Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q4 FY2021 Earnings Presentation
34 slides from Hindustan Unilever's earnings presentation, Apr 29, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation
29th April, 2021 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
Slide 2: Hindustan Unilever Limited MQ'21 Results
Hindustan Unilever Limited MQ’21 Results : 29th April 2021 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, Chairman & Managing Director
Sanjiv Mehta Chairman & Managing Director Sensitivity: Public
Slide 5: MQ'21: Broad-based robust performance
MQ’21 : Broad-based robust performance Strong fundamentals Accelerating momentum Higher sales and profits 21% % Business Gaining Penetration* Reported TO Growth 7% 3% 34% 87% 41% -7% JQ'20 SQ'20 DQ'20 MQ'21 Domestic Consumer Growth** PAT Growth Growth Competitive and Profitable * As per Kantar World
Slide 6: Nutrition: Best in class integration driving strong performance
Nutrition : Best in class integration driving strong performance Seamless Expanding 1 st Year of Nutrition Integration Portfolio People - 1 HUL Team Systems & processes Synergies Penetration & Volumes EBITDA Margins Ahead of business case 5 Sensitivity: Public
Slide 7: Significant progress on sustainability in the year of pandemic
Significant progress on sustainability in the year of pandemic COVID-19 response Environmental impact Enhancing livelihoods Strategic partnerships ~ 2 cr. soaps and sanitizers distributed + 400 bln litres of incremental water conservation potential created ~ 2 cr. additional person days ~ 15 cr. hou
Slide 8: COVID Wave 2: Brings a period of uncertainty
COVID Wave 2 : Brings a period of uncertainty Increasing COVID-19 cases Decreasing mobility Localised restrictions 360K 70% 55% 30% 47% 98K Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-20 Oct-20 Jan-21 Apr-21 Daily New COVID-19 Cases Maharashtra Mobility Index Sources: COVID Cases: Ourworldindata as of 27
Slide 9: We know how to win against the Virus
We know how to win against the Virus Social distancing Safe hygiene practices Vaccinations >145 million vaccinations Source: Vaccination stats https://www.mohfw.gov.in/ as on 28th April 08:00 IST 8 Sensitivity: Public
Slide 10: HUL: Well positioned building on 2020 experiences
HUL : Well positioned building on 2020 experiences People Supply Fundamentals of growth Demand Cost & Cash Underpinned by Technology 9 Sensitivity: Public
Slide 11: 1. People: Our #1 priority
1. People : Our #1 priority A Shot Safety and wellbeing Tiered at Safety Operating Protocols 90% of all eligible employees vaccinated with 1st dose Employer of Flexible Models Choice 12 years on a row 10 Sensitivity: Public
Slide 12: 2. Supplies: Enhanced agility and responsiveness
2. Supplies : Enhanced agility and responsiveness Ensuring continuity of supplies Agile & Resilient Supply Chain 1.3X capacity Vs pre Different Models Stocks downstream COVID Liquidity support 5 lakh Shikhar outlets : Focus E-comm, GT rapid digitization & Rural 11 Sensitivity: Public
Slide 13: 3. Demand: Finger on the pulse of consumers
3. Demand : Finger on the pulse of consumers Core, Innovations, Market Innovation Big Brands Development & Premiumisation Intensity Accelerate +150 SKUs launched 5X Growth rates in FY’21 vs FY’20 Market Health, Hygiene Development & & Nutrition Premiumisation continued priority Grow 2X vs core; 12%
Slide 14: 4. Cost & Cash: Secure our business model
4. Cost & Cash : Secure our business model Manage headwinds, Strong Ambitious Balance Sheet provides an edge Net Revenue Savings Management Agenda (>8%) The science of pricing R&D Sustain Capabilities Investments Formulation flex, Resilience ROI models enabled by and Savings analytics 13 Sensitivity
Slide 15: Re-Imagining HUL: Tech quotient significantly up in last year
Re-Imagining HUL : Tech quotient significantly up in last 1 year Consumers Customers Operations Shikhar App People Data Centre | Digital Factories and Digital Order Capturing Agile Innovation Hub Automated Warehouses Powered by Intelligent Data Ecosystem 14 Sensitivity: Public
Slide 16: Strategy remains fit for purpose
Strategy remains fit for purpose Consistent, Competitive, Purpose-led, Future-fit Profitable, Responsible Fundamentals of growth Growth 15 Sensitivity: Public
Slide 17: Srinivas Phatak, Chief Financial Officer
Srinivas Phatak Chief Financial Officer Sensitivity: Public
Slide 18: MQ'21: Growth competitive and profitable
MQ’21 : Growth competitive and profitable Growth EBITDA PAT (bei) Net Profit Reported Turnover Growth Margin Gr % Gr % 34% 25% 43% 41% 21% 150 bps 2,103 cr. 2,143 cr. Domestic Consumer Growth Difference between Reported Turnover Growth and Domestic Consumer Growth reflects the impact of merger of GS
Slide 19: MQ'21: Broad based performance across Divisions
MQ’21 : Broad based performance across Divisions HOME CARE BEAUTY & PERSONAL FOODS & CARE REFRESHMENT 32% 38% 30% Sales Growth* 15% 20% 36% *Sales growth excludes the impact of merger of GSK CH and acquisition of VWash 18 Sensitivity: Public
Slide 20: Home Care: Innovations & Activations in the quarter
Home Care : Innovations & Activations in the quarter 19 Sensitivity: Public
Slide 21: Beauty & Personal Care: Innovations & Activations in the quarter
Beauty & Personal Care : Innovations & Activations in the quarter 20 Sensitivity: Public
Slide 22: Foods & Refreshment: Innovations & Activations in the quarter
Foods & Refreshment : Innovations & Activations in the quarter 21 Sensitivity: Public
Slide 23: Home Care: Strong performance in HHC, Fabric Wash rebounds
Home Care : Strong performance in HHC, Fabric Wash rebounds ❑ Household Care: Continues to perform well. Strong double-digit growth led by Vim ❑ Fabric Wash: Strong sequential growth aided by increased mobility; Performance competitive ▪ Liquids and premium portfolio growing ahead of the category ❑
Slide 24: Beauty & Personal Care: Strong performance across Categories
Beauty & Personal Care : Strong performance across Categories ❑ Skin Cleansing: Robust performance led by high double- digit growth in Lifebuoy. Premium Skin Cleansing continues to do well, Lux stable. VWash momentum accelerates ▪ Inflationary pressures remain elevated; calibrated pricing actions to
Slide 25: Foods & Refreshment: High growth momentum sustained
Foods & Refreshment : High growth momentum sustained ❑ Foods: Soups and Ketchups grow in high double-digits. With increased mobility we saw softening of ‘In-home consumption’ trend in the quarter ❑ Beverages: Tea share gain momentum continues. High double-digit growths across brands. Stable performa
Slide 26: HHN strong, Discretionary & OOH picking up
HHN strong, Discretionary & OOH picking up Health, Hygiene and Discretionary Out of Home Nutrition (FY’21 USG : -15%) (FY’21 USG : -26%) (FY’21 USG : 12%) 61% 10% 22% -1% 10% 10% 6% -25% -15% -25% -45% -69% JQ'20 SQ'20 DQ'20 MQ'21 JQ'20 SQ'20 DQ'20 MQ'21 JQ'20 SQ'20 DQ'20 MQ'21 Domestic consumer gro
Slide 27: Playing all lines of P&L to deliver profitable growth
Playing all lines of P&L to deliver profitable growth Margin headwinds +2% Sequential step-up Savings in consumer prices Nutrition 24.8% Palm Oil Tea Synergies EBITDA Crude Oil Competitive Intensity 26 Sensitivity: Public
Slide 28: MQ'21: Segmental performance
MQ’21 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 32% 38% 30% INR 3,840 Cr INR 4,549 Cr INR 3,511 Cr Segmental Revenue Growth* 15% 20% 96% Segmental Margins** 21% 28% 16% *Segment Revenue Growth = Segment Turnover growth + Other Operating Income + Impact of merger of
Slide 29: MQ'21: Results summary
MQ’21 : Results summary Rs. Crores Particulars MQ’21 MQ’20 Growth % Sales 11,947 8,885 34%* EBITDA 2,957 2,065 43% Other Income (Net) 100 240 Exceptional Items – Credit / (Charge) 14 (58) PBT 2,822 1,992 42% Tax 679 473 PAT bei 2,103 1,469 43% Net Profit 2,143 1,519 41% ▪ *Domestic Consumer Growth a
Slide 30: FY'21: Strong performance in a challenging year
FY’21 : Strong performance in a challenging year Sales EBITDA PAT (bei) Net Profit INR 45,311 cr. INR 11,324 cr. INR 7,963 cr. INR 7,954 cr. Reported Turnover Growth Margin Gr % Gr % 18% 25% 18% 18% Domestic Consumer Growth* of 6% * Domestic consumer growth excludes the impact of merger of GSK CH an
Slide 31: FY'21: Segmental performance
FY’21 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 31% 40% 29% INR 13,959 cr. INR 17,964 cr. INR 13,204 cr. Segmental Revenue Growth* 2% 4% 77% Segmental Margins** 20% 29% 17% *Segment Revenue Growth = Segment Turnover growth + Other Operating Income + Impact of merge
Slide 32: FY'21: Proposed Final Dividend
FY’21 : Proposed Final Dividend Particulars FY 2020-21 FY 2019-20 Dividend per share 40.5 25 Special 9.5 - Interim 14 11 Final* 17 14 Total Dividend (Rs. Crores) 9,516 5,671 *Final Dividend number for FY 2020-21 is subject to approval by the shareholders at the AGM 31 Sensitivity: Public
Slide 33: Looking ahead
Looking ahead Near-term outlook ❑ COVID surge unprecented; demand outlook difficult to predict ▪ Our agility and responsiveness across the value chain significantly better than pre COVID ❑ Elevated inflationary pressure in select large categories ▪ Judicious pricing actions coupled with cost agility
Slide 34: For more information and updates
For more information and updates Visit our website 33 Sensitivity: Public