HUL sales rise 4% in Q1, sees urban demand uptick
MUMBAI: HUL reported a 4% year-on-year rise in total sales to Rs 15,747 crore on a standalone basis in the June quarter, improving its pace of growth which had been subdued over the past few quarters on the back of sustained recovery in rural markets and some signs of uptick in urban regions.
Easing food inflation, low interest rates and tax breaks have put more money in the hands of consumers, aiding spends on soaps, shampoos and packaged food.
The revival in urban markets which continues to lag its rural counterparts is gradual and is largely being led by small cities and towns, outgoing CEO and MD Rohit Jawa said at a post earnings briefing here on Thursday.
Jawa, who is passing on the baton to another HUL veteran Priya Nair, said that a mix of the positive macro factors alongside expected good monsoons should help in sustaining the recovery in consumption.
The growth trajectory of consumption is, however, uneven, with some pockets performing better than others.
.
"The informal rural and the informal urban sectors are resilient and getting better, the top urban market...the salaried class, white collar (workforce), they have been under some stress in the recent past but coming closer to our own market-urban, although lower than rural, is beginning to look up, but it's gradual.
We don't expect it to magically change overnight," Jawa said.
Nair, HUL's first woman CEO will assume office on Aug 1. "I am excited that I am handing over to a successor who is also home-grown-an excellent person to take over the baton," said Jawa, who has had a 37-year career at Unilever, spanning eight markets.
The maker of Dove shampoos and Knorr soups posted a 4% y-o-y growth in revenue from operations to Rs 15,931 crore in Q1.
Net profits grew nearly 8% y-o-y to Rs 2,732 crore, partly helped by lower tax expenses. Underlying volume growth stood at 3% during the quarter. HUL also attributed the decent performance to competitive growth in its core portfolio and bets on high-growth demand spaces, which paid off. HUL's earnings is seen as a proxy for domestic consumption.
High inflation in the recent past had nudged urban consumers to cut back on spending and move to smaller packs.
With commodity prices expected to remain rangebound, HUL's price growth should be in low-single digits, said CFO Ritesh Tiwari. The stock price of HUL closed nearly 4% higher on the BSE. "Unilever has been really, really good to me. HUL has been good to me. I feel very grateful and I also feel excited because I feel the need to do something different now in the second half of my career...I am looking to chart a new profile of work and a new way of living," Jawa signed off.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
27 minutes ago
- Economic Times
Kothari Industrial Corporation acquires Zodiz, Jeetlo to strengthen mass footwear presence
KICL, the flagship company of the diversified D C Kothari Group, acquired footwear brands Zodiz and Jeetlo for an undisclosed sum, further expanding its presence in the mass-market footwear segment, an official said. Kothari Industrial Corporation Ltd had previously acquired noted overseas brands, including Kickers, and has set up a non-leather footwear park in Tamil Nadu's Perambalur district. The acquisition of Zodiz and Jeetlo, along with their associated sub-brands, will come into effect from August 4, 2025, the company said in a statement on Zodiz brand is promoted by Coimbatore-based Zaimus Trends Pvt Ltd and is known for its affordable footwear promoted by Haryana-based India Pvt Ltd, has a strong presence across e-commerce platforms. The acquisition is expected to provide KICL with a firm foothold in underserved and fast-growing consumer segments. Both brands retail products priced below Rs 1,000 per pair, catering to a quality-conscious and value-driven industry data, KICL said that footwear priced under Rs 1,000 accounts for nearly 80 per cent of total consumption, with the sector estimated to be valued between Rs 80,000 crore and Rs 85,000 crore annually."This is not just an acquisition; it marks the beginning of a new chapter that will unlock value for consumers, partners, and stakeholders," said KICL executive chairman Jinnah Rafiq company plans to focus its marketing strategy on tier-II and tier-III cities, offering products that align with evolving fashion sensibilities while ensuring comfort for daily wear, he added. Ahmed noted that the Indian footwear market is undergoing a "profound transformation", with per capita consumption currently at 1.9 pairs per annum-a figure expected to double by 2030. The domestic footwear industry is at a pivotal moment. India is witnessing a rapid shift in consumer preferences. Footwear is no longer seen as mere utility-it has evolved into a symbol of personal style and self-expression, he said.
Time of India
27 minutes ago
- Time of India
Kothari Industrial Corporation acquires Zodiz, Jeetlo to strengthen mass footwear presence
KICL, a D C Kothari Group company, is set to acquire footwear brands Zodiz and Jeetlo, effective August 4, 2025, to bolster its presence in the mass-market segment. This acquisition will provide KICL with a stronger foothold in underserved consumer segments, focusing on products priced under Rs 1,000, catering to a value-driven market. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Cons. Products 1. Over one lakh jobs in India's jewellery industry at risk due to fresh US tariffs KICL, the flagship company of the diversified D C Kothari Group, acquired footwear brands Zodiz and Jeetlo for an undisclosed sum, further expanding its presence in the mass-market footwear segment, an official said. Kothari Industrial Corporation Ltd had previously acquired noted overseas brands, including Kickers, and has set up a non-leather footwear park in Tamil Nadu's Perambalur acquisition of Zodiz and Jeetlo, along with their associated sub-brands, will come into effect from August 4, 2025, the company said in a statement on Zodiz brand is promoted by Coimbatore-based Zaimus Trends Pvt Ltd and is known for its affordable footwear promoted by Haryana-based India Pvt Ltd, has a strong presence across e-commerce acquisition is expected to provide KICL with a firm foothold in underserved and fast-growing consumer segments. Both brands retail products priced below Rs 1,000 per pair, catering to a quality-conscious and value-driven industry data, KICL said that footwear priced under Rs 1,000 accounts for nearly 80 per cent of total consumption, with the sector estimated to be valued between Rs 80,000 crore and Rs 85,000 crore annually."This is not just an acquisition; it marks the beginning of a new chapter that will unlock value for consumers, partners, and stakeholders," said KICL executive chairman Jinnah Rafiq company plans to focus its marketing strategy on tier-II and tier-III cities, offering products that align with evolving fashion sensibilities while ensuring comfort for daily wear, he noted that the Indian footwear market is undergoing a "profound transformation", with per capita consumption currently at 1.9 pairs per annum-a figure expected to double by domestic footwear industry is at a pivotal moment. India is witnessing a rapid shift in consumer preferences. Footwear is no longer seen as mere utility-it has evolved into a symbol of personal style and self-expression, he said.
India.com
27 minutes ago
- India.com
FPIs Pullout Rs 17741 Cr From Indian Equities In July, High Selling This Week Turns July Investment Negative: NSDL
New Delhi: Foreign portfolio investors (FPIs) turned net sellers in the Indian equity market in July, with a total outflow of Rs -17,741 crore, according to data released by NSDL. This marks the first month of negative investment by FPIs after three consecutive months of positive inflows during April, May, and June. The sharp reversal in sentiment was driven by a sudden surge in selling during the last week of July. Between 28 July and 1 August, foreign investors pulled out Rs 17,390.6 crore from Indian equities, which significantly impacted the overall monthly numbers and pushed July's investment into negative territory. The recent selling pressure is largely due to the fresh reciprocal tariffs imposed by the United States, which has impacted India among several other countries. These tariffs have raised concerns over global trade stability and investor sentiment, prompting FPIs to reassess their exposure in markets. The data also highlighted that May saw the highest FPI inflows so far in 2025, while January witnessed the largest sell-off, with net selling of Rs -78,027 crore. With the recent selling in July, the total net outflow by FPIs in the calendar year 2025 has now crossed Rs -1,01,795 crore. The reversal in FPI trend raises concerns for the Indian equity market, which had been witnessing strong support from foreign investors in the previous months. However, the global economic developments like reciprocal tariffs by US President Trump and geopolitical tensions between US and Russia will continue to influence FPI behavior in the coming weeks. In the previous month of June, FPIs had made a net investment of Rs 14,590 crore in the Indian equity segment. In May, foreign investors poured in Rs 19,860 crore, making it the best-performing month of the year so far in terms of FPI inflows.
