Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2022-23 Earnings Presentation
28 slides from Hindustan Unilever's earnings presentation, Oct 21, 2022
Slide 1: Exchange filing cover letter for investor presentation
21st October, 2022 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'22 Results
Hindustan Unilever Limited SQ’22 Results : 21st October 2022 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: Sanjiv Mehta, CEO and Managing Director
Sanjiv Mehta Chief Executive Officer and Managing Director Sensitivity: Public
Slide 5: SQ'22: Strong all-round performance
SQ’22 : Strong all-round performance Turnover Growth YoY Underlying Volume Growth 16% 4% Market Share EBITDA Margin Earnings Per Share >75% 23.3% 20% Business winning shares Healthy EBITDA margin despite YoY Growth significant inflation As per September'22 Business winning report based on Nielsen ma
Slide 6: Inflation moderated sequentially, however still elevated
Inflation moderated sequentially, however still elevated Commodities remain volatile & elevated USD strengthening adding to inflation 82 USD/INR Crude Oil YoY (Brent USD/bbl) 35% 76 YoY SQ-21 DQ-21 MQ-22 JQ-22 SQ-22 9% YoY Soda Ash 55% 70 SQ-21 DQ-21 MQ-22 JQ-22 SQ-22 (INR/tonne) SQ-21 DQ-21 MQ-22 J
Slide 7: FMCG Market growing in mid-single digit; volumes declining
FMCG Market growing in mid-single digit; volumes declining Volume decline more FMCG Market Growth (YoY) Urban driving value growth pronounced in rural Value Volume Value Growth YoY Volume Growth YoY Urban Rural Urban Rural 10% 10% 10% MAT L3M MAT L3M MAT L3M 0% 0% 0% MAT L3M MAT L3M MAT L3M -10% -10
Slide 8: Clear and compelling strategy
Clear and compelling strategy Navigating the short term While progressing well on our challenges with agility long-term strategic choices Developing our portfolio Growing our consumer franchise Win with our brands powered by purpose and innovation & Lead in the channels of the future Build different
Slide 9: Building digital brands and capabilities
Building digital brands and capabilities Halved >25% 14 3 Time to launch Digital Media Spends^ D2C platforms Nano Factories ^ Digital Spends % of Total Media spends 8 Sensitivity: Public
Slide 10: Responsible growth: Doing well by doing good
Responsible growth : Doing well by doing good Dove Self Esteem Project Digitising Shakti Entrepreneurs Sustainability Lighthouse >20 million people reached >50K onboarded on Shikhar by World Economic Forum 9 Sensitivity: Public
Slide 11: Ritesh Tiwari, Chief Financial Officer
Ritesh Tiwari Chief Financial Officer Sensitivity: Public
Slide 12: SQ'22: Strong all-round performance
SQ’22 : Strong all-round performance Turnover Growth EBITDA PAT (bei)* Net Profit Growth Margin INR INR 16% 23.3% 2,379 cr. 2,616 cr. 4% -180 bps 9% 20% Underlying Volume Growth Change YoY Growth YoY EPS Growth YoY *PAT (bei) : Profit After Tax before exceptional items 11 Sensitivity: Public
Slide 13: Protecting business model through dynamic financial management
Protecting business model through dynamic financial management 25.0% -5.9% ▪ Pricing agility and right price-value 1.6% 23.3% equation 2.5.% -0.7% ▪ Investing in our brands : SOV>SOM Consumer Promotions ▪ Focus on product superiority ▪ Savings across all cost lines of P&L SQ’21 EBITDA COGS Advertisi
Slide 14: SQ'22: Segmental performance
SQ’22 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 30% 39% 28% INR 5,143 cr. INR 5,561 cr. INR 3,755 cr. Segmental Revenue 34% 11% 4% Growth Segmental Margins 17% 25% 20% Segment Revenue Growth = Segment Turnover growth + Other Operating Income, Segment Margins (EBIT)
Slide 15: SQ'22: Innovations (1/2)
SQ’22 : Innovations (1/2) Sensitivity: Public 14
Slide 16: SQ'22: Innovations (2/2)
SQ’22 : Innovations (2/2) Sensitivity: Public 15
Slide 17: SQ'22: Activations and communications
SQ’22 : Activations and communications High res image pending Sensitivity: Public 16
Slide 18: HC: Stellar performance continues, double digit volume growth
HC : Stellar performance continues, double digit volume growth ❑ Fabric Wash: High double-digit growth driven by premiumisation and market development actions ▪ Robust performance across the portfolio; handsome market share gains continue ▪ Liquids and Fabric conditioner continue to outperform Image
Slide 19: BPC: Double digit growth, ahead of the market
BPC : Double digit growth, ahead of the market ❑ Skin Cleansing: Strong double-digit growth, broad based across the portfolio. Beauty and premium brands continued to outperform and delivered mid-single digit volume growth ❑ Hair Care: Market leadership strengthened further with strong broad-based pe
Slide 20: F&R: Steady performance led by Foods, Coffee and Ice Cream
F&R : Steady performance led by Foods, Coffee and Ice Cream ❑ Beverages: Tea cemented market leadership and grew volumes in mid-single digit. In-quarter performance muted as price cuts impact overall value growth. Coffee continues to perform well delivering double-digit growth ❑ Health Food Drinks:
Slide 21: SQ'22: Results summary
SQ’22 : Results summary Rs. Crores Particulars SQ’22 SQ’21 Growth Sales 14,514 12,516 16% EBITDA 3,377 3,132 8% EBITDA Margin 23.3% 25.0% -180 bps Other Income (Net) 90 87 Exceptional Items – Credit / (Charge) -28 -0 PBT 3,191 2,954 8% Tax* 575 767 PAT bei 2,379 2,187 9% Net Profit 2,616 2,187 20% *
Slide 22: H1'23: Strong performance in a challenging environment
H1’23 : Strong performance in a challenging environment Turnover EBITDA PAT (bei)* Net Profit INR Margin INR INR 28,530 cr. 23.2% 4,668 cr. 4,905 cr. 18% -140 bps 13% 15% Growth YoY Change YoY Growth YoY EPS Growth YoY *PAT (bei) : Profit After Tax before exceptional items 21 Sensitivity: Public
Slide 23: Interim dividend
Interim dividend Particulars H1 2022-23 H1 2021-22 Growth Dividend Per Share (Rs.) 17.0 15.0 No. of Shares (Crores) 235 235 Total Dividend (Rs. Crores) 3,994 3,524 13% 22 Sensitivity: Public
Slide 24: Outlook
Outlook Sensitivity: Public
Slide 25: Net Material Inflation
Net Material Inflation COGS % Turnover 49% 49% 51% 54% 55% 22% 20% 16% 11% 11% 12% 12% 10% UPG% 8% 7% SQ-21 DQ-21 MQ-22 JQ-22 SQ-22 DQ-22 UPG% Actuals Forecast Net Material Inflation (NMI) YoY % of Material Cost Continue to drive productivity improvement and pricing agility Net Material Inflation =
Slide 26: Looking ahead
Looking ahead ❑ Cautiously optimistic in the near-term ▪ Growth will be price-led with continued inflationary pressure ▪ Price vs cost gap to narrow marginally in DQ’22 ▪ DQ’22 NMI to be slightly lower than SQ’22, albeit remaining significantly high on a YoY basis ▪ Gross Margin expected to improve
Slide 27: In Summary
In Summary 1. SQ’22 : ▪ Strong growth momentum : Topline growth 16%, Underlying volume growth 4% ▪ Healthy EBITDA margin at 23.3%, despite significant inflation 2. H1 2022-23 : ▪ Topline growth 18%, added >Rs. 4,000 crore turnover, >75% business winning market shares ▪ Interim Dividend of Rs. 17 per
Slide 28: For more information and updates
For more information and updates Click to visit IR Website Acne Squad Find Your Happy Place Sensitivity: Public
Hindustan Unilever — Q2 FY2022-23 Earnings Presentation on 6ix