FMCG major Hindustan Unilever Ltd (HUL) has reported a standalone net profit of ₹2,327 crore for the fourth quarter ended March 31, 2022, growing at 9% on a year-on-year basis against ₹2,143 profit during the same period last year.
During the said quarter, HUL's turnover grew 10% with flat underlying volume growth at ₹13,190 crore compared to ₹11,947 crore during Q4 FY21. EBITDA or earnings before interest, taxes, depreciation and amortisation touched ₹3,245 crore, recording a growth of 10% YoY vs ₹2,957 crore in Q4 FY21, while the EBITDA margin declined 20 bps to 24.6% in the said quarter.
"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," says the company in its financial result statement.
HUL's full financial year 2021-22 turnover grew 11% to ₹50,336 crore, underlying volume growth of 3%, compared to ₹45,311 crore turnover for the financial year ended March 31, 2021. The company’s FY22 net profit of ₹18,818 crore was up 11% as compared to the year-ago period.
The company's board of directors has proposed a final dividend of ₹19 per share for the full financial year, subject to the approval of shareholders at the AGM. Together with the interim dividend of ₹15 per share, the total dividend for the year amounts to ₹34 per share, HUL says.
Sanjiv Mehta, HUL CEO and managing director, says the company grew "competitively" in challenging times and maintained margins. "Pleased that we have become a ₹50,000 crore turnover company in this fiscal. 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," says Mehta.
Segment-wise, home care sales grew 24% at ₹4,750 crore, with a strong performance in fabric wash and household care. Beauty and personal care grew competitively at 4% with net sales worth ₹4,712 crore. Foods and refreshments grew 5% to ₹3,698 crore on a very high prior-year comparator, driven by solid performance in beverages, foods, and ice cream products.
In its outlook for the near term, HUL said inflation could impact volumes, and that the growth will predominantly be price-led. In the wake of high inflation, the company will continue to implement savings and calibrated pricing actions. It also sees margins declining in the near term, with an increasing price vs cost gap.
The HUL stock closed at ₹2,140.50, down by ₹7.85, or 0.37% on the NSE on Wednesday.
