Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2014-15 Earnings Presentation
31 slides from Hindustan Unilever's earnings presentation, Oct 27, 2014
Slide 1: SQ’14 Results Presentation – October 27, 2014
SQ’14 Results Presentation – October 27, 2014 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 First Half 2014 -15 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 remains challenging
SQ 2014 – Context Business environment remains challenging Market growth (volume & value) remains soft across categories • Small / price point packs continue to lead growth Input costs soften towards end of quarter Competitive activity remains high • Media intensity up sequentially, although l
Slide 6: Input costs soften towards quarter end
Input costs soften towards quarter end PFAD Exchange Rate Brent Crude 49.2 6.8 6.5 6.6 62.0 44.0 61.4 5.5 40.0 60.6 38.7 59.8 $823 $110 $108 $108 $727 $89 $645 $630 SQ'13 JQ'14 SQ'14 Oct'14 SQ'13 JQ'14 SQ'14 Oct'14 SQ'13 JQ'14 SQ'14 Oct'14 $/ Ton INR/ Kgs INR / USD $/ Barrel INR(000)/ Barrel Source:
Slide 7: Competitive and profitable growth sustained
SQ 2014 Competitive and profitable growth sustained Domestic Consumer business grows by 10%, ahead of market • 5% underlying volume growth Operating Profit (PBIT) at Rs.1166 crores, up 14%; margin expands +50 bps • COGS higher by 160 bps; impacted by higher consumption costs in quarter • Compani
Slide 8: Broad based growth across all segments
Broad based growth across all segments Sales growth % Soaps & Detergents 11 Personal Products 10 Beverages 7 Packaged Foods 14 Domestic Consumer grows at 10% 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 360 activation, Harnessing Non-TV
Winning with Brands Impactful 360 activation Kissanpur Pepsodent Bhel leaflets Kissanpur @PVR cinemas Tie up with Mumbai vendors Harnessing Non-TV MT Independence Day Lakme – Command Centre Real time social Impactful MT listening & analysis Independence during Lakme Fashion Day activation Week - rea
Slide 12: Re-organizing to meet the needs of Many Indias
Winning with Consumers Re-organizing to meet the needs of Many Indias (Sept 2014) Current India = Diverse = Many Indias Proposed 4 Branches 5 Branches, 14 Consumer Clusters Structure | Processes | Empowerment | Micro Marketing
Slide 13: Skin Cleansing: Double digit growth
Skin Cleansing Double digit growth Price led growth driven by Lifebuoy, Lux and Dove Lifebuoy handwash delivers another strong quarter Higher consumption costs in quarter, easing towards latter part 13
Slide 14: Home Care: Double digit growth led by premium segment
Home Care Double digit growth led by the premium segment Laundry • Surf sustains its strong volume led growth momentum • Rin growth further accelerates, bars portfolio does particularly well • Wheel growth continues to step-up post re-launch • Comfort does well; focused on market development Hou
Slide 15: Skin Care: Volume led double digit growth
Skin Care Volume led double digit growth in FAL and Pond’s FAL continues to build momentum post re-launch Pond’s growth led by premium skin lightening and talc Pond’s Men and FAL Men doing well in Men’s segment Lakme performance driven by Perfect Radiance and CC Cream Facial cleansing port
Slide 16: Hair Care: Volume led double digit growth
Hair Care Volume led double digit growth Shampoos deliver another strong performance • Dove registers robust growth • Clinic Plus steps up on impactful activation • TRESemmé continues to gain ground; ‘Spa Rejunvenation’ variant added • Broad-based growth across formats; sachets grow faster Focus
Slide 17: Oral Care: Subdued performance in quarter
Oral Care Subdued performance in quarter Close Up delivers activation-led growth Encouraging initial response to ‘Diamond Attraction‘ Small packs continue to lead growth Pepsodent performance muted by high comparator due to re-launch in base quarter Salt and Clove variant launched Gum Ca
Slide 18: Color Cosmetics: Consistent double digit growth
Color Cosmetics Consistent double digit growth Lakme sustains robust innovation led growth • Core range, 9 to 5 and ‘eyeconic’ do well • Exciting launch of the Lakme 9 to 5 ‘Crease-less lip balm’ • Brand buzz around another successful Lakme Fashion Week Elle 18 goes digital with ‘Make your own s
Slide 19: Beverages: Volume led growth in Tea and Coffee
Beverages Volume led growth in Tea and Coffee Tea delivers healthy volumes, price growth fades • Driven by strengthened brands and sharper activation • Performance led by Red Label and 3 Roses • Focus on market development for Green tea continues • Another quarter of sales doubling • Green tea bag
Slide 20: Packaged Foods: Double digit growth in Kissan, Knorr, Kwality Walls
Packaged Foods Double digit growth in Kissan, Knorr & Kwality Walls Kissan sustains its strong activation led growth momentum Knorr delivers broad based growth; Instant Soups double Kwality Walls and Magnum register another robust quarter 20
Slide 21: Packaged Foods: Fourth successive quarter of double digit growth
Packaged Foods Fourth successive quarter of double digit growth Driving Growth through market development Unlocking everyday relevance Driving adoption and trials Sharper in-market execution
Slide 22: Pureit: Double digit growth
Pureit Double digit growth Premium innovations lead growth • Pureit Ultima (RO + UV) doing well Focus on market development - building relevance Modern Trade and Pureit Perfect Stores drive growth 22 UV: Ultra Violet; RO: Reverse Osmosis
Slide 23: Results summary
SQ 2014 Results summary Rs Crores Particulars SQ'13 SQ'14 Growth % Net Sales* 6,747 7,466 11 PBIT 1,021 1,166 14 PBIT margin (%) 15.1 15.6 50bps PAT bei 883 957 8 Net Profit 914 988 8 * Domestic Consumer grows at 10% 23
Slide 24: PBIT to Net Profit
SQ 2014 PBIT to Net Profit Rs Crores Particulars SQ’13 SQ’14 Growth % PBIT 1021 1166 14 Add : Other Income 151 198 Less : Finance Costs 6 6 Exceptional Items – Credit / (Charge) 33 49 PBT 1200 1406 17 Less : Tax (286) (418) Net Profit 914 988 8 • Other income includes • Interest, dividend and net ga
Slide 25: Results summary
SQ 2014 Results summary Competitive and profitable growth sustained • 10% Domestic Consumer growth, ahead of market o 5% underlying volume growth • Competitive spends maintained, albeit lower than exceptionally high base quarter • PBIT margin expands +50 bps o Higher consumption costs, additional de
Slide 26: First Half 2014-15
FIRST HALF 2014-15
Slide 27: Strategy on course
First Half 2013-14 Strategy on course COMPETITIVE GROWTH CONSISTENT GROWTH PROFITABLE GROWTH …ahead of market …steady UVG in a soft …expanding margins whilst market investing competitively Reported UVG Intrinsic UVG 16.1% 15.2% PBIT +90 bps SQ'13 DQ'13 MQ'14 JQ'14 SQ'14 FH 2013-14 FH 2014-15 Market
Slide 28: Results summary: First Half 2014-15
First Half 2014-15 Results summary Rs Crores Particulars FH’13-14 FH’14-15 Growth% Net Sales 13435 15036 12 PBITDA 2171 2559 18 PBIT 2041 2415 18 PBIT margin (%) 15.2 16.1 90 bps PAT bei 1768 1977 12 Net Profit 1933 2045 6 • Domestic consumer business grew by 12% in FH’14-15, ahead of market o Under
Slide 29: Interim Dividend
Interim Dividend FH FH Particulars 2013-14 2014-15 Dividend Per Share (Rs.) 5.5 6.0 Total Outflow - Dividend + Tax (Rs. Crs.) 1391 1557 29
Slide 30: Looking ahead
Looking ahead Market continues to remain soft Positive on the medium-long term outlook for FMCG Strategy unchanged o Manage the business for long term growth Consistent, Competitive, Profitable, Responsible Growth o Invest to strengthen the core and lead development of emerging categories
Slide 31: For more information & updates
For more information & updates VISIT OUR WEBSITE HUL INVESTOR APP 31
Hindustan Unilever — Q2 FY2014-15 Earnings Presentation on 6ix