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HUL's Q4 numbers a warning signal for those investing in the FMCG sector

With a 7% fall in volumes, topline declined by 9% and pre-tax profit by 11%; analysts see more pressure in coming quarters

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While HUL's non-essential segment was expected to see pressure due to the Covid-19 outbreak, there is some pressure in the essentials portfolio too

Shreepad S Aute Mumbai

3 min read Last Updated : May 01 2020 | 2:30 AM IST

India Inc, including the pricey fast-moving consumer goods (FMCG) players were expected to bear the brunt of the Covid-led disruption.

However, Hindustan Unilever’s (HUL’s) worse-than-expected March quarter (Q4) numbers indicate that investors will have to lower expectations further, with further pressure likely ahead.

Domestic volumes shrunk by 7 per cent year-on-year (YoY) — among the worst-ever performances by the FMCG major — lower than the Street’s expectations of a 4 per cent decline. This took a toll on HUL’s overall Q4 numbers.

Top line fell 9.4 per cent YoY to Rs 8,885 crore, suggesting that average realisation contracted by over

Topics : Coronavirus Q4 Results Hindustan Unilever FMCG HUL India Inc Q4

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