Unilever Pakistan Foods Limited · PSX:UPFL
Unilever Pakistan Foods — Investor Presentation (November 2023)
30 slides from Unilever Pakistan Foods's investor presentation, Nov 21, 2023
Slide 1: Unilever Pakistan Foods Ltd Corporate Briefing 2023
Unilever Pakistan Foods Ltd Corporate Briefing 2023 21/11/2023
Slide 2: Company Profile
Company Profile Footprint across Multi Category Play Brands Across the Pakistan Pyramid Savoury 1 Owned & 2 Toll Dressings Manufacturing Sites Desserts 9 Distribution Centers Cooking Oil 200K+ outlets B2B Drinks
Slide 3: Board Members
Board Members Mr. Sarfaraz Ahmed Mr. Amir R. Paracha Mr. Aly Yusuf Ms. Asima Haq Rehman Independent Director & Executive Director & Chief Executive Director & Chief Executive Director Chairman of the Board Executive Officer Financial Officer Mr. Muhammad Adil Mr. Zulfiqar Monnoo Mr. Kamal Monnoo Mr.
Slide 4: Our Vision and Purpose
Our Vision and Purpose “Our vision is to grow our business, while decoupling our environmental footprint from our growth and increasing our positive social impact“
Slide 5: A Decade of Sustainable and Profitable Growth
A Decade of Sustainable and Profitable Growth TO EPS Rs. 28.3Bn (2022) vs Rs. 5.9Bn (2012) Rs. 1,248 (2022) vs Rs. 118 (2012) * Period from 2012 to 2022
Slide 6: Economic Context
Economic Context
Slide 7: Challenging macro-economic environment
Challenging macro-economic environment 45% PKR devaluation vs USD in CPI hitting all time high 2x cost of capital vs 2022 15 months 38.0% 23.42% 298 22.3% 280 281 31.4% 27.6% 234 26.9% 205 11.81% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Oct'23 Oct Apr Jul June'22 May Jun Sep Jan Feb Mar Aug Apr Jun
Slide 8: Volatility expected to continue due to structural issues
Volatility expected to continue due to structural issues High FX Liquidity risks Escalating reliance on Domestic debt Elevated External funding needs 1.7 Markup % of Revenue Bilateral & Other rollovers Bonds $27.7b 8.1 118% CAD 13.8 100% Funding needs Multilateral IMF 3.1 1 $8bn 50% 2010 2019 2023 F
Slide 9: Strategy in Action
STRATEGY IN ACTION
Slide 10: Our Strategy
Our Strategy Strengthen the Core Build Broad Based Growth Value proposition and Premiumization through Extending portfolio beyond Mini-Meals extension into young adults (Headroom of Euro 300Mn) Enabled by our 5 Fundamentals of Growth Purposeful Improved Impactful Design 4 Fuel for Brands Penetration
Slide 11: Strengthen the Core: Via Net Revenue Management
Strengthen the Core: Via Net Revenue Management Extending value-pack offering Capturing Rs.30 Price Point Deep discounts on value-packs
Slide 12: Strengthen the Core: Via Innovation
Strengthen the Core: Via Innovation Extending noodles portfolio into young adults through Blazin’
Slide 13: Build Broad Based Growth
Build Broad Based Growth Via innovations and interventions Impactful Innovation Product Superiority Entered Seasonings market Classic Mayonnaise with Bringing Superior & Iron Introduced Chicken Powder better Product, Price & Fortified Mix sachet Proposition
Slide 14: B2B model continuing its growth momentum
B2B model continuing its growth momentum CAGR of 50% in last 3 years Accelerating Profitable Savory Delivering Best-in-Class Content Being a Force for Good for the (Knorr Professional) Category to Own the Chefs Platform restaurant community Partnering with Robinhood for Engaging Digital Content & Cu
Slide 15: Improving penetration
Improving penetration Amping up media spends and consumer trials Increased Media Spend Out Of Home Campaigns Driving Consumer Trial 2X Media investment in last 3 years* Massive OOH covering 10,000 + consumer trials 100+ Rural and Urban sites conducted at food events *FY 2022 vs FY 2020
Slide 16: Expanding business across the Channels
Expanding business across the Channels E-Commerce Exports Retail Landscape 4X Growth 2.5X Surge 50k Outlets added Over Three Years* Over Three Years* in Two Years** *FY 2021 vs FY 2023 (last two months estimated) **Jan 2022 vs Oct 2023
Slide 17: Financial Performance
FINANCIAL PERFORMANCE
Slide 18: Delivering 4G growth model
Delivering 4G growth model Market share** 3 Year Sales CAGR: 3 Year EPS CAGR Renewable +735 bps 33%* 44%* energy consumption 98% * YTD Sept’23 vs YTD Sept’20 ** MAT Mar’23 vs Jul’19 Noodles market
Slide 19: 2023: Resilient performance amid challenging operating environment
2023: Resilient performance amid challenging operating environment Growth Profitability EPS Operating Margin PKR 30.3% 1,173.27 +33.8% +429 bps +55.2% Vs SPLY Vs SPLY All figures are YTD Sept 2023
Slide 20: Financial Performance: Key Indicators
Financial Performance: Key Indicators Net Margin% Return on Fixed Assets Current Ratio +1500bps vs 2017 c. 2x vs 2017 c. 3x vs 2017 1.60 28.3% 140.7% 102.8% 68.0% 0.54 12.6%
Slide 21: Financial Performance: Investors KPIs
Financial Performance: Investors KPIs Delivering Market Beating Returns Share price Total shareholder growth versus return in 3 market* Years** 47% vs 6% of market growth 56% *Growth YTD Sept’23 vs 2020 exit **Return for the period Jan’20 to Sept’23
Slide 22: Future Outlook
FUTURE OUTLOOK
Slide 23: Relative stability, however, challenges expected to persist
Relative stability, however, challenges expected to persist Economic Hardships expected To Continue Double-digit Inflation (Forecast for FY’24) Headline Food Energy Core 42% 43% GDP 1.7% 30% 38% Vs 5% 25% 13% CPI 20% 26% 2019 2020 2021 2022 2023 2024 Leading to continued pressure on purchasing power
Slide 24: Our plan to navigate External Challenges
Our plan to navigate External Challenges Predict Macro-economic Environment Consumer Trends Political Situation Purchasing Power Supply Disruption Build Unlock Portfolio Hedge FX Interventions Prepare Resilience Capacity Exposure Create value for Upstock Collaborative Build Exports money Localize Ma
Slide 25: Environmental, Social & Governance (ESG)
Environmental, Social & Governance (ESG)
Slide 26: Renewable Energy & Plastic Reduction
Renewable Energy & Plastic Reduction Solar Bio-Mass Plastic Reduction More than 90% Consumption via Renewable Sources Aim to collect and process more plastic including carbon credits than we sell by 2025 Part of ICAP steering committee on adoption & implementation of sustainability reporting standar
Slide 27: External Engagements
External Engagements Pakistan Climate Conference Drive Living Wages in Pakistan OICCI organized the ‘2nd Pakistan Climate Unilever Pakistan hosted an interactive dialogue on Conference 2023’ and brings together experts to the importance of living wages in Pakistan with drive climate urgency in Pakis
Slide 28: Rewards & Recognitions
Rewards & Recognitions Our Brands continue to Shine Daraz Ecommerce Summit 2023 Effie Awards 2023 Bagged two wins at the Daraz Ecommerce Summit; “Ecommerce Company of the Year" Marketer of the year 2023 and "FMCG Brand of the Year – Knorr”
Slide 29: Rewards & Recognitions
Rewards & Recognitions Awarded Employer of Choice across all Sectors By Pakistan Society of Human Resource Management
Slide 30: Thank You
Thank You 21/11/2023
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