Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — JQ 2017 Earnings Presentation
21 slides from Hindustan Unilever's earnings presentation, Jul 18, 2017
Slide 1: JQ '17 Results Presentation: 18th July 2017
Hindustan Unilever Limited JQ ‘17 Results Presentation : 18th July 2017 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 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: JQ'17: Market context
JQ’17: Market context In the run up to GST, cautious sentiment in trade despite high promotional intensity Input costs stable Rural markets remained challenging 5
Slide 6: HUL JQ'17: Resilient & Profitable growth delivered in a volatile environment
HUL JQ’17: Resilient & Profitable growth delivered in a volatile environment Domestic Consumer growth 6%; underlying volume growth flat Price growth from actions in previous quarters Trade spends and stocks optimized to manage GST transition EBITDA at Rs. 1,866 Crores up by 14%; margin up 16
Slide 7: Differential impact on segments
Differential impact on segments Home Care & Refreshment continued their strong growth momentum Personal Care & Foods impacted disproportionately by thinning of trade pipelines, particularly in CSD CSD : Canteen stores department Sales growth = Segment Turnover growth excluding Other Operational
Slide 8: HUL's transition to GST has been swift and smooth
HUL’s transition to GST has been swift and smooth Invoicing to trade Internal systems Vendors No disruption in trade HUL systems working In-bound supplies normal servicing normally from Day 1 Payments from the First GST invoice at 1st working day 00:08 hrs on 1st July 8
Slide 9: GST led pricing actions start to land
GST led pricing actions start to land Net benefits at a company level to be passed on Pricing landed with impactful press advertisements from Day 1 Output tax changes Detergent bars Skin cleansing Toothpastes Hair oils Detergent powders Hair Care (excl. hair oil) Skin creams & colour cosmetics Insta
Slide 10: Initial days – Issues & Our response
Initial days – Issues & Our response Consumer Trade Footfalls and off-takes normal, Sections of trade, particularly however trade pipelines are thin wholesale and small retailers still unclear on rules, delaying return to normalcy Response Response Restore trade pipelines on priority Step up communi
Slide 11: 'Accounting' impact of GST (w.e.f SQ 2017)
‘Accounting’ impact of GST (w.e.f SQ 2017) Reporting for excise Impact for input taxes & fiscal Pre GST Post GST Pre GST Post GST Excise a cost; Turnover is net of GST Input tax credit 1. Costs lower as full input tax credit availed Turnover gross of excise availed partially 2a. CENVAT availed fully
Slide 12: Continued focus on innovations
Continued focus on innovations 12
Slide 13: Progressively building the naturals portfolio
Progressively building the naturals portfolio Within the existing portfolio Building specialist brands Building a master brand Multiple natural variants introduced Launched 12 SKUs under Citra in the in existing brands across categories Face Care segment 13
Slide 14: 'Lever Ayush' going national
‘Lever Ayush’ going national Oral Care Skin Care* Body Lotions Hand Wash Hair Care Soaps After a successful South launch, Lever Ayush now being rolled out nationally * Includes Face wash & Face creams 14
Slide 15: Home Care
Home Care Strong growth across mass & premium laundry Surf sustains robust volume led growth momentum Water witnessed a muted quarter due to challenges in trade, pre - GST 15
Slide 16: Personal Care
Personal Care Growth subdued due to thinning of trade pipelines, particularly in CSD Broad based growth across all brands in Personal Wash Fair & Lovely relaunch well received Colour cosmetics delivered yet another robust quarter 16
Slide 17: Foods & Refreshment
Foods & Refreshment Refreshments delivered broad based growth Tea continues to deliver robust double- digit growth by leveraging WiMI Soups & Jams drive category growth for Foods WiMI: Winning in Many Indias 17
Slide 18: Strong margin delivery aided by savings agenda
Strong margin delivery aided by savings agenda Thinking and delivering end to end savings of ~6% of turnover 18
Slide 19: JQ'17: Results Summary
JQ’17: Results Summary Rs. Crores Domestic Consumer growth at 6% Exceptional item in the base includes one-time write back of provision for employee benefits 19
Slide 20: Looking ahead
Looking ahead Near term Expect gradual improvement in rural demand Trade stocks to build back to normative levels over the next few months Input costs to remain stable Our strategy Focus on volume driven growth and improvement in operating margin Consistent, Competitive, Profitable, Respon
Slide 21: For more information & updates
For more information & updates Visit our website HUL Investor App 21