MUMBAI: Consumer goods large Unilever stated expansion in India hasn't returned to historic levels even if volumes have progressed following the implementation of the products and repair tax (GST) on July 1 and the corporate is positive concerning the future.
"India has been managing its way through the disruptions from demonetisation and the new goods and services tax," Unilever chief financial officer (CFO) Graeme Pitkethly stated on an investor call. "While it's not yet back to historic levels of growth, we are cautiously optimistic for the near term and very positive for the medium and longer terms."
ET reported on Thursday that Unilever saw higher demand-led expansion in India driven through value cuts because of the transition to the new tax regime. India is the second biggest marketplace for Unilever after the US, contributing just about 9% to overall sales.
In the quarter ended June, its Indian unit Hindustan Unilever Ltd (HUL) posted 6% sales expansion with quantity staying flat because of destocking through the trade and diminished buying from one among its biggest consumers — the Canteen Stores Department (CSD), which runs stores for the armed products and services around the nation.
The maker of Rin detergent and Lux cleaning soap stated it handed on the benefits of the tax change to shoppers and its trade was ready to start GST invoicing straight away with none issues. "However, while some of our customers coped well with the change, others had more difficulty and only recently returned to a more normal buying pattern," Andrew Stephen, Unilever's vp for investor family members stated on the call. "As a result, we have only recovered part of the shortfall from the second quarter."
Bank of America-Merrill Lynch expects Hindustan Unilever to post 5% quantity expansion with 8% earnings expansion whilst running margins may widen through 150 basis issues (1.5 share point) in the September quarter. The corporate will announce earnings on October 25.
The corporate stated remaining month that it had made intense preparations for a easy transition to GST and that ended in percentage will increase in a large part of the trade. Unilever, which additionally owns Lipton tea and Bru coffee, stated its Indian unit was now the biggest tea maker in the nation, forward of Tata Global Beverages. "Tea continued to grow in mid-single digits and we have taken share leadership in India, the largest tea market in the world," Stephen stated.
"India has been managing its way through the disruptions from demonetisation and the new goods and services tax," Unilever chief financial officer (CFO) Graeme Pitkethly stated on an investor call. "While it's not yet back to historic levels of growth, we are cautiously optimistic for the near term and very positive for the medium and longer terms."
ET reported on Thursday that Unilever saw higher demand-led expansion in India driven through value cuts because of the transition to the new tax regime. India is the second biggest marketplace for Unilever after the US, contributing just about 9% to overall sales.
In the quarter ended June, its Indian unit Hindustan Unilever Ltd (HUL) posted 6% sales expansion with quantity staying flat because of destocking through the trade and diminished buying from one among its biggest consumers — the Canteen Stores Department (CSD), which runs stores for the armed products and services around the nation.
The maker of Rin detergent and Lux cleaning soap stated it handed on the benefits of the tax change to shoppers and its trade was ready to start GST invoicing straight away with none issues. "However, while some of our customers coped well with the change, others had more difficulty and only recently returned to a more normal buying pattern," Andrew Stephen, Unilever's vp for investor family members stated on the call. "As a result, we have only recovered part of the shortfall from the second quarter."
Bank of America-Merrill Lynch expects Hindustan Unilever to post 5% quantity expansion with 8% earnings expansion whilst running margins may widen through 150 basis issues (1.5 share point) in the September quarter. The corporate will announce earnings on October 25.
The corporate stated remaining month that it had made intense preparations for a easy transition to GST and that ended in percentage will increase in a large part of the trade. Unilever, which additionally owns Lipton tea and Bru coffee, stated its Indian unit was now the biggest tea maker in the nation, forward of Tata Global Beverages. "Tea continued to grow in mid-single digits and we have taken share leadership in India, the largest tea market in the world," Stephen stated.
Sales growth still behind historic levels: Unilever CFO
![Sales growth still behind historic levels: Unilever CFO]()
Reviewed by Kailash
on
October 22, 2017
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