Hindustan Unilever Ltd Q1 net profit rises 14% to Rs 2,391 crore – Times of India

NEW DELHI: FMCG major Hindustan Unilever Ltd on Tuesday reported a 13.85 per cent rise in its consolidated net profit to Rs 2,391 crore for the first quarter ended June 30, mainly driven by higher product prices.
The company had posted a net profit of Rs 2,100 crore in the April-June quarter of the previous fiscal.
Its total income rose 20.36 per cent during the quarter under review to Rs 14,757 crore. It stood at Rs 12,260 crore in the corresponding period a year ago, Hindustan Unilever Ltd (HUL) said in a regulatory filing.
HUL’s revenue from sales of products only in the April-June quarter moved up by 19.46 per cent to Rs 14,331 crore from Rs 11,996 crore in the year-ago period.
“The price increase this quarter is 12 per cent,” said HUL CFO Ritesh Tiwari in a post-results call with media.
The “volume growth was 6 per cent”, he added.
It had an EBITDA margin of 23.2 per cent and remained “healthy despite unprecedented inflationary headwinds”.
HUL’s total expenses were up 20.79 per cent at Rs 11,531 crore compared to Rs 9,546 crore in the first quarter of last fiscal.
“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,” HUL CEO and Managing Director Sanjiv Mehta said.
The company grew competitively whilst protecting its business model by maintaining margins in a healthy range, he added.
During the quarter, HUL’s revenue from the home care segment rose 29.83 per cent to Rs 4,930 crore driven by strong performance in Fabric Wash and Household Care. It was Rs 3,797 crore in Q1 FY 2021-22.
“Both categories grew in high double-digits with all parts of the portfolio performing well. Liquids and Fabric Sensations continued to outperform driven by effective market development actions,” HUL said.
A calibrated price increase was taken across Fabric Wash and Household Care portfolios as input costs continue to inflate at significantly high levels, it noted.
HUL’s revenue from Beauty and Personal Care was up 17.90 per cent at Rs 5,406 crore against Rs 4,585 crore in the corresponding quarter previous fiscal.
In the segment, its hair care range grew in high double-digit led by strong performance in the premium portfolio, and soaps delivered price-led double-digit growth on strong performance in Lux, Dove and Pears.
“Skin Care and Colour Cosmetics delivered strong YoY (year-on-year) growth on a soft base. Premium portfolio in Skin Care performed well and is significantly ahead of pre-Covid levels,” HUL said.
Revenue from Food & Refreshment grew 9.27 per cent to Rs 3,627 crore compared to Rs 3,319 crore a year ago, driven by “solid performance” in ice cream, coffee and food solutions.
“Ice Cream had a very strong quarter broad-based across brands and formats, taking it significantly ahead of pre-Covid levels. Tea delivered steady performance and cemented its market leadership. Coffee had a strong quarter, growing by double-digit. Health Food Drinks continued to gain market share and penetration on the back of focused market development actions. Foods grew in double-digits led by Jams,” according to HUL.
Its revenue from ‘others’, which includes export and consignments, among others, was up 34.07 per cent at Rs 661 crore against Rs 493 crore in Q1 FY2021-22.
On the outlook, Mehta said, “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,” he added.
Meanwhile, HUL also announced the appointment of Yogesh Mishra as Executive Director, Supply Chain and Head – Supply Chain, Unilever South Asia with effect from September 1, 2022.
Mishra takes over from Willem Uijen, who has been elevated as the Chief Procurement Officer for Unilever globally.
Shares of HUL on Tuesday settled at Rs 2,566 on BSE, up 0.52 per cent from the previous close.

Source link