Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2014-15 Earnings Presentation
26 slides from Hindustan Unilever's earnings presentation, Jul 28, 2014
Slide 1: JQ'14 Results Presentation – July 28, 2014
JQ’14 Results Presentation – July 28, 2014 1
Slide 2: Safe Harbor Statement
Safe Harbor 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 e
Slide 3: Agenda
Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 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: Business environment remains challenging
JQ 2014 – Context Business environment remains challenging Further slowdown in market growth (volume & value) across categories • Premium segments & discretionary categories still remain soft Input costs firm, up on y-o-y basis Competitive activity remains high despite lower media intensity 5
Slide 6: Input costs firm
Input costs firm Up year-on-year basis Source: Bloomberg data and internal estimates 6 INR numbers arrived at by applying the average exchange rate of the quarter to the average USD cost of the commodity
Slide 7: Competitive and profitable growth sustained
JQ 2014 Competitive and profitable growth sustained Domestic Consumer business grows by 13%, ahead of market • 6% underlying volume growth Operating profit (PBIT) at Rs.1250 crores, up 23%; margin expands +130 bps • COGS higher by 60 bps; led by input cost inflation • Employee cost includes one
Slide 8: Healthy volume growth in a slowing market
Healthy volume growth in a slowing market 8 * Intrinsic UVG is after adjusting for impact of transport strike related up-stocking at end March 2013
Slide 9: Double digit growth across all segments
Double digit growth across all segments Sales growth % Soaps & Detergents 13 Personal Products 15 Beverages 10 Packaged Foods 18 Domestic Consumer grows at 13% Sales growth = Segment Turnover growth excluding Other Operational Income 9
Slide 10: Category Highlights
CATEGORY HIGHLIGHTS
Slide 11: Continued focus on innovations
Winning with Brands Continued focus on innovations 11
Slide 12: Impactful activation
Winning with Brands Impactful 360 activation 12
Slide 13: Skin Cleansing: Double digit growth
Skin Cleansing Double digit growth Dove leads category performance Pears, Lux, Liril, Hamam and Lifebuoy deliver double digit growth Lux re-launched with improved product sensorials and aesthetics Step up in price growth; judicious pricing and cost savings to manage input cost inflation Li
Slide 14: Home Care: Double digit growth led by the premium segment
Home Care Double digit growth led by the premium segment Laundry • Surf delivers one of its strongest quarters • Rin accelerates across both powders and bars • Wheel growth improves post re-launch • Comfort continues to do well and lead market development Household Care • Double digit growth led
Slide 15: Skin Care: Double digit growth in a challenging market
Skin Care Double digit growth in a challenging market FAL, Ponds and Lakme deliver double digit growth • FAL continues to build momentum post relaunch • Pond’s growth led by premium skin lightening and talc • Lakme buoyed by CC cream and Perfect Radiance range Launch of Pond’s Men range (Moistur
Slide 16: Hair Care: Volume led double digit growth
Hair Care Volume led double digit growth Shampoos deliver another quarter of strong performance • Dove performance accelerates • Clinic Plus continues to do well; TRESemmé making good progress • Broad-based growth across formats; sachets grow faster Conditioners market development sustained 16
Slide 17: Oral Care: Continued investments to sustain competitiveness
Oral Care Continued investments to sustain competitiveness Close Up delivers double digit growth Core re-launched; ‘Diamond Attraction ‘ introduced Small packs leading growth Pepsodent recovery underway 17
Slide 18: Color Cosmetics: Innovation led double digit growth
Color Cosmetics Innovation led double digit growth Lakme sustains strong growth led by premium make up • 9 to 5 and ‘eyeconic’ doing very well • Exciting launch of the Lakme Absolute Gloss Addict range Elle 18 delivers another robust performance 18
Slide 19: Beverages: Double digit growth in Tea and Coffee
Beverages Double digit growth in Tea and Coffee Tea growth led by strong volumes • Driven by strengthened brands & sharper in-market activation • Green tea delivers another good quarter; continued focus on market development • Premium offering ‘Taj – A Flavor of Darjeeling’ launched • Tea price gr
Slide 20: Packaged Foods: Double digit growth in Kissan, Knorr & Kwality Walls
Packaged Foods Double digit growth in Kissan, Knorr & Kwality Walls Kissan sustains strong growth momentum • Driven by impactful market development Knorr growth led by Soups; Instant Soups more than double • Driving product experience and trial generation Kwality Walls and Magnum deliver a str
Slide 21: 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 Growth driven by the premium end • Pureit Ultima (RO + UV) well received Modern Trade and Pureit Perfect Stores lead growth 21 UV: Ultra Violet; RO: Reverse Osmosis
Slide 22: Results summary
JQ 2014 Results summary Rs Crores Particulars JQ'13 JQ'14 Growth % Net Sales* 6,687 7,571 13 PBIT 1019 1,250 23 PBIT margin (%) 15.2 16.5 130 bps PAT bei 885 1020 15 Net Profit 1019 1057 4 * Domestic Consumer grows at 13% 22
Slide 23: PBIT to Net Profit
JQ 2014 PBIT to Net Profit Rs Crores Particulars JQ’13 JQ’14 Growth % PBIT 1019 1250 23 Add : Other Income 177 202 Less : Finance Costs 6 6 Exceptional Items – Credit / (Charge) 106 40 PBT 1296 1485 15 Less : Tax (277) (428) Net Profit 1019 1057 4 • Other income includes • Interest, dividend and net
Slide 24: Results summary
JQ 2014 Results summary Competitive and profitable growth sustained • 13% Domestic Consumer growth, ahead of market o 6% underlying volume growth (transport strike impact in base quarter) • PBIT margin expands +130 bps o Inflation impact, competitive A&P spend, one time pension credit, operating eff
Slide 25: Looking ahead
Looking ahead Continued headwinds - market growth, consumer spending and inflation Positive on the medium-long term outlook for FMCG Strategy unchanged o Manage the business for long term growth Consistent, Competitive, Profitable, Responsible Growth o Invest to strengthen the core and lead
Slide 26: For more information & updates
For more information & updates VISIT OUR WEBSITE HUL INVESTOR APP 26
Hindustan Unilever — Q1 FY2014-15 Earnings Presentation on 6ix