NEW DELHI: Leading FMCG maker HUL expects demand to gradually improve with no immediate increase in prices in the near term, its CFO Ritesh Tiwari said on Wednesday.
Moreover, the overall FMCG demand from rural markets, which was on the decline, has started increasing sequentially and will further accelerate in the coming quarter.
“We expect FMCG demand to continue to recover gradually. The above-par monsoon forecast and improving macroeconomic indicators bode well. We expect price growth to be in the low single digits in H1FY24 ", Tiwar said during the earnings call.On prices, he said that if commodity prices remain where they are, they "will stabilize over the medium term and turn positive in low single-digit rates by the end of this fiscal year".
He expects the company to see modest price growth in the low single digits in the second half of FY 2024-25.
HUL has already completed the process of price correction across the portfolio in the last few quarters.
In the March quarter, HUL had reduced the prices of its home care and persona care products due to fall in commodity prices.
He said, “Now, the work of correcting our pricing and passing on the benefits of commodity deflation has been completed across the board at HUL.,
Now if these commodity prices remain where they are, their impact will continue year after year.
"Which means in the short term, we will see a modest decline in our UVG (under price appreciation) to a lower single digit number in the short term," he said.
On rural demand, Tiwari said it has started increasing with the gradual improvement in demand.
"I am hopeful that with the good monsoon forecast and improvement in macro conditions in the country, we should see this recovery continue and accelerate further," Tiwari said.
Meanwhile, HUL also announced changes at the top level in the company.BP Biddappa will join its management committee as executive director, human resources, South Asia.
"Subject to shareholder approval, Biddappa will also join the HUL board as a whole-time director," it said.
Anuradha Razdan – Executive Director, Human Resources, HUL and Chief H Officer, South Asia – will be appointed to the global role as Chief Rewards Organization Development Officer for Unilever.
It says that this change will be effective from June 1, 2024.
Moreover, the overall FMCG demand from rural markets, which was on the decline, has started increasing sequentially and will further accelerate in the coming quarter.
“We expect FMCG demand to continue to recover gradually. The above-par monsoon forecast and improving macroeconomic indicators bode well. We expect price growth to be in the low single digits in H1FY24 ", Tiwar said during the earnings call.On prices, he said that if commodity prices remain where they are, they "will stabilize over the medium term and turn positive in low single-digit rates by the end of this fiscal year".
He expects the company to see modest price growth in the low single digits in the second half of FY 2024-25.
HUL has already completed the process of price correction across the portfolio in the last few quarters.
In the March quarter, HUL had reduced the prices of its home care and persona care products due to fall in commodity prices.
He said, “Now, the work of correcting our pricing and passing on the benefits of commodity deflation has been completed across the board at HUL.,
Now if these commodity prices remain where they are, their impact will continue year after year.
"Which means in the short term, we will see a modest decline in our UVG (under price appreciation) to a lower single digit number in the short term," he said.
On rural demand, Tiwari said it has started increasing with the gradual improvement in demand.
"I am hopeful that with the good monsoon forecast and improvement in macro conditions in the country, we should see this recovery continue and accelerate further," Tiwari said.
Meanwhile, HUL also announced changes at the top level in the company.BP Biddappa will join its management committee as executive director, human resources, South Asia.
"Subject to shareholder approval, Biddappa will also join the HUL board as a whole-time director," it said.
Anuradha Razdan – Executive Director, Human Resources, HUL and Chief H Officer, South Asia – will be appointed to the global role as Chief Rewards Organization Development Officer for Unilever.
It says that this change will be effective from June 1, 2024.
