Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 FY2022 Earnings Presentation
28 slides from Hindustan Unilever's earnings presentation, Jan 20, 2022
Slide 1: Cover letter to stock exchanges: Investor Presentation
20th January, 2022 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra – Kurla Complex, Dala
Slide 2: Hindustan Unilever Limited DQ'21 Results
Hindustan Unilever Limited DQ’21 Results : 20th January 2022 Sensitivity: Public
Slide 3: 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 4: Sanjiv Mehta, Chairman and Managing Director
Sanjiv Mehta Chairman and Managing Director Sensitivity: Public
Slide 5: HUL DQ'21: Strong all-round performance
HUL DQ’21 : Strong all-round performance Double digit growth; Consistent step-up in Profitable growth ahead of the market growths EBITDA +100 bps YoY YoY Domestic Consumer Gr. (DQ’21) 2 year Sales CAGR EBITDA % 25.4% 11% 9% 25.0% 7% Mid-single digit 24.3% 2% Market HUL JQ'21 SQ'21 DQ'21 JQ'21 SQ'21
Slide 6: DQ'21: Robust 2 year CAGR
DQ’21 : Robust 2 year CAGR 2Y CAGR : Double Digit High-Mid Single Digit Others Fabric Wash & Care Beverages Skin Cleansing Skin Care Hair Care Color Cosmetics Household Care Ice Cream Foods Oral Care Water Purifier c. 67% of Portfolio c. 30% c. 3% 5 Excludes impact Sensitivity: of merger of GSK CH a
Slide 7: Strengthening our market leadership
Strengthening our market leadership 1. Highest YoY market share gains in more than a decade 2. Winning market shares in all Divisions 3. Winning in both Urban and Rural in all our Regions 4. Winning in mass, popular and premium segments 5. Market shares are also above 2019 levels As per December’21
Slide 8: Waste-free World: Rethinking plastic
Waste-free World : Rethinking plastic Our Commitment : By 2025, we will Help collect and process more plastic Ensure 100% of our plastic packaging is Reduce the amount of virgin plastic in packaging than we sell reusable, recyclable or compostable our packaging Plastic Neutral in 2021, 4 years ahead
Slide 9: Operating environment remains challenging
Operating environment remains challenging FMCG market growth moderating; volumes declining Commodity prices remain elevated Ocean Freight Nielsen Market Growth : Value >3X Total >1.8X Rural >1.6X >1.4X X DQ'20 MQ'21 JQ'21 SQ'21 DQ'21 YTD Jul'21 Aug-Sep'21 DQ'21 Nielsen Market Growth : Volume Rising
Slide 10: Clear and compelling strategy
Clear and compelling strategy 1. Developing our portfolio 2. Win with our brands as a force for good, powered by purpose and innovation 3. Lead in the channels of the future 4. Build differentiated structures and capabilities 5. Build a purpose-led, future-fit organisation and growth culture Operati
Slide 11: We are well positioned
We are well positioned People : Our #1 priority Trusted Brands; Wide Portfolio Agile and flexible Supply Chain Foods & Refreshment Beauty & 29% Personal Care 41% Home Care 30% Greater resilience | Better responsiveness 10 Sensitivity: Public
Slide 12: Looking ahead
Looking ahead Near-term outlook ❑ Uncertain operating environment : ▪ FMCG market growths moderating; inflation impacting volumes ▪ COVID Wave 3, expect limited impact due to vaccine coverage and health & safety measures ❑ Commodities remain volatile and elevated; witnessing further sequential infla
Slide 13: Ritesh Tiwari, Chief Financial Officer
Ritesh Tiwari Chief Financial Officer Sensitivity: Public
Slide 14: DQ'21: Strong all-round performance
DQ’21 : Strong all-round performance Growth EBITDA PAT (bei) Net Profit Domestic Consumer Growth Margin Growth Growth 11% 25.4% 17% 17% 2% +100 bps 2,292 cr. 2,243 cr. Underlying Volume Growth YoY 13 Sensitivity: Public
Slide 15: DQ'21: Robust growths across Divisions
DQ’21 : Robust growths across Divisions HOME CARE BEAUTY & PERSONAL FOODS & CARE REFRESHMENT 30% 41% 29% Competitive Growth Sales Growth 23% 7% 3% YoY Sales Growth 10% 8% 11% 2 Year CAGR 2 Year CAGR considers like-for-like domestic consumer growth of 2020 over 2019 and 2021 over 2020 14 Sensitivity:
Slide 16: Impactful innovations in DQ'21
Impactful innovations in DQ’21 Lakme Concealer & Dove Body Love Range Sensitive Mineral Active Volume Mascara Lakme : Concealer & Volume Mascara Simple Serums Lipton Darjeeling Tea Bru Beaten Coffee Sensitivity: Public 15
Slide 17: Activations and communications in DQ'21
Activations and communications in DQ’21 Horlicks Nutrimeter Surf Excel Matic liquid Kwality Wall’s : Diwali Activation Dove : Cleans like soap; Clinic Plus strong & long Comfort : 14-day freshness cares like cream Sensitivity: Public 16
Slide 18: Home Care: Double-digit growth momentum sustained
Home Care : Double-digit growth momentum sustained ❑ Household Care: High teens growth on a strong base; both dishwash and surface cleaners performing well ❑ Fabric Wash: Grew in strong double-digits driven by robust performance across the portfolio; volumes grew high single-digit ▪ Liquids continue
Slide 19: BPC: Skin Cleansing, Skin Care and Color Cosmetics lead growth
BPC : Skin Cleansing, Skin Care and Color Cosmetics lead growth ❑ Skin Cleansing: Strong quarter with double-digit growth driven by pricing. Beauty and premium soaps continue to perform well ❑ Hair Care: Steady performance led by premium portfolio; innovations continue to perform well. ‘Clinic Plus’
Slide 20: F&R: Steady performance on a strong base
F&R : Steady performance on a strong base ❑ Beverages: Tea continued its strong performance, 2Y CAGR in high teens. Coffee performed well and grew in high single-digit ❑ Health Food Drinks: Market development actions resulted in handsome market share and penetration gains. Soft quarter due to a high
Slide 21: Discretionary & OOH above pre-Covid levels
Discretionary & OOH above pre-Covid levels Health, Hygiene & Nutrition Discretionary Out of Home (c.85% of portfolio) (c.12% of portfolio) (c.3% of portfolio) 2 year Sales CAGR 2 year Sales CAGR 2 year Sales CAGR 5% 14% 12% 10% 8% 7% -1% -13% -22% JQ'21 SQ'21 DQ'21 JQ'21 SQ'21 DQ'21 JQ'21 SQ'21 DQ'2
Slide 22: Protecting our business model
Protecting our business model Unprecedented inflation: 1. Improving COGS 2. whilst investing in our brands, SOV > SOM Dynamic Financial Management COGS % TO Share of Voice 50% (indexed to DQ’20) Material Cost per Ton 49% 49% 48% (indexed to FY’20) 130% 47% 125% 115% DQ'20 MQ'21 JQ'21 SQ'21 DQ'21 110
Slide 23: DQ'21: Segmental performance
DQ’21 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 30% 41% 29% INR 4,193 cr. INR 5,175 cr. INR 3,466 cr. Segmental Revenue Growth 23% 7% 3% Segmental Revenue 2Y CAGR 10% 8% 11% Segmental Margins 21% 28% 19% Segment Revenue Growth = Segment Turnover growth + Other Oper
Slide 24: DQ'21: Results summary
DQ’21 : Results summary Rs. Crores Particulars DQ’21 DQ’20 Growth Sales 12,900 11,682 10%* EBITDA 3,279 2,854 15% EBITDA Margin 25.4% 24.4% +100 bps Other Income (Net) 66 56 Exceptional Items – Credit / (Charge) (66) (42) PBT 3,024 2,596 16% Tax 781 675 PAT bei 2,292 1,951 17% Net Profit 2,243 1,921
Slide 25: FY'22: 9-month performance
FY’22 : 9-month performance Rs. Crores Particulars YTD Dec’21 YTD Dec’20 Growth Sales 37,146 33,364 11% EBITDA 9,258 8,367 11% PAT bei 6,441 5,859 10% Net Profit 6,491 5,811 12% 24 Sensitivity: Public
Slide 26: Update on approval under Production Linked Incentive scheme
Update on approval under Production Linked Incentive scheme ❑ Received approval for PLI scheme for Ready to Cook / Ready to Eat (RTC/RTE) and Processed Fruits & Vegetables (F&V) ▪ HUL Categories include Ice Cream, Ketchup, Jam, Soups, Mayonnaise, etc. ❑ Scheme details: ▪ Incentive is subject to meet
Slide 27: In Summary
In Summary 1. Solid DQ Performance: Double-digit growth ahead of market; Robust 2Y CAGR momentum 2. EBITDA margins in a healthy range whilst continuing to invest in our brands 3. Further strengthened our market leadership, highest market share gains in the decade 4. In the near-term, operating envir
Slide 28: For more information and updates
For more information and updates Visit our IR website Click to visit our D2C platforms Lakme U Shop Indulekha Simple Love Beauty & Planet Dermalogica 27 Sensitivity: Public