Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 2008 Earnings Presentation
20 slides from Hindustan Unilever's earnings presentation, Oct 24, 2008
Slide 1: Results – SQ ’08
Results – SQ ’08 24th October 2008
Slide 2: Results Summary - SQ'08
Results Summary - SQ'08 • Net sales grow 19.7% • FMCG business grows by 21.6%, ahead of aggregate market growth • HPC +22.5%, Foods +17.5% • Volume growth of 6.8% • A&P spends up 14.0% • PBIT grows 16.9% • PBIT margin 30 bps lower at 12.9% due to commodity cost inflation • Net Profit grows by 34.0%,
Slide 3: FMCG Sales Trend
FMCG Sales Trend 21.6 19.4 18.8 18.0 10.8 SQ'07 DQ'07 MQ'08 JQ'08 SQ'08 Underlying Volume Growth in SQ'08 6.8% SQ'08 Results - 24th Oct‘08
Slide 4: Sales Performance
Sales Performance 22.5 20.4 19.8 18.4 17.5 16.9 16.6 15.1 14.1 9.5 SQ'07 DQ'07 MQ'08 JQ'08 SQ'08 HPC Foods Both HPC and Foods grow ahead of market, driven by price increases and sustained volume growth SQ'08 Results - 24th Oct‘08
Slide 5: Category Wise Sales growth
Category Wise Sales growth Growth % SQ'08 Soaps & Detergents 26.0 Personal Products 18.0 Beverages 12.9 Processed Foods 34.5 Ice Cream 25.3 FMCG 21.6 ^ ^ Excludes Other Operational Income SQ'08 Results - 24th Oct‘08
Slide 6: HPC Topline
HPC Topline Personal Wash Laundry Shampoo Skin Toothpaste HPC Growth 22.5% SQ'08 Results - 24th Oct‘08
Slide 7: HPC - Soaps & Detergents
HPC - Soaps & Detergents • Good volume growth sustained in Laundry across all brands – Rin Matic launched during the quarter and recently launched Wheel Active Gold continues to grow well – Material cost inflation offset through pricing and cost savings – Market share decline marginally over JQ’08 b
Slide 8: HPC – Personal Products
HPC – Personal Products • Shampoo category performs well, driven by robust volume growth – Dove continues to grow rapidly across channels – Category growth continues to be ahead of market growth though market shares lower • All brands grow in Skin – New Masstige Ponds range continues to gain momentu
Slide 9: Foods Topline
Foods Topline Tea Coffee Culinary Salt/Atta Ice Cream Foods growth 17.5% SQ'08 Results - 24th Oct‘08
Slide 10: Foods performance
Foods performance • Tea grows across brands, driven by both price and volume • In Coffee, Bru relaunched in this quarter; Market Shares improve • Processed Foods driven by strong volumes in Knorr and Kissan • Ice cream delivers well, balanced growth between volume and price SQ'08 Results - 24th Oct‘
Slide 11: Market Share Performance
Market Share Performance SQ ‘07 JQ ‘08 SQ ’08 Laundry 37.0 38.3 37.9 Personal Wash 53.2 52.7 50.3 Hair 47.7 46.5 46.1 Skin Care (12 55.0 53.4 52.7 month MAT) Oral 30.0 30.0 29.6 Tea 23.4 23.2 23.3 Coffee 46.5 46.9 47.1 Market shares - Source: A. C. Nielsen SQ'08 Results - 24th Oct‘08
Slide 12: Water Update
Water Update • Pure-it expands footprint to over 600 towns – Water business meets all action standards • More than 7 million lives protected SQ'08 Results - 24th Oct‘08
Slide 13: Exports
Exports FMCG Specialty (Non-FMCG) Exports decline 6.0% Strong growth in HPC exports and value added tea offset by planned reduction in commodity and non-core exports SQ'08 Results - 24th Oct‘08
Slide 14: Financial performance SQ’08
Financial performance SQ’08
Slide 15: Results –SQ’08
Results –SQ’08 Rs Crores SQ'08 SQ'07 Growth% Net Sales 4028 3365 19.7 EBITDA 559 480 16.5 PBIT 520 445 16.9 PBIT margin (percentage) 12.9 13.2 - Exceptional Items 108.7 4.3 - PBT 670 516 29.9 Net Profit 547 408 34.0 SQ'08 Results - 24th Oct‘08
Slide 16: Investment behind Brands
Investment behind Brands A&P as a % of Net Sales % 11.4 10.5 10.2 10.4 10.0 SQ '07 DQ '07 MQ '08 JQ '08 SQ '08 A&P spends grow 14.0% SQ'08 Results - 24th Oct‘08
Slide 17: Results: PBIT Margin Trends
Results: PBIT Margin Trends % 17.0 14.2 13.2 12.9 11.8 SQ '07 DQ '07 MQ '08 JQ '08 SQ '08 SQ'08: PBIT margins lower than SQ’07 by 30 bps; reflects the context of steep cost increase managed through pricing and cost savings SQ'08 Results - 24th Oct‘08
Slide 18: Key Innovations/Launches – SQ’08
Key Innovations/Launches – SQ’08 CPD Tooth Paste Fabric Wash Kissan Jams in Tubes Close Up Relaunch Rin Matic Shampoos Deodorants Personal Wash Clinic All Clear Soft & Silky Dark Temptation Lux Almond & Cream SQ'08 Results - 24th Oct‘08
Slide 19: Thank you
Thank you For more information, please visit http://www.hul.co.in SQ'08 Results - 24th Oct‘08
Slide 20: Results – SQ ’08
Results – SQ ’08 24th October 2008