Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 FY2015-16 Earnings Presentation
29 slides from Hindustan Unilever's earnings presentation, Jan 15, 2016
Slide 1: DQ 2015 Results Presentation
DQ 2015 Results Presentation January 15, 2016 1
Slide 2: Safe Harbor Statement
Safe Harbor 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 e
Slide 3: Agenda
Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 Nine Months Results 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: DQ 2015 – Context: Business environment challenging
DQ 2015 – Context Business environment challenging Market growth moderates on Rural slow down Growth continues to be led by volumes Commodity costs soften further Competitive activity remains high 5
Slide 6: Commodity costs soften further
Commodity costs soften further PFAD Exchange Rate Brent Crude 41.6 66.2 65.9 4.7 38.3 63.8 62.0 4.0 31.9 3.3 $652 2.9 $618 28.5 $76 $62 $482 $50 $432 $44 DQ'14 JQ'15 SQ'15 DQ'15 DQ'14 JQ'15 SQ'15 DQ'15 DQ'14 JQ'15 SQ'15 DQ'15 $/ Ton INR/ Kgs INR / USD $/ Barrel INR(000)/ Barrel Source: Bloomberg dat
Slide 7: DQ 2015 Profitable volume-led growth sustained
DQ 2015 Profitable volume-led growth sustained Reported Domestic Consumer growth at 3%, underlying volume growth at 6% • Impact of phase out of Excise Duty benefits on topline -80 bps • Impact of up-stocking in view of transport strike at end of previous quarter ~50 bps • Continued negative price
Slide 8: Performance led by healthy volumes across segments
Performance led by healthy volumes across segments Reported Growth before impact of Sales phase out of Excise Duty Segments Growth (%) benefits (%) Soaps and Detergents 1 2 Personal Products 5 7 Beverages 7 7 Packaged Foods 12 12 Domestic Consumer 3 4 • Soaps and Detergents: Robust volume growth, of
Slide 9: Category Highlights
CATEGORY HIGHLIGHTS
Slide 10: Winning with Brands: Continued focus on innovations
Winning with Brands Continued focus on innovations 10
Slide 11: Winning with Brands: Impactful activation
Winning with Brands Impactful 360 activation Lifebuoy Haath Muh aur Bum Lakme Help a child reach 5 Bimaari Hogi Kam Bang Baaja Baraat Pond’s Cornetto Bru Dilwale Tie up Durga Puja activity Meet and Greet Activity 11
Slide 12: Winning with Brands: Building a Naturals portfolio
Winning with Brands Building a Naturals portfolio 12
Slide 13: Skin Cleansing: Volume led performance
Skin Cleansing Volume led performance Dove, Pears and Lifebuoy deliver strong volume growth Liquids clock another quarter of double digit growth Continued price deflation due to benign commodity costs Phase out of Excise Duty benefit impacts growth 13
Slide 14: Home Care: Double digit volume growth
Home Care Double digit volume growth Laundry • Surf sustains its strong broad based double digit growth momentum • Rin delivers double digit volume growth led by bars portfolio • Wheel steps up on powders re-launch • Comfort registers another robust quarter on sustained market development Househ
Slide 15: Skin Care: Healthy underlying performance
Skin Care Healthy underlying performance Growth impacted by delayed winter and one-time realignment of channel spends FAL continues to do well; good response on BB Cream Pond’s driven by premium skin lightening Lakme led by premium innovations; strong delivery on CC Cream 15 FAL = Fair and L
Slide 16: Hair Care: Continued strong momentum
Hair Care Continued strong momentum Volume led double digit growth* Dove leads category performance TRESemmé gains further ground Conditioners grow well on focused market development 16 *Before impact of phase out of Excise Duty benefits
Slide 17: Oral Care: Subdued performance in quarter
Oral Care Subdued performance in quarter Close Up growth continues to be led by impactful activation Pepsodent performance muted; Clove & Salt doing well Actions underway to revive growth and competitiveness 17
Slide 18: Color Cosmetics: Strong innovation led growth momentum
Color Cosmetics Strong innovation led growth momentum Lakme delivers another quarter of double digit growth • Broad based growth across Core, Absolute and 9 to 5 ranges • Absolute Sculpt & 9 to 5 ranges perform strongly whilst driving trends • Exciting launch of the Lakme 9 to 5 Weightless Mousse
Slide 19: Beverages: Steady performance
Beverages Steady performance Tea delivers broad based volume led growth driven by impactful activation and market development • Red Label led the category performance • Taj Mahal continues to build its premium credentials • Strong double digit growth in Lipton Green Tea and Natural Care portfolio
Slide 20: Packaged Foods: Ninth successive quarter of double digit growth
Packaged Foods Ninth successive quarter of double digit growth Focus on market development continues Double digit growth in Kissan, Knorr and Kwality Walls • Kissan maintains its strong growth momentum across Ketchups and Jams • Knorr growth led by Instant Soups; 2 new non-veg variants added o N
Slide 21: Pureit: Subdued performance in a rapidly changing market
Pureit Subdued performance in a rapidly changing market Portfolio strategy being refreshed to play in the wider market • Entry level RO launched in market Focus remains on building relevance and accessibility E-commerce channel continues to grow rapidly 21
Slide 22: DQ 2015 Results: Growth & Margin
DQ 2015 Results: Growth & Margin Rs Crores Particulars DQ'14 DQ'15 Growth % Net Sales* 7,579 7,823 3 PBIT 1,258 1,349 7 PBIT margin (%) 16.6 17.2 60 bps • Reported Domestic Consumer growth at 3%; underlying volume growth at 6% • Impact of up-stocking in view of transport strike at end of last quarte
Slide 23: DQ 2015 Results: PBIT to Net Profit
DQ 2015 Results: PBIT to Net Profit Rs Crores Particulars DQ’14 DQ’15 Growth % PBIT 1258 1349 7 Add : Other Income 120 140 16 Less : Finance Costs 4 0 Exceptional Items – Credit / (Charge) 397 -80 PBT 1771 1409 -20 Less : Tax (519) (437) Net Profit 1252 971 -22 • Other income includes - o Interest,
Slide 24: DQ 2015 Summary
DQ 2015 Summary Profitable volume-led growth sustained • Reported Domestic Consumer growth at 3%, underlying volume growth at 6% o Impacted by Excise Duty benefits phase out, last quarter transport strike upstock • PBIT margin expands + 60 bps o Impacted by phase out of Excise Duty benefits o Lower
Slide 25: Nine Months Ending 31st December 2015
NINE MONTHS ENDING 31ST DECEMBER 2015
Slide 26: Nine Months ending Dec 2015 Results summary
Nine Months ending 31 Dec 2015 Results summary Rs Crores Particulars YTD DQ‘14 YTD DQ‘15 Growth % Net Sales 22,616 23,616 4 PBIT 3,674 4,030 10 PBIT margin (%) 16.3 17.1 80 bps Exceptional Items – Credit / (Charge) 485 -82 PAT bei 2,932 3047 4 Net Profit 3,297 2993 -9 • Domestic Consumer grows at 5%
Slide 27: Near term outlook
Near term outlook • Market growth to remain largely volume driven; Rural growth relatively soft • Phasing out of fiscal benefits to impact another quarter • Channel interventions to be completed during the next quarter • Continued focus on driving volume led growth with improvement in operating marg
Slide 28: Scheme of Arrangement
Scheme of Arrangement BACKGROUND • Build up of significant reserves through the transfer of profits to the General Reserves • Funds represented by such accumulated General Reserves is in excess of needs SCOPE • HUL has proposed a Scheme of Arrangement between the Company and its shareholders • Propo
Slide 29: For more information & updates
For more information & updates VISIT OUR WEBSITE HUL INVESTOR APP 29
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