HUL financials Q2FY23: PAT up 20% YoY at Rs 2,616 crore
The conglomerate's EBITDA margin stood at 23.3% despite inflation in input costs
Hindustan Unilever Limited announced its results for the quarter ended 30th September 2022. The conglomerate has reported turnover growth of 16% and Underlying Volume Growth of 4%. Growth was significantly ahead of the market with more than 75% of the business winning value and volume market shares.
Net profit grew 14% from Rs 2,289 in the previous quarter. HUL's EBITDA margin stood at 23.3% despite inflation in input costs. YoY EBITDA margin declined 180 bps. . Profit After Tax before exceptional items (PAT BEI) grew 9% and Profit After Tax (PAT) grew 20% at Rs 2,616 crore as against Rs 2,187 in the same quarter in the previous fiscal.
Foods & Refreshment grew 4% driven by solid performance in Foods, Coffee and Ice-cream. Beauty & Personal Care grew 11% driven by outperformance in premium portfolio. Home Care delivered 34% growth with volumes growing in double digit. Both Fabric Wash and Household Care grew in high double-digits with all parts of the portfolio performing well.
AdEx and promotion spending during the quarter took a dive, which could indicate low demand trends.
However, advertising and promotional spending during the quarter dipped, indicating the likely subdued demand trends. The underlying volume growth during the quarter was 4% from the year-ago period. The home care segment delivered a 34% growth in revenue, with volumes growing in double digits.
Sanjiv Mehta, CEO and Managing Director commented: “Building on our strong momentum we have delivered yet another quarter of solid all-round performance. In H1 2022-23 we have added an incremental turnover of more than Rs. 4,000 crores. Our consistent performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management. We continue to make excellent progress on our ‘Reimagine HUL’ agenda launching two new digital brands, reaching the milestone of 1 million Shikhar outlets and our manufacturing site at Dapada becoming the first in India to be recognized as Sustainability Lighthouse by the World Economic Forum.
Demand environment remains challenging with inflation impacting consumption. However, with softening in some commodities and monetary/ fiscal measures taken by the government, we are cautiously optimistic in the near-term. In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range. We remain confident of the medium to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth.”
Apart from the financial results, the Board of Directors has declared an interim dividend of INR 17/- per share for year ending 31st March 2023.
