Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — FY2013-14 Earnings Presentation
37 slides from Hindustan Unilever's earnings presentation, Apr 28, 2014
Slide 1: MQ’14 & FY 2013-14 Results Presentation – April 28, 2014
MQ’14 & FY 2013-14 Results Presentation – April 28, 2014 1
Slide 2: 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 3: Agenda
Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 Financial Year Performance 5 Looking Ahead 3
Slide 4: Clear and Compelling Strategy
Clear and Compelling Strategy Strategic framework Sustainable Living Plan Goals Consistent Growth Competitive Growth Profitable Growth Responsible Growth 4
Slide 5: Business environment remains challenging
MQ 2014 – Context Business environment remains challenging Slowdown in market growth (volume & value) across categories continues • Premium segments & discretionary categories under pressure • Step up in growth of small / price point packs Input costs firm; sharp rise in PFAD Competitive inten
Slide 6: Sharp rise in PFAD
Firm Input costs Sharp rise in PFAD Source: Bloomberg data and internal estimates 6 INR numbers arrived at by applying the average exchange rate of the quarter to the average USD cost of the commodity
Slide 7: Competitive and profitable growth sustained
MQ 2014 Competitive and profitable growth sustained Domestic Consumer business grows by 9%, ahead of market • 3% underlying volume growth Operating Margin (PBIT) expands to 14.6%; up 30 bps • PBIT at Rs. 1012 crores grows by 11% • A&P up Rs. 19 crores (2%); -80 bps at 12.1% of sales; competitive
Slide 8: Healthy volume growth in a slowing market
Healthy volume growth in a slowing market 8 * Intrinsic UVG higher after adjusting for impact of transport strike related up-stocking at end March 2013
Slide 9: Continued focus on innovations
Winning with Brands Continued focus on innovations 9
Slide 10: Impactful activation in quarter
Winning with Brands Impactful activation in quarter 10
Slide 11: Broad based growth
Broad based growth Sales growth % Soaps & Detergents 9 Personal Products 8 Beverages 8 Packaged Foods 13 Domestic Consumer grows at 9% Sales growth = Segment Turnover growth excluding Other Operational Income 11
Slide 12: Category Highlights
CATEGORY HIGHLIGHTS
Slide 13: Skin Cleansing: Double digit growth
Skin Cleansing Double digit growth Dove, Pears, Lifebuoy and Breeze lead category growth Step up in price growth; judicious pricing and cost savings to manage inflation Liquids delivers a strong quarter led by Lifebuoy handwash 13
Slide 14: Home Care: Growth led by the premium segment
Home Care Growth led by the premium segment Laundry • Strong growth in Surf buoyed by momentum on Easy Wash • Rin performance led by bars; powders re-launched during quarter • Wheel growth steps up on back of re-launch last quarter • Comfort Fabric Conditioners sustain high growth Household Care
Slide 15: Skin Care: Good growth in a challenging market
Skin Care Good growth in a challenging market Fair and Lovely re-launch yielding positive results • Focused activation plan • Rs. 5 pack extended Ponds led by top-end; Lakme & Dove sustain robust growth • Exciting introduction of Lakme 9 to 5 Super Sunscreens Innovation led broad based growth
Slide 16: Hair Care: Volume led double digit growth
Hair Care Volume led double digit growth Shampoos deliver another strong performance • Dove leads category growth; Clinic Plus continues to do well • TRESemmé making good progress; new Split Remedy variant added • Sachet format grows faster Conditioners gaining ground; focus on market developmen
Slide 17: Oral Care: Significant investments to sustain competitiveness
Oral Care Significant investments to sustain competitiveness Close up driven by exciting Valentine Day activation • Small packs drive growth Pepsodent impacted by high promotional intensity in the market • Actions underway to step up 17
Slide 18: Color Cosmetics: Strong innovation led growth momentum
Color Cosmetics Strong innovation led growth momentum Lakme continues to strengthen its position in Premium make-up • Absolute & 9 to 5 deliver volume led double digit growth • ‘eyeconic’ doing very well • Impactful activation around Lakme Fashion Week • Exciting additions to the Nail & Eye make-u
Slide 19: Beverages: Sustained double digit growth in Tea
Beverages Sustained double digit growth in Tea Tea growth led by stepped up volumes • Taj Mahal, Red Label & 3 Roses deliver double digit growth • Driven by strengthened mix & sharper in-market activation • Focus on market development for tea bags continues • Flavored & Green Tea bags sales more t
Slide 20: Packaged Foods: Double digit growth
Packaged Foods Double digit growth Kissan - robust performance driven by impactful activation around ‘ unlocking everyday relevance’ • Growth accelerates on Jams & Ketchups Knorr Instant Soups more than double volumes • ‘Experience model’ rolled out in Modern Trade to drive trials Kwality Wall
Slide 21: Pureit: Strengthening leadership in a challenging environment
Pureit Strengthening leadership in a challenging environment Premium innovations continue to perform well • Pureit Ultima (RO + UV) launched during the quarter Good response to ‘exchange old for new’ offer Pureit Perfect Stores lead market development through stepped up in-store execution 21 U
Slide 22: Results summary
MQ 2014 Results summary Rs Crores Particulars MQ'13 MQ'14 Growth % Net Sales 6,367 6,936 9 PBITDA 972 1,078 11 PBIT 910 1,012 11 PBIT margin (%) 14.3 14.6 30 bps PAT bei 781 832 7 Net Profit 787 872 11 Domestic Consumer grows at 9% 22
Slide 23: PBIT to Net Profit
MQ 2014 PBIT to Net Profit Rs Crores Particulars MQ’13 MQ’14 Growth % PBIT 910 1012 11 Add : Other Income 106 151 Less : Finance Costs 6 5 Exceptional Items – Credit / (Charge) 9 66 PBT 1020 1223 20 Less : Tax (232) (351) Net Profit 787 872 11 • Other income includes interest, dividends & net gain o
Slide 24: Results summary
MQ 2014 Results summary Competitive and profitable growth sustained • 9% Domestic Consumer growth, ahead of market o 3% underlying volume growth (on back of transport strike up-stocking in base) • PBIT margin expands +30 bps 24
Slide 25: Financial Year ending 31st March 2014
FINANCIAL YEAR ENDING 31ST MARCH 2014
Slide 26: FY 2013-14: Delivered on goals
FY 2013-14: Delivered on goals 26
Slide 27: Making progress on our Sustainability priorities
Whilst making progress on our Sustainability priorities HUL INDIA UPDATE: 6th MAY 2014
Slide 28: Segment Overview: Soaps and Detergents
Segment Overview FY 2013-14: Soaps and Detergents Healthy performance in a competitive market Soaps : healthy volume led growth; driven by Dove, Lifebuoy and Breeze Laundry : Surf continues to lead category premiumization; Wheel relaunched Household Care : Vim and Domex drive robust growth; Vi
Slide 29: Segment Overview: Personal Products
Segment Overview FY 2013-14: Personal Products Growth in a challenging environment Skin : Hand & Body and facial cleansing do well; FAL re-launched with ‘Best Ever formula’ Hair : robust broad based growth; TRESemme nears 100 crores in first full year post launch Oral : significant investments
Slide 30: Segment Overview: Beverages
Segment Overview FY 2013-14: Beverages Stepped up performance on Tea Tea : strong growth with healthy volumes; all key brands grow in double digits Coffee : Bru continues to lead category premiumization through Bru Gold Value growth comes off in latter half with benign commodity costs Segmen
Slide 31: Segment Overview: Packaged Foods
Segment Overview FY 2013-14: Packaged Foods Broad based growth Kissan : Ketchups and Jams growth accelerates on the back of impactful activation Knorr : pickup in performance with Instant Soups doing particularly well Kwality Walls : impacted by a challenging environment; growth picks up in la
Slide 32: Results summary
Financial Year ending 31st March 2014 Results summary • Domestic Consumer grows at 9%; 4% UVG • Net profit growth impacted by significant property sale in base period 32
Slide 33: Cash flow summary
Financial Year ending 31st March 2014 Cash flow summary Rs Crores Particulars FY'13 FY'14 Operating profit before working capital changes 4,073 4,529 Net working capital movement 473 479 Taxes paid (net of refunds) -1,005 -1,279 Net cash generated from operating activities - [A] 3,530 3,724 Purchase
Slide 34: Dividend
Financial Year ending 31st March 2014 Dividend 34 *Final dividend number for FY 2013-14 is subject to approval by the shareholders at the AGM
Slide 35: Summary
Financial Year ending 31st March 2014 Summary Another year of competitive and profitable growth • 9%* growth with UVG of 4% in a challenging environment • Investing for growth; A&P up Rs 382 crores (+40bps) • PBIT up 12%; margins expand +40 bps Cash from operations > 5000 crores Total dividend
Slide 36: Looking ahead
Looking ahead Strategy unchanged; continue to manage business for long term growth • Consistent, Competitive, Profitable, Responsible Growth Invest to strengthen the core and lead development of emerging categories Near term concerns • Uncertain macro environment • Volatility Positive on the
Slide 37: For more information & updates
For more information & updates VISIT OUR WEBSITE HUL INVESTOR APP 37