British FMCG firm Unilever’s Indian arm Hindustan Unilever Limited (HUL) has announced its financial results as well as its annual analysis for FY22. The company reported that it has recorded Rs 50,336 crore annual turnover, 11 per cent turnover growth, in FY22. The company, in its annual report also noted that it has added more than Rs 25,000 crore in terms of turnover during the last decade.
HUL also revealed that its operating income during the year rose 11.5 per cent on a year-on-year (YoY) basis, while its operating profit increased by 12.5 per cent YoY during the fiscal. The FMCG firm’s operating profit margins witnessed a fall and dropped 24.4 per cent in FY22 as against 24.2 per cent in FY21.
Sanjiv Mehta, CEO and Managing Director, HUL, said, “At Hindustan Unilever Limited, responsible corporate conduct is integral to the way we do business. To succeed, we believe, requires highest standards of responsibility towards everyone we work with, the communities we touch and the environment on which we have an impact.”
During a division-wise breakdown of revenue, the report showed that HUL generated 39 per cent from beauty & personal care, 30 per cent from home care, 29 per cent from foods & refreshments and 2 per cent from other segments.
HUL’s earnings before interest, taxes, depreciation and amortisation (EBITDA) were at Rs 12,503 crore and its EBITDA margin was at 24.8 per cent. It had added over 1,000 Bps in the last decade.
Ritesh Tiwari, Executive Director, Finance and Chief Financial Officer, HUL, said, “We have delivered a strong all-round performance in a challenging environment marked by the pandemic and unprecedented input cost inflation. Through dynamic financial management we have grown our consumer franchise whilst protecting our business model.”
The company’s depreciation charges increased by 1.6 per cent and finance costs decreased by 9.4 per cent YoY, respectively. Its other income declined by 37.1 per cent, net profit grew by 11.1 per cent and net profit margins declined to 16.9 per cent in FY22.
HUL’s profit after tax (PAT) stood at Rs 8,818 crore, showing an 11 per cent YoY growth. The company further revealed that its PAT increased 3x in the last decade.
The FMCG firm’s current liabilities during FY22 stood at Rs 113 billion against Rs 111 billion in FY21, an increase of 1.6 per cent. HUL’s current assets rose 9 per cent and stood at Rs 155 billion, while fixed assets rose 1 per cent and stood at Rs 550 billion in FY22. Overall, the total assets and liabilities for FY22 stood at Rs 705 billion as against Rs 687 billion during FY21, up 3 per cent.
HUL's cash flow from operating activities during FY22 was at Rs 11,684 crore, up three times in the last decade. The company report also revealed that its earnings per share stands at Rs 37 and the dividend per share stands at Rs 34 during FY22.
The market capitalisation of HUL stands at Rs 4,81,396 crore, an increase of 5x in the last decade. Moreover, the company's interest coverage ratio, which shows how easily a company can pay its interest expense on outstanding debt, also improved and stood at 113.0x during FY22, from 91.6x during the previous year.
HUL’s return on assets (ROA), which measures how efficiently the company uses its assets to generate earnings, stood at 12.8 per cent during FY22, from 11.8 per cent during the previous year.