Hindustan Unilever (Hul), the largest company of rapid rapid movement assets, said that the demand is gradually recovering and that the situation does not expect “it will magically change during the night”, even if it increases investments and has lowered its guide on the margin after having reported a 5 % increase in the revenue during the June quarter.
The company recorded sales of RS 16,323 crores for the first quarter of 2025-26 with an increase in the net profit of 6 % at RS 2,768 Crore. Its volume, or the number of packages sold, increased by 4 %. The expansion of the revenue in the quarter was the highest in almost two years, with the growth of the sales of the pending company between the dish and 4 % from July-September 2023.
“We hope that this recovery will be supported and is moving in the right direction. But it is gradual. Our prognosis is that, given all the movements that have been made by the government, tax, monetary, good monsoons, food inflation, everything that bodes well for mass consumption,” said Rohit Jawa, MD, Hul. “Our rural growth that was initially delayed has returned to grow every quarter and has gradually recovered and is being supported. Even urban growth, although not as fast as rural areas, has recently shown an increase, largely led by small cities and cities.”Urban markets represent almost two thirds of Hul sales and have seen the demand weaken due to inflationary pressures, a lower wage growth and higher housing rentals. The producer of the Rin detergent and the shampoo where, whose performance is considered a proxy for a wider feeling of consumers in India, said that the lower inflation and the tax benefit of income would help to support the recovery.
“The discounts on income tax, in addition to the fact that the repository rates decreased in housing loans or Emi (equated monthly installments) will be reduced. This has a material impact on the baskets of people’s consumption. Even things like inflation are rather low, right and this makes a big difference for the urban consumer,” said Jawa.The profits of the company before the interests, taxes, the demort and the demort (Ebitda) decreased 130 basis points of year at 22.8 percent in the quarter of June.
A recent report by the market researcher (previously Kantar) said that the demand for daily food, domestic and personal products have slowed 3.9 % of volume growth year by year in the quarter of June, after early rainfall has affected the drinks and sales of summer products. However, family assistance was the only category that expanded, due to its largest sub-segment, the laundry, which grew by 4 % during the quarter against the growth of 2.6 percent of a year ago. Hul gets a third of his entrances from the house.
