Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2024-25 Earnings Presentation
22 slides from Hindustan Unilever's earnings presentation, Oct 23, 2024
Slide 1: Hindustan Unilever Limited SQ'24 Results
Hindustan Unilever Limited SQ’24 Results 23rd October 2024
Slide 2: Safe harbour statement
SQ’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 3: Rohit Jawa, Chief Executive Officer and Managing Director
Rohit Jawa Chief Executive Officer and Managing Director
Slide 4: Operating environment
SQ’24 Results Operating environment Urban growth moderating, Volatile commodity prices, Rural recovering gradually Tea and Crude Palm Oil prices increase FMCG Volume Growth trends (Nielsen) SQ’24 Inflation vs. SQ’23 vs. JQ’24 Crude Oil -10% -10% (Brent USD/bbl) Soda Ash (INR/ton) -5% 0% Palm
Slide 5: Financial Highlights
SQ’24 Results SQ’24: Financial Highlights Growth Margins Dividend ₹ 15,319 cr. 23.8% ₹ 19 + ₹ 10 Turnover EBITDA % of TO Dividend per share (Interim + Special) 2% [3%] -2% [2%] ₹ 6,814 cr. Underlying Sales Growth PAT bei Growth vs SQ’23 Total Dividend Payout 3% [3%] Underlying Volume Growth Underlyi
Slide 6: SQ'24: Competitive performance
SQ’24 Results SQ’24: Competitive performance Business Winning Market Share Sept’24 (MAT) > 60% L3M +ve gains c. 200 bps 60% Mar'21 (MAT) Dec'24 (MAT) Mar'21 (MAT) Sept'24 (MAT) Actual Earlier Estimate Gaining competitive momentum backed by strong business fundamentals Business winning value shares a
Slide 7: Transform to Outperform: Key Thrusts
SQ’24 Results Transform to Outperform: Key Thrusts 1 Grow the Core through Unmissable Brand Superiority 2 Drive Premiumisation 3 Reshape Portfolio in High Growth Spaces 4 Lead in Channels of the Future Enabled by Distinctive Capabilities Winning in Many Indias Net Productivity Digital Transformation
Slide 8: 1: Grow the Core through Unmissable Brand Superiority
SQ’24 Results 1: Grow the Core through Unmissable Brand Superiority Campaigns designed to drive brand relevance Product >80% Packaging Proposition Turnover of business Promotion superior in UBS Place Pricing Social first communication to enhance meaningfulness, a significant driver of Brand Power 20
Slide 9: 2: Drive Premiumisation
SQ’24 Results 2: Drive Premiumisation Technology led differentiated Strengthening our specialist Shaping beauty trends with products nutrition portfolio Lakme Introducing Lamellar Gloss range Addressing a specific condition GMV >₹80 crores in 6 months of to India with a superior product launch GMV b
Slide 10: 3: Reshape Portfolio in High Growth Spaces
SQ’24 Results 3: Reshape Portfolio in High Growth Spaces Serving the evolving home and Building future formats in Expanding our condiments and hygiene needs beauty and wellbeing mini-meals business Leveraging proprietary technology De-seasonalising body care with all Portfolio extension with on-tren
Slide 11: 4: Lead in Channels of the Future
SQ’24 Results 4: Lead in Channels of the Future Kirana Centric Approach Leading category growth in MT Designing for Platforms Buy Smarter, Sell More Market development, at scale Driving competitive growth 11 Sensitivity: Public
Slide 12: Ritesh Tiwari, Chief Financial Officer
Ritesh Tiwari Chief Financial Officer
Slide 13: SQ'24 Results
SQ’24 Results SQ’24 Results Topline Gross Margin EBITDA PAT (bei) Underlying Sales Growth Margin Margin INR 2% 50.4% 23.8% ₹ 2,611 cr. 3% -150 bps -80 bps -2% Underlying Volume Growth Change YoY Change YoY Growth YoY Underlying Sales Growth (USG) - increase in turnover for the period, excluding any
Slide 14: Results summary excluding one-off indirect tax impact in the base
SQ’24 Results SQ’24 Results summary excluding one-off indirect tax impact in the base SQ’24 SQ’24 Particulars (Reported) (Intrinsic) Underlying Sales Growth 2% 3% Underlying Volume Growth 3% 3% Underlying Price Growth -1% Flat Gross Margin ∆ -150 bps -100 bps EBITDA Margin ∆ -80 bps Flat PAT before
Slide 15: SQ'24 Segment Results
SQ’24 Results SQ’24 Segment Results Home Care Beauty & Wellbeing Personal Care Foods & Refreshment Revenue ₹ 5,737 cr. ₹ 3,323 cr. ₹ 2,412 cr. ₹ 3,803 cr. Margins 19% 34% 17% 18% Segment Revenue = Segment Turnover + Other Operating Income, Segment Margins (EBIT) excludes exceptional items. Excludes
Slide 16: Home Care
SQ’24 Results Home Care Strong volume led growth momentum continues USG : 8% UVG : High-single digit growth ❑ Fabric Wash: Volumes grew in high single digit driven by premiumisation and market development actions. Liquids and Fabric care portfolio continue to outperform ❑ Household Care: High-single
Slide 17: Beauty and Wellbeing
SQ’24 Results Beauty and Wellbeing 7% intrinsic growth driven by volume USG : 1% [7%] UVG : Mid-single digit growth ❑ Hair Care : Maintained momentum with volume led high-single digit growth. Sunsilk, Dove and Tresemme grew double-digit. Formats of the future continue to gain consumer traction ❑ Ski
Slide 18: Personal Care
SQ’24 Results Personal Care Sequential improvement in turnover led by premium portfolio USG : -5% UVG : Low-single digit decline ❑ Skin Cleansing : Revenue declined primarily on account of pricing actions taken during the year. Premium portfolio grew ahead of the segment, within that Bodywash streng
Slide 19: Foods & Refreshment
SQ’24 Results Foods & Refreshment Market shares strengthened; revenue declined marginally USG : -2% UVG : Low-single digit decline ❑ Beverages: Tea strengthened value and volume market leadership. Green and Functional Tea continue to deliver strong volume growth. Coffee grew double-digit led by stro
Slide 20: H1 2024-2025 Results Summary
SQ’24 Results H1 2024-2025 Results Summary H1’25 H1’25 Particulars (Reported) (Intrinsic) Underlying Sales Growth 2% 2% Underlying Volume Growth 3% 3% Underlying Price Growth -2% -1% Gross Margin ∆ +10 bps +40 bps EBITDA Margin ∆ -30 bps +10 bps PAT before exceptional items Growth Flat 3% Net Profit
Slide 21: Looking Ahead: Near term
SQ’24 Results Looking Ahead: Near term Outlook Our priorities ❑ Demand trends to remain stable ❑ Focused on driving competitive volume led growth ❑ Low-single digit price growth, if commodity ❑ Continued investment behind brands and prices remain where they are long-term strategic priorities ❑ EBITD
Slide 22: Hindustan Unilever Limited SQ'24 Results
Hindustan Unilever Limited SQ’24 Results 23rd October 2024
Hindustan Unilever — Q2 FY2024-25 Earnings Presentation on 6ix