Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 2009 Earnings Presentation
16 slides from Hindustan Unilever's earnings presentation, May 10, 2009
Slide 1: Results – MQ '09
Results – MQ ’09 10th May 2009 Safe Harbour Statement ThisRelease/Communication,exceptforthehistoricalinformation,maycontainstatements, includingthewordsorphrasessuchas‘expects,anticipates,intends,will,would,undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and
Slide 2: FMCG Markets and Results Summary: MQ'09
FMCG Markets : MQ'09 • FMCG markets continue to grow, in challenging economic environment. • Both Urban and Rural grow well • Signs of down trading in some categories • Need to protect consumer value • Outlet consolidation and down stocking in organised retail MQ'09 Results - 10th May‘09 Results Sum
Slide 3: Results Highlights: FY '09; March Quarter '09 in context
Results Highlights : FY ‘09 • FMCG business grows 18.3% • HPC 18.5 %, Foods + 17.0%; Underlying volumes grow +3.1% • Net sales grows 15.5% • A&P grows by 11.2%; • PBIT grew 18.8%; PBIT margin 14.5% • expands 40 bps during period of unprecedented costs increases. • Strong growth in PAT before excepti
Slide 4: Key Actions (1)
Recent Launches Vaseline Healthy White Lux Almond & Cream Surf Excel - Dove Hair Relaunch Fall Therapy Close Up Relaunch Extended Rin Matic Ponds Top Kissan Jams in Tubes End Range Italian Gelato Clinic All Clear Ketchup Penny Packs Dove Soft & Silky Deos MQ'09 Results - 10th May‘09 Key Actions…..(1
Slide 5: Key Actions (2); FMCG Sales Trend
Key Actions…..(2) • Compress Execution Cycle time • Drive consolidation and simplification through processes & technology. Eg: Urban Zero Inventory Model • Strengthening Front End Capability • Improve quality of coverage in both Urban and Rural • Enhance execution and productivity by leveraging tech
Slide 6: Sales Performance; Investment behind Brands
Sales Performance 23.5 22.5 20.4 20.8 19.8 17.5 15.1 14.1 13.2 11.5 MQ'08 JQ'08 SQ'08 DQ'08 MQ'09 HPC Foods MQ'09 Results - 10th May‘09 Investment behind Brands A&P as a % of Net Sales % 11.7 11.3 10.4 10.0 8.6 MQ '08 JQ '08 SQ '08 DQ '08 MQ '09 Media spends up 27% MQ'09 Results - 10th May‘09 6
Slide 7: Category wise Revenue growth
Category wise Revenue growth Growth % MQ'09 Soaps & Detergents 15.8 Personal Products 1.9 Beverages 13.5 Processed Foods 7.5 Ice Cream 22.4 FMCG 11.8 ^ ^ Excludes Other Operational Income MQ'09 Results - 10th May‘09 HPC Topline Personal Wash Laundry Shampoo Skin Toothpaste HPC Growth 11.5% MQ'09 Res
Slide 8: Soaps & Detergents and Personal Products category performance
Soaps & Detergents category performance • Growth in Laundry sustained – Surf and Rin lead category growth – Grammage increases actioned in Wheel; • Lower input costs improve category margins • Lower market shares reflect transition impact of higher priced stocks in pipeline MQ'08 Value Share DQ'08 M
Slide 9: Foods Topline; Beverages category performance
Foods Topline Tea Coffee Culinary Salt/Atta Ice Cream Foods growth 13.2% MQ'09 Results - 10th May‘09 Beverages category performance • Robust plans drive growth in Tea with all brands growing well • Commodity prices continue to rule high MQ'08 Value Share DQ'08 MQ'09 22.9 Tea 22.7 23.4 • Instant Coff
Slide 10: Processed Foods, Ice Cream; Water Purifier Business Update
Processed Foods and Ice Cream category performance Processed Foods • Jams and Squashes grow well Ice Creams • Ice cream performs well, with strong volume growth • Cups and Impulse lead category growth MQ'09 Results - 10th May‘09 Water Purifier – Business Update • Pure-it is now a Rs 200 crores brand
Slide 11: Exports; In Summary
Exports FMCG Specialty (Non-FMCG) Exports decline in non core and commodity segments. MQ'09 Results - 10th May‘09 In Summary • Robust 18.3% FMCG growth for 12 months ending March • MQ witnessed transition impact of price changes on pipeline stocks and trade de stocking • Key actions being implemente
Slide 12: Looking Ahead
Looking Ahead • Drive business to deliver competitive, profitable growth • Maintain competitiveness across all key brands and drive consumer value • Right pricing • Continued focus on Consumer insight and innovations • Sustain investment behind brands • Accelerate responsiveness in a dynamic environ
Slide 13: Results: MQ'09; PBIT Margin Trends
Results: MQ’09 Rs Crores MQ'09 MQ'08 Growth% Net Sales 3988 3763 6.0 EBITDA 596 485 22.9 PBIT 555 449 23.7 PBIT margin (percentage) 13.9 11.9 - Exceptional Items (107.1) 2.5 - PBT bei 573 469 22.2 PBT 466 471 (1.1) PAT bei 457 379 20.4 Net Profit 395 381 3.7 MQ'09 Results - 10th May‘09 Results: PBIT
Slide 14: Exceptional Items; Full Year Results
Results: Exceptional Items Rs Cr Particulars MQ'09 MQ'08 Assets Sale 7 7 Restructuring Costs (25) (4) Actuarial valuation of employee (61) Benefits Others (28) Total (107) 3 MQ'09 Results - 10th May‘09 Full Year Results 15 months 12 months ending ending Rs Crores 31-03-2009 31-12-2007 Net Sales 2023
Slide 15: Dividend FY 2008-09
Dividend FY 2008-09 Dividend Per Share of Re 1 2008-09 2007 Interim Dividend 3.50 3.00 Final Dividend 4.00 3.00 Special Dividend - 3.00 Distribution Tax 1.28 1.50 Total Dividend 8.78 10.50 MQ'09 Results - 10th May‘09 Thank you For more information, please visit http://www.hul.co.in http://www.hul.co
Slide 16: Results – MQ '09
Results – MQ ’09 10th May 2009 16