Upgradation trend consistent even in rural: Unilever CEO Hein Schumacher

Hindustan Unilever (HUL) said in its conference call with analysts that it is gaining market share in the last three months, according to Nielsen (NielsenIQ) numbers

Unilever is focusing harder on its core pillars in the food business in India and is determined to make it grow, company’s Chief Executive Officer Hein Schumacher said.

 

“We are focusing harder and more behind core pillars, condiments, cooking aids, and food solutions, and we are determined to grow our Indian food business going forward,” Schumacher said on its post-earnings conference call with analysts.

 

Hindustan Unilever (HUL), in its conference call, said that it is gaining market share in the last three months as per Nielsen (NielsenIQ) numbers.

 

“While we did lose some inconsequential share during the deficiency cycle, we held on to most of the 200 basis points share gained since March 2021, and we are now on the path to further strengthen it. This progress in our competitive position is a testament to our commitment towards transforming our portfolio to outperform, underpinned by the strength of our brand and distribution progress,” Rohit Jawa, managing director and chief executive officer at HUL, told investors on its conference call.

 

 

While the July-September quarter witnessed moderation in urban growth, Jawa said that premium continues to grow around 30 per cent faster than the other segments.

 

“We see the trend of upgradation remaining consistent and secular because even in rural areas, for instance, you go to a shop and check a Rs 1 sachet Clinic Plus user moves on to a Rs 2 Dove. That's an upgrade as far as we're concerned because it's doubling the cost of washing with doubling quality wash,” he explained to investors on the call.

 

On Wednesday, HUL announced its earnings and its net profit missed analyst estimates. HUL’s net profit was Rs 2,591 crore in the quarter ended September, down 2.4 per cent compared to the same quarter last year, while its underlying volume growth stood at 3 per cent in the quarter. The fast-moving consumer goods (FMCG) major’s revenue was higher by 1.9 per cent year-on-year (Y-o-Y) at Rs 15,926 crore.

 

In the press conference after its earnings on Wednesday, Ritesh Tiwari, chief financial officer at HUL, said, “After a prolonged period of benign commodity prices in this quarter, crude oil, palm oil, and tea witnessed inflation of 10 per cent and 25 per cent Y-o-Y, respectively.”

 

It also announced that its board of directors decided to separate the ice cream business. In September, the board constituted a committee of independent directors to evaluate the business’ future.