Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 FY2025 Earnings Presentation
37 slides from Hindustan Unilever's earnings presentation, Jan 22, 2025
Slide 1: Regulation 30 disclosure cover letter to exchanges
22nd January, 2025 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 DQ'24 Results
Hindustan Unilever Limited DQ’24 Results 22nd January 2025 2/37
Slide 3: Safe harbour statement
DQ’24 Results 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
Slide 4: Rohit Jawa, CEO and Managing Director
Rohit Jawa Chief Executive Officer and Managing Director 4/37
Slide 5: DQ'24: Operating environment
DQ’24 Results DQ’24: Operating environment Subdued consumption climate Market dynamics that characterized this growth FMCG Volume Growth trends (MAT Nielsen) ❑ Sustained gradual rural recovery ❑ Moderation in urban growth ❑ Small packs growing faster than large packs Mar’24 June’24 Sept’24 Dec’24 ❑
Slide 6: DQ'24: Pricing
DQ’24 Results DQ’24: Pricing Tea and Crude Palm Oil prices remain Pricing actions taken in line with Net Material inflated Y-o-Y, Crude Oil continues to deflate Inflation DQ’24 Inflation vs. DQ’23 vs. SQ’24 Crude Oil (Brent USD/bbl) -11% -6% Soda Ash (INR/ton) -3% 0% 0% Palm Oil (BMD CPO USD/MT) 40%
Slide 7: Financial highlights
DQ’24 Results DQ’24: Financial highlights Growth Margins Earnings ₹ 15,195 cr. 50.0% Flat Turnover Gross Margin % of TO PAT bei vs DQ’23 2% 23.5% 19 % Underlying Sales Growth EBITDA % of TO EPS Growth vs DQ’23 Flat Underlying Volume Growth Underlying Sales Growth (USG): Increase in turnover for the
Slide 8: Strengthened competitive position
DQ’24 Results DQ’24: Strengthened competitive position Moving to Turnover weighted market share to measure competitiveness c. 60 Business winning % → +ve gains Turnover weighted market shares value Dec’24 (MAT) Dec’24 (MAT) Backed by strong business fundamentals Elevated brand superiority Competitiv
Slide 9: Positive absolute volume (tonnage) growth
DQ’24 Results DQ’24: Positive absolute volume (tonnage) growth Sustained competitive absolute volume growth However, UVG was impacted by negative mix Volume Growth Trends (MAT – Nielsen) ❑ Home Care growing ahead of the rest of FMCG HUL (Nielsen) the business ❑ Small packs growing ahead of large pac
Slide 10: ASPIRE: Unlocking a billion aspirations
DQ’24 Results ASPIRE: Unlocking a billion aspirations FOCUS EXCEL ACCELERATE >80% Unmissable Brand Superiority Supply Chain delta from Multi-year market making Traditional Trade future core and Social-first demand generation Science & Technology market makers Channels of the future Net Productivity
Slide 11: Focussing on our portfolio transformation journey
DQ’24 Results Focussing on our portfolio transformation journey PREMIUMISATION MARKET FUTURE MAKERS Leading Trends CORE Sweet Spot of Premiumisation CORE Contemporary and Healthy CATEGORY GROWTH 10 Sensitivity: Public 11/37
Slide 12: Maintaining a healthy core
DQ’24 Results Maintaining a healthy core Contemporising our core, stepping up meaningfulness and relevance 11 Sensitivity: Public 12/37
Slide 13: Premiumising the future core
DQ’24 Results Premiumising the future core Creating an expert brand, expanding into high growth spaces 12 Sensitivity: Public 13/37
Slide 14: Leading trends with market making innovations
DQ’24 Results Leading trends with market making innovations Extending our portfolio to address emerging trends and consumer needs 13 Sensitivity: Public 14/37
Slide 15: Making sharper portfolio choices
DQ’24 Results Making sharper portfolio choices Pureit divestment Ice-cream demerger Acquisition of Minimalist 14 Sensitivity: Public 15/37
Slide 16: Ritesh Tiwari, Chief Financial Officer
Ritesh Tiwari Chief Financial Officer 16/37
Slide 17: DQ'24 Results
DQ’24 Results DQ’24 Results Topline Gross Margin EBITDA PAT Underlying Sales Growth Margin Margin INR 2% 50.0% 23.5% ₹ 3,001 cr. Flat - 70 bps - 20 bps 19% Underlying Volume Growth Change YoY Change YoY Growth YoY Underlying Sales Growth (USG): Increase in turnover for the period, excluding any chan
Slide 18: DQ'24 Segment Results
DQ’24 Results DQ’24 Segment Results Home Care Beauty & Wellbeing Personal Care Foods Revenue ₹ 5,742 cr. ₹ 3,438 cr. ₹ 2,246 cr. ₹ 3,745 cr. Margins 18% 29% 18% 20% Segment Revenue = Segment Turnover + Other Operating Income; Segment Margins (EBIT) exclude exceptional item. 17 Excludes ‘Others’ segm
Slide 19: Home Care
DQ’24 Results Home Care Strong volume led growth USG : 6% UVG : High-single digit growth ❑ Fabric Wash: High-single digit volume growth driven by strong broad-based performance across formats. Liquid continues to outperform ❑ Household Care: High-single digit volume growth led by dishwash portfolio.
Slide 20: Beauty and Wellbeing
DQ’24 Results Beauty and Wellbeing Modest performance, Skin Care impacted by delayed winter USG : 1% UVG : Low-single digit decline ❑ Hair Care: Delivered robust mid-single digit volume growth. Performance was broad-based across sachets and formats of the future. Continued share gain momentum ❑ Skin
Slide 21: Personal Care
DQ’24 Results Personal Care Impacted due to decline in hygiene segment of Skin Cleansing USG : -4% UVG : Mid-single digit decline ❑ Skin Cleansing: Strategic actions led to improved competitive performance. Positive momentum in non-hygiene segment. Lifebuoy being relaunched to address declining hygi
Slide 22: Foods
DQ’24 Results Foods Sequential improvement in Packaged Foods and Beverages USG : Flat UVG : Mid-single digit decline ❑ Beverages: Low-single digit growth in Tea led by pricing. Premium brands delivered mid-single digit growth. Tea maintained value and volume market leadership. Coffee continues to de
Slide 23: Making sharper portfolio choices
DQ’24 Results Making sharper portfolio choices Pureit divestment Ice-cream demerger Acquisition of Minimalist 22 Sensitivity: Public 23/37
Slide 24: Making sharper portfolio choices
DQ’24 Results Making sharper portfolio choices Pureit divestment Ice-cream demerger Acquisition of Minimalist ✓ Transaction completed Demerger approved by the Board Acquisition announced 23 Sensitivity: Public 24/37
Slide 25: Ice-cream demerger
DQ’24 Results Ice-cream demerger Kwality Wall’s (India) Limited incorporated on 10th January 2025 ❑ Scheme of arrangement, for demerger, approved by Board of Directors ❑ Opportunity for all shareholders to participate in future value creation with a 1:1 Share Entitlement Ratio ❑ Great business with
Slide 26: Minimalist
Minimalist Maleic Bond Repair Complex 05% HAIR SERUM Strum Pour Chevoun with amino acids + argan oil + squalane repairs & protects hair bonds répare et protege les liaisons epilaires Minimalist Salicylic Acid +LHA — 0% cueanser that extract reduces sebum & acne oily /aene prone skin 100m! /3.4 Noe M
Slide 27: About Minimalist
SQ’24 Results About Minimalist Actives-led premium beauty brand ❑ Founded in 2020 by Mohit Yadav and Rahul Yadav ❑ One of the fastest growing digital-first brands ❑ Sits at the intersection of beauty and actives-led science with a sharp positioning and masstige pricing ❑ With an annual revenue run r
Slide 28: The India Beauty Opportunity
The India Beauty Opportunity Under-indexed on per-capita Large market at ₹68 K Crore Regime adoption already on the rise beauty spends today Developed counterparts at >15x Per # of Products used at par with Capita Spends vs. India | Headroom Developed countries for Affluent for Premiumization consum
Slide 29: HUL B&W Strategy: Building the #1 Portfolio for Beauty
DQ’24 Results HUL B&W Strategy | Building the #1 Portfolio for Beauty - Our 6 big bets SERUMS & DESEASONALISE FACE CLEANSING LIGHT MOISTURISER SUN CARE MASSTIGE TREATMENTS BODY 28 Sensitivity: Public 29/37
Slide 30: Minimalist is a good strategic fit for HUL B&W
DQ’24 Results Minimalist is a good strategic fit for HUL B&W Efficacious products Strengthens our Plays in fast growing Complementarity in eCommerce & masstige with a distinct and affluent beauty market portfolio presence sharp positioning 29 Sensitivity: Public 30/37
Slide 31: Synergy opportunities by leveraging HUL capabilities
DQ’24 Results Synergy opportunities by leveraging HUL capabilities R&D capabilities to enable Distribution capabilities to Leverage Unilever presence HUL Supply Chain for portfolio expansion build offline presence for international expansion capacity and cost efficiencies 30 Sensitivity: Public 31/3
Slide 32: Transaction overview
SQ’24 Results Transaction overview Deal structure ❑ HUL to acquire 90.5% stake in the business through secondary buy- outs at a pre-money enterprise value of ₹ 2,955 cr. (subject to adjustments as per the transaction documents) and primary infusion ❑ Balance 9.5% will be acquired from the founders i
Slide 33: DQ'24 Results summary
DQ’24 Results DQ’24 Results summary Rs. Crores Particulars DQ’24 DQ’23 Growth Sales 15,195 14,928 2% EBITDA 3,570 3,540 EBITDA Margin 23.5% 23.7% -20 bps Other Income (Net) 207 204 Exceptional Items 509 (30) PBT 3,978 3,432 16% Tax 977 913 Effective Tax Rate 24.6% 26.6% Net Profit 3,001 2,519 19% PA
Slide 34: FY'25: 9-month performance
DQ’24 Results FY’25: 9-month performance Topline Gross Margin EBITDA PAT Underlying Sales Growth Margin Margin INR 2% 50.4% 23.7% ₹ 8,151 cr. 2% - 20 bps - 30 bps 6% Underlying Volume Growth Change YoY Change YoY Growth YoY Underlying Sales Growth (USG): Increase in turnover for the period, excludin
Slide 35: Looking Ahead: Near term
DQ’24 Results Looking Ahead: Near term Outlook Our priorities ❑ Moderation in consumption trends to ❑ Continue to drive competitive volume led continue in near term growth ❑ Sharper prioritisation of investments across ❑ If commodity prices remain where they are, core, future core and market makers
Slide 36: Hindustan Unilever Limited
Hindustan Unilever Limited DQ’24 Results 22nd January 2025 36/37
Slide 37: Standalone results press release for the quarter ended 31 December 2024
STANDALONE RESULTS FOR THE QUARTER ENDED 31st DECEMBER 2024 2% Underlying Sales Growth, 23.5% EBITDA margin, 19% PAT growth Mumbai, 22nd January 2025: Hindustan Unilever Limited (HUL) announced its results for the quarter ended 31st December 2024. December Quarter 2024: HUL reported an Underlying Sa