Going forward, HUL is cautiously optimistic as FMCG demand is likely to continue a gradual recovery with tailwinds from the upcoming festive season, sustained buoyancy of services, and the government’s thrust on capex, Rohit Jawa, CEO and MD, HUL, has said. Jawa said this while commenting on the company’s financial results for the quarter ended September 2023.

“At the same time, we need to be watchful of volatile global commodity prices as well as the impact of monsoon on crop output and reservoir levels. In this context, our focus is to provide superior value to our consumers, drive competitive volume growth, and invest behind our brands,” Jawa said.

“We remain confident of the mid to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth,” he added.

The company has posted a 4% growth in its standalone net profit at Rs 2,717 crore for the quarter ended September 2023. The figure stood at Rs 2,616 crore in the year-ago quarter. Sales rose 4% year-on-year (YoY) to Rs 15,027 crore in the reporting period. The EBITDA for the quarter was Rs  3,694 crore and margins at 24.18%.

HUL’s ad spends increased by 65.23% to Rs 1,720 crore for the quarter ended 30 Sept 2023 against Rs  1041 crore for the quarter ended 30 sept 2022. For the quarter ended June 30, the advertising and promotion expense was Rs 1,481 crore.

“We delivered a resilient and competitive growth whilst stepping up our EBITDA margin in a challenging operating environment, marked by subdued rural demand and heightened competitive intensity,” Jawa said on the numbers.