Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — FY2014-15 Earnings Presentation
34 slides from Hindustan Unilever's earnings presentation, May 8, 2015
Slide 1: MQ 2015 & FY 2014-15 Results Presentation
MQ 2015 & FY 2014-15 Results Presentation May 8, 2015 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 Financial Year 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: MQ 2015 – Context
MQ 2015 – Context Business environment volatile Markets remain soft; pick up in reported growth in recent months Input costs benign Competitive activity high, particularly in commodity led categories 5
Slide 6: Benign input costs
Benign input costs INR / USD 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: MQ 2015 Competitive and profitable growth sustained
MQ 2015 Competitive and profitable growth sustained Domestic Consumer business grows by 9%, ahead of market • 6% underlying volume growth Operating Profit (PBIT) at Rs.1248 crores, up 23%; margin expands +190 bps • COGS lower by 310 bps; driven by lower commodity costs and savings programs • Com
Slide 8: Broad based growth across segments
Broad based growth across segments Sales growth % Soaps & Detergents 5 Personal Products 13 Beverages 11 Packaged Foods 14 Domestic Consumer grows at 9% Sales growth = Segment Turnover growth excluding Other Operational Income 8
Slide 9: Category Highlights
CATEGORY HIGHLIGHTS 9
Slide 10: Winning with Brands: Continued focus on innovations
Winning with Brands Continued focus on innovations 10
Slide 11: Winning with Brands: Impactful activation
Winning with Brands Impactful 360 activation Close up- Valentines Day Pond’s Men – Association with ABCD2 Leveraging Festivals Campaign Lakme School of Style Tweetheart Offers Signature Collection on Hotstar 11
Slide 12: Skin Cleansing: Volume led growth
Skin Cleansing Volume led growth Growth driven by Lifebuoy, Liril and Pears Lifebuoy Hand wash delivers another strong performance Price deflation in the quarter due to: • Commodity cost benefits passed on to consumers • Phase out of Excise Duty benefits 12
Slide 13: Home Care: Growth led by premium segment
Home Care Growth led by premium segment Laundry • Surf sustains volume led double digit growth momentum • Rin growth continues to be led by bars • Wheel performance subdued • Comfort delivers another good quarter led by market development Household Care • Growth led by Vim: broad based performan
Slide 14: Skin Care: Double digit growth led by FAL and Pond's
Skin Care Double digit growth led by FAL and Pond’s Fair & Lovely double digit growth momentum sustained Pond’s performance driven by Premium Skin Lightening and Talc Lakme performance driven by Perfect Radiance and CC Cream One off Excise Duty refund more than offsets phase out impact of fi
Slide 15: Hair Care: Volume led double digit growth sustained
Hair Care Volume led double digit growth sustained Broad based double digit growth across brands and formats • Dove leads category performance • Sunsilk driven by impactful activation • Clinic Plus does well; re-launched towards end of quarter • TRESemmé continues to gain ground Strong growth de
Slide 16: Oral Care: Double digit growth on Close Up
Oral Care Double digit growth on Close Up Close Up does well on back of impactful activation Pepsodent growth led by Gum Care and Clove & Salt One off Excise Duty refund more than offsets phase out impact of fiscal benefits 16
Slide 17: Color Cosmetics: Innovation led double digit growth
Color Cosmetics Innovation led double digit growth Lakme sustains strong growth led by premium make up • Absolute and 9 to 5 ranges doing well • Exciting launch of Lip Love lip balm and ‘Sculpt Lakme Lipstick’ Cutting edge digital activation around another successful edition of Lakme Fashion Wee
Slide 18: Beverages: Double digit growth in Tea and Coffee
Beverages Double digit growth in Tea and Coffee Red Label, Taj and 3 Roses deliver double digit growth • Driven by strengthened brands and sharper in-market activations • Natural Care portfolio continues to do well • Green Tea sustains momentum on focused market development Coffee delivers a goo
Slide 19: Packaged Foods: Sixth successive quarter of double digit growth
Packaged Foods Sixth successive quarter of double digit growth Double digit growth in Kissan, Knorr and Kwality Walls Kissan sustains activation led growth momentum Knorr registers robust volume led growth, Instant Soups double • Introduction of 2 new Chinese variants to the noodles portfolio
Slide 20: Packaged Foods: Driving growth through market development
Packaged Foods Driving growth through market development Unlocking everyday relevance Driving adoption and trials Sharper in-market execution 10,000 Perfect Visibility Outlets!
Slide 21: Pureit: Sustained innovation led growth
Pureit Sustained innovation led growth Pureit continues to strengthen its category leadership Growth driven by premium devices • Ultima (RO + UV) maintains its strong momentum • Marvella RO+UV launched during quarter Modern Trade and Pureit Perfect Stores accelerate growth 21 UV: Ultra Violet;
Slide 22: MQ 2015 Results summary
MQ 2015 Results summary Rs Crores Particulars MQ'14 MQ'15 Growth % Net Sales* 6,936 7,555 9 PBIT 1,012 1,248 23 PBIT margin (%) 14.6 16.5 190 bps PAT bei 832 911 9 Net Profit 872 1,018 17 * Domestic Consumer grows at 9% 22
Slide 23: MQ 2015 PBIT to Net Profit
MQ 2015 PBIT to Net Profit Rs Crores Particulars MQ’14 MQ’15 Growth % PBIT 1011 1248 23 Add : Other Income 150 98 Less : Finance Costs 5 0 Exceptional Items – Credit / (Charge) 66 179 PBT 1223 1525 25 Less : Tax (351) (507) Net Profit 872 1018 17 • Exceptional items include amongst others - • Profit
Slide 24: MQ 2015 Results summary
MQ 2015 Results summary Competitive and profitable growth sustained • 9% Domestic Consumer growth, ahead of market • 6% underlying volume growth • Competitive spends across segments - A&P stepped up by +150 bps • PBIT margin expands +190 bps • Lower commodity costs and savings programs • One time be
Slide 25: Financial Year Ending 31st March 2015
FINANCIAL YEAR ENDING 31ST MARCH 2015 25
Slide 26: FY 2014-15 Results summary
Financial Year ending 31st March 2015 Results summary Rs Crores Particulars FY 2013-14 FY 2014-15 Growth % Net Sales 27,408 30,171 10 PBITDA 4,475 5,208 16 PBIT 4,215 4,921 17 PBIT margin (%) 15.4 16.3 90 bps PAT bei 3,555 3,843 8 Exceptional Items 228 664 Net Profit 3,867 4,315 12 • Domestic Consum
Slide 27: Strong track record of cash generation sustained
Financial Year ending 31st March 2015 Strong track record of cash generation sustained Higher cash from operations; another year of > 5000 crores • After rationalization of creditor financing program Higher taxes paid (FY15: 1940 crores, up 661 crores) Higher dividends paid* (FY15: 3427 crores
Slide 28: Broad based growth across segments
Financial Year ending 31st March 2015 Broad based growth across segments USG UVG Profit Soaps & Detergents 9% 3% 14% Personal Products 11% 6% 17% Beverages 9% 5% 6% Packaged Foods 15% 10% 36% 28 USG: Underlying Sales growth; UVG: Underlying Volume growth; Profit = Segmental Profit
Slide 29: Segment highlights
Financial Year ending 31st March 2015 Segment highlights Competitive performance on Soaps & Detergents in a volatile market Surf continues to lead category premiumization; now HUL’s largest brand Personal Products delivers a healthy performance; double digit in Skin, Hair and Colours Fair &
Slide 30: Delivered on strategy
Financial Year ending 31st March 2015 Delivered on strategy FMCG growth HUL PBIT Margin 30
Slide 31: Whilst making progress on our Sustainability priorities
Whilst making progress on our Sustainability priorities
Slide 32: Dividend
Financial Year ending 31st March 2015 Dividend Particulars FY 2013-14 FY 2014-15 Dividend Per Share 13 15 Interim 5.5 6 Final* 7.5 9 No. of Share (Crs.) 216.27 216.35 Total Dividend (Rs. Crs.) 2812 3245 Div. Dist. Tax (Rs. Crs.) 462 636 Total Div. Outflow (Rs. Crs.) 3274 3881 32 *Final dividend numb
Slide 33: Looking ahead
Looking ahead In near term, pace of market recovery largely dependent on Rural Fiscal headwinds to continue for another year Mid-long term outlook for FMCG remains positive Sustained volume led growth and margin improvement • Manage business dynamically • Market development • Continuous impr
Slide 34: For more information & updates
For more information & updates VISIT OUR WEBSITE HUL INVESTOR APP 34