Although inflation is softening on a YoY basis, still seeing high levels of cumulative inflation, said FMCG major Hindustan Unilever after reporting its Q1 numbers. "FMCG markets are recovering gradually although the operating environment remains challenging. In the near-term, FMCG industry will continue to witness rebalancing of price-volume growth equation and a gradual recovery in consumer demand," said Rohit Jawa, MD & CEO of HUL.
HUL has clocked an EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 3,521 crore, up 8% YoY in the June quarter. ​Meanwhile, EBITDA margins improved by 40 basis points to 23.6% in the reporting period.
EBITDA margins are likely to expand by a modest 63 basis points YoY owing to higher ad-spends, offsetting gross margins expansion of 150 bps YoY, according to analysts.