Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 FY2014-15 Earnings Presentation
28 slides from Hindustan Unilever's earnings presentation, Jan 19, 2015
Slide 1: DQ’14 Results Presentation – January 19, 2015
DQ’14 Results Presentation – January 19, 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 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: Business environment volatile
DQ 2014 – Context Business environment volatile Market growth, particularly volume remains soft; signs of modest pickup • Discretionary categories still under pressure • Small / price point packs continue to lead growth Benign input costs, led by Crude and PFAD Stepped up competitive activity
Slide 6: Benign input costs, led by Crude and PFAD
Benign input costs, led by Crude and PFAD 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 2014 Competitive and profitable growth sustained Domestic Consumer business grows by 8%, ahead of market • 3% underlying volume growth Operating Profit (PBIT) at Rs.1258 crores, up 8%; margin expands +10 bps • COGS lower by 120 bps; driven by lower commodity costs and savings • Competitive sp
Slide 8: Broad based growth across segments
Broad based growth across segments Sales growth % Soaps & Detergents 7 Personal Products 7 Beverages 9 Packaged Foods 13 Domestic Consumer grows at 8% Sales growth = Segment Turnover growth excluding Other Operational Income 8
Slide 9: Category Highlights
CATEGORY HIGHLIGHTS
Slide 10: Continued focus on innovations
Winning with Brands Continued focus on innovations 10
Slide 11: Impactful activation
Winning with Brands Impactful 360 activation Lakme Lip Love TRESemme – Yahoo Partnership Mega buzz around the Branded Editorial launch to bring integration on all key maximum reach to the “Red Carpet events” Amazon listing of Lip with the right content! Love! 27 Million 1.2 Lac clicks to Impressio
Slide 12: Skin Cleansing: Competitive growth sustained
Skin Cleansing Competitive growth sustained Growth led by Lifebuoy and Lux Liquids portfolio delivers another strong quarter Phase out of Excise Duty benefits impacts growth Actions taken to drive competitiveness as intensity steps up • Blackout period in quarter to correct pipeline of highe
Slide 13: Skin Care: Double digit growth across FAL, Pond’s and Lakme
Skin Care Double digit growth across FAL, Pond’s and Lakme FAL momentum sustained with double digit volume growth Pond’s growth led by premium skin lightening and talc Lakme performance driven by lotions and CC creams Facial cleansing portfolio sustains double digit growth Delayed winter i
Slide 14: Home Care: Growth led by the premium segment
Home Care Growth led by the premium segment Laundry • Surf sustains its strong volume led double digit growth momentum • Rin growth led by bars; powders re-launched • Wheel growth muted • Comfort continues its robust performance led by market development Household Care • Growth led by Vim, drive
Slide 15: Hair Care: Volume led double digit growth sustained
Hair Care Volume led double digit growth sustained Shampoos deliver another strong performance • Dove leads category performance with another robust quarter • Clinic Plus and Sunsilk growth led by bottles • TRESemmé making good progress Focus on market development for Conditioners continues Ph
Slide 16: Oral Care: Subdued performance in quarter
Oral Care Subdued performance in quarter Growth impacted significantly by - • Phase out of Excise Duty benefits • Strong comparator in base on Pepsodent Close Up small packs continue to lead performance Pepsodent - Salt & Clove and Gum Care variants doing well Actions planned to step up grow
Slide 17: Color Cosmetics: Focus on innovation led growth continues
Color Cosmetics Focus on innovation led growth continues Lakme led by double digit growth on Core and 9 to 5 ranges • Launch of the Lakme 9 to 5 ‘Crease-less Creme Lipstick’ • Key activations in quarter • Bridal range tie-up • Great Online Shopping Festival (GOSF) Portfolio additions made across
Slide 18: Beverages: Continued healthy performance
Beverages Continued healthy performance Tea growth led by Red Label, Taj and 3 Roses • Driven by impactful activation and micro marketing initiatives • Lipton Green Tea volumes more than double in quarter • Focus on market development for Green Tea continues Coffee registers double digit growth,
Slide 19: Packaged Foods: Double digit growth in Kissan, Knorr and Kwality Walls
Packaged Foods Double digit growth in Kissan, Knorr and Kwality Walls Kissan sustains its activation led growth momentum • ‘Art attack’ activity well received; Kissan range re-launched Knorr delivers robust volume growth, led by Soups • Instant Soups more than double; new Manchow variant introdu
Slide 20: Packaged Foods: Fifth successive quarter of double digit growth
Packaged Foods Fifth successive quarter of double digit growth Driving Growth through market development Unlocking everyday relevance Driving adoption and trials Sharper in-market execution
Slide 21: Pureit: Sustained double digit growth
Pureit Sustained double digit growth Pureit continues to strengthen its category leadership Premium innovations lead growth • Pureit Ultima (RO + UV) continues to deliver strongly Focus on market development - building relevance Modern Trade and Pureit Perfect Stores drive growth 21 UV: Ultr
Slide 22: Results summary
DQ 2014 Results summary Rs Crores Particulars DQ'13 DQ'14 Growth % Net Sales* 7,038 7,579 8 PBIT 1,162 1,258 8 PBIT margin (%) 16.5 16.6 10bps PAT bei 955 955 = Net Profit 1,062 1,252 18 * Domestic Consumer grows at 8% 22
Slide 23: PBIT to Net Profit
DQ 2014 PBIT to Net Profit Rs Crores Particulars DQ’13 DQ’14 Growth % PBIT 1162 1258 8 Add : Other Income 143 120 Less : Finance Costs 18 4 Exceptional Items – Credit / (Charge) 23 397 PBT 1310 1771 35 Less : Tax (248) (519) Net Profit 1062 1252 18 • Additional depreciation charge of Rs. 4.8 Crores
Slide 24: Results summary
DQ 2014 Results summary Competitive and profitable growth sustained • 8% Domestic Consumer growth, ahead of market o 3% underlying volume growth • Competitive spends maintained • PBIT margin expands +10 bps o One-time provision in employee costs, additional depreciation and phase out of Excise benef
Slide 25: Nine Months Ending 31st December 2014
NINE MONTHS ENDING 31ST DECEMBER 2014
Slide 26: Results summary: Nine Months ending 31-Dec-2014
Nine Months ending 31-Dec-2014 Results summary Rs Crores Particulars YTD DQ'13 YTD DQ‘14 Growth % Net Sales 20,472 22,616 10 PBITDA 3,397 3,890 15 PBIT 3,203 3,674 15 PBIT margin (%) 15.65 16.25 60 bps Exceptional Items – Credit / (Charge) 163 485 PAT bei 2,723 2,932 8 Net Profit 2,995 3,297 10 • Do
Slide 27: Looking ahead
Looking ahead Modest pick-up in market growth Operating context fast changing – commodity costs, competitive intensity o Lower price growth, potential upsides on volume Continue to remain positive on the medium-long term outlook for FMCG o HUL well positioned : Brands, Capabilities, Talent S
Slide 28: For more information & updates
For more information & updates VISIT OUR WEBSITE HUL INVESTOR APP 28
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