HUL Declares A Solid Dividend Of Rs 22/ share, Total Sales Surge 11%

India's major consumer goods company, Hindustan Unilever Ltd reported a growth of 11 per cent in total sales at Rs 14,953 crore for the March quarter as against Rs 2,307 crore in the same quarter last year.

Through subsequent press releases filed on the securities exchange, Hindustan Unilivere Ltd declared its quarterly and full year results along with a final dividend for the fiscal year. For the full year, the company had a strong all-round performance in a challenging environment with a drop in margins.

The company witnessed a decline in margins as the key commodities remained elevated for the operations, however there was improvement in sales volumes. Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter at Rs 3,471 crores versus MQ 22's Rs. 3,245 crores grew by 7%. EBITDA margin at 23.7% declined by 90 bps vs MQ 22.

The profit after tax before exceptional items for the quarter at Rs. 2,471 crores (MQ 22: Rs. 2,283 croresl grew by 8%. Exceptional items in MQ 23 include restructuring expenses of Rs. 27 crores (MQ 22: Rs. 58 crores), acquisition and disposal related cost of Rs. 26 crores (MQ 22: Rs. 21 crores), profit from sale of surplus properties Rs. 73 crores (MQ 22: Rs. 137 crorel and profit from sale of brand rights Rs. 60 crores (MQ22: Nill.). While the net profit after tax for the quarter at Rs. 2,552 crores (MQ22: Rs. 2,327 crores) grew by 10%.

Full year performance

For the full year FY 2022-23, total sales at Rs. 58,154 crores grew 16%. Earnings before interest, tax, depreciation and amortization (EBITDA) grew 9%, Profit after tax before exceptional items grew 11 %, Profit after tax grew 13%.

5% revenue growth was led by Ice Cream, Coffee and Foods. Volumes grew low single digit in Foods & Refreshment. While 12% revenue growth, volumes growth was low single digit in Beauty & Personal Care space and home care segment saw a 28% revenue growth, volumes grew close to double digits.

Year on year the company witnessed a growth of 16% as a rise of Rs 7,8181 crore was seen in turnover to record at Rs 58,154 during year end on March 31, 2023.

Dividend details

In the board of directors meeting held on Thursday, 27th April 2023, the company recommended and approved a final dividend of Rs. 22/- per share, for the financial year ended 31st March 2023.

Together with the interim dividend of Rs.17 per share paid on 21st November 2022, the total dividend for the financial year ended 31 st March 2023 amounts to Rs 39/- per share. Final dividend is subject to approval of shareholders.

The company also shared book closure dates, stating that the register of Members of the Company will remain closed from Tuesday, 20th June, 2023 to Monday, 26th June, 2023 (both days inclusive) for the purpose of payment of Final Dividend and Annual General Meeting of the Company.

The company has a good track record of paying dividends in last 5 years. Based on the current market price of Rs 2,467 per equity share of the stock the dividend yield results in 1.59%.

Share price movement

The stock price of the Hindustan Unilever Ltd has fallen by nearly 2% to Rs 2467 on account of muted performance. In last one year it has surged steeply by 15. 05% while in three years it moved only by 6.3%.