Unilever CEO Fernando Fernandez told investors during a post-earnings call that the company will continue to invest in India to strengthen its market leadership and defend its position.
The Significance of India for Company Growth
Fernandez emphasized that India is a key factor for Unilever's long-term growth because the company holds a privileged position in the country. He noted that he believes the next decade will be the decade of India.
Results in Emerging Markets
The London-headquartered company, where India is the second-largest market, demonstrated significant growth. Fernandez stated that India led among emerging markets, showing strong results across a wide range of categories.
He added that they achieved record market share in both the laundry detergent and hair care categories, which are the two largest in India. In the laundry detergent segment, growth rates exceed the market average by more than 5 percent.
Financial Forecasts and Strategy
Hindustan Unilever management assured that the EBITDA margin would remain at the current level. Srinivas Phatak, Unilever's CFO, informed investors that this approach is optimal. He added that from the company's perspective, the ideal scenario is the development of India as a high single-digit growth market. Phatak believes that if net profit grows slightly faster than revenue, it will create a positive cycle that will benefit both the business in India and the group as a whole.
