The company is projecting the consolidated business growth to be near flat to low-single digit for the quarter ending 30 September 2025, basis current view
Highlighting that there has been a short-term impact on sales for the company, Hindustan Unilever or HUL stated that it is expecting the consolidated business growth to be near flat to low-single digit for the quarter ending 30 September 2025, basis current view.
The company noted that the goods and services tax (GST) reforms support long-term consumption, HUL has seen a transitory impact in the form of disruption at distributors and retailers across channels to clear existing inventories with old prices. This has resulted in postponement of ordering in anticipation of receiving new stocks with updated prices and lower orders across the overall portfolio as consumers delayed their pantry buying.
“This has led to a short-term impact on sales for the company in September. Given our existing pipeline inventory in the channels, we expect this impact to continue into October as well,” the FMCG major noted in an exchange filing.
However, the company highlighted that this is a one-off, transitory impact. HUL anticipates recovery starting November as prices stabilise, underpinned by rising disposable incomes and its ongoing portfolio transformation actions. With the revised GST rates, approximately 40 per cent of HUL’s portfolio including toilet soap, toothpaste, shampoo, hair oil, talcum powder, lifestyle nutrition and other foods now benefit from a reduced GST rate of 5 per cent, it added.
The company noted that it remains committed to supporting the government’s efforts by ensuring that the GST benefits are being passed on to consumers through competitive pricing and enhanced value across a wide range of products from 22 September onwards. These reforms are expected to increase disposable income and drive long-term demand across key categories, it emphasised.
