Hindustan Unilever Ltd (HUL) on Tuesday reported an 11.06 per cent on-year jump in standalone net profit at Rs 2,289 crore compared with Rs 2,061 crore in the same quarter last year. Consolidated net profit was Rs 2,391 crore for the quarter ended June, up 13% on-year. Revenues from operations jumped 19.48 per cent on-year to Rs 14,016 crore compared with Rs 11,730 crore in the corresponding quarter last year. EBITDA margin at 23.2% “remained healthy despite unprecedented inflationary headwinds”, the company said. The FMCG major logged a 6 per cent volume growth for the quarter. HUL shares rose half a per cent ahead of Q1 earnings announced to end at Rs 2,568 on NSE.
EBIDTA margin healthy despite inflationary headwinds
The company said in its release that it continued to grow significantly ahead of the market, gaining value and volume market shares. Ebitda margin for the quarter came in at 23.2 per cent, despite unprecedented inflationary headwinds. HUL’s Home Care segment delivered 30 per cent growth driven by strong performance in Fabric Wash and Household Care. Both categories grew in high double-digits, with all parts of the portfolio performing well, it said. The Beauty & Personal Care segment reported growth of 17 per cent, led by strong performance in the premium portfolio.
“Skin Care and Color Cosmetics delivered strong YoY growth on a soft base. Premium portfolio in Skin Care performed well and is significantly ahead of pre-Covid levels. Calibrated pricing actions were taken across the portfolio to offset the impact of record inflation in input costs,” HUL said. Foods & Refreshment segment grew 9 per cent, driven by solid performance in ice-cream, coffee and food solutions.
Robust topline and bottom-line performance: CEO Sanjiv Mehta
Sanjiv Mehta, CEO and Managing Director commented, “In an environment which remains challenging, marked by unprecedented inflation and consequential impact on consumption, we have delivered yet another quarter of robust topline and bottom-line performance. We have grown competitively whilst protecting our business model by maintaining margins in a healthy range. While there are near term concerns around inflation, the recent softening of commodities, forecast of a normal monsoon, and monetary/ fiscal measures taken by the government augur well for the industry. We are confident of the medium to long term prospects of the Indian FMCG sector and remain focused on delivering a Consistent, Competitive, Profitable and Responsible growth.”
Board approves management changes; Yogesh Mishra to take over as Executive Director
HUL announced the appointment of Yogesh Mishra as Executive Director, Supply Chain, HUL and Head – Supply Chain, Unilever South Asia with effect from 1 September 2022. Yogesh takes over from Willem Uijen who has been elevated as the Chief Procurement Officer for Unilever, globally. “Yogesh who is currently the Vice President – Supply Chain, Beauty & Personal Care, joined HUL in 1990 and over the last 32 years, has had a strong performance track record across various roles in manufacturing, quality, planning and technology,” the company said in its release.
Analysts at domestic brokerage firms estimated that HUL’s revenue will rise 12-15%. On volumes, analysts had a mixed view as Motilal Oswal expected a 2% on-year domestic volume growth, on the back of a high base of last year. Meanwhile ICICI Direct projected 4% volume growth. Analysts also predicted a 120-140 basis point cut in EBITDA margins of HUL as inflation continues to hurt the books.