Unilever sees price hike in India amid drop in volumes

However, the company is making “significant investments” in its supply chain network in India – in its priority markets.

The maker of Dove soap and Vim detergent bars reported quarterly earnings on Thursday. The company’s sales volume declined 1.6% during the third quarter. Turnover increased by 17.8% year-on-year. The company raised its full-year sales forecast. Meanwhile, commenting on India, the company said the market underperformed despite the challenging demand environment.

Last week, the company’s local arm Hindustan Unilever Ltd reported a 4% growth in domestic sales; The company announced that profit grew 20% year-over-year. HUL said the market-forward growth was “considerable”, with the company’s trading winning value and volume accounting for over 75% of the market shares. “Indian markets are rising in value, but market volumes are declining. This is due to consumption weakness, the impact of inflation on Indian consumers, especially in rural areas. We are confident about HUL’s ability to outdo the market. And we see that reflected in very strong market share performance,” Jopp said during an investor call.

Meanwhile, commenting on future investments, the company highlighted its investments in digital – in supply chain, marketing or its relationships with customers and platforms.

This digital investment is enabling us to better understand consumer needs to better serve customers and drive an efficient supply chain, said Chief Financial Officer Graeme Pitkethley. “We are making significant investments in our supply chain networks in our priority markets with the India and US network reset and a new multi-category site in China. And we are also investing in expanding premium ice cream capacity in Europe and North America. Doing,” Pitkethley said.