Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2021-22 Earnings Presentation
32 slides from Hindustan Unilever's earnings presentation, Oct 19, 2021
Slide 1: Exchange cover letter: Investor Presentation
19th October, 2021 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'21 Results
Hindustan Unilever Limited SQ’21 Results : 19th October 2021 Sensitivity: Restricted_UPSI
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, Chairman and Managing Director
Sanjiv Mehta Chairman and Managing Director Sensitivity: Restricted_UPSI
Slide 5: Operating environment has improved post Wave 2...
Operating environment has improved post Wave 2... COVID cases receding; Mobility improving post Employment heading towards Vaccination gathers pace COVID Wave 2 a recovery Google Mobility Index CMIE Employment Data 980 mn 2020 Total Vaccination 2019 400K 87% 2021 74% 37% COVID new cases 20K <20K Jan
Slide 6: ...however, remains challenging
...however, remains challenging FMCG market growths Consumer sentiment remains Commodities continue to be moderating subdued at elevated levels Nielsen YoY Growths* RBI Consumer Confidence Index 15% >5X Future Expectation Index Ocean Freight 107 10% Tea 1.8X 1.6X Current Situation 57 1.6X Index 1.5X
Slide 7: SQ'21: Robust performance in a challenging environment
SQ’21 : Robust performance in a challenging environment Double-digit growth, Pricing further stepped-up Healthy EBITDA Margins; ahead of the market sequentially +70 bps QoQ Domestic Consumer Growth 6.5% EBITDA Margins 5.0% 11% 25.0% 2.5% >75% +70 bps MQ'21 JQ'21 SQ'21 Business Gaining Shares & Penet
Slide 8: Clear and compelling strategy
Clear and compelling strategy 1. Developing our portfolio 2. Win with our brands as a force for good, powered by purpose and innovation 3. Lead in the channels of the future 4. Build differentiated structures and capabilities 5. Build a purpose-led, future-fit organisation and growth culture Operati
Slide 9: BPC: Impactful innovations and activations 1/2
BPC : Impactful innovations and activations 1/2 Lakmé limited edition lip colours Pond’s Vitamin C Serum Vaseline Lip Therapy Pond’s Gold Beauty Lakmé Lumi Cream for a 3D glow Glow and Lovely : Many Miss Indias Sensitivity: Restricted_UPSI 8
Slide 10: BPC: Impactful innovations and activations 2/2
BPC : Impactful innovations and activations 2/2 Tresemme Thick & Full Dove Hair Mask Pepsodent Relaunch New Lifebuoy Silver+ Skin Friendly Dove Deodorants Lux : Our Best Soap for Glow Sensitivity: Restricted_UPSI 9
Slide 11: HC: Impactful innovations and activations
HC : Impactful innovations and activations Surf Excel Matic transitioned to Domex fights upto 100 flushes Sunlight Tantir Rong recycled bottles New Rin Bar – Superior product | Comfort Fabric Conditioner Vim Bar – Breaking Stereotype Clean future Sensitivity: Restricted_UPSI 10
Slide 12: F&R: Impactful innovations and activations
F&R : Impactful innovations and activations Knorr : Restaurant like Chinese at Kwality Walls : Best company to Horlicks Diabetes Plus home festive meals Kissan Crunchy Peanut Butter Brooke Bond 3 Roses Boost breaking stereotypes Sensitivity: Restricted_UPSI 11
Slide 13: Nutrition: Market development at scale
Nutrition : Market development at scale Consumer connects Persuasive communication Driving physical reach (>5mln households) GTM >85% Integration complete Effective 1.9X vs Coverage Pre-integration (GTM) Addressing key Triggers & Barriers for category adoption 12 Sensitivity: Restricted_UPSI
Slide 14: Premium Beauty Business Unit
Premium Beauty Business Unit Digital first model | Agile Innovation | Supply Chain for small | D2C & Performance Marketing Sensitivity: Restricted_UPSI 13
Slide 15: Digital play in premium beauty brands
Digital play in premium beauty brands Highest Instagram followers across beauty brands in India | 2 mln D2C website visits per month| 30% online sales Sensitivity: Restricted_UPSI 14
Slide 16: Winning in all channels
Winning in all channels Design for channel Flawless Execution Effective Coverage Assortment 1.4Y General 1.2X Trade X Y JQ'21 SQ'21 JQ'21 SQ'21 Modern Trade eComm 15 Sensitivity: Restricted_UPSI
Slide 17: Digitised demand capture >15%
Digitised demand capture >15% eRTM - Shikhar Accelerating eCommerce Direct to Consumer 16 Sensitivity: Restricted_UPSI
Slide 18: Purpose drives growth: Key actions in this quarter
Purpose drives growth : Key actions in this quarter Making sustainable living commonplace Eliminated coal usage Clean Futures : Soda Ash from Reducing our plastic footprint : across our factories Carbon Capture Bottles with recycled plastic Partnering for research on COVID 19 6 th Suvidha Centre in
Slide 19: Ritesh Tiwari, Chief Financial Officer
Ritesh Tiwari Chief Financial Officer Sensitivity: Restricted_UPSI
Slide 20: SQ'21: Robust performance in a challenging environment
SQ’21 : Robust performance in a challenging environment Growth EBITDA PAT (bei) Net Profit Domestic Consumer Growth Margin Growth % Growth % 11% 25% 7% 9% 4% -40 bps 2,187 cr. 2,187 cr. Underlying Volume Growth Vs SQ’20 19 Sensitivity: Restricted_UPSI
Slide 21: Broad based growth across Divisions
Broad based growth across Divisions HOME CARE BEAUTY & PERSONAL FOODS & CARE REFRESHMENT 31% 40% 29% Sales Growth 15% 10% 7% 20 Sensitivity: Restricted_UPSI
Slide 22: Home Care: Double-digit growth momentum sustained
Home Care : Double-digit growth momentum sustained ❑ Household Care: Strong performance continues. Grew on a high base led by penetration and market share gains. ❑ Fabric Wash: High double-digit growth led by strong performance in premium portfolio ▪ Significant input cost inflation; calibrated pric
Slide 23: BPC: Double-digit growth led by Skin Care, Color Cosmetics and Hair Care
BPC : Double-digit growth led by Skin Care, Color Cosmetics and Hair Care ❑ Skin Cleansing: Soaps grew on a high base of SQ’20. Beauty and premium brands grew double-digit. Hand hygiene declined on an exceptionally high base. ‘Vwash’ continued its strong momentum ▪ Inflationary pressures remain elev
Slide 24: Foods & Refreshment: Strong performance on a high base
Foods & Refreshment : Strong performance on a high base ❑ Beverages: Tea grew on a very strong base and further strengthened its market leadership. Coffee performs well. ❑ Nutrition: Focus on market development yielding results, Health Food Drinks volumes grew in double- digit. Sequential penetratio
Slide 25: Accelerating growth across the portfolio
Accelerating growth across the portfolio Vs. 2019 Vs. 2020 Health, Hygiene SQ’21 19% 7% and Nutrition c. 85% JQ’21 16% 8% SQ’21 -2% 31% Discretionary c. 12% JQ’21 -24% 39% SQ’21 31% 74% Out of Home c. 3% -40% 91% JQ’21 Comparable numbers: Excludes impact of M&A in the base 24 Sensitivity: Restricted
Slide 26: Playing all lines of the P&L
Playing all lines of the P&L Margin headwinds likely to persist +7% Savings YOY Pricing in SQ’21 Programme Palm Oil Packaging 25.0% Improving SQ’21 EBITDA mix +70 bps vs JQ’21 Crude Oil Freight 25 Sensitivity: Restricted_UPSI
Slide 27: SQ'21: Segmental performance
SQ’21 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 31% 40% 29% INR 3,838 cr. INR 5,000 cr. INR 3,622 cr. Segmental Revenue Growth* 16% 10% 7% Segmental Margins** 19% 28% 18% *Segment Revenue Growth = Segment Turnover growth + Other Operating Income ** Segment Sensitiv
Slide 28: SQ'21: Results summary
SQ’21 : Results summary Rs. Crores Particulars SQ’21 SQ’20 Growth Sales 12,516 11,276 11% EBITDA 3,132 2,869 9% EBITDA Margin 25.0% 25.4% -40 bps Other Income (Net) 87 122 Exceptional Items – Credit / (Charge) - (81) PBT 2,954 2,661 11% Tax 767 652 PAT bei 2,187 2,035 7% Net Profit 2,187 2,009 9% 27
Slide 29: H1'22: Strong performance in a challenging environment
H1’22 : Strong performance in a challenging environment Sales EBITDA PAT (bei) Net Profit INR 24,246 cr. INR 5,979 cr. INR 4,149 cr. INR 4,248 cr. Reported Turnover Growth Margin Growth % Growth % 12% 25% 6% 9% Domestic Consumer Growth 11% Domestic consumer growth excludes the impact of acquisition
Slide 30: Interim Dividend
Interim Dividend Particulars FY 2021-22 FY 2020-21 Dividend per share (Rs.) 15.0 14.0 No. of shares (Crores) 235 235 Total Dividend (Rs. Crores) 3,524 3,289 29 Sensitivity: Restricted_UPSI
Slide 31: Looking ahead
Looking ahead We remain cautiously optimistic in the near term ❑ Next few months critical to get better understanding of underlying demand ▪ Normalisation of economic activities ▪ Onset and intensity of winter ▪ Impact of inflation ❑ Commodities remain volatile and elevated ▪ Gross margin likely to
Slide 32: For more information and updates
For more information and updates Visit our IR website Click to visit our D2C platforms Lakme U Shop Indulekha Simple Love Beauty & Planet Dermalogica 31 Sensitivity: Restricted_UPSI
Hindustan Unilever — Q2 FY2021-22 Earnings Presentation on 6ix