Consumer firms get an urban glow in Q2
₹2,717 crore for the three months ended 30 September from ₹2,616 crore a year ago, the company said in a statement to the stock exchanges. Sales rose 4% to ₹15,027 crore from ₹14,514 crore in the year-ago period, while advertising and promotion spending increased 11.4% to ₹1,720 crore during the quarter. The company said it delivered a “resilient and competitive performance" in the quarter, with an underlying volume growth of 2%.
Operating margin widened 130 basis points to 24.6% from a year earlier. HUL reported urban volume growth of approximately 10% this quarter, building on a 3% decline during the same period last year. But on a two-year basis, urban volume growth averaged 3%.
Meanwhile, rural volume growth was at 7%. However, HUL said rural volume growth averaged -1% from a two-year perspective. HUL, however, expressed optimism about demand recovery, counting on the upcoming festive season, service sector growth and government-driven capital expenditure initiatives.
Nonetheless, HUL is monitoring global commodity price fluctuations and the impact of monsoon patterns on crop output and reservoir levels. Urban markets showed growing demand for premium products. Premium categories, which previously comprised 25% of business, have now increased to nearly one-third, chief financial officer Ritesh Tiwari said.
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