HUL’s calibrated approach to achieving volume sales growth with an eye on maintaining profitability points to a long wait ahead for higher sales and earnings growth
Cheaper soaps and fabric washers have impacted Unilever s skin cleansing and home care segment growth in India, with the company citing input-deflation benefits for buyers as a key factor. Despite this, India, the second largest market for Unilever, saw a 0.7% expansion with low single-digit volume growth partially offset by price cuts. The company reported flat skin cleansing growth due to a small increase in price offset by volume decline, while global home care grew by 3.1% but with a 1.1% decrease in price growth, driven by fabric cleaning.
"Earnings have taken centre stage among investors with some of the key heavyweights announcing their numbers this week. Overall we expect the market to maintain its ongoing positive momentum along with stock-specific action," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal.