Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — FY2018-19 Earnings Presentation
25 slides from Hindustan Unilever's earnings presentation, May 3, 2019
Slide 1: Cover letter to stock exchanges
Hindustan Unilever Limited Unilever House B D Sawant Marg Chakala, Andheri East Mumbai 400 099 Tel: +91 (22) 3983 0000 Web: www.hul.co.in CIN:L15140MH1933PLC002030 3rd May, 2019 Stock Code BSE: 500696 NSE: HINDUNIL VR /SIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Rel
Slide 2: MQ'19 & FY'18-19 Results Presentation
Hindustan Unilever Limited MQ ’19 & FY’ 18-19 Results Presentation : 3rd May 2019
Slide 3: Safe Harbor Statement
Safe Harbor 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 e
Slide 4: Sanjiv Mehta, Chairman & Managing Director
Sanjiv Mehta Chairman & Managing Director
Slide 5: Clear and compelling strategy
Clear and compelling strategy Purpose-led, Future-Fit Growth Consistent, Competitive, Profitable, Responsible Growth 4
Slide 6: Market Context
Market Context Market growth Rural vs Urban Macro Environment 1.3X 1.1X X WAGE RATE 2017 DQ18 L3M'19 2017 DQ18 L3M'19 FMCG Baseline Indexed Rural Gr Urban * Market growth data source Nielsen 5
Slide 7: Performance Summary
Performance Summary MQ’19 FY 2018 - 19 M&A Domestic Consumer Domestic Consumer Acquisition Sept’18 Growth +9% Growth* +12% Underlying Volume Underlying Volume +7% +10% Growth Growth EBITDA Margin 24% EBITDA Margin 23% Merger proposal pending regulatory approvals EBITDA +90 bps EBITDA +130 bps Improv
Slide 8: Our performance drivers
Our performance drivers Driving premiumization & Focus on Core Market Development Channels of Future Flawless Execution c Re-imagine HUL: Build Digital Capabilities across the Value Chain 7
Slide 9: Srinivas Phatak, Chief Financial Officer
Srinivas Phatak Chief Financial Officer
Slide 10: MQ'19: Solid sales and margin delivery in the quarter
MQ’19: Solid sales and margin delivery in the quarter Growth EBITDA PAT (bei) Net Profit Domestic Consumer Growth EBITDA Growth PAT (bei) Growth PAT Growth +9% +13% +13% +14% +7% +90 bps 1,590cr 1,538cr Underlying Volume Growth Margin Improvement PAT (bei) PAT 9
Slide 11: Broad based growth across divisions
Broad based growth across divisions HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT Sales Growth 13% 7% 9% Strong volume led growth Premium brands lead growth Momentum sustains Sales growth = Segment Revenue growth excluding Other Operational Income (Excludes impact of A&D) 10
Slide 12: Innovations and activations in the quarter
Innovations and activations in the quarter 11
Slide 13: Home Care
Home Care Strong volume led growth ❑ Fabric Wash: Growth driven by premiumization and market development initiatives ▪ Launched Surf Excel Easy Wash liquid nationally ❑ Household Care: Sustained double digit growth performance driven by Liquids upgradation and increased penetration on bars ▪ Launche
Slide 14: Beauty & Personal Care
Beauty & Personal Care Premium brands lead growth ❑ Personal Wash: Premium brands performed well; Popular segment delivery below expectations ▪ Launch of Liril body wash & bar variants – strong freshness proposition ❑ Skin Care: Double digit growth on the back of steady performance across the portfo
Slide 15: Beauty & Personal Care: Contd.
Beauty & Personal Care : Contd. Premium brands lead growth ❑ Colour Cosmetics: Consistent delivery; focus on “emerging trends” drives performance ▪ Launched Lakmé Absolute Matte Ultimate with Argan Oil nationally ❑ Oral Care: Momentum on Close Up and Ayush Oral Care continues to build ❑ Deodorants:
Slide 16: Foods & Refreshment
Foods & Refreshment Momentum sustains ❑ Beverages: Consistent, secular growth led by WiMI actions ▪ Purpose led campaigns underpin brand communication and drive salience ❑ Ice Cream & Frozen Desserts: Strong performance across all formats ▪ Exciting range of innovations launched for season ❑ Foods :
Slide 17: Segmental Performance
Segmental Performance HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT Segmental Revenue Growth* 13% 7% 10% Segmental Margins** 18% 28% 18% *Segment Revenue Growth = Segment Turnover growth including Other Operational Income (Excludes impact of A&D) ** Segment Margins (EBIT) excludes exceptional
Slide 18: MQ'19: Results summary
MQ’19: Results summary Rs. Crores Particulars MQ’19 MQ’18 Growth % Sales 9809 9003 9 EBITDA 2321 2048 13 Other Income 118 100 Exceptional Items – Credit / (Charge) (71) (64) PBT 2227 1952 14 Less : Tax 689 601 PAT bei 1590 1409 13 Net Profit 1538 1351 14 ▪ Domestic Consumer Growth at 9% ▪ EBITDA imp
Slide 19: Full Year Performance FY'18-19
FULL YEAR PERFORMANCE FY’ 18-19 18
Slide 20: FY 2018-19: Strong performance delivered
FY 2018 - 19: Strong performance delivered Growth EBITDA Margin EPS Cash Comparable* Domestic EBITDA Growth Net Profit Growth EPS (Basic) Growth Cash from operations^ Consumer Growth +12% +19% +15% +15% +8413 crs. +10% 130 bps +18% Rs. 28 Underlying Volume Comparable** Margin Improvement PAT (bei) G
Slide 21: Segmental Performance
Segmental Performance HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT Comparable Revenue Growth* 15% 10% 11% Segmental Margins** 17% 27% 17% *Comparable Segment Revenue Growth = Segment Turnover growth including Other Operational Income (Excludes impact of A&D) adjusted for GST impact ** Segmen
Slide 22: FY 2018-19: Results summary
FY 2018-19: Results summary Rs. Crores Particulars FY 18-19 FY 17-18 Growth % Sales 37,660 34,619 9^ EBITDA 8,637 7,276 19 EBITDA Margin (%) 22.9 21.0 PAT bei 6,080 5,135 18 Net Profit 6,036 5,237 15 ▪ Comparable* Domestic Consumer Growth at 12%^; underlying volume growth at 10% ▪ Comparable** EBITD
Slide 23: Proposed Final Dividend
Proposed Final Dividend Particulars FY’17-18 FY’18-19 Dividend per share 20 22 Interim 8 9 Final* 12 13 No. of Shares (Cr.) 216.45 216.47 Total Dividend (Rs. Cr.) 4329 4762 Dividend Distribution Tax (Rs. Cr.) 848 958 Total Dividend Outflow (Rs. Cr.) 5177 5720 *Final Dividend number for FY 2018-19 is
Slide 24: Looking ahead
Looking ahead Near term ❑ Near term market growth has moderated given macro economic indicators ❑ Commodities and currency will continue to be volatile Our strategy ❑ Company well positioned and our strategy remains unchanged ❑ Consistent, Competitive, Profitable, Responsible Growth 23
Slide 25: For more information and updates
For more information and updates Visit our website 24