Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2023-24 Earnings Presentation
34 slides from Hindustan Unilever's earnings presentation, Oct 19, 2023
Slide 1: Regulation 30 disclosure cover letter
19th October, 2023 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, Dala
Slide 2: Hindustan Unilever Limited SQ'23 Results
Hindustan Unilever Limited SQ’23 Results 19th October 2023 Sensitivity: Public
Slide 3: Safe harbour statement
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, should’ and similar
Slide 4: Rohit Jawa
Rohit Jawa Chief Executive Officer and Managing Director Sensitivity: Public
Slide 5: Rohit Jawa
Rohit Jawa Chief Executive Officer and Managing Director Sensitivity: Public
Slide 6: FMCG demand trends remain stable
FMCG demand trends remain stable Gradual recovery in volumes, Growth led by urban, albeit on a soft base while rural remains subdued Volume Growth Volume Growth Total Market Urban Market Rural Market 2Y CAGR Flat 1% 2Y CAGR 3% -1% 15% 15% 10% 10% 5% 5% 0% 0% Column1 Series 1 -5% -5% -10% -10% JQ’22
Slide 7: Market price growth tailing off albeit remains high on 3-year basis
Market price growth tailing off albeit remains high on 3-year basis FMCG market price growth (YoY) FMCG market cumulative price growth (3-year) YoY vs 2020 30% 30% 20% 20% 10% 10% 0% 0% MQ'23 JQ'23 SQ'23 SQ'23 Market Price growth as per Nielsen FMCG Market Report September 2023 (HUL relevant categor
Slide 8: Competitive intensity remains high
Competitive intensity remains high Resurgence of small players in select categories Media intensity up Market Value Growth (YoY) Media GRPs for FMCG Market (L3M Aug’23) 6Y 1.2X 1.4X X 0.9X X Y Large Small Large Small SQ21 SQ22 SQ23 Players Players Players Players Tea Detergent Bars Market growth as
Slide 9: SQ'23 Financial highlights
SQ’23 Financial highlights Turnover Underlying Sales Growth Underlying Volume Growth 15,027 cr. 4% 2% EBITDA Margin PAT bei EPS 24.6% 12% 4% +130bps YoY YoY growth YoY growth 1. Underlying Sales Growth (USG) refers to the increase in turnover for the period, excluding any change in turnover resultin
Slide 10: Competitive growth
Competitive growth Business winning value shares Business winning volume shares Corporate share YoY Moderate gains c.60% >75% Strong gains 2-year basis As per September’23 MAT Business winning report based on Nielsen market data (HUL relevant categories) 9 Sensitivity: Public
Slide 11: Responsible growth: Doing well by doing good
Responsible growth : Doing well by doing good Clean Future Summit Digitising Shakti Empowering retailers Shikhar 10 Sensitivity: Public
Slide 12: Incredible India to Inevitable India
Incredible India to Inevitable India Huge headroom for Fast growing economy Favourable demographics Rapid digital evolution growth in FMCG India’s GDP Ranking Thailand 7X 2027 3 China 5X 2022 5 Philippines 5X 2020 6 Indonesia 4X >1 Bn Working class population Digital Democratisation 10 Mn will get a
Slide 13: HUL: Well placed to win
HUL : Well placed to win India’s largest FMCG Company Strong track record of value creation Segmental Revenue Turnover UVG 9% 4.5% CAGR CAGR HC BPC F&R ₹ 21K cr. ₹ 22K cr. ₹ 15K cr. 85% Market leadership EBITDA% ₹ Net Profit of business 19 ₹10Bn+ Turnover brands +800 10% bps CAGR 3Mn Direct Reach st
Slide 14: Key thrusts
Key thrusts Grow the Core through Market Development & Portfolio Winning in Channels of Fuel for Growth product superiority Premiumisation transformation the Future net revenue management Enabled by distinctive capabilities Sustainability Future Fit Talent 13 WiMI Digital Sensitivity: Public & Organ
Slide 15: Ritesh Tiwari
Ritesh Tiwari Chief Financial Officer Sensitivity: Public
Slide 16: SQ'23 Results
SQ’23 Results Topline EBITDA PAT (bei) Net Profit Underlying Sales Growth Margin INR INR 4% 24.6% 2,668 cr. 2,717 cr. 2% +130 bps 12% 4% Underlying Volume Growth Change YoY Growth YoY EPS Growth YoY PAT (bei) : Profit After Tax before exceptional items 15 Sensitivity: Public
Slide 17: SQ'23 Results excluding one off
SQ’23 Results excluding one off SQ’23 SQ’23 Year on Year (reported) (excl. one-off) Underlying Sales Growth 4% 3% Underlying Price Growth 1% Flat Gross Margin ∆ +700 bps +650 bps EBITDA Margin ∆ +130 bps +50 bps PBT Growth 14% 9% PAT bei Growth 12% 7% Net Profit Growth 4% -1% Note: One-off benefit i
Slide 18: Building back gross margins, stepping up A&P
Building back gross margins, stepping up A&P Gross Margin Advertising & Promotion +700 bps 51.9% 50.1% +420 bps 49.2% 47.8% 11.4% 46.4% 46.6% 44.9% 9.9% 9.4% 9.5% 8.8% 8.0% 7.2% FY'22 JQ-22 SQ-22 DQ-22 MQ-23 JQ-23 SQ-23 FY'22 JQ'22 SQ'22 DQ'22 MQ'23 JQ'23 SQ'23 Continue to drive productivity improve
Slide 19: SQ'23: Segmental performance
SQ’23 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 35% 38% 25% INR 5,312 cr. INR 5,809 cr. INR 3,851 cr. Underlying Sales Growth 3% 4% 4% Segmental Margins 19% 27% 19% Underlying Volume Mid-single Mid-single Mid-single Growth digit growth digit growth digit decline Se
Slide 20: HC: Innovations and Activations
HC : Innovations and Activations Image to be updated 19 Sensitivity: Public
Slide 21: HC: Volume led growth on a very high base
HC : Volume led growth on a very high base ❑ Fabric Wash: Volumes grew in mid-single digit driven by outperformance in premium portfolio ❑ Household Care: High-single digit volume growth led by Dishwash ❑ Price reductions taken in both Fabric Wash and Household Care portfolio. Stepped-up brand and m
Slide 22: BPC: Innovations and Activations
BPC : Innovations and Activations 21 Sensitivity: Public
Slide 23: BPC: Volume driven mid-single digit growth
BPC : Volume driven mid-single digit growth ❑ Skin Cleansing: Declined as price cuts offset low-single digit volume growth. Lux and Hamam continue to outperform ▪ Market development actions in bodywash continue to yield good results ❑ Hair Care: High single digit growth led by Clinic Plus and Indule
Slide 24: F&R: Innovations and Activations
F&R : Innovations and Activations 23 Sensitivity: Public
Slide 25: F&R: Mid-single digit growth driven by pricing
F&R : Mid-single digit growth driven by pricing ❑ Beverages: Tea delivered modest growth as category continued to witness consumers downgrading. Coffee grew in double-digits driven by pricing ❑ Health Food Drinks: Delivered price-led mid-single digit growth driven by activations and innovations ❑ Fo
Slide 26: HFD: Unlocking growth by building category relevance
HFD : Unlocking growth by building category relevance Business Performance Market Development – More Users, More Usage, More Premium Sharper proposition Strengthening science backed credentials Penetration Market Share 1 Healthy recruitment but consumption impacted by inflation 2 Cost synergies unlo
Slide 27: SQ'23 Results summary
SQ’23 Results summary Rs. Crores Particulars SQ’23 SQ’22 Growth Sales 15,027 14,514 4% EBITDA 3,694 3,377 9% EBITDA Margin 24.6% 23.3% +130 bps EBIT 3,425 3,129 9% Other Income (Net) 211 90 Exceptional Items -5 -28 PBT 3,631 3,191 14% Tax 914 575 PAT bei 2,668 2,379 12% Net Profit 2,717 2,616 4% PAT
Slide 28: SQ'23: EBIT to Net Profit movement
SQ’23 : EBIT to Net Profit movement +4% -1% -9% 12% 9% +1% 4% SQ’23: c.50 Cr. SQ’22: c.250 Cr. PPA – Prior Period Adjustment 27 Sensitivity: Public
Slide 29: H1 2023-24 Results summary
H1 2023-24 Results summary Turnover EBITDA PAT (bei) Net Profit INR Margin INR INR 29,958 cr. 24.1% 5,168 cr. 5,189 cr. 5% +90 bps 11% 6% Growth YoY Change YoY Growth YoY EPS Growth YoY PAT (bei) : Profit After Tax before exceptional items 28 Sensitivity: Public
Slide 30: Interim dividend
Interim dividend Particulars H1 2023-24 H1 2022-23 Growth Dividend Per Share (Rs.) 18.0 17.0 No. of Shares (Crores) 235 235 Total Dividend (Rs. Crores) 4,229 3,994 6% 29 Sensitivity: Public
Slide 31: Outlook
Outlook Sensitivity: Public
Slide 32: Cautiously optimistic in the near-term
Cautiously optimistic in the near-term ❑ Operating environment: ▪ Expect tailwinds from a better festive season ▪ Rural recovery likely to remain gradual ▪ Competitive intensity to remain high ▪ Watchful of volatile commodity prices ❑ Our outlook: ▪ Price growth to be marginally negative if commodit
Slide 33: Rohit Jawa
Rohit Jawa Chief Executive Officer and Managing Director Sensitivity: Public
Slide 34: Standalone results for the quarter ended 30th September 2023
STANDALONE RESULTS FOR THE QUARTER ENDED 30th SEPTEMBER 2023 4% Underlying Sales Growth, 2% Underlying Volume Growth, 12% Profit After Tax (bei) Growth Mumbai, 19th October 2023: Hindustan Unilever Limited (HUL) announced its results for the quarter ended 30th September 2023. September Quarter 2023:
Hindustan Unilever — Q2 FY2023-24 Earnings Presentation on 6ix