FMCG major Hindustan Unilever Ltd (HUL) on July 19 reported an 11.1 percent year-on-year (YoY) rise in net profit at Rs 2,289 crore for the first quarter ended June 30, 2022.

In the corresponding quarter last year, the company posted a net profit of Rs 2,061 crore. CNBC-TV18 Polls had predicted a profit of Rs 2,175 crore for the quarter under review.

Total income stood at Rs 14,272 crore during the period under review, up 19.8 percent against Rs 11,915 crore in the corresponding period of the preceding fiscal. Total expenses were higher by 20.79 percent at Rs 11,531 crore compared to Rs 9,546 crore in the first quarter of the last fiscal.

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At the operating level, EBITDA jumped 14 percent to Rs 3,247 crore in Q1 FY23 over Rs Rs 2,847 crore in Q1 FY22. EBITDA margin stood at 22.75 percent in Q1 FY23 as compared to 23.95 percent in Q1 FY22. EBITDA is earnings before interest, tax, depreciation and amortization.

The home care segment delivered 30 percent 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.

Beauty and personal care reported a growth of 17 percent. Hair care grew in high double digits led by strong performance in the premium portfolio. Soaps delivered price-led double-digit growth, driven by strong performance in Lux, Dove, and Pears, it said.

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The foods and refreshments segment grew 9 percent, driven by solid performance in ice cream, coffee, and food solutions. The ice cream sector particularly had a very strong quarter across brands and formats, pushing it significantly ahead of pre-COVID levels, the company added.

Sanjiv Mehta, the CEO and Managing Director said, "In an environment which remains challenging, marked by unprecedented inflation and consequential impact on consumption, we have delivered yet another quarter of robust top-line 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," he said.

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The results came after the close of the market hours. Shares of Hindustan Unilever Ltd ended at Rs 2,566.00, up by Rs 13.40, or 0.52 percent on the BSE.

First Published:Jul 19, 2022 6:02 PM IST