Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2023 Earnings Presentation
24 slides from Hindustan Unilever's earnings presentation, Jul 19, 2022
Slide 1: Cover letter to stock exchanges
19th July, 2022 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, Dalal S
Slide 2: Hindustan Unilever Limited JQ'22 Results
Hindustan Unilever Limited JQ’22 Results : 19th July 2022 Sensitivity: Public
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, CEO and Managing Director
Sanjiv Mehta Chief Executive Officer and Managing Director Sensitivity: Public
Slide 5: JQ'22: Strong start to the year
JQ’22 : Strong start to the year Turnover Growth YoY Underlying Volume Growth 19% 6% Market Share EBITDA Margin Earnings Per Share >75% 23.2% 11% Business winning shares Healthy EBITDA margin despite YoY Growth unprecedented inflation As per May'22 Business winning report based on Nielsen market dat
Slide 6: Inflationary pressure continues
Inflationary pressure continues Key Commodities Currency (USD/INR) 78 100% 76 50% 74 0% 72 70 -50% JQ-21 SQ-21 DQ-21 MQ-22 JQ-22 Brent Caustic Palm Fatty Palm Polyethylene Tea Barley Crude Soda Acid Distillate Kernel Oil 10 Year Median 10 Year Max and Min vs Median Avg JQ’22 Market Price Sensitivity
Slide 7: FMCG market growths
FMCG market growths YoY market growth price led, volumes continue to decline Market volumes flat vs 2019, value growth similar to MQ’22 YoY Market Growth (Urban+Rural) 3Y Market CAGR (Urban+Rural) 10% Value Volume Value Volume 5% JQ’22 MQ’22 JQ’22 MQ’22 0% MQ’22 JQ’22 MQ’22 JQ’22 -5% -10% 10% YoY Ma
Slide 8: Clear and compelling strategy
Clear and compelling strategy Navigating the short term challenges with agility Growing our Protecting our consumer business model franchise While also progressing well on our long term strategic choices Win with our Build Build brands as a force Lead in the Developing our differentiated purpose-led
Slide 9: ESG: HUL Compass Commitments
ESG : HUL Compass Commitments Improve the Improve people’s health, Contribute to a fairer, health of the planet confidence and wellbeing more socially inclusive world Climate Protect and Waste-free Positive Health and Equity, diversity Raise living Future action regenerate nature world nutrition wel
Slide 10: Ritesh Tiwari, Chief Financial Officer
Ritesh Tiwari Chief Financial Officer Sensitivity: Public
Slide 11: JQ'22: Strong start to the year
JQ’22 : Strong start to the year Turnover Growth EBITDA PAT (bei)* Net Profit Growth Margin INR INR 19% 23.2% 2,289 cr. 2,289 cr. 6% -110 bps 17% 11% Underlying Volume Growth Change YoY Growth YoY EPS Growth YoY PAT (bei) : Profit After Tax before exceptional items 10 Sensitivity: Public
Slide 12: Protecting business model through dynamic financial management
Protecting business model through dynamic financial management ▪ Investing in our brands : SOV>SOM ▪ Focus on product superiority ▪ Optimising non-consumer facing costs ▪ Savings across all cost lines of P&L ▪ Growth leverage ▪ Calibrated pricing actions 11 Sensitivity: Public 11
Slide 13: JQ'22: Segmental performance
JQ’22 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 32% 38% 28% INR 4,931 cr. INR 5,364 cr. INR 3,627 cr. Segmental Revenue Growth 30% 17% 9% Segmental Margins 18% 26% 16% Segment Revenue Growth = Segment Turnover growth + Other Operating Income, Segment Margins (EBIT)
Slide 14: JQ'22: Innovations
JQ’22 : Innovations Sensitivity: Public 13
Slide 15: JQ'22: Activations and communications
JQ’22 : Activations and communications Sensitivity: Public
Slide 16: Home Care: Stellar performance continues
Home Care : Stellar performance continues ❑ Fabric Wash: High double-digit growth driven by robust performance across the portfolio; volumes grew high single-digit ▪ Liquids and Fabric conditioner continue to outperform led by market development actions ❑ Household Care: Grew in high double-digit wi
Slide 17: BPC: High teens growth, ahead of the market
BPC : High teens growth, ahead of the market ❑ Skin Cleansing: Soaps delivered price-led double-digit growth. Beauty and premium soaps had another strong quarter ❑ Hair Care: High double-digit growth led by premium portfolio; continue to strengthen market leadership ❑ Skin Care: Premium portfolio pe
Slide 18: F&R: High single digit growth led by Ice Cream and Foods
F&R : High single digit growth led by Ice Cream and Foods ❑ Beverages: Tea delivered steady performance on a high base and cemented its market leadership. Coffee performed well and grew in double-digit ❑ Health Food Drinks: Market share and penetration gains continue on the back of focused market de
Slide 19: JQ'22: Results summary
JQ’22 : Results summary Rs. Crores Particulars JQ’22 JQ’21 Growth Sales 14,016 11,730 19% EBITDA 3,247 2,847 14% EBITDA Margin 23.2% 24.3% -110 bps Other Income (Net) 111 56 Exceptional Items – Credit / (Charge) -12 -26 PBT 3,086 2,633 17% Tax* 797 572 PAT bei 2,289 1,962 17% Net Profit 2,289 2,061
Slide 20: Outlook
Outlook Sensitivity: Public
Slide 21: Commodities up sequentially, higher cost impact to P&L in SQ
Commodities up sequentially, higher cost impact to P&L in SQ Commodities market remain elevated Sequentially more inflation in SQ’22 90 YoY Crude Oil COGS % TO 50.3% 49.2% 48.6% 51.5% 53.6% 60% (Brent USD/bbl) 30 JQ-21 SQ-21 DQ-21 MQ-22 JQ-22 20% 650 16% 450 YoY Caustic Soda 125% (USD/MT) 250 11% JQ
Slide 22: Outlook
Outlook ❑ Operating environment ▪ Growth to be price-led in the near-term; Inflation to continue impacting consumption ▪ With most commodities remaining elevated and consumption of higher cost pipeline inventory, SQ P&L will see more inflation than JQ and margins will remain under pressure ▪ Softeni
Slide 23: In Summary
In Summary 1. Strong start to the year: Topline growth 19%, EPS growth 11% 2. Business winning shares >75% 3. Healthy EBITDA margin at 23.2%, despite significant inflation 4. In the near term, growth to be price-led 5. SQ margins to remain under pressure; sequential improvement from DQ onwards 6. Fo
Slide 24: For more information and updates
For more information and updates Click to visit IR Website HUL Performance Highlights HUL ESG Microsite Sensitivity: Public