Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2024 Earnings Presentation
24 slides from Hindustan Unilever's earnings presentation, Jul 20, 2023
Slide 1: Regulation 30 disclosure cover letter to exchanges
20th July, 2023 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'23 Results
Hindustan Unilever Limited JQ’23 Results 20th July 2023 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: FMCG demand trends gradually improving
FMCG demand trends gradually improving Market volumes recovering… …albeit on a soft base Volume Growth (YoY) Volume Growth (YoY) Total Rural Total Rural 2Y CAGR Flat -4% 5% 5% 0% 0% -5% -5% -10% MAT L6M L3M MAT L6M L3M JQ’22 JQ’23 JQ22 JQ23 Market growth as per Nielsen FMCG Market Report for June 20
Slide 5: Inflation softening on a YoY basis
Inflation softening on a YoY basis Commodities remain stable Market price growth tailing off 15% Crude 1.9X Coffee 1.8X Soda Ash 1.7X Palm Oil 1.3X X Tea 0.9X 0% 2020 2021 MQ'22 JQ'22 SQ'22 DQ'22 MQ'23 JQ'23 SQ’22 DQ’23 MQ’23 JQ’23 Trade destocking | Consumers consuming high price inventory Commodit
Slide 6: Increased competitive intensity
Increased competitive intensity Media intensity up Resurgence of small players in select categories Media GRPs for FMCG Market Market Value Growth (YoY) (HUL relevant categories) (L3M May’23) 3Y x 0.95x 1.6X Y X Large Small Large Small JQ19 JQ20 JQ21 JQ22 JQ23 Players Players Players Players Tea Det
Slide 7: HUL JQ'23 results
HUL JQ’23 results Topline EBITDA PAT (bei)3 Net Profit Underlying Sales Growth1 Margin INR INR 7% 23.6% 2,500 cr. 2,472 cr. 3% +40 bps 9% 8% Underlying Volume Growth2 Change YoY Growth YoY EPS Growth YoY 1. Underlying Sales Growth (USG) refers to the increase in turnover for the period, excluding an
Slide 8: Competitive growth
Competitive growth Significantly outperformed the Business winning market shares market on a 2-year basis USG UVG 2Y CAGR 13% 5% 20% >75% 10% 0% JQ’22 JQ’23 JQ’22 JQ’23 As per June 2023 MAT Business winning report based on Nielsen market data (HUL relevant categories) 7 Sensitivity: Public
Slide 9: JQ'23: Segmental performance
JQ’23 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 35% 38% 25% INR 5,425 cr. INR 5,601 cr. INR 3,797 cr. Segmental Revenue 10% 4% 5% Growth Segmental Margins 18% 26% 18% Underlying Volume Mid Mid Near flat Growth single-digit single-digit Segment Revenue = Segment Tur
Slide 10: JQ'23: Underlying Volume Growth composition
JQ’23: Underlying Volume Growth composition Mid-single Double- digit decline digit growth Home Care Water Purifier Fabric Wash Household & Care Care Beauty & Personal Care Skin Hair Oral Skin Care & Cleansing Care Care Cosmetics Foods & Refreshment Coffee Ice Cream Health Food Foods Tea Drinks Under
Slide 11: JQ'23: Innovations (1/2)
JQ’23 : Innovations (1/2) Sensitivity: Public 10
Slide 12: JQ'23: Innovations (2/2)
JQ’23 : Innovations (2/2) Oriental Sauces (vertical image) Sensitivity: Public 11
Slide 13: JQ'23: Activations and communications
JQ’23 : Activations and communications Red Label Social Network Sensitivity: Public 12
Slide 14: HC: Double digit growth on a high base
HC : Double digit growth on a high base ❑ Fabric Wash: Double-digit growth balanced between price and volume. Premium portfolio outperforms ▪ Market share gains continue ❑ Household Care: Double-digit volume led growth driven by outperformance in Dishwash 13 Sensitivity: Public
Slide 15: BPC: Volume led growth
BPC : Volume led growth ❑ Skin Cleansing: Modest volume-led growth driven by Lux and Hamam. Price reductions taken in soaps portfolio ▪ Market development actions in bodywash continue to yield good results ❑ Hair Care: Mid-single digit volume growth led by Tresemme, Indulekha and Clinic Plus ▪ Innov
Slide 16: F&R: Steady performance led by HFD and Food Solutions
F&R : Steady performance led by HFD and Food Solutions ❑ Beverages: Modest growth as consumers downgrading continued due to inflation differential between premium and loose tea. Coffee grew in mid-single digit ❑ Health Food Drinks: Price led growth with both Horlicks and Boost performing well ❑ Food
Slide 17: Building back gross margins, stepping up A&P
Building back gross margins, stepping up A&P Gross Margin up sequentially Stepped-up A&P investments 52.7% 50.1% 49.2% 47.8% 46.4% 46.6% 11.6% 44.9% 9.9% 9.4% 9.5% 8.8% 8.0% 7.2% Avg. FY'19 FY'22 JQ-22 SQ-22 DQ-22 MQ-23 JQ-23 Avg. FY'19 FY'22 JQ'22 SQ'22 DQ'22 MQ'23 JQ'23 to FY'21 to FY'21 Continue
Slide 18: JQ'23: Results summary
JQ’23 : Results summary Rs. Crores Particulars JQ’23 JQ’22 Growth Sales 14,931 14,016 7% EBITDA 3,521 3,247 8% EBITDA Margin 23.6% 23.2% +40 bps Other Income (Net) 138 111 PBT 3,365 3,086 9% Tax 893 797 Net Profit 2,472 2,289 8% PAT before exceptional items 2,500 2,289 9% 17 Sensitivity: Public
Slide 19: Doing well by doing good
Doing well by doing good 10 new Suvidha Centres ‘Be.Seen’: scaling minority- ‘Centre for Sustainability to be set up owned businesses Leadership’ Sensitivity: Public 18
Slide 20: Looking ahead
Looking ahead Sensitivity: Public
Slide 21: Operating environment remains volatile
Operating environment remains volatile Weather related risks continue Gradual recovery in volumes Impact on inflation and High levels of cumulative inflation, rural demand to be monitored consumption to recover gradually 20 Sensitivity: Public
Slide 22: Near-term outlook
Near-term outlook ❑ If commodities remain where they are, our price growth to be flattish/negative in the coming quarters ❑ Competitive intensity to go up further, focused on growing our consumer franchise and sustaining our volume growth momentum ▪ Right price-value equation and building back gross
Slide 23: Hindustan Unilever Limited JQ'23 Results
Hindustan Unilever Limited JQ’23 Results 20th July 2023 Sensitivity: Public
Slide 24: Standalone results for the quarter ended 30th June 2023
STANDALONE RESULTS FOR THE QUARTER ENDED 30th JUNE 2023 7% Underlying Sales Growth, 3% Underlying Volume Growth, 8% Profit After Tax Growth Mumbai, 20th July 2023: Hindustan Unilever Limited (HUL) announced its results for the quarter ended 30th June 2023. June Quarter 2023: Resilient performance in