HUL's cautious optimism: Can stable prices and rural recovery ease the FMCG path?
HUL) has provided a cautiously optimistic outlook for the upcoming quarters, suggesting that demand trends are likely to remain stable. As the FMCG giant navigates the evolving market landscape, it anticipates that low-single-digit price growth may be achievable if commodity prices stabilise at their current levels. In its second quater result the FMCG major witnessed a decline in food & refreshment and personal care segment.
HUL's expectation of low-single-digit price growth is contingent on the stabilisation of commodity prices. Inflation often drives up the costs of raw materials, which can lead to increased prices for consumers. By indicating that price growth may remain stable if commodity prices stabilise, it could possibly mean easing inflationary pressures, which would be beneficial for both the company and consumers.
Rohit Jawa, CEO and Managing Director of HUL, noted that while urban markets have experienced moderating growth in demand, rural areas are on a path to gradual recovery.
“In this context, we delivered a competitive and profitable performance,” Jawa remarked, underscoring the company’s ability to adapt and thrive despite market fluctuations.
Jawa emphasised the importance of being vigilant regarding the gradual recovery in consumer demand. He highlighted that HUL is committed to creating a sustained competitive advantage through its core business fundamentals. “We are investing behind our aspirational brands, scaling market-making innovations, and maintaining operational rigor,” he stated,
