Hindustan Unilever Q4 Results Update

On 27th April 2022, Hindustan Unilever announced its quarterly results for the last quarter of FY2022 and on Thursday, 28th April 2022 the Hindustan Unilever share price jumped by 2.54%.

Key Highlights:

Hindustan Unilever Q4 Results for FY22 Declared

- For Q4FY22, HUL’s total sales grew by 10% 

- EBITDA grew by 10% for the quarter.

- EBITDA margin at 24.6% declined by 20 bps.

- Profit after tax for the quarter was reported at Rs.2327 Crore grew by 9%.

- The Company’s turnover for the financial year ended 31st March 2022 was Rs.50,336 crores as against a turnover of Rs.45,311 crores for the financial year ended 31st March 2021. 

- EBITDA for FY22 grew by 10%

- Profit after tax for FY22 grew by 11%

Home Care:

Home Care growth at 24% was broad-based with a 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:

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 toward price increase in Skin Cleansing and Hair Care has helped protect HUL’s 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:

Foods & Refreshment grew 5% on a very high prior-year comparator, driven by solid performance in Beverages, Foods, and Icecream. 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 was launched ahead of summer. Foods grew in double-digits led by Ketchup, Jams, and Soups. 

Sanjiv Mehta, CEO and Managing Director commented said, “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, the 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.”

The Board of Directors has proposed a final dividend of Rs.19 per share, subject to the approval of shareholders at the AGM. Together with an interim dividend of Rs.15 per share, the total dividend for the year amounts to Rs.34 per share.