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News on Medial
HUL highlights demand slowdown in urban markets, bets on rural relief | Mint
Livemint
·
9m ago
Medial
Hindustan Unilever Limited (HUL), India's largest household goods company, has reported a slowdown in urban markets, particularly in major cities, similar to its rival Nestle. However, HUL remains optimistic about rural markets, which have shown signs of gradual improvement. The company attributes the urban slowdown to high food inflation and a high base effect. In contrast, rural growth has surpassed urban growth in recent quarters. Despite the tepid overall growth, HUL's premium-priced products continue to outperform mass-market products, indicating an opportunity for further growth. Additionally, the company has announced the separation of its ice cream business and has initiated price hikes due to rising commodity costs.
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Demand to recover gradually, says HUL
Economic Times
·
8d ago
Medial
Hindustan Unilever (HUL), a major player in India's fast-moving consumer goods sector, reports that demand is gradually recovering. Despite facing challenges such as inflation, low wage growth, and high housing costs impacting urban markets, HUL anticipates improvement in consumer sentiment. The company recorded a 5% revenue growth in the June quarter, with a 6% net profit increase. Sales volume grew 4%, reflecting the highest revenue growth in two years. Rural and urban demand is stabilizing, supporting future growth.
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HUL reports flat volume growth amid shift to smaller packs in urban markets | Company Business News
Livemint
·
6m ago
Medial
Hindustan Unilever reported flat volume growth in Q3, indicating slowed urban consumption, with notable consumer shifts towards smaller packs due to budget management. Net profit surged 19% year-on-year, aided by a divestment gain, but core sales faced pressure from inflated commodity prices. HUL plans to demerge its ice cream business and acquired a stake in Minimalist to expand into higher growth markets. The slowdown in FMCG volumes highlights ongoing consumer budget constraints linked to inflation.
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Competition a positive force, keeps us sharp: Coca-Cola president Murphy
Livemint
·
6m ago
Medial
Coca-Cola's President, John Murphy, highlights India's pivotal role in the company's global strategy due to its growth potential, especially in rural markets. Despite urban demand fluctuations, Coca-Cola remains optimistic, focusing on digitization and accessibility. Competitive local brands are seen as beneficial challenges. Murphy emphasizes a balanced pricing strategy, urban retail evolution, and sustainable practices. The firm is leveraging AI for marketing and operations, underscoring India's promising future for Coca-Cola amidst economic fluctuations.
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Are traditional businesses still relevant today?
Inshorts
·
3m ago
Medial
Traditional ventures rely on proven models like manufacturing, distribution, or local services. While they grow slower, they offer stability and long-term demand. These ventures are still strong in semi-urban and rural India, where trust and consistency outweigh innovation. Foundations still matter in fast markets.
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FMCG cos may report low-to-mid single-digit volume growth in Q4
Livemint
·
1y ago
Medial
FMCG demand sentiment in India remained consistent in the fourth quarter, with urban and rural consumption trends converging. Marico expects a slight uptick in volumes for its India business during this quarter, while Godrej expects high-single digit volume growth. Dabur warns of sluggish demand trends. Analysts predict low-to-mid-single-digit volume growth driven by urban markets. The impact of high inflation on consumption is a concern, particularly in the mass segment. However, analysts anticipate a rebound in volume growth in the coming months. QSRs are expected to report muted demand.
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For FMCG, rural markets finally deliver some cheer
Livemint
·
1y ago
Medial
India's packaged consumer goods industry experienced a significant turnaround in the March quarter, with rural demand surpassing urban markets for the first time in 15 months. The FMCG industry reported a 6.6% growth in value terms, driven by a 6.5% increase in volumes. The growth in rural areas was attributed to the popularity of larger pack sizes in the home and personal care categories. While urban markets still showed growth, it was slower than in the previous quarter. Modern trade reported strong volume growth, while traditional trade remained stable. Non-food categories outpaced the food category in terms of growth.
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India’s grocery bill reveals a tale of two markets
Economic Times
·
27d ago
Medial
India's FMCG sector shows a rural-urban divide in consumer preferences. Urban shoppers, influenced by inflation and digital access, favor unbranded goods for savings, with an 8.4% volume growth in cities vs. 2.3% in rural areas. Rural consumers remain loyal to legacy brands, prioritizing quality even at higher prices, with 5.1% volume growth. Large FMCG companies adopt dual strategies: digital-first products for urban markets and established brands for rural consumers.
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The two faces of India Inc.'s Q3 growth story
Livemint
·
1y ago
Medial
Corporate India experienced divergent paths for revenue and profit growth in the December quarter. While revenues grew at their fastest rate in three quarters, profit growth slowed down. Struggling rural demand has subdued revenue growth compared to the previous year, while reduced input costs have contributed to double-digit profit growth. The banking and financial sector, which had been driving profit growth, was no longer the primary driver in the last quarter. Small businesses' profit growth lagged behind larger firms, and sectors such as banking and hospitality showed some slowdown in net profit growth. However, expenses and input prices have tapered down, leading to higher profit margins. Margins may face volatility in the coming months due to rising freight costs and the Red Sea crisis. Increased consumption demand in urban areas during the election season is expected to provide some relief to companies.
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FMCG firms worry over high inflation, squeezing urban market; hint price hike
YourStory
·
9m ago
Medial
Leading FMCG companies experienced a decline in margins in Q3 due to higher input costs and food inflation, which affected urban consumption. Rising commodity prices, such as palm oil, coffee, and cocoa, have led some companies to consider price hikes. Rural markets have continued to grow, and premium products and quick-commerce channels have shown positive performance. Companies like GCPL, Dabur India, and Nestle India have reported decreased profits and expressed concerns over the challenging demand environment. Overall, urban areas have been more impacted by food inflation and weakened consumer spending compared to rural areas.
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HUL sees modest volume growth in FY25, signalling some respite for FMCG sector
Livemint
·
1y ago
Medial
Hindustan Unilever Ltd (HUL) expects a modest growth in volumes this financial year, indicating improved prospects for the consumer goods industry. HUL, India's largest fast-moving consumer goods company, anticipates mid-to-high single-digit volume growth in FY2024-25. The industry has suffered from sluggish demand, especially in rural areas impacted by inflation. HUL's turnover in the last financial year increased 2.5% YoY, while profit after tax rose 1.5%. The company is focused on expanding its premium products portfolio while hoping for a recovery in mass-market demand.
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