Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2023-24 Earnings Presentation
24 slides from Hindustan Unilever's earnings presentation, Jul 20, 2023
Slide 1: Hindustan Unilever Limited exchange disclosure cover letter
Hindustan Unilever Limited, Unilever House, B D Sawant Marg, Chakala, Andheri East, Mumbai 400 099 Tel: +91 (22) 50433000 | Web: www.hul.co.in | CIN: L15140MH1933PLC002030 20th July, 2023 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corp
Slide 2: Sensitivity: Public
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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: Market growth (Nielsen FMCG)
Total Rural Total Rural 2Y CAGR Flat -4% 5% 5% -10% MAT L6M L3M MAT L6M_~— L3M JQ’22 JQ'23 JQ22 JQ23 Market growth as per Nielsen FMCG Market Report for June 2023 (HUL relevant categories) 3 Sensitivity: Public
Slide 5: Inflation softening on a YoY basis
Inflation softening on a YoY basis Commodities remain stable Market price growth tailing off 15% Crude 1.9X Coffee 1.8X Soda Ash 1.7X Palm Oil 1.3X x Tea 0.9X 0% 2020 2021 MQ'22 JQ'22 SQ'22 DQ'22 MQ'23 JQ'23 SQ’22 DQ’23 MQ’23 JQ’23 Trade destocking | Consumers consuming high price inventory Commodit
Slide 6: Increased competitive intensity
Increased competitive intensity Media intensity up Resurgence of small players in select categories Media GRPs for FMCG Market Market Value Growth (YoY) (HUL relevant categories) (L3M May’23) 3y x 0.95x 1.6X x Y Large Small Large Small JQ19 4220 7221 1922 1923 Players Players Players Players Tea Det
Slide 7: HUL JQ'23 results
HUL JQ’23 results Topline Underlying Sales Growth! 7% 3% Underlying Volume Growth? EBITDA Margin 23.6% +40 bps Change YoY PAT (bei)? INR 2,500 cr. 9% Growth YoY Net Profit INR 2,472 cr. 8% EPS Growth YoY 1. Underlying Sales Growth (USG) refers to the increase in turnover for the period, excluding an
Slide 8: Competitive growth
Competitive growth Business winning market shares Significantly outperformed the market on a 2-year basis USG uvG 2YCAGR 13% 5% 20% 10% 0% JIQ'22 JQ'23 JQ‘22 JQ‘23 As per June 2023 MAT Business winning report based on Nielsen market data (HUL relevant categories) Sensitivity: Public
Slide 9: JQ'23: Segmental performance
JQ’23 : Segmental performance HOME CARE BEAUTY & PERSONAL CARE INR 5,425 cr. INR 5,601 cr. Mid FOODS & REFRESHMENT INR 3,797 cr. Mid . ae . Near flat single-digit single-digit Segment Revenue = Segment Turnover + Other Operating Income, Segment Margins (EBIT) excludes exceptional items. Excludes ‘Ot
Slide 10: JQ'23: Underlying Volume Growth composition
JQ’23: Underlying Volume Growth composition Mid-single Double- digit decline digit growth Home Care Water Purifier Fabric Wash Household & Care Care Beauty & Personal Care Skin Hair Oral Skin Care & Cleansing Care Care Cosmetics Foods & Refreshment Coffee Ice Cream Health Food Foods Tea Drinks sensi
Slide 11: Introducing: new product launches
Introducing Sensitivity: Public Revito Series DURAViva" BEST-IN-CLASS FILTRATION TECHNOLOGY ty POND'S ANTI-PIGMENTATION SERUM FOR FLAWLESS, RADIANCE SKIN DAMAGE
Slide 12: Oriental Sauces
Oriental Sauces (vertical image) Sensitivity: Public
Slide 13: Red Label Social Network
Red Label Social Network Sensitivity: Public
Slide 14: Home Care: Fabric Wash and Household Care
Sensitivity: Public Fabric Wash: Double-digit growth balanced between price and volume. Premium portfolio outperforms " Market share gains continue Household Care: Double-digit volume led growth driven by outperformance in Dishwash 13
Slide 15: Beauty & Personal Care category performance
* - ‘Hamam \tlamam LOVE AND oy © forged conte! Elena made with ethically sourced potent 3 alural ingredients, ro help your hair look & feel its best Sensitivity: Public Skin Cleansing: Modest volume-led growth driven by Lux and Hamam. Price reductions taken in soaps portfolio = Market development ac
Slide 16: Foods & Refreshment category performance
e led by HFD and Food Solutions Q Beverages: Modest growth as consumers downgrading continued due to inflation differential between premium and loose tea. Coffee grew in mid-single digit Q_ Health Food Drinks: Price led growth with both Horlicks and Boost performing well Q_ Foods: Mid-single digit g
Slide 17: Building back gross margins, stepping up A&P
Building back gross margins, stepping up A&P Hindustan Unilever Limited Gross Margin up sequentially Stepped-up A&P investments 52.7% 50.1% 49.2% 47.8% 46.4% 46.6% 11.6% 44.9% 9.4% 9.5% 9.9% 8.8% 8.0% 7.2% Avg. FY'19 FY'22 JQ-22 SQ-22 DQ-22 MQ-23 JQ-23 Avg. FY'19 FY'22 JQ’'22 $Q'22 DQ'22 MQ'23 IQ’23
Slide 18: JQ'23: Results summary
Sensitivity: Public JQ’23 : Results summary Particulars Rs. Crores Sales 14,931 14,016 7% EBITDA 3,521 3,247 8% EBITDA Margin 23.6% 23.2% +40 bps Other Income (Net) 138 111 PBT 3,365 3,086 9% Tax 893 797 Net Profit 2,472 2,289 8% PAT before exceptional items 2,500 2,289 9% 17
Slide 19: Joining forces to transform sanitation
— Joining forces to transform sanitation a + ySw ale nade lik ae Application window: 10 new Suvidha Centres to be set up Sensitivity: Public Launch of Centre for FICCI | susTAINABILITY > LEADERSHIP To accelerate India’s Net Zero Transition Hindustan Unilever Limited ‘Be.Seen’: scaling minority- owne
Slide 20: Sensitivity: Public
Sensitivity: Public
Slide 21: Operating environment remains volatile
Operating environment remains volatile Weather related risks continue Gradual recovery in volumes Impact on inflation and High levels of cumulative inflation, rural demand to be monitored consumption to recover gradually Sensitivity: Public 20
Slide 22: Near-term outlook
Near-term outlook Hindwoton Unilever Limited Q If commodities remain where they are, our price growth to be flattish/negative in the coming quarters Q Competitive intensity to go up further, focused on growing our consumer franchise and sustaining our volume growth momentum = Right price-value equat
Slide 23: India Ka Favourite
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Slide 24: Standalone results for the quarter ended 30 June 2023 (press release)
BS BE Ls Hindustan Unilever Limited STANDALONE RESULTS FOR THE QUARTER ENDED 30°" JUNE 2023 [ 7% Underlying Sales Growth, 3% Underlying Volume Growth, 8% Profit After Tax Growth ] Mumbai, 20" July 2023: Hindustan Unilever Limited {HUL] announced its results for the quarter ended 30 June 2023. June Q
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