Hindustan Unilever Ltd has recorded 19% turnover development for the first quarter stopped June 30, 2022, with basic volume growth of 6%. EBITDA margin at 23.2% persisted healthy despite remarkable inflationary headwinds. This strong accomplishment has been recorded in a challenging environment. EBITDA margin at 23.2% continued healthy despite the unprecedented inflation in input expenses. YoY EBITDA margin decreased 110 bps. PAT (bei) was up 17% YoY. The variation between PAT (bei) and PAT growth is greatly due to a one-off prior period tax credit HUL had in the base period.
HUL proceeds to govern its business dynamically driving savings harder across all lines of P&L and taking calibrated pricing efforts borrowing the principles of Net Revenue Management. The group resumes investing competitively behind its brands. Home Care delivered 30% growth driven by excellent performance in Fabric Wash and Household Care. Calibrated price boosts were taken across Fabric Wash and Household Care portfolios as input costs resumed to inflate at considerably high levels. During the quarter Comfort, Delicates was undertaken which is specially made for delicate clothes. Beauty & Personal Care growth of 17% was broad-based.
Hair Care prospered in high double-digits governed by strong performance in the premium portfolio. Soaps distributed price-led double-digit growth ridden by strong performance in Lux, Dove and Pears. Skin Care and Color Cosmetics delivered strong YoY expansion on a soft base. Premium portfolio in Skin Care served well and is considerably ahead of pre-Covid levels. Calibrated pricing efforts were taken across the portfolio to offset the consequence 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 introduced.
Foods & Refreshment grew 9% ridden by solid performance in Ice-cream, Coffee and Food Solutions. Ice Cream had a very great quarter broad-based across brands and formats earning it considerably ahead of pre-COVID levels. Tea delivered fixed performance and secured its market leadership. Coffee had a strong quarter thriving by double-digit. Health Food Drinks gained market share and penetration on the back of focused market development actions. Foods thrived in double-digits governed by Jams.
Stating the performance, Sanjiv Mehta, CEO and Managing Director, HUL, told, “In an environment which stays challenging, inscribed by unprecedented inflation and significant impact on consumption, we have provided yet another quarter of robust topline and bottom-line action. We have evolved competitively whilst conserving our business model by retaining margins in a healthy range. While there are near-term interests around inflation, the current softening of commodities, a forecast of a normal monsoon, and monetary/ fiscal measures carried by the government augur well for the industry. We are convinced of the medium to long term odds of the Indian FMCG sector and continue to focus on distributing Consistent, Competitive, Profitable and Responsible growth.”
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