Hindustan Unilever Limited announced its results for the quarter and year ended 31st March 2022.
March Quarter 2022: Strong all-round performance
During the quarter, our Turnover grew 10% with flat Underlying Volume Growth. We continued to grow significantly ahead of the market, gaining value and volume market shares1. EBITDA margin at 24.6% remained healthy despite very high inflationary headwinds. Profit After Tax (PAT) grew 9%.
Home Care: Stellar performance continues
Home Care growth at 24% was broad based with strong performance in Fabric Wash and Household Care. Both categories grew in strong double-digits with all parts of the portfolio performing well. Liquids and Fabric Sensations continued to outperform driven by effective market development actions. Calibrated price increases were taken across Fabric Wash and Household Care portfolios to partly offset the significant inflation in input costs.
Beauty & Personal Care: Steady performance led by Skin Cleansing
Beauty & Personal Care grew competitively at 4%. Skin Cleansing delivered double digit growth driven by pricing and led by strong performance in ‘Lux’, ‘Dove’ and ‘Pears’. Hair Care continued its strong competitive performance in the quarter with all brands gaining shares. A calibrated approach towards price increase in Skin Cleansing and Hair Care has helped protect our business model even as vegetable oils continue to inflate at record levels. Skin Care and Colour Cosmetics had a muted quarter with COVID Wave 3 and high inflation impacting discretionary consumption. During the quarter, New Dove Hair Therapy, Sunsilk Onion and Jojoba Oil Shampoo, Lifebuoy’s ‘Powder to Liquid’ Handwash and Lakme’s new range of eye make-up were launched.
Foods & Refreshment: Strong performance on a high base comparator
Foods & Refreshment grew 5% on a very high prior year comparator, driven by solid performance in Beverages, Foods, and Ice-cream. Tea continued its robust performance and grew competitively on an exceptionally high base. Health Food Drinks continued to gain market share and penetration on the back of focused market development actions and new communications. Ice Cream had a very strong quarter delivering high double-digit growth, broad based across brands and formats. An exciting range of innovations were launched ahead of summer. Foods grew in double digit led by Ketchup, Jams and Soups.
Operating margins remain healthy despite unprecedented inflation
EBITDA margin at 24.6% remained healthy. PAT at Rs. 2,327 Crores was up 9% year-on-year. In the context of unprecedented inflation, we continue to manage our business dynamically driving savings harder across all lines of P&L and taking calibrated pricing actions using the principles of Net Revenue Management. We continue to invest competitively behind our brands.
Financial Year 2021-22:
Turnover at Rs. 50,336 Crores grew 11% with underlying volume growth of 3%. EBITDA margin remained healthy at 24.8%, 20bps lower than FY’21. PAT at Rs. 8,818 Crores was up 11%. Our track record of strong cash generation continued in the year. The Board of Directors have proposed a final dividend of Rs. 19 per share, subject to approval of shareholders at the AGM. Together with interim dividend of Rs. 15 per share, the total dividend for the year amounts to Rs. 34 per share.
Sanjiv Mehta, CEO and Managing Director commented: ‘In challenging circumstances, we have grown competitively and protected our business model by maintaining margins in a healthy range. I am also pleased that we have become a Rs. 50,000 crore turnover company in this fiscal. Our consistent performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management of our business. While there are near term concerns around significant inflation and slowing market growth, 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.‘