Hindustan Unilever Q1 results: Net profit rises 11% to Rs 2,289 cr

'During the quarter, our turnover grew 19% with underlying volume growth of 6%. We continued to grow significantly ahead of the market, gaining value and volume market shares,' says the FMCG major

FMCG major Hindustan Unilever on Tuesday reported 11% growth in standalone net profit at Rs 2,289 crore for the quarter ending June 30, 2022 as against Rs 2,061 crore in the year-ago period.

The company's total income rose 20% to Rs 14,409 crore in Q1FY23 as against Rs 11,982 crore in Q1FY22.

"During the quarter, our turnover grew 19% with underlying volume growth of 6%. We continued to grow significantly ahead of the market, gaining value and volume market shares. EBITDA margin at 23.2% remained healthy despite unprecedented inflationary headwinds. Profit After Tax before exceptional items (PAT bei) grew 17% and Profit After Tax (PAT) grew 11%," the company said in a stock exchange filing.

"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.

On the outlook, he 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 said.

HUL said that in the first quarter of this fiscal, its home care segment delivered 30% growth driven by strong performance in fabric wash and household care, with both categories growing in high double-digits.

HUL also benefited from a low base of sales in the pandemic-hit year-ago period, but surging inflation in recent months has curbed spending by consumers.

High commodity prices had forced the Indian unit of Unilever to raise prices across its main segments, including for fabric wash and household care products.

HUL sold products worth Rs 14,016 crore during the quarter.

The company also announced the appointment of Yogesh Mishra as Executive Director, Supply Chain, HUL and Head – Supply Chain, Unilever South Asia with effect from September 1, 2022. Yogesh 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% from the previous close.