EPL (500135) Q4 20/21 earnings summary

Executive summary

• FY21 delivered 12.0% revenue growth and 15.3% growth in net profit attributable to owners despite COVID-19 disruption across markets and supply chains.

• EAP and Europe led regional growth; strategic priorities include category expansion, sustainability, digital transformation, innovation and cost leadership.

Financial highlights

• Revenue from operations was ₹30,916 million, up 12.0% YoY; EBITDA was ₹6,155 million, up 9.9%, with a 19.9% margin vs 20.3%.

• EBIT rose 15.4% to ₹3,809 million; EBIT margin improved 36 bps to 12.3%.

• Net profit attributable to owners was ₹2,391 million, up 15.3%; excluding exceptional items, it was ₹2,552 million, up 17.8%. EPS was ₹7.58 vs ₹6.57.

• Net cash from operations was ₹5,224 million vs ₹4,711 million; finance costs fell 22.8% to ₹429 million.

Outlook and guidance

• FY22 pipeline was described as stronger, with all regions building opportunities across Oral Care, Beauty & Cosmetics, Pharma & Health Care, Foods & Nutrition and Home Care.

• Five strategic priorities: segmented category growth, sustainability, multi-year cost savings, digital transformation, and innovation; target 100% recyclable products by 2025.

• Ongoing COVID-19 uncertainty, vaccination rollout and new virus variants could delay a return to normal business conditions.