HUL draws attention for its solid performance during tumultuous times

By Ayushi Garg  | Date: October 06, 2022

HUL draws attention for its solid performance during tumultuous times

Hindustan Unilever Limited (HUL), has outperformed its parent firm FMCG behemoth Unilever and is on track to surpass the US division of the Anglo-Dutch consumer global conglomerate to become the largest by value.

India's largest FMCG company has also surpassed its contemporaries, as well as the other Indian divisions of major consumer giants like Procter & Gamble, and Nestle India.

HUL recorded operating margins of 23.2% for the quarter that ended on June 30, 2022. While this was down 110 basis points from the previous year, it was still better than Nestle Indias margin of 21% and significantly higher than Procter & Gamble Hygiene and Health Cares operating margin of 15.5%.

Whilst FMCG companies worldwide struggle with volatile and uncertain commodity pricing, HUL appears to have weathered the storm better than its parent company. For instance, HULs volume growth has continued to be in the high single digits and was at 6% in the June quarter, despite a steep increase in commodity prices and a decline in rural demand. Unilever, on the flip side, revealed a volume loss of 1.6% over the same period.

In terms of revenue, although Unilevers sales increased by 8.8%, HUL reported a healthy 19% year-on-year increase in turnover in April-June 2022. Besides, as of 4 October 2022, the corporation had a market capitalization of USD 76 billion.

Analysts claim that HULs premiumization strategy has benefited the business and helped it outperform the competition. Notably, Manoj Menon, head of research at ICICI Securities, stated in a recent study that the companys ongoing efforts to establish categories, including formats and premiumization, are a factor in its exceptional success.

Interestingly, Unilever also stated in July that its sales in India, its priority market, increased significantly in the first half of 2022. The company further reports an underlying sales increase of 9% to USD 13.52 billion, with India falling under the market region of Asia, Africa, Middle East, Turkey (AMET), & Russia, Ukraine, Belarus (RUB).

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Ayushi Garg

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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