Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — FY2024 Earnings Presentation
46 slides from Hindustan Unilever's earnings presentation, Apr 24, 2024
Slide 1: Stock exchange disclosure cover letter
24th April, 2024 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
Slide 2: Hindustan Unilever Limited MQ'24 & FY'24 Results
Hindustan Unilever Limited MQ’24 & FY’24 Results 24th April 2024 Sensitivity: Public
Slide 3: Safe harbour statement
MQ’24 & FY’24 Results Safe harbour 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
Slide 4: Rohit Jawa
Rohit Jawa Chief Executive Officer and Managing Director Sensitivity: Public
Slide 5: FY'24: Operating Context
MQ’24 & FY’24 Results FY’24: Operating Context Subdued consumption trends Commodities deflationary Uneven weather patterns Gradual volume recovery Absence of price growth Urban leads growth 4 Sensitivity: Public
Slide 6: FY'24: Resilient performance in this operating context
MQ’24 & FY’24 Results FY’24: Resilient performance in this operating context Growth Margins Earnings ₹ 59,579 cr. 23.8% ₹ 10,114 cr. Turnover EBITDA % of TO Net Profit 3% +40 bps 4% Underlying Sales Growth EBITDA vs. FY’23 PAT bei Growth vs. FY’23 2% +430 bps 2% Underlying Volume Growth Gross Margin
Slide 7: FY'24: Sustained competitive position
MQ’24 & FY’24 Results FY’24: Sustained competitive position Market Share Business Fundamentals Corporate Value Shares (MAT) Penetration (MAT) c. 200 bps > 75% Mar 2021 Mar 2024 Business Winning Shares (MAT) Business with growing/ stable brand power (MAT) 60% > 75% Mar 2021 Dec 2024 6 Business winnin
Slide 8: Transform to Outperform: Key thrusts
MQ’24 & FY’24 Results Transform to Outperform: Key thrusts Grow the Core through Market Making & Reshaping Portfolio in Leadership in Channels of Unmissable Brand Superiority Premiumisation High Growth Spaces the Future Enabled by distinctive capabilities Winning in Many Digital Future Fit Talent &
Slide 9: Transform to Outperform: Key thrusts
MQ’24 & FY’24 Results Transform to Outperform: Key thrusts Grow the Core through Market Making & Reshaping Portfolio in Leadership in Channels of Unmissable Brand Superiority Premiumisation High Growth Spaces the Future Enabled by distinctive capabilities Winning in Many Digital Future Fit Talent &
Slide 10: Our brands are getting bigger and stronger
MQ’24 & FY’24 Results Our brands are getting bigger and stronger FY’24 Turnover 19 Brands ₹5000 cr.+ > ₹ 1,000 cr. ₹2000 cr. + 8 Brands in India’s most valued ₹1000 cr. + 3 Brands moving towards the ₹1,000 Next ₹1000 cr. + cr. club India’s Most Valuable Brands – Kantar BrandZ Report, 2023 9 Sensitiv
Slide 11: Drive unmissable brand superiority across our portfolio
MQ’24 & FY’24 Results Drive unmissable brand superiority across our portfolio… Product Proposition Packaging Unmissable Brand Product Superiority Superiority Place Promotion Pricing 10 Sensitivity: Public
Slide 12: As we did with Vim liquid
MQ’24 & FY’24 Results …as we did with Vim liquid Product Superior formulation to win against Bars Proposition Sharp proposition of “Odour gone in 1 wash” Packaging Aspirational and premium design Place Be-spoke packs to win in each channel Promotion Communication on ‘De-genderizing chores’ Pricing O
Slide 13: As we did with Horlicks
MQ’24 & FY’24 Results …as we did with Horlicks Product WiMI based superior formulation Proposition Strengthening ‘Taller, Stronger, Sharper’ Packaging Dialing up benefits & nutrition science on the pack Place Leveraging Design for Channel to win in MT & E-com Promotion Owning key seasons – Exams and
Slide 14: Transform to Outperform: Key thrusts
MQ’24 & FY’24 Results Transform to Outperform: Key thrusts Grow the Core through Market Making & Reshaping Portfolio in Leadership in Channels of Unmissable Brand Superiority Premiumisation High Growth Spaces the Future Enabled by distinctive capabilities Winning in Many Digital Future Fit Talent &
Slide 15: Disproportionate investments towards Market Making and Premiumisation
MQ’24 & FY’24 Results Disproportionate investments towards Market Making and Premiumisation Innovations Media Driving Trials >70% >75% >45 Mn Share of incremental media Share of innovation turnover** Home to Home connects investments* *In Market development and premiumisation cells compared to total
Slide 16: A proven track record of Market Making and Premiumisation
MQ’24 & FY’24 Results A proven track record of Market Making and Premiumisation FY’24 Turnover ₹1000cr+ Home Care Premium Detergent Premium Liquids Powders Shampoos ₹500 -1000cr High-science Functional Face Green & Premium Colour Nutritional Drinks Cleansing Functional Tea Cosmetics ₹250 - 500cr Han
Slide 17: Transform to Outperform: Key thrusts
MQ’24 & FY’24 Results Transform to Outperform: Key thrusts Grow the Core through Market Making & Reshaping Portfolio in Leadership in Channels of Unmissable Brand Superiority Premiumisation High Growth Spaces the Future Enabled by distinctive capabilities Winning in Many Digital Future Fit Talent &
Slide 18: Market Maker with a history of creating beauty categories
MQ’24 & FY’24 Results Market Maker with a history of creating beauty categories #1 Skin care Hair care Color cosmetics Right to win with a strong portfolio and market leadership in all categories where we participate 17 Sensitivity: Public
Slide 19: Building a world class beauty company
MQ’24 & FY’24 Results Building a world class beauty company Contemporizing Masterbrands 18 Sensitivity: Public
Slide 20: Building a world class beauty company
MQ’24 & FY’24 Results Building a world class beauty company Multi-year bets Light Serums & Weatherproof Face Cleansing Sun Care Treatments Body Care Masstige Moisturisation Double digit >₹2000 cr. c. 50% USG Turnover E-com growth 1. USG and Turnover for FY’24 19 2. E-com growth on gross sales value
Slide 21: Building a world class beauty company
MQ’24 & FY’24 Results Building a world class beauty company Embedding Capabilities Make for Beauty Reach for Beauty Authority for Beauty Superior Technology | Beauty specialist channels | Lakme Fashion Week | Agile Supply Chain Social media | Influencers Beauty Collective 20 Sensitivity: Public
Slide 22: Transform to Outperform: Key thrusts
MQ’24 & FY’24 Results Transform to Outperform: Key thrusts Grow the Core through Market Making & Reshaping Portfolio in Leadership in Channels of Unmissable Brand Superiority Premiumisation High Growth Spaces the Future Enabled by distinctive capabilities Winning in Many Digital Future Fit Talent &
Slide 23: Winning with Customers
MQ’24 & FY’24 Results Winning with Customers General Trade Shikhar Organised Trade 1.2X Coverage vs. FY’20 +200 bps On Shelf Availability 1.3Mn Stores onboarded 1.25X Assortment vs. FY’20 +500 bps On-Line Availability ** On Shelf Availability and On-Line Availability – FY’24 vs FY’23 22 Sensitivity:
Slide 24: Transform to Outperform: Key thrusts
MQ’24 & FY’24 Results Transform to Outperform: Key thrusts Grow the Core through Market Making & Reshaping Portfolio in Leadership in Channels of Unmissable Brand Superiority Premiumisation High Growth Spaces the Future Enabled by distinctive capabilities Winning in Many Digital Future Fit Talent &
Slide 25: Transform to Outperform: Key thrusts
MQ’24 & FY’24 Results Transform to Outperform: Key thrusts Grow the Core through Market Making & Reshaping Portfolio in Leadership in Channels of Unmissable Brand Superiority Premiumisation High Growth Spaces the Future Enabled by distinctive capabilities Winning in Many Digital Future Fit Talent &
Slide 26: Ritesh Tiwari
Ritesh Tiwari Chief Financial Officer Sensitivity: Public
Slide 27: MQ'24: Results
MQ’24 & FY’24 Results MQ’24: Results Topline EBITDA PAT (bei) PAT Underlying Sales Growth Margin INR INR 1% 23.4% 2,396 cr. 2,406 cr. 2% -30 bps -3% -6% Underlying Volume Growth Change YoY Growth YoY Growth YoY 26 Sensitivity: Public
Slide 28: MQ'24: Segmental Performance
MQ’24 & FY’24 Results MQ’24: Segmental Performance Home Care Beauty & Personal Care Foods & Refreshment 38% 35% 25% INR 5,715 cr. INR 5,050 cr. INR 3,911 cr. Underlying Sales Growth 1% -2% 4% Underlying Volume Growth Mid-single digit growth Flat Flat Segmental Margins 19% 26% 19% Segment Revenue = S
Slide 29: HC: Innovations and Activations
MQ’24 & FY’24 Results HC : Innovations and Activations 28 Sensitivity: Public
Slide 30: Home Care
MQ’24 & FY’24 Results Home Care Robust volume led performance Fabric Wash: Mid-single digit volume growth led by premium portfolio. Household Care: Volumes grew in mid-single digit led by outperformance in Vim liquid. Both categories continue to have negative price growth on account of pricing
Slide 31: BPC: Innovations and Activations
MQ’24 & FY’24 Results BPC : Innovations and Activations 30 Sensitivity: Public
Slide 32: Beauty and Personal Care
MQ’24 & FY’24 Results Beauty and Personal Care A story of two parts B&W : 4% USG PC : -10% USG Hair Care: Volume driven high-single digit growth led by strong performance in Dove and Tresemme. Innovations and future formats continue to lead growth Skin Care and Colour Cosmetics: Low-single digit
Slide 33: Skin Cleansing
MQ’24 & FY’24 Results Skin Cleansing Actions to improve performance Corrected price-value equation in mass and popular segments Superior formulation in mass and popular segments Intensifying innovations in premium demand spaces and formats Accelerating channels of the future 32 Sensitivity:
Slide 34: F&R: Innovations and Activations
MQ’24 & FY’24 Results F&R : Innovations and Activations New image 33 Sensitivity: Public
Slide 35: Foods & Refreshment
MQ’24 & FY’24 Results Foods & Refreshment Mid-single digit growth driven by pricing Beverages: Tea further strengthened value and volume market leadership. Category continued to witness consumers downgrading to loose tea. Coffee grew in double-digits driven by pricing Functional Nutrition Drinks
Slide 36: EBITDA maintained within a healthy range despite headwinds
MQ’24 & FY’24 Results EBITDA maintained within a healthy range despite headwinds Advertising & Employee Benefits & Other Operating EBITDA MQ’24 Gross Margin Promotion Other expenses Income 23.4% 51.3% 10.8% 18.3% 1.1% 350 bps 200 bps 120 bps 60 bps YoY -30 bps improvement investment investment headw
Slide 37: MQ'24: Results summary
MQ’24 & FY’24 Results MQ’24: Results summary Rs. Crores Particulars MQ’24 MQ’23 Growth Sales 14,693 14,638 1%* EBITDA 3,435 3,471 -1% EBITDA Margin 23.4% 23.7% -30 bps Other Income (Net) 118 136 Exceptional Items -17 80 PBT 3,247 3,425 -5% Tax 841 873 Net Profit 2,406 2,552 -6% PAT before exceptiona
Slide 38: FY'24: Results summary
MQ’24 & FY’24 Results FY’24: Results summary Rs. Crores Particulars FY’24 FY’23 Growth Sales 59,579 58,154 3%* EBITDA 14,190 13,632 4% EBITDA Margin 23.8% 23.4% +40 bps Other Income (Net) 671 539 Exceptional Items -89 -62 PBT 13,675 13,079 5% Tax 3,561 3,117 Net Profit 10,114 9,962 2% PAT before exc
Slide 39: FY'24: Building back Gross Margin
MQ’24 & FY’24 Results FY’24: Building back Gross Margin Gross End-to-End Net Productivity Margin (705) Bps (570) Bps 430 Bps Right price-value equation enabled by ‘Net Revenue Management’ Premiumisation led mix improvement Price Coverage Simplification and Digital acceleration Mix Cost compe
Slide 40: FY'24: Segmental Performance
MQ’24 & FY’24 Results FY’24: Segmental Performance Home Care Beauty & Personal Care Foods & Refreshment 36% 37% 25% INR 21,900 cr. INR 22,165 cr. INR 15,292 cr. Underlying Sales Growth 3% 2% 4% Underlying Volume Growth Mid-single digit growth Low-single digit growth Low-single digit decline Segmenta
Slide 41: FY'24: Proposed Dividend
MQ’24 & FY’24 Results FY’24: Proposed Dividend Particulars FY’24 FY’23 Dividend per share 42 39 Interim 18 17 Final 24 22 Total Dividend (Rs. Crores) 9,868 9,163 Dividend is subject to approval by shareholders at the AGM 40 Sensitivity: Public
Slide 42: Outlook
Outlook Sensitivity: Public
Slide 43: Looking ahead: Near Term
MQ’24 & FY’24 Results Looking ahead: Near Term Outlook Our priorities FMCG demand to continue improving gradually Focused on driving competitive volume led growth Optimistic of mid-term impact of better monsoons and improving macro-economic Actions underway to improve Skin Cleansing indicato
Slide 44: Looking ahead: Mid-Long Term
MQ’24 & FY’24 Results Looking ahead: Mid-Long Term India & FMCG Opportunity HUL well placed to win Fastest growing major economy Wide and resilient portfolio straddling price- benefit pyramid across categories Rise of affluent households Deep distribution moat Rapid digital revolution Ag
Slide 45: Hindustan Unilever Limited MQ & FY 2024 Results
Hindustan Unilever Limited MQ & FY 2024 Results 24th April 2024 Sensitivity: Public
Slide 46: Standalone results press release
STANDALONE RESULTS FOR THE QUARTER AND FINANCIAL YEAR ENDED 31st MARCH 2024 FY’24: Underlying Sales Growth 3%, EBITDA up 40 bps, PAT Growth 2% MQ’24: Underlying Sales Growth 1%, Underlying Volume Growth 2%, EBITDA at 23.4% Mumbai, 24th April 2024: Hindustan Unilever Limited announced its results for