Q1 FY23 Net Profit Rises by 29% YoY to INR 877 Crore, Robust Operational Performance led by 27% YoY Growth in Revenue and 26% YoY in EBITDA

MUMBAI, INDIA, Aug 1, 2022 (GNI): UPL Ltd. (NSE: UPL & BSE: 512070, LSE: UPLL), today reported financial results for the first quarter of FY23 (Apr-June 2022).

Financial Performance Update

INR crore(Unless otherwise stated)	Q1 FY23	Q1 FY22	YoY
Revenue	10,821	8,515	27%
EBITDA	2,342	1,862	26%
EBITDA Margin (%)	21.6%	21.9%	(23 bps)
Net Profit	877	678	29%

·         Q1 FY23 Revenue witnessed robust growth of 27% YoY to reach INR 10,821 crore, led by better product realizations (+18%), favorable exchange rate (+3%), and higher volumes (+6%)

·         Q1 FY23 EBITDA grew by 26% YoY to INR 2,342 crore as against INR 1,862 crore in Q1 FY22. Significant uptick in realizations supported by efficient supply chain management aided in maintaining EBITDA margins despite inflationary pressures

Commenting on the performance, Mr. Jai Shroff, CEO – UPL Ltd., said “After a strong end to FY2022, we continued to see solid growth momentum in Q1 FY23, as the strong agri commodity prices drove significant uptick in price realizations as well as healthy demand from growers. The EBITDA margin remained largely intact despite the significant input cost inflation and a challenging macro-economic environment exacerbated by geopolitical issues. This was driven by proactive pricing actions coupled with efficient supply chain management that led to the strong topline growth getting translated into robust operating profitability growth as well.

Powered by our OpenAg purpose, we continued to leverage collaboration as a catalyst for sustainable and lasting change. In partnership with the FIFA Foundation, we held the European launch of Gigaton Carbon Goal, a global initiative to sequester one billion metric tonnes of atmospheric carbon dioxide by 2040. And in Brazil, we announced a new agreement with Bunge to establish Orígeo, an innovative company providing end-to-end solutions to help increase farmer’s productivity, profitability and sustainability.

Moving on, as we look ahead to the rest of the year, we are well poised to continue our healthy growth momentum, as product realizations continue to remain strong, recent new launches continue to see good traction in the marketplace, and the overall demand outlook continues to be constructive. Considering this positive outlook, we have revised our FY23 guidance upwards, expecting to achieve a revenue growth of 12-15% now versus 10% earlier, and EBITDA growth of 15-18% versus 12-15% earlier.”

Regional Performance Update

Region (INR crore)	Q1 FY23	Q1 FY22	YoY % Chg.
Latin America	3,464	2,507	38%
Europe	1,728	1,522	13%
North America	1,796	1,221	47%
India	2,067	1,914	8%
Rest of the World	1,765	1,350	31%
Total	10,821	8,515	27%

Other Developments for the Quarter

·         UPL entered into a new supply agreement with Bayer for “Spirotetramat”, an insecticide to develop novel differentiated pest management solutions.

·         UPL launched Zoatin, a bionutritional to increase crop health and yield in partnership with Christian Hansen. This is the first product to be launched from UPL’s global partnership with Christian Hansen to develop microbial biosolutions

·         UPL and Bunge from a JV ‘Orígeo’ targeting large farms in a specific area of Brazil to increase Brazilian farmers’ sustainability, productivity, and profitability, subject to anti-trust approvals

·         As a part of its collaboration with MMAG (subsidiary of Mitsui Chemicals Agro Inc.), UPL launched new insecticides range in India containing the patented molecule ‘Flupyrimin’ to target the most damaging rice pests

·         Launched Gigaton Carbon Goal in Europe, a global ecosystem that will harness sustainable agricultural practices to reduce atmospheric carbon dioxide by 1 Bn metric tonnes by 2040

·         Won Corporate Social Responsibility award at 19th FICCI CSR Awards