Weekly FMCG update: HUL’s Q3, skincare acquisition; and early summer prep
HUL’s Q3 growth was impacted by weak urban demand, but the company strengthened its portfolio with a stake in the skincare brand Minimalist. FMCG companies prepare for summer demand.
28 Jan 2025 | 494 Views | By WhatPackaging? Team
HUL’s Q3 growth slowed, foray into skincare
Hindustan Unilever reported its financials for the third quarter of FY25. The company’s volumes were hit by sluggish urban demand. It clocked a 1.6% growth in revenue (Rs 15,818-crore).
The company also acquired a 90.5% stake in Minimalist, a Jaipur-based skincare startup. The deal was valued at Rs 2,960-crore. Last year, the company announced a shift in its strategy: to turn its wellness and beauty portfolio into the premium segments. This is a move in that direction.
Urban consumers
In the last six months, it has been no secret that urban demand is at a low. Many customers are choosing the sachets, the smaller SKUs. Leading business portals have reported that this may be because of loans and credit card debt.
Because of this, big FMCG companies are warning consumers of more price hikes because of the increase in the rates of supplies like tea and palm oil.
Summer products may return earlier than anticipated
It is the hottest January the world has seen, and summer is coming soon. Manufacturers of soft drinks, ice creams, and air conditioners, are restocking their inventory to meet the demand they are expecting.