Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q4 2008 Earnings Presentation
21 slides from Hindustan Unilever's earnings presentation, Jan 25, 2009
Slide 1: Results – DQ '08
Results – DQ ’08 25th January 2009
Slide 2: Results Summary - DQ'08
Results Summary - DQ'08 • Net sales grows 16.8% • FMCG business grows by 21.2%, • HPC +20.8%, Foods +23.5% • Underlying volume growth of 2.3%; strong volume growth in Personal Products and Foods, offset by slowdown in Soaps & Detergents • A&P spends was marginally lower than last year by -1.3% • PBI
Slide 3: FMCG Sales Trend
FMCG Sales Trend 21.6 21.2 19.4 18.8 18.0 DQ'07 MQ'08 JQ'08 SQ'08 DQ'08 Underlying Volume Growth in DQ'08 2.3% DQ'08 Results - 25th Jan‘09
Slide 4: Sales Performance
Sales Performance 22.5 23.5 20.4 19.8 20.8 18.4 17.5 16.6 15.1 14.1 DQ'07 MQ'08 JQ'08 SQ'08 DQ'08 HPC Foods Growth in both HPC and Foods driven by price increases and volume growth in Personal Products and Foods. DQ'08 Results - 25th Jan‘09
Slide 5: Category Wise Sales growth
Category Wise Sales growth Growth % DQ'08 Soaps & Detergents 24.9 Personal Products 11.3 Beverages 23.9 Processed Foods 18.0 Ice Cream 15.9 FMCG 21.2 ^ ^ Excludes Other Operational Income DQ'08 Results - 25th Jan‘09
Slide 6: HPC Topline
HPC Topline Personal Wash Laundry Shampoo Skin Toothpaste HPC Growth 20.8% DQ'08 Results - 25th Jan‘09
Slide 7: HPC – Soaps and Detergents
HPC – Soaps and Detergents • Growth in Laundry driven by pricing – All brands grow well – Good Volume Growth in Rin Bars – Rin Matic and Wheel Active Gold continue to do well – Material cost inflation starts receding – Market share better than DQ’07 and sequentially • Top line growth in Soaps driven
Slide 8: HPC – Personal Products
HPC – Personal Products • Shampoo category performs well, with robust volumes – Sunsilk leads category growth – Clinic Plus and Dove continue to do well – Good growth observed in sachet volumes – Category shares marginally lower • Skin Category growth driven by FAL – Category growth impacted by late
Slide 9: Foods Topline
Foods Topline Tea Coffee Culinary Salt/Atta Ice Cream Foods growth 23.5% DQ'08 Results - 25th Jan‘09
Slide 10: Foods Performance
Foods Performance • Tea registers strong growth across brands driven by both price and volume • Instant Coffee registers good growth • Processed Foods growth driven by Knorr Soups and Kissan Jams • Ice cream performs well, with strong volume growth DQ'08 Results - 25th Jan‘09
Slide 11: Market Share Performance
Market Share Performance DQ’07 SQ ’08 DQ’08 Laundry 37.3 37.9 38.2 Personal Wash 54.3 50.3 49.6 Hair 47.8 46.2 46.0 Skin Care (12 54.5 52.7 51.7 month MAT) Oral 29.5 29.6 29.1 Tea 22.7 23.3 22.7 Coffee 44.0 47.1 43.1 Market shares - Source: A. C. Nielsen DQ'08 Results - 25th Jan‘09
Slide 12: Water Update
Water Update • Pure-it continues to grow strongly • More than 400 pure-it zones rolled out DQ'08 Results - 25th Jan‘09
Slide 13: Exports
Exports FMCG Specialty (Non-FMCG) Exports decline 22.9% from non core and commodity segments. Value added exports grow well. DQ'08 Results - 25th Jan‘09
Slide 14: Financial performance DQ'08
Financial performance DQ’08
Slide 15: Results – DQ'08
Results –DQ’08 Rs Crores DQ'08 DQ'07 Growth% Net Sales 4308 3687 16.8 EBITDA 764 665 14.9 PBIT 723 628 15.1 PBIT margin (percentage) 16.8 17.0 - Exceptional Items-loss/(gain) 30.3 (112.9) - PBT * 722 783 (7.8) Net Profit ** 616 631 (2.5) PAT from ordinary activities before exceptional items grows by
Slide 16: Investment behind Brands
Investment behind Brands A&P as a % of Net Sales % 11.4 10.2 10.4 10.0 8.6 DQ '07 MQ '08 JQ '08 SQ '08 DQ '08 Brand investments remain competitive. A&P spends marginally lower than DQ’07. DQ'08 Results - 25th Jan‘09
Slide 17: Results: PBIT Margin Trends
Results: PBIT Margin Trends % 17.0 16.8 14.2 12.9 11.8 DQ '07 MQ '08 JQ '08 SQ '08 DQ '08 PBIT margins only 20 bps lower in a difficult economic environment. Price increase and cost savings help offset most of cost inflation. DQ'08 Results - 25th Jan‘09
Slide 18: Key Innovations/Activations – DQ'08
Key Innovations/Activations – DQ’08 Deodorants Fabric Wash Dove Surf Excel - Relaunch Ice Creams Coffee Italian Gelato Bru Aroma Lock DQ'08 Results - 25th Jan‘09
Slide 19: Thank you
Thank you For more information, please visit http://www.hul.co.in DQ'08 Results - 25th Jan‘09
Slide 20: 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 21: Results – DQ '08
Results – DQ ’08 25th January 2009