Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2013-14 Earnings Presentation
31 slides from Hindustan Unilever's earnings presentation, Oct 28, 2013
Slide 1: SQ 2013 Results Presentation – Oct 28, 2013
SQ 2013 Results Presentation – Oct 28, 2013 1
Slide 2: Safe Harbour Statement
Safe Harbour Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar
Slide 3: Agenda
Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 First Half 2013 -14 Performance 5 Looking Ahead 3
Slide 4: Clear and Compelling Strategy
Clear and Compelling Strategy Strategic framework Sustainable Living Plan Goals Consistent Growth Competitive Growth Profitable Growth Responsible Growth 4
Slide 5: Challenging business environment
SQ 2013 – Context Challenging business environment Further slowdown in market growth (volume & value) across categories • Premium segments & discretionary categories continue to be under pressure Volatile input cost environment Overall competitive intensity steps up Uncertain media environme
Slide 6: Sharp Rupee depreciation
Volatile input cost environment Sharp Rupee depreciation 6
Slide 7: Competitive intensity heightens
Competitive intensity heightens Personal care entries Significant step up in media spends (GRPs) • Industry media intensity highest in last 5 years • S&D and PP at new highs • Sharp increase in Oral Care category 7
Slide 8: Consistent, competitive and profitable growth
SQ 2013 Consistent, competitive and profitable growth Domestic Consumer business grows by 10%, ahead of market • 5% underlying volume growth Operating Margin (PBIT) expands to 15.1%; up 20 bps • PBIT at Rs. 1021 crores grows by 11% • COGS down 170 bps • A&P up Rs. 185 crores (24%); +165 bps at 1
Slide 9: Continued focus on innovations
Winning with Brands Continued focus on innovations 9
Slide 10: Growth across segments
Growth across segments Sales growth % Soaps & Detergents 7 Personal Products 13 Beverages 17 Packaged Foods 9 Domestic Consumer grows at 10% Sales growth = Segment Turnover growth excluding Other Operational Income 10
Slide 11: Category Highlights
CATEGORY HIGHLIGHTS
Slide 12: Skin Cleansing: Fourth successive quarter of double digit volume growth
Skin Cleansing Fourth successive quarter of double digit volume growth Lifebuoy, Breeze and Lux lead category growth Exciting launch of limited edition Lux Continued price deflation as commodity cost benefits were passed back to consumers 12
Slide 13: Home Care: Volume led growth
Home Care Volume led growth Laundry: Surf & Rin drive category growth • Surf growth buoyed by Easy Wash; Rin led by bars • Wheel sales stabilize; actions underway to step up further • Comfort delivered robust performance • Pricing anniversary & promotions result in flat price growth Household Ca
Slide 14: Skin Care: Growth steps up to double digit
Skin Care Growth steps up to double digit Continued slowdown in market volume growth Double digit growth - favorable comparator, good winter sell-in • Vaseline & Dove lotions perform very well • Lakme delivers strong innovation-led growth • Ponds led by talc and facial cleansing FAL re-launche
Slide 15: Fair & Lovely: Re-launched with Best Ever Formula
Fair & Lovely Re-launched with Best Ever Formula
Slide 16: Hair Care: Volume led double digit growth
Hair Care Volume led double digit growth Broad based growth across formats Dove, Sunsilk & Clinic Plus register double digit volume growth TRESemmé continues to do well and gain ground Conditioners - growing acceptance; another strong quarter A range of premium hair offerings under TONI &
Slide 17: Oral Care: Sustained double digit growth
Oral Care Sustained double digit growth Both brands grew in double digits Close-up performance driven by exciting activation Pepsodent core re-launched with superior product • Expert Protection continues to do well Stepped up investments to sustain competitive growth 17
Slide 18: Color Cosmetics: Innovation led growth momentum
Color Cosmetics Innovation led growth momentum Lakme sustains strong growth led by premium make-up • Absolute & 9 to 5 – sales more than double in the quarter o ‘eyeconic’ continues to do very well; good response to new 9 to 5 launch o Impactful activation around Lakme Fashion Week Elle 18 furth
Slide 19: Beverages: Tea delivers another strong quarter
Beverages Tea delivers another strong quarter – price led, healthy volumes All key tea brands grow in double digits • Driven by mix improvements, impactful activation and micro marketing initiatives • Focus on market development for tea bags continues o Flavored & Green Tea bags sales nearly doubl
Slide 20: Tea: Sustaining strong broad based growth on the core
Tea Sustaining strong broad based growth on the core Strengthened Proposition TAJ MAHAL TAAZA RED LABEL Perfect Balance of Strength & Aroma Best in Class Refreshment Tasty & Healthy Reaching More Consumers Reaching More Stores Weighted Value Distribution 20
Slide 21: Packaged Foods: Kissan accelerates, Kwality Walls steps up
Packaged Foods Kissan accelerates, Kwality Walls steps up Kissan delivers a strong quarter; Ketchup steps up further Knorr sales driven by Instant Soups which nearly doubles Kwality Walls steps up to double digit growth in a market which continues to remain challenging • Driven by sharper in-m
Slide 22: Pureit: Double digit growth in a challenging durables market
Pureit Double digit growth in a challenging durables market Pureit continues to strengthen its category leadership Innovations performing well and leading growth Market development communication well received • Pureit Advanced as lead device does particularly well ‘Marvella RO-Slim’ launch e
Slide 23: Results summary
SQ 2013 Results summary Rs Crores Particulars SQ'12 SQ'13 Growth % Net Sales 6,155 6,747 10 PBITDA 977 1,085 11 PBIT 919 1,021 11 PBIT margin (%) 14.9 15.1 20 bps PAT bei 806 883 10 Net Profit 807 914 13 23
Slide 24: PBIT to Net Profit
SQ 2013 PBIT to Net Profit Rs Crores Particulars SQ’12 SQ’13 Growth % PBIT 919 1021 11 Add : Other Income 149 151 2 Less : Finance Costs 6 6 (1) Exceptional Items – Credit / (Charge) 2 33 PBT 1063 1200 13 Less : Tax (256) (286) 12 Net Profit 807 914 13 • Other income includes o Interest, dividends &
Slide 25: Consistent, competitive and profitable growth
SQ 2013 Consistent, competitive and profitable growth • 10% Domestic Consumer growth, ahead of market o 5% underlying volume growth • Investing for growth; step-up in innovations and A&P • PBIT margin expands +20 bps 25
Slide 26: First Half 2013-14
FIRST HALF 2013-14
Slide 27: Strategy on course
First Half 2013-14 Strategy on course COMPETITIVE GROWTH CONSISTENT GROWTH PROFITABLE GROWTH Ahead of market Sustaining UVG in a Expanding margins whilst slowing market investing competitively 27 Domestic Consumer business = Domestic FMCG + Water; UVG = Underlying Volume Growth
Slide 28: Results summary: First Half 2013-14
First Half 2013-14 Results summary Rs Crores Particulars FH’12-13 FH’13-14 Growth% Net Sales 12406 13435 8 PBITDA 1943 2171 12 PBIT 1828 2041 12 PBIT margin (%) 14.7 15.2 50 bps PAT bei 1660 1768 6 Net Profit 2138 1933 (10) • Domestic consumer business grew by 8% in FH’13-14 o Underlying volume grow
Slide 29: Interim Dividend
Interim Dividend FH’12-13 FH’13-14 Particulars Interim Interim Dividend Per Share (Rs.) 4.5 5.5 No. of Share (Crs.) 216 216 Total Dividend (Rs. Crs.) 973 1189 Div. Dist. Tax (Rs. Crs.) 165 202 Total Div. Outflow (Rs. Crs.) 1138 1391 29
Slide 30: Looking ahead
Looking ahead Strategy unchanged; continue to manage business for the long term Investing to strengthen the core and to win in the marketplace of tomorrow Near term concerns • Slowing market • Volatility • Media inflation Remain positive on the medium-long term outlook for FMCG HUL well po
Slide 31: For more information & updates
For more information & updates 31
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