FMCG giant, Hindustan Unilever Limited (HUL) announced its quarterly results for the first quarter of FY23 after market hours on 19th July 2022. The company saw a 13.86% YoY (year on year) increase in the consolidated profit after tax (PAT) to Rs. 2,391 crore in Q1 FY23 from Rs. 2,100 in Q1 FY22. The net profit on a standalone basis reportedly increased to Rs. 2,289 crore, showing 11% YoY growth.
EBITDA of the company grew 14% YoY and stood at Rs. Rs. 3,247 crore in Q1 FY23, increasing from Rs. 2,847 crore in the same quarter of the previous year. However, the EBITDA margin fell by 110 basis points YoY and stood at 23.2% in Q1 FY23 as compared to 24.3% in Q1 FY22, on the back of increased prices of commodities and inflation. This will probably remain a pain point and influential theme across all companies in the sector this season.
The sales growth for the first quarter of FY23 was nonetheless witnessed at 19% YoY at Rs. 14,016 crore, an increase from Rs. 11,730 crore in Q1 of the previous financial year. HUL’s underlying volume growth remained a muted 6%.
Looking at the segment wise performance, the home care segment continued its stellar performance, with double-digit growth in both fabric wash and household care items. The segment saw revenue growth of 29.84% YoY. The beauty and personal care segment also displayed strong growth. The performance of the food and refreshment segment that saw revenues expand 9.28% YoY was led by ice creams and food, on the back of the heatwave that swept through much of the country in the past quarter.
The earnings per share in the quarter came in at Rs. 9.81, showing a growth of 11%. HUL’s share closed in the green at Rs. 2,568.00 ahead of the results, up 0.57% from the previous day at the end of the trading session.
Sanjiv Mehta, CEO and Managing Director in his comment said, "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.”