HUL Q1 PAT rises 10% YoY to Rs 2,061 crore

Hindustan Unilever (HUL) reported 10% rise in standalone net profit to Rs 2,061 crore on 13% increase in sales to Rs 11,730 crore in Q1 FY22 over Q1 FY21.

HUL recorded a domestic consumer growth of 12% and a underlying volume growth of 9% in June quarter 2021. Performance was broad based with all three divisions growing competitively and in double-digits during the period under review.

Home Care grew at 12% enabled by double-digit growth in Fabric Wash. Beauty & Personal Care grew 13% led by Hair Care and Skin Care, both growing in high double-digits.

A calibrated approach towards price increase has helped protect the company's business model as vegetable oil prices remain at elevated levels. Color Cosmetics recovered sharply from a weak base in June Quarter 2020 (JQ'20) although performance in the quarter was impacted by limited mobility.

Foods & Refreshment delivered another quarter of strong performance and grew at 12%. All Tea brands continued to grow in high double-digits despite a very strong base in the prior year. Ketchups and Soups continue to perform well led by strong volume growth on a high base in Q1 FY21.

Go-To-Market integration in nutrition business is progressing well, health food drinks gained penetration sequentially and grew volumes in mid-single digit. Ice Creams recovered and grew YoY from a weak base, although performance in the quarter was impacted by limited mobility.

EBITDA rose 8% to Rs 2,847 crore in Q1 FY22 from Rs 2,644 crore in Q1 FY21. EBITDA margins at 24% remain healthy. The company's focused actions on net revenue management and savings have enabled it to manage inflationary pressures and deliver a healthy bottom-line performance.

Sanjiv Mehta, chairman and managing director, commented: "In a challenging environment, we have delivered a strong performance across top-line and bottom-line. Our performance in the quarter has been resilient and is reflective of our capabilities, the agility in our operations and the intrinsic strength of our portfolio.

Looking forward, we remain cautiously optimistic about the demand recovery. Our focus firmly remains behind delivering volume led competitive growth and margins in a healthy range."

Separately, The FMCG major today announced the retirement of Dev Bajpai, executive director, legal & corporate affairs and company secretary, effective 31 March 2022.

Dev has been a key member of HUL management committee, the HUL board of directors and the South Asia leadership team. Dev's successor will be announced in due course.

HUL manufactures branded and packaged consumer products including soap, detergent, personal care products and processed food.

The scrip fell 1.89% to currently trade at Rs 2388 on the BSE.

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