HUL Q3 surpasses estimates even as rural growth remains impacted

Net profit up 18.6% on 10.3% rise in revenue; says near-term outlook uncertain as growth moderating, inflation high

Hindustan Unilever, the country’s largest fast-moving consumer goods (FMCG) major, posted better than expected performance for the quarter ended December 2021 (Q3FY22) on all fronts -- sales, operating profit, and net profit.

It also clocked better than industry growth in its business categories. However, the commentary was worrying because the company management said the operating environment remained challenging as rural growth in volumes for the industry in the December ended quarter (Q3FY22) continued to stay in negative territory, citing Nielsen’s market growth numbers.

The volumes started contracting in rural areas from August last year, according to the data by Nielsen shared by