Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2021 Earnings Presentation
24 slides from Hindustan Unilever's earnings presentation, Jul 21, 2020
Slide 1: Exchange cover letter: Investor Presentation
21st July, 2020 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra – Kurla Complex, Dalal S
Slide 2: JQ'20 Results Presentation
HINDUSTAN UNILEVER LIMITED JQ’20 Results Presentation 21st July, 2020 Sensitivity: Public
Slide 3: 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 4: Sanjiv Mehta, Chairman & Managing Director
Sanjiv Mehta Chairman & Managing Director 21st July, 2020 Sensitivity: Public
Slide 5: Market context: Remains challenging
Market context : Remains challenging Economic uncertainty in face of COVID-19 Heightened volatility in crude & currency As on 20th July 1400000 80 78 78.0 11,54,917 76 74 76.0 72 1200000 70 5.2% 68 74.0 66 64 1000000 3.1% 62 60 72.0 58 56 800000 54 70.0 52 IMF Forecast 50 48 600000 68.0 2020 46 44 4
Slide 6: Our strategy is serving us well
Our strategy is serving us well Guiding framework 4G growth model Fundamentals of growth Consistent, Competitive, Profitable, Purpose-led, Future-Fit Responsible Growth Sensitivity: Public 5
Slide 7: Good progress on focus areas
Good progress on focus areas People Supply Demand Community Cost & Cash Sensitivity: Public 6
Slide 8: Agility and responsiveness enables turnaround in operations
Agility and responsiveness enables turnaround in operations New demand capture & Portfolio prioritization Capacity unlocks fulfilment models X 0.8X 2X 0.5X Vs. pre-COVID levels 0.3X 0.3X 0.2X Average order value & #SKUs ordered Number of SKUs Sanitizer – 100X | Handwash - 5X eB2B: A competitive adva
Slide 9: Nutrition business: Seamless virtual integration
Nutrition business: Seamless virtual integration Competitive growth Value-added innovations Enhancing accessibility Domestic Sales Growth + 5% Gaining Market Shares Structural growth and margin opportunity remains unchanged Sensitivity: Public Market share basis volume for L3M May 2020 as per Kantar
Slide 10: Addressing the consumer needs during COVID-19
Addressing the consumer needs during COVID-19 Clean living, Protection Cocooning Conscious E-everything & Immunity Consumption ₹₹₹ High income ₹₹ Mid income ₹ Low income c.80% portfolio in Straddling the Re-imagining HUL: Dialling up ‘In-home’ Health, Hygiene & Nutrition price-benefit pyramid A comp
Slide 11: JQ'20: Resilient performance
JQ 20 : Resilient performance #HULStandsWithTheNation Performance summary (Rs. 100 Crore committed) Product donations Healthcare partnerships Reported Turnover Growth + 4% Domestic Consumer Growth - 7% Protecting our ecosystem Creating mass awareness EBITDA Margin 25% EBITDA Margin change - 110 bps
Slide 12: Srinivas Phatak, Chief Financial Officer
Srinivas Phatak Chief Financial Officer 21st July, 2020 Sensitivity: Public
Slide 13: JQ'2020: Resilient performance in current context
JQ’2020: Resilient performance in current context Growth EBITDA PAT (bei) Net Profit Reported Turnover Growth EBITDA Margin PAT (bei) Growth PAT Growth + 4% 25% + 7% + 7% - 7% - 110 bps 1,873 Cr 1,881 Cr Domestic Consumer Growth Margin Change PAT (bei) PAT Growth competitive : 86% business winning s
Slide 14: Health, Hygiene and Nutrition perform well
Health, Hygiene and Nutrition perform well HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT 33% 39% 28% Sales Growth* - 2% - 12% - 4% *Sales growth excludes the impact of merger of GSK CH 13 Sensitivity: Public
Slide 15: Home Care
Home Care Solid portfolio performance across Household Care and Fabric Wash Household Care: Penetration gains leading to strong growth across home & hygiene portfolio • Domex with sodium hypochlorite proven to kill the virus in 60 seconds Fabric Wash: Stable performance in both mass and premium
Slide 16: Beauty & Personal Care
Beauty & Personal Care Skin Cleansing outperforms; Discretionary categories impacted Skin Cleansing: Strong double-digit growth across formats led by Lifebuoy • Handwash & Sanitizers witness demand upsurge Oral Care: Good delivery with momentum on CloseUp strengthening Hair Care: Demand picks
Slide 17: Foods & Refreshment
Foods & Refreshment Strong growth across brands riding the trends: ‘In-home, wellness & immunity’ Foods: Broad-based double-digits growth across segments on back of ‘In-home’ consumption tailwind Beverages: Both tea & coffee deliver strong double- digits growths with consumption shifting ‘In-hom
Slide 18: Portfolio snapshot in the times of COVID
Portfolio snapshot in the times of COVID Health, Hygiene & Nutrition Discretionary and supply constrained JQ’20 USG JQ’20 USG + 6% - 45% c.80%* c.15%* Skin Care, Color Cosmetics, Deos Out of home JQ’20 USG - 69% c.5%* Water, Ice Cream, Food Solutions, Vending Skin Cleansing, Home Care, Hair Care, Or
Slide 19: P&L: Deft management to address volatility & support growth
P&L: Deft management to address volatility & support growth Headwinds due to COVID-19 Cost agility Savings agenda dialled up Adverse mix BMI spends recalibrated, competitiveness De-leverage maintained COVID-related on-cost Unlocking synergies from Nutrition business Sensitivity: Public 18
Slide 20: Segmental Performance
Segmental Performance HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT INR 3,392 Cr INR 4,039 Cr INR 2,958 Cr Segmental Revenue Growth* - 2% - 12% + 52% Segmental Margins** 19% 28% 20% *Segment Revenue Growth = Segment Turnover growth + Other Operating Income + Impact of merger of GSK CH Sensiti
Slide 21: JQ'20: Results Summary
JQ’20: Results Summary Rs. Crores Particulars JQ’20 JQ’19 Growth % Sales 10,406 9,984 4%* EBITDA 2,644 2,647 Flat Other Income (Net) 127 123 Exceptional Items – Credit / (Charge) (118) 7 PBT 2,411 2,563 - 6% Tax 530 808 PAT bei 1,873 1,751 7% Net Profit 1,881 1,755 7% *Domestic Consumer Growth at
Slide 22: Special Dividend
Special Dividend Special Dividend per share • Business operations are well funded, and our financial model continues to be strong ₹ 9.50 • Scheme of Arrangement for transfer of balance in General Reserve of Rs. 2187.33 crores to Profit & Loss Account was approved by Shareholders in 2016. Subsequentl
Slide 23: Looking ahead
Looking ahead Near-term outlook Organizational strengths Brand portfolio designed for future normal Unprecedented times : Difficult to estimate market growths and / or consumer demand. Strengths and experience Volatility in input costs and currency to Growth fundamentals working well continue. L
Slide 24: For more information and updates
For more information and updates Visit our website Sensitivity: Public 23