Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 2005 Earnings Presentation
13 slides from Hindustan Unilever's earnings presentation, Jul 30, 2005
Slide 1: Analysts & Press Meet, 30th July 2005
Analysts & Press Meet 30th July 2005 30th July, 2005 JQ 2005 Highlights Double digit topline growth 10.3 6.9 0.7 JQ’04 SQ’04 DQ’04 MQ’05 JQ’05 -1.9 -1.2 Volume growth at 7% 30th July, 2005 1
Slide 2: JQ 2005 Highlights: Broadbased growth
JQ 2005 Highlights Broadbased growth Segment Growth% Soaps & Detergents 9.3 % Personal Products 17.4 % Beverages 15.8 % Ice Creams 7.2 % Processed Foods (4.8) % 30th July, 2005 FMCG market context FMCG (HLL Categories) Market Growth% 6.1 5.8 4.0 2.0 0.8 '02 '03 Q1'04 Q2'04 Q3'04 Q4'04 Q1'05 Q2’05 -1
Slide 3: Growth ahead of market
JQ 2005 Highlights Growth ahead of market FMCG (HLL Categories) Market Growth% 11.9 HLL (FMCG) Growth% 7.1 6.1 5.8 4.0 2.0 0.8 1.0 -0.3 JQ'04 SQ'04 DQ'04 MQ'05 JQ'05 -2.3 30th July, 2005 JQ 2005 Growth in all key HPC categories Value Growth% Shampoos Laundry Personal Wash Toothpaste Skin Total HPC g
Slide 4: HPC Category performance - Shampoo and Fabric Wash
HPC Category performance - Shampoo Volume Shares 49.8 Value Shares 52.8 53.3 48.2 51.7 48.9 47.5 49.4 51.6 51.6 51.7 47.1 47.0 46.8 JQ'04 SQ'04 DQ'04 MQ'05 Apr'05 May'05Jun'05 JQ'04 SQ'04 DQ'04 MQ'05 Apr'05May'05Jun'05 • Strong volume & value growth (>20%); reflecting in share gains • New variants (
Slide 5: HPC Category performance - Personal Wash and Toothpaste
HPC Category performance - Personal Wash • Overall growth modest • Lifebuoy continues to do well with highest ever market share (18.8%); Lifebuoy “Clear Skin” launched • Lux declines; re-launched in April JQ'04 Personal Wash SQ ' 04 DQ ' 04 MQ'05 JQ'05 57.2 Value Shares 56.5 56.2 56.0 54.9 30th July
Slide 6: HPC Skin; Foods Topline Highlights
HPC Category performance - Skin • Strong double digit growth • Backed by strong growths in all brands - FAL, Ponds, Vaseline and Lakme • Fair & Lovely core successfully relaunched with superior formulation & packaging JQ'04 Skin SQ ' 04 DQ ' 04 MQ'05 JQ'05 60.0 Value Share 60.0 60.2 60.0 59.4 30th J
Slide 7: Foods Category performance - Beverages and Ice creams
Foods Category performance - Beverages • Tea: Strong double digit sales growth in both Brookebond and Lipton • 6th consecutive quarter of growth for Brookebond • New Taaza variant launched for market expansion JQ'04 Value Shares SQ'04 DQ'04 MQ'05 JQ'05 26.2 Brooke Bond 26.6 27.7 28.0 27.9 • Coffee :
Slide 8: Processed foods and Exports
Foods Category performance - Processed foods • Knorr grows strongly driven by soups • Kissan flat - Strong growth in Squashes offset by decline in Ketchups & Jams • Annapurna - Strong growth in Salt; Atta declines JQ ' 04 Value Shares SQ ' 04 DQ ' 04 MQ ' 05 JQ'05 78.7 Jams 79.5 78.4 76.8 74.8 27.8
Slide 9: New Ventures; Initiatives in channel & customer management
New Ventures • Water - Chennai on plan, being extended in TN • Shakti - Now extended to 336 districts in 12 states; 60,000+ villages; Touching 70 mn rural people • HL Network - Steady progress; Focus on consultant recruitment & training 30th July, 2005 Initiatives in channel & customer management ·
Slide 10: A&P High brand building investments continue
A&P High brand building investments continue Rs Crores 12% 287 30% 257 198 JQ'03 JQ'04 JQ'05 45% increase over two years 30th July, 2005 JQ 2005 Results Highlights · Marginal growth in EBIT due to high brand investments and cost escalations partly neutralized through judicious price increases and co
Slide 11: Financial Income; HLL Results MQ vs JQ 2005
Financial Income Rs Crores JQ05 JQ04 Financial Income 48.2 29.4 Increase due to one-time capital gains 30th July, 2005 HLL Results MQ Vs JQ 2005 MQ'05 JQ'05 Rs Cr Growth% Growth% 6.5% Sales (Reported) 2836 10.3% -26.8% Operating EBIT 345 4.2% 10.5% Op.EBIT Margin 12.2% -23.7% PBT 388 17.9% -14.6% PA
Slide 12: Dividends; In Summary
Dividends • Board recommends an interim dividend of Rs 2.5 per share Dividend per share of Re 1 2005 2004 Interim 2.500 2.500 Distribution Tax 0.351 0.326 30th July, 2005 JQ 2005 In Summary · Broad based sales growth, now ahead of market · Good progress on key competitive battles - laundry and hair
Slide 13: Thank You
JQ 2005 In Summary · EBIT margin adversely affected by structural issues - competitive context, and cost inflation partly neutralised through judicious pricing & cost management · Rising input costs driven by crude oil price increases, continue to be a challenge We will continue to strengthen the lo