Improvement in operating profit margin was the surprise element in Hindustan Unilever's (HUL's) March quarter (Q4) results. Most analysts had muted expectations, given the rise in prices of key inputs such as palm fatty acids and elevated advertising spending, leading to benign margin estimates. In contrast, HUL's margin inched up 98 basis points (bps) over a year to 20.4 per cent. Like its peers, HUL toned down its ad spends in Q4 but this is unlikely to sustain, believe analysts. Continued high competitive intensity will mean the company will have to invest in advertising and promotional activities to protect and grow its market share and volumes. However, the company does have a host of margin levers at its disposal. With parent Unilever's renewed focus on improving of margins, HUL is expected to follow. The management noted input cost inflation had moderated from earlier levels, which should help margins. Though the company is likely to pass on any benefits arising from lower ...
Set to overhaul business, rationalise costs in a bid to reach parent Unilever's new profit targets
Two giant brands get into a slugfest over the goodness of icecreams and frozen desserts
Hindustan Unilever reported a decline in volume growth for the September quarter after seven years
A razor brand was a key missing link and will pit HUL directly against Procter & Gamble's Gillette
A decline of 1% in volume growth was the lowest in seven years
Net sales increased 1.5% year on-year, touching Rs 8,335.12 crore for the quarter under review
Analysts do not expect major surprises coming from the two firms given that the Rs 3.2-lakh crore fast-moving consumer goods (FMCG) market is seeing a slowdown
A fortnight ago, HUL's parent Unilever had indicated that market conditions had softened in India and that the second-quarter results would mirror that possibility
First quarter results show former's home care arm has beaten expectation & latter's FMCG business posted growth
HUL's detergent brand, launched in 1959 as Surf, is today the largest in its portfolio with sales in excess of Rs 3,000 crore
Expenses in the period went up 2.78% to Rs 6,585.58 crore as against Rs 6,407.39 crore a year ago
Weakness in personal products limit volumes; low commodity prices aid margins, help meet profit estimates
HUL will now sell hair oil, shampoo, skin care oil, face pack, cream, jasmin, sandal soap products under the brand Indulekha, Vayodha
Today's agreement between the former employees and the FCMG giant is a culmination of a long standing matter