HUL Q4 Preview: Revenue growth to be around 13-15%, volumes in mid-single digits

Hindustan Unilever is set to reveal Q4 2018 revenue growth led by price hikes with volume growth driven by mid single-digits in the skin cleansing sector. Despite an anticipated dip in margins due to a hike in ad-spend and a 30 bps royalty impact, Jefferies suggests the YoY margin decline will be around 60 bps versus 100-200 bps seen in the nine months ending December 2017. Gross margins are expected to rise quarter-on-quarter while the company could see continued strength in home care revenue growth due to increases in laundering prices.