HUL Q3 preview: Weak rural growth may hit performance; Volumes to grow 4%

Weak rural growth is expected to adversely impact financial performance of the FMCG (fast moving consumer goods) bellwether Hindustan Unilever (HUL) for the third quarter of the financial year 2019-20 (Q3FY20) as rural sales contributes a sizeable portion of its overall sales in addition to shift towards lower priced alternatives. The company is slated to announce its December quarter results Friday.

Rural growth, which was half of urban in Q2FY20, has seen no change in trajectory and continues to stay around the same level. One positive takeaway this quarter is that the liquidity crisis – which was hurting wholesalers and retailers