Sumary of Second wave of pandemic brings HUL’s volumes back to square one:
- Analysts now typically look at the two-year average annual growth number to negate the impact of last year’s low base.
- By this measure, HUL’s volumes were flat, as like-for-like growth stood at 9% in Q1FY22 and -8% in the year-ago period.
- In Q4FY21, the two-year average annual growth number stood at around 5%.
- View Full ImageSatish Kumar/Mint “HUL saw good demand momentum in March, which was sustained in April.
- “Trade promotions were normalized during the quarter from a low base last year, which impacted pricing growth.
- This meant the pricing growth came in below expectations at 3%,” said Himanshu Nayyar, lead analyst, institutional equities, YES Securities.
- Besides, the GSK-led nutrition segment delivered a below-than-expected performance, as the pandemic has delayed HUL’s plans of developing this portfolio, Nayyar added.
- Among the segments, the home care business has performed well, posting revenue growth of 12% year-on-year (y-o-y), helped by double-digit growth in fabric wash.