Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 2008 Earnings Presentation
26 slides from Hindustan Unilever's earnings presentation, Jul 25, 2008
Slide 1: Results – JQ '08 Analyst Meet
Results – JQ ’08 Analyst Meet 25th July 2008
Slide 2: Results Summary - JQ'08
Results Summary - JQ'08 • Net sales grows 21.1% • FMCG business grows by 18.8%; ahead of aggregate market growth • HPC +19.8%, Foods +14.1% • A&P spends up 30.5%, 70 bps increase. • PBIT grows 20.7% • PBIT margin maintained at 14.2% in the context of cost inflation and higher A&P investment. • Net P
Slide 3: FMCG Sales Trend
FMCG Sales Trend 19.4 18.8 18.0 13.4 10.8 JQ'07 SQ'07 DQ'07 MQ'08 JQ'08 Underlying Volume Growth in JQ'08 8.3% JQ'08 Results - 25th Jul‘08
Slide 4: Sales Performance
Sales Performance 25.0 20.4 19.8 18.4 16.9 16.6 15.1 14.1 11.2 9.5 JQ'07 SQ'07 DQ'07 MQ'08 JQ'08 HPC Foods Growth continues in both HPC and Foods, driven by underlying volume growth and inflation led price increases. JQ'08 Results - 25th Jul‘08
Slide 5: Category Wise Sales growth
Category Wise Sales growth Growth % JQ'08 Soaps & Detergents 20.7 Personal Products 18.6 Beverages 15.5 Processed Foods 12.1 Ice Cream 15.5 FMCG 18.8 ^ ^ Excludes Other Segmental Income Underlying volume growth across categories JQ'08 Results - 25th Jul‘08
Slide 6: HPC Topline
HPC Topline Personal Wash Laundry Shampoo Skin Toothpaste HPC Growth 19.8% JQ'08 Results - 25th Jul‘08
Slide 7: HPC - Category performance – Fabric Wash
HPC - Category performance – Fabric Wash • Strong growth momentum in Laundry continues – Driven by volume and price across all brands. – Wheel Active Green launched in the quarter. • Material cost inflation unabated driven by international crude oil price rise. • Market share gains over last year an
Slide 8: HPC - Category performance - Personal Wash
HPC - Category performance - Personal Wash • Strong growth ahead of market – driven by underlying volume growth, price and better mix – Lifebuoy & Lux lead category growth • Launch of powerful mix in Lux Strawberry & Cream • Inflationary impacts across raw materials, packaging and distribution costs
Slide 9: HPC - Category performance - Shampoo
HPC - Category performance - Shampoo • Shampoo category grows well, driven by volume • Category shares improve over MQ’08, though lower than last year. – Sunsilk performs well post relaunch, improving market share – Dove continues momentum, gaining robust all India footprint JQ'07 Value Share MQ'08
Slide 10: HPC - Category performance - Skin
HPC - Category performance - Skin • Skin Category grows strongly across all brands. • Volume driven growth in FAL, Ponds, Vaseline and Lakme. • Top end Ponds range roll out growing well • Age Miracle range further expanded after MQ variant launch • Market Shares decline JQ'07 Value Share MQ'08 JQ'08
Slide 11: HPC - Category performance - Toothpaste
HPC - Category performance - Toothpaste • Category growth led by Close Up. • Market Shares maintained JQ'07 Value Share MQ'08 JQ'08 30.0 Toothpaste 29.8 30.0 Market shares - Source: A. C. Nielsen Market shares - Source: A. C. Nielsen JQ'08 Results - 25th Jul‘08
Slide 12: Foods Topline
Foods Topline Tea Coffee Culinary Salt/Atta Ice Cream Foods growth 14.1% JQ'08 Results - 25th Jul‘08
Slide 13: Foods - Category performance - Beverages
Foods - Category performance - Beverages • Tea grows strongly driven by underlying volume growth across brands • Category shares improve JQ'07 Value Share MQ'08 JQ'08 22.3 Tea 22.9 23.2 • Bru achieves good growth both in core and variants • Market Shares improve JQ'07 Value Share MQ'08 JQ'08 45.0 Co
Slide 14: Foods - Category performance – Processed Foods
Foods - Category performance –Processed Foods • Culinary division gaining scale with sustained high growth • Knorr grows well, with both soups and mixes growing strongly. • Kissan Jams and Ketchup continue growth momentum • Kissan “Amaze” test market continues in 3 southern states. JQ'08 Results - 2
Slide 15: Foods - Category performance - Icecream
Foods - Category performance -Icecream •Ice cream grows well, driven by Take Home and Impulse Segment •Extension of Paddle Pop range to India JQ'08 Results - 25th Jul‘08
Slide 16: Water Update
Water Update • Pure-it extended to ~ 364 towns in 20 states. Brand is now national; – Purifier and Battery kits sales gain momentum • More than one million Pureit units sold till date JQ'08 Results - 25th Jul‘08
Slide 17: Exports
Exports FMCG Specialty (Non-FMCG) Exports growth 17.5% Significant improvement in mix/profitability JQ'08 Results - 25th Jul‘08
Slide 18: Financial performance JQ'08
Financial performance JQ’08
Slide 19: Results – JQ'08
Results –JQ’08 Rs Crores JQ'08 JQ'07 Growth% Net Sales 4216 3481 21.1 EBITDA 635 528 20.3 PBIT 597 495 20.7 PBIT margin (percentage) 14.2 14.2 - Exceptional Items 18.0 41.4 (56.4) PBT 688 604 13.8 PAT (bei) and Net Profit 558 493 13.2 JQ'08 Results - 25th Jul‘08
Slide 20: Investment behind Brands
Investment behind Brands A&P as a % of Net Sales % 11.4 10.5 10.2 10.4 9.7 JQ '07 SQ '07 DQ '07 MQ '08 JQ '08 A&P spends grow 30.5%. Increase of 70 bps as a % of sales Brand investments in new categories and innovations continue JQ'08 Results - 25th Jul‘08
Slide 21: Results: PBIT Margin Trends
Results: PBIT Margin Trends % 17.0 14.2 14.2 13.2 11.8 JQ '07 SQ '07 DQ '07 MQ '08 JQ '08 JQ'08: PBIT margins maintained vs. JQ’07; Judicious price increases, cost management and improved mix, offset input cost inflation, investment in new categories and higher A&P. JQ'08 Results - 25th Jul‘08
Slide 22: Performance Summary - JQ'08
Performance Summary - JQ'08 • Turnover growth ahead of market, driven by volume, price and mix • Continued investment behind brands and new categories • PBIT margins maintained, in the context of steep cost escalation & higher A&P investments • In a high cost inflation scenario, business continues t
Slide 23: Key Innovations/Activations – JQ'08
Key Innovations/Activations – JQ’08 CPD Ice Cream Skin Creams Extended Ponds Top End Range Knorr Indian Soups Paddle Pop Range Shampoos Deodorants Personal Wash Clinic Plus Multi Sachet Shock & Recover Lux Strawberry & Cream JQ'08 Results - 25th Jul‘08
Slide 24: Results FH'08
Results FH’08 Rs Crores FH'08 FH'07 Growth% Net Sales 8010 6666 20.2 EBITDA 1120 927 20.8 PBIT 1046 860 21.6 PBIT margin (percentage) 13.1 12.9 0.2 Exceptional Items 20.5 44.2 (53.6) PBT 1159 1009 14.9 PAT (bei) and Net Profit 939 886 6.0 Dividend Per Share of Re 1 2008 2007 Interim Dividend 3.50 3.
Slide 25: Results – JQ '08 Analyst Meet
Results – JQ ’08 Analyst Meet 25th July 2008
Slide 26: Thank you
Thank you For more information, please visit http://www.hul.co.in JQ'08 Results - 25th Jul‘08