19% Turnover Growth, 6% Underlying Volume Growth, 11% Profit After Tax Growth
Hindustan Unilever Limited announced its results for the quarter ended 30th June 2022.
June Quarter 2022: Robust performance in a challenging environment
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 shares1. 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%.
Home Care: Stellar performance continues
Home Care delivered 30% growth driven by strong performance in Fabric Wash and Household Care. Both categories grew in high 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 as input cost continue to inflate at significantly high levels. During the quarter Comfort Delicates was launched which is specially made for delicate clothes.
Beauty & Personal Care: Strong growth ahead of the market
Beauty & Personal Care growth of 17% was broad based. Hair Care grew in high double-digit led by strong performance in premium portfolio. Soaps delivered price-led double-digit growth driven by strong performance in Lux, Dove and Pears. Skin Care and Color Cosmetics delivered strong YoY growth on a soft base. Premium portfolio in Skin Care performed well and is significantly ahead of pre-Covid levels. Calibrated pricing action were taken across the portfolio to offset the impact of record inflation in input costs. During the quarter, Tresemme’s Hair Care range ‘Pro Pure’, Baby Dove Derma Protect Baby Wash, Vaselines’s summer range of body moisturisers and Lakme’s Facial Foams were launched.
Foods & Refreshment: Steady performance on a high base comparator
Foods & Refreshment grew 9% driven by solid performance in Ice-cream, Coffee and Food Solutions. Ice Cream had a very strong quarter broad based across brands and formats taking it significantly ahead of pre-COVID levels. Tea delivered steady performance and cemented its market leadership. Coffee had a strong quarter growing in double-digit. Health Food Drinks continued to gain market share and penetration on the back of focused market development actions. Foods grew in double-digit led by Jams. Unilever Food Solutions delivered a solid performance and continued to build its salience with professional chefs.
Operating margins remain healthy
EBITDA margin at 23.2% remained healthy despite the unprecedented inflation in input costs. YoY EBITDA margin declined 110 bps. PAT (bei) was up 17% YoY. PAT at Rs 2,289 Crores was up 11% YoY. The difference between PAT (bei) and PAT growth is largely due a one-off prior period tax credit we had in base period. 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.
Sanjiv Mehta, CEO and Managing Director commented: ‘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. We have grown competitively whilst protecting our business model by maintaining margins in a healthy range. 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.‘
As per Nielsen FMCG market share report May 2022
HUL announces key change to its Management Committee
Yogesh Mishra to take over as Executive Director, Supply Chain from Willem Uijen effective September 1, 2022
Hindustan Unilever Limited (HUL) today 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.
Yogesh who is currently the Vice President – Supply Chain, Beauty & Personal Care, joined HUL in 1990 and over the last 32 years, has had a strong performance track record across various roles in manufacturing, quality, planning and technology. He had been instrumental in driving the ‘Winning in Many Indias’ agenda in Supply Chain and more recently, led the setting up of nano factories to further step up agility and flexibility in manufacturing operations at HUL.
Welcoming Yogesh to the HUL Management Committee, Sanjiv Mehta, CEO and Managing Director, HUL, said, “Yogesh comes with deep knowledge and diverse experience across various areas of the Supply Chain. Yogesh has contributed significantly towards creating a future-ready Supply Chain by not only embedding technology in our operations, but also developing a robust talent pipeline. I am certain that Yogesh will take HUL’s Supply Chain to the next level of performance.”
Thanking Willem for his contribution to the business, Sanjiv said, “In a challenging operating environment, Willem ensured that the HUL Supply Chain remained agile and resilient, and continued to serve consumers with essential products even during strict lockdowns. His vision for a future-fit supply chain helped us land several ground-breaking initiatives across our operations. It was under his leadership that our digitally advanced Dapada factory joined the World Economic Forum’s prestigious Lighthouse Network, becoming the first FMCG manufacturing site in India to be accorded that status. He passionately advocated the Company’s sustainability agenda and contributed towards making HUL plastic neutral. It brings me immense joy and pride to see him move on to a key leadership role in Unilever.”
