Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 2013 Earnings Presentation
29 slides from Hindustan Unilever's earnings presentation, Jan 27, 2014
Slide 1: DQ 2013 Results Presentation – Jan 27, 2014
DQ 2013 Results Presentation – Jan 27, 2014 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 Nine Months 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
DQ 2013 – Context Challenging business environment Market growth continues to remain soft across categories Firm input costs, led by the Rupee depreciation Competitive intensity remains high Uncertain media environment 5
Slide 6: Firm input costs led by the Rupee depreciation
Firm input costs Led by the Rupee depreciation 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
DQ 2013 Competitive and profitable growth sustained Domestic Consumer business grows by 10%, ahead of market • 4% underlying volume growth Operating Margin (PBIT) expands to 16.5%; up 50 bps • PBIT at Rs. 1162 crores grows by 13% • COGS down 110 bps driven by judicious pricing, lower promotions
Slide 8: Healthy volume growth in a slowing market
Healthy volume growth in a slowing market 8
Slide 9: Continued focus on innovations
Winning with Brands Continued focus on innovations 9
Slide 10: Impactful activation in quarter
Winning with Brands Impactful activation in quarter 10
Slide 11: Impactful activation in quarter
Winning with Brands Impactful activation in quarter 11
Slide 12: Growth across segments
Growth across segments Sales growth % Soaps & Detergents 8 Personal Products 13 Beverages 9 Packaged Foods 14 Domestic Consumer grows at 10% Sales growth = Segment Turnover growth excluding Other Operational Income 12
Slide 13: Category Highlights
CATEGORY HIGHLIGHTS
Slide 14: Skin Cleansing: Healthy volume led performance
Skin Cleansing Healthy volume led performance Pears, Dove, Breeze and Lifebuoy lead category growth • Pears re-launched with ‘Younger looking skin’ proposition Liquids delivers a strong quarter led by Lifebuoy handwash Cost inflation managed through judicious pricing and unwinding of promotion
Slide 15: Home Care: Growth led by the premium segment
Home Care Growth led by the premium segment Laundry • Strong growth in Surf Excel Easy Wash & Excel Matic; Rin led by bars • Wheel re-launched with superior formulation at quarter end • Comfort delivers another robust performance Household Care • Sustained double digit growth across Vim and Dome
Slide 16: Skin Care: Good growth in a challenging market
Skin Care Good growth in a challenging market Broad based growth across brands Fair and Lovely re-launch on track • Superior product • Focused communication plan • Rs. 5 pack introduced Lakme sustains strong innovation-led growth momentum • Lakme Winter Intense Moisturiser launched Facial cl
Slide 17: Hair Care: Volume led double digit growth
Hair Care Volume led double digit growth Strong growth momentum sustained; broad based across formats Dove leads category performance with accelerated growth Sunsilk and Clinic Plus continue to do well TRESemmé making good progress Portfolio expanded with launch of Clinic Plus Vita Oil 17
Slide 18: Oral Care: Growth accelerates in a competitive market
Oral Care Growth accelerates in a competitive market Double digit growth across both brands Pepsodent led by strong growth on GermiCheck post its re- launch last quarter Close up driven by exciting activation A&P significantly stepped up to sustain competitive position 18
Slide 19: Color Cosmetics: Strong innovation-led growth momentum
Color Cosmetics Strong innovation-led growth momentum sustained Lakme delivers accelerated volume led growth • Absolute & 9 to 5 – sales more than double in the quarter • ‘eyeconic’ continues to do very well; new shades introduced • Exciting new ‘Stylist’ offerings added to the portfolio Elle 18
Slide 20: Beverages: Double digit growth in Tea
Beverages Double digit growth in Tea Tea sustains double digit growth across all key brands • Portfolio driven by mix improvements, impactful activation, in-market initiatives • Focus on market development for tea bags continues o Flavored & Green Tea bags sales more than double o Lipton Clear Gre
Slide 21: Packaged Foods: Double digit growth in Kissan, Knorr & Kwality Walls
Packaged Foods Double digit growth in Kissan, Knorr & Kwality Walls Kissan growth accelerates through impactful market development Knorr growth led by another strong quarter on Instant Soups Kwality Walls driven by sharper in-market execution 21
Slide 22: Pureit: Strengthening leadership in a challenging environment
Pureit Strengthening leadership in a challenging environment Pureit ranked as the most trusted brand in water purifiers • Source: Brand Equity’s 2013 trusted brand survey Portfolio expansion and premiumization continue successfully • RO, UV & Advanced devices grow volumes In-store execution st
Slide 23: Results summary
DQ 2013 Results summary Rs Crores Particulars DQ'12 DQ'13 Growth % Net Sales 6,434 7,038 9 PBITDA 1,089 1,227 13 PBIT 1,030 1,162 13 PBIT margin (%) 16.0 16.5 50 bps PAT bei 873 955 9 Net Profit 871 1,062 22 Domestic Consumer grows at 10% 23
Slide 24: PBIT to Net Profit
DQ 2013 PBIT to Net Profit Rs Crores Particulars DQ’12 DQ’13 Growth % PBIT 1030 1162 13 Add : Other Income 134 143 Less : Finance Costs 8 18 Exceptional Items – Credit / (Charge) (7) 23 PBT 1148 1310 14 Less : Tax (277) (248) Net Profit 871 1062 22 • Other income includes o Interest, dividends & gai
Slide 25: Competitive and profitable growth sustained
DQ 2013 Competitive and profitable growth sustained • 10% Domestic Consumer growth, ahead of market o 4% underlying volume growth • Investing for growth; A&P increased by over Rs.100 crores • PBIT margin expands +50 bps 25
Slide 26: Nine Months Ending 31st December 2013
NINE MONTHS ENDING 31ST DECEMBER 2013
Slide 27: Results summary
Nine Months ending 31-Dec-2013 Results summary Rs Crores Particulars YTD DQ'12 YTD DQ'13 Growth % Net Sales 18,839 20,472 9 PBITDA 3,032 3,398 12 PBIT 2,857 3,203 12 PBIT margin (%) 15.2 15.6 50 bps PAT bei 2,534 2,723 7 Net Profit 3,009 2,995 = • Domestic Consumer grows at 9% • Net profit growth im
Slide 28: Looking ahead
Looking ahead Strategy unchanged; continue to manage business for long term growth • Consistent, Competitive, Profitable, Responsible Growth Invest to strengthen the core and lead the development of emerging categories Near term concerns • Uncertain macro environment • Volatility Positive on
Slide 29: For more information & updates
For more information & updates 29