The FMCG major reported 20% increase in standalone net profit to Rs 2,616 crore on a 16% rise in net sales to Rs 14,514 crore in Q2 FY23 over Q2 FY22.
Hindustan Unilever (HUL) delivered underlying volume growth of 4%. Growth was significantly ahead of the market with more than 75% of the business winning value and volume market shares.Profit after tax before exceptional items (PAT bei) grew 9%. The difference between PAT (bei) and PAT growth is largely due to one-off prior period tax credits in this quarter. One-off credit on account of prior period income tax adjustment consequent to receipt of favorable assessment orders is Rs 258 crore in Q2 FY23.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at Rs 3,377 crore, up 8% YoY. EBITDA margin at 23.3% remained healthy despite the unprecedented inflation in input costs. YoY EBITDA margin declined 180 bps.
"We continue to manage our business dynamically driving savings harder across all lines of P&L, investing competitively behind our brands and ensuring right price-value equation," HUL said in a statement.
The board declared an interim dividend of Rs 17 per equity share. The record date is fixed as 2 November 2022.
HUL said its home care business delivered 34% growth with volumes growing in double digit. Beauty & personal care segment grew 11% driven by outperformance in premium portfolio. Foods & refreshment business grew 4% driven by solid performance in foods, coffee and ice-cream.
Sanjiv Mehta, CEO and managing director commented: "Building on our strong momentum we have delivered yet another quarter of solid all-round performance. In H1 2022-23 we have added an incremental turnover of more than Rs. 4,000 crore. Our consistent performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management."
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"Demand environment remains challenging with inflation impacting consumption. However, with softening in some commodities and monetary/ fiscal measures taken by the government, we are cautiously optimistic in the near-term. In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range. We remain confident of the medium to long term potential of Indian FMCG sector and HUL's ability to deliver a Consistent, Competitive, Profitable and Responsible growth."
HUL is India's largest fast moving consumer goods company.
Shares of HUL rose 2.11% to Rs 2655.05 on Friday, 21 October 2022.
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