HUL Q3 Review - Key Positives; Early Signs Of Rural Recovery, Market Share Gain Continues: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.Hindustan Unilever Ltd.’s Q3 results met consensus expectations; however, increase in royalty and central service fees (by 80 basis points) has been a dampener. However, overall impact on operating margins shall be offset with mix-improvement (premiumisation) and scale-benefits. During the quarter, HUL continues to deliver outperformance in all key segments (share gains in 75% of portfolio). Market share gains in fabric wash (both in value and volume) and health food drinks (despite of milk-inflation) have been encouraging. Continued work on category development (both formats and premiumisation) is tracking well. We note that premium discretionary (within staples) is outperforming mass discretionary, and HUL is (somewhat) better placed at the former. Most of the key metrics for the quarter were in-line. Raw material has meaningfully softened with benefits being deployed towards advertising and promotion..Click on the attachment to read the full report:.HUL Raises Royalty Payout To Parent, Analysts Say Won't Hit Margin Much.More Research Reports On HUL's Q3 FY23 Results Review.Core Performance To Improve Here On: Dolat CapitalOperating Performance Inline, Royalty Increase Not A Concern: Motilal OswalSurprise Royalty Increase To Offset The Tailwinds From Positive Mgmt Commentary: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HUL Q3 Review - Key Positives; Early Signs Of Rural Recovery, Market Share Gain Continues: ICICI Securities

During the quarter, HUL continues to deliver outperformance in all key segments.

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