UPL increases global sales by 7% and reaches US$6,7 billion in revenue in the fiscal year

UPL Ltd. released financial results for its fiscal year – April 2022 to March 2023. Global revenue grew 7% to approximately US$6,679 billion. The company's profit increased by 2%, reaching approximately US$ 1,393 billion.

Revenue was driven by improved product realizations, favorable currency impact and stable volumes. EBITDA, an acronym in English that refers to the international metric for calculating profit before taking into account interest, taxes, depreciation and amortization, had a lower margin, mainly due to performance below expectations globally in the fourth quarter of the fiscal year (January to March 2023), impacted by obstacles in the post-patent scenario. Performance was healthy in the first nine months of the fiscal year.

UPL Global CEO Jai Shroff commented on the group's performance: "We delivered a resilient set of results despite facing significant obstacles in the last quarter. Thanks to the dedication, agility and tenacity of our teams we met the majority of our commitments. We reduced our gross debt at over US$600 million and net debt at US$440 million, driven by improved operating cash flow and a leaner working capital cycle. Looking ahead, we are well positioned to handle the market obstacles and deliver improved profitability growth. In the long term, we remain confident in achieving our growth ambitions and transforming the food value chain with an emphasis on sustainability.”

Mike Frank, CEO of UPL Crop Protection, commented: "Fiscal 2023 was a tale of two distinct periods. Our performance in the first nine months delivered strong revenue and EBITDA growth. The fourth quarter was unusual, with pricing pressure and reduced post-patent purchases due to oversupply of certain molecules. Our focus in the last quarter was to increase share in key markets, liquidate most high-cost inventory, closely manage working capital and intelligently configure our position of inventory for next year. As a result, given our lean inventory position, we are well positioned to deal with the challenging market conditions that are likely to persist in the first half of fiscal 2024 (April to September), but also to benefit when the market begins to normalize. Backed by excellent manufacturing capabilities and product innovation, we remain confident of growing significantly faster than the market in fiscal 2024 (ending March 2025)."