashion and personal care space. Thanks to high growth in e-commerce sales, these players will benefit but will face challenges from elephants, who have established their presence both online and offline. The last set of companies in the quadrant are the slow-moving turtles – legacy brands that have done well in e-commerce but have a lower market share online relative to others. Fossil, Aachi Masala, Prestige and LG Electronics are some of the brands listed as turtles. The reverse migrants Digital-first brands account for 25% of all the sales in the e-commerce pie. However, now even digital-first brands are going offline, challenging traditional players in the turf erasing the battle lines. On an average, digital-first brands derive over 75% of their sales online while traditional brands do over 30% of their sales online. “Players in the top quadrants — tigers and rabbits — will have to enhance their focus on offline sales, while the bottom quadrant — elephants and turtles – will have to approach e-commerce aggressively,” says Mohit Rana, partner at Redseer. E-commerce is expected to drive retail growth and is projected to grow at a compounded annual rate of 27% to reach $163 billion by 2026. That’s almost three times the growth in the overall retail market, as per Redseer. “Clearly, traditional companies that are over indexed on offline sales have a short window to enhance their share in e-commerce.They need to focus on building their digital capabilities and adopting an omnichannel approach to succeed in the market,” said Redseer. Large-scale traditional players, even with a low percentage of e-commerce sales, have substantial absolute online sales, the report notes. SEE ALSO <a href="https://www.businessinsider.in/business/news/as-stores-remain-at-heart-of-business-retail-leasing-to-hit-a-4-year-high-in-2023-cbre/articleshow/99085535.cms">As stores remain at ‘heart of business’, retail leasing to hit a 4-year high in 2023: CBRE</a> <a href="https://www.businessinsider.in/advertising/brands/news/campa-has-to-go-beyond-invitation-price-to-build-the-brand-distribution-network/articleshow/99025480.cms">Campa has to go beyond invitation price to build the brand &amp; distribution network</a>

Meet the tigers, elephants, rabbits and turtles of the e-commerce jungle

<ul><li><keyword id="2582336" type="General" weightage="50" keywordseo="rohit-jawa" source="Orion">Rohit Jawa</keyword> would take over the leadership role for a term of five consecutive years with effect from June 27, 2023.</li><li>Jawa will join the <keyword id="44863" type="General" weightage="100" keywordseo="hul" source="Orion">HUL</keyword> board as a whole-time director from April 1, 2023.</li><li>Besides the Indian market, he will also take over as President of <keyword id="45009" type="General" weightage="80" keywordseo="unilever" source="Orion">Unilever</keyword> South Asia. </li></ul> FMCG major HUL on Friday announced the appointment of Rohit Jawa as the Managing Director &amp; Chief Executive Officer to succeed <keyword id="169120" type="General" weightage="50" keywordseo="sanjiv-mehta" source="Orion">Sanjiv Mehta</keyword> who will retire from the company after leading it for a decade. Jawa, presently the Chief of Transformation for Unilever, would take over the leadership role for a term of five consecutive years with effect from June 27, 2023, the company said in a statement. "The appointment of Rohit Jawa as a whole-time director and MD &amp; CEO will be subject to the approval of Shareholders and other statutory approvals as may be applicable," it added. Jawa will join the HUL board as a whole-time director from April 1, 2023. Besides the Indian market, he will also take over as President of Unilever South Asia. He will join the Unilever Leadership Executive (ULE) effective April 1, 2023. After a transformational tenure of 10 years at the helm of HUL, Sanjiv Mehta will retire from the company. Jawa is currently the Chief of Transformation for Unilever in London where since January 2022, he has successfully orchestrated the once-in-a-decade, end-to-end transformation of Unilever. He started his career with HUL as a management trainee in 1988 and has a proven track record of sustained business results across - India, South East Asia, and North Asia. As EVP for North Asia &amp; Chairman for Unilever China, he led a significant transformation of Unilever China into a competitive, profitable, and consistent business, now Unilever's third biggest globally, the statement said. Further, as the Chairman of Unilever Philippines, he led the business to become one of the top 10 markets for Unilever globally. Rohit's ability to integrate the strength of traditional markets with digital technologies and future-fit business models positions him well to take HUL into its next growth phase. Commenting on the development HUL Chairman Nitin Pranjape said: "I am delighted to welcome Rohit back to India. He has a deep understanding of the business landscape, particularly in Asia and has led the transformation of Unilever businesses in China and in the Philippines. "I am certain that with his astute business acumen, and growth mindset Jawa will take HUL to the next level of performance." Mehta (62), had taken over as the MD &amp; CEO of HUL in October 2013 leading the business through a period of sustained growth. During his decade at the helm, the business crossed the Rs 50,000 crore turnover mark and the market capitalisation of the company increased more than four times from USD 17 billion to USD 75 billion, reinforcing HUL as one of India's most valuable businesses, the company said. He has been a proponent of long-term value creation anchored by growth, high-performance anatomy and distinctive capabilities and introduced several transformative business programmes such as 'Dial Up the Big Q' and 'Winning in Many Indias' to make the business more consumer-centric, agile, and resilient. In order to make the business more future-fit, Mehta kickstarted the 'Reimagine HUL' agenda by leveraging data, harnessing latest technologies, and designing business models to redefine how HUL engages with consumers, customers, and the way the business operates. He was also instrumental in HUL undertaking several strategic mergers and acquisitions, including the amalgamation of GSK Consumer Healthcare into HUL, one of the biggest mergers in the history of FMCG in the country. Besides, he actively championed the diversity agenda making HUL an even more inclusive organisation, the company said. Paranjpe said Mehta has been an integral part of the Unilever Leadership Executive and has driven the South Asia growth agenda as the president of the market cluster. Hindustan Unilever Led (HUL) is India's largest Fast-Moving Consumer Goods company, For the financial year ended on March 31, 2022, HUL which owns power brands such as Rin, <keyword id="270001" type="General" weightage="50" keywordseo="surf-excel" source="Orion">Surf Excel</keyword>, Dove etc has a revenue of Rs 51,193 crore. Mehta also served as the President of the industry body FICCI. Besides, the HUL board also announced the appointment of Ranjay Gulati as an Independent Director of the company for a term of five consecutive years with effect from 1st April 2023. Gulati comes with a rich understanding of Business Strategy and is presently a Professor at Harvard Business School, said an HUL statement. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/tata-technologies-files-drhp-with-sebi-all-you-need-to-know-about-this-tata-motors-subsidiary/articleshow/98539244.cms">Tata Technologies files DRHP with SEBI: All you need to know about this Tata Motors subsidiary</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/demand-for-call-center-remote-customer-service-jobs-see-sharp-uptick-since-pre-pandemic-indeed/articleshow/98543190.cms">Demand for call center, remote customer service jobs see sharp uptick since pre-pandemic: Indeed</a>

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Hindustan Unilever shares tumble over 6% post Q2 results

BI India Bureau

Price cuts might not bring in volume growth for FMCG majors in Q2 say analysts

Katya Naidu

HUL spent Rs 2,255 crore on advertising between April and September this year

BI India Partner

FMCG sector Q1 preview — Caught between price cuts and volume growth

Katya Naidu

FMCG makers expect sustained recovery in volume and margins with price reduction in FY24

PTI

HUL spent Rs 4,737 crore on advertising in FY21, saw a 41% increase in profit after tax

BI India Partner

Meet the tigers, elephants, rabbits and turtles of the e-commerce jungle

Katya Naidu

Hindustan Unilever appoints Rohit Jawa as new MD & CEO; Sanjiv Mehta to retire

PTI

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