After a muted Q4, high base could pose growth challenges for HUL

Muted volume growth, higher ad spends may be a drag on profitability

The country’s biggest fast-moving consumer goods company, Hindustan Unilever (HUL), disappointed the Street with sales and operating performance missing estimates. Net sales grew by 11 per cent, while brokerages expected the number to be upwards of 12.5 per cent, largely led by higher volume growth (its Q4 figure stood at 4 per cent), even as pricing growth at 7 per cent was in line with Street expectations.

The single-digit pricing growth was largely on account of price cuts in the soap portfolio on the back of falling raw material prices. Even as the home care segment continues to lead on