Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 FY2016-17 Earnings Presentation
20 slides from Hindustan Unilever's earnings presentation, Jan 23, 2017
Slide 1: Hindustan Unilever Limited DQ 2016 Results Presentation
Hindustan Unilever Limited DQ 2016 Results Presentation, 23rd January 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 Quarter Summary 3 Current Quarter Performance 4 Nine months results 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: DQ 2016: Summary
DQ 2016: Summary Uncertain market conditions In-quarter market growth adversely impacted by demonetisation Input costs continue to inflate HUL : Resilient performance in a challenging business environment 5
Slide 6: DQ'16: Resilient performance in a challenging business environment
DQ’16: Resilient performance in a challenging business environment Domestic Consumer business flat; underlying volume growth at -4% Performance across categories impacted by adverse market conditions EBITDA at Rs. 1,355 Crores down 5%; margin down 70 bps COGS higher due to rising input costs
Slide 7: Segmental Performance
Segmental Performance: Impacted by reduced trade pipelines and lower consumer offtake Sales growth = Segment Turnover growth excluding Other Operational Income 7 *Excludes impact of A&D
Slide 8: Impact of Demonetisation on our market
Impact of Demonetisation on our market Consumers Channels Geographies • Purchase basket size • Most channels starting to •Recovery correlated to bank reduces recover after initial stress density • Frequency of shop visits • Large rural wholesale still •South & West least impacted increases under pre
Slide 9: HUL's response to market challenges
HUL’s response to market challenges Categories Distribution Finance Supply Chain Continue to land breakthrough innovations Expand sustainable direct Support trade with Agile response to volatile coverage and assortment extended credit demand Leverage WiMI Gradual recovery underway Secondary Sales Gr
Slide 10: Continued focus on innovations
Continued focus on innovations 10
Slide 11: Building Naturals
Building Naturals Within the existing portfolio Extending to new geographies Building a master brand Natural variants well appreciated Expanding Consumer LEVER Ayush launched in South by consumers footprint India across all channels 11
Slide 12: Home Care
Home Care Premium laundry continues to lead category performance Surf maintains its strong double-digit growth momentum Home Care liquids sustain strong performance 12
Slide 13: Personal Care
Personal Care Premium Personal Care continues its growth momentum across formats Personal Wash volumes impacted by calibrated price increases taken to manage steep rise in commodity costs Baby Dove well received 13
Slide 14: Foods & Refreshment
Foods & Refreshment Tea delivers broad based double-digit growth by leveraging WiMI Ice Cream & Frozen Desserts delivers robust activation-led growth Focus on market development continues in foods 14
Slide 15: DQ 2016: Results Summary
DQ 2016: Results Summary Rs. Crores Domestic Consumer growth at 0% (*Reported growth includes impact of A & D) Exceptional item includes profit on sale of properties (Rs. 159 Crores) Other income includes dividend from subsidiaries (DQ’16: Nil, DQ’15: Rs. 46 Crores) 15
Slide 16: Nine Months Ending 31st December 2016
NINE MONTHS ENDING 31ST DECEMBER 2016 16
Slide 17: Nine Months 2016-17: Results Summary
Nine Months 2016-17: Results Summary Rs. Crores Domestic Consumer grows at 2%, underlying volume growth at -1% Modest and consistent improvement in operating margins sustained Base numbers adjusted as per IND AS 17
Slide 18: Effective Tax Rate FY 2018
Effective Tax Rate FY 2018 Assam new unit ramp up more than offsets impact of: Few existing units moving out of fiscal exemption Changes in IT rules – R&D & Investment Allowance Reserve ETR to be lower by ~ 50 bps for FY 2018 ETR = ETR on non exceptional income 18
Slide 19: Looking Ahead
Looking Ahead Near term outlook: Market growth expected to improve gradually Rising trend in input costs to continue Strategy unchanged: Focus on volume growth and improvement in operating margin Consistent, Competitive, Profitable, Responsible Growth 19
Slide 20: For more information & updates
For more information & updates Visit our website HUL Investor App 20
Hindustan Unilever — Q3 FY2016-17 Earnings Presentation on 6ix