Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 FY2024 Earnings Presentation
31 slides from Hindustan Unilever's earnings presentation, Jan 19, 2024
Slide 1: Exchange filing cover letter under Regulation 30
19th January, 2024 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, Dala
Slide 2: Hindustan Unilever Limited DQ'23 Results
Hindustan Unilever Limited DQ’23 Results 19th January 2024 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: Rohit Jawa, CEO and Managing Director
Rohit Jawa Chief Executive Officer and Managing Director Sensitivity: Public
Slide 5: Operating environment remains challenging
Operating environment remains challenging Weather vagaries Subdued festive season Building Unevenaeconomic better business recovery and a better world Uneven monsoon | Delayed winter Weak consumer sentiment Urban > Rural | Premium > Mass Sensitivity: Public 4
Slide 6: FMCG demand trends remain stable
FMCG demand trends remain stable Gradual recovery in volumes Urban resilience continues albeit on a soft base while Rural remains subdued Market Volume Growth (Urban + Rural) Market Volume Growth Urban Rural 2Y CAGR 1% 2% 2Y CAGR 3% 1% 10% 10% 5% 5% 0% 0% Series 1 -5% -5% SQ’22 SQ’23 DQ’22 DQ’23 DQ’
Slide 7: Modern Trade and Premium lead market growth
Modern Trade and Premium lead market growth Channels Price segments Market volume growth (YoY) Market volume growth (YoY) General Trade Modern Trade Mass Premium 2Y CAGR 1% 13% 2Y CAGR 2% 9% 15% 15% 10% 10% 5% 5% 0% 0% -5% -5% DQ’22 DQ’23 DQ’22 DQ’23 L3M Nov’22 L3M Nov’23 L3M Nov’22 L3M Nov’23 Chann
Slide 8: Market price growth tailing off albeit remains high on a 3-year basis
Market price growth tailing off albeit remains high on a 3-year basis FMCG market price growth FMCG market cumulative price growth YoY vs 2020 25% 25% 15% 15% 5% 5% JQ'23 SQ'23 DQ'23 JQ'23 SQ'23 DQ'23 -5% -5% Market growth as per Nielsen FMCG Market Report December 2023 (HUL relevant categories) 7 S
Slide 9: DQ'23 Financial highlights
DQ’23 Financial highlights Turnover Underlying Sales Growth Underlying Volume Growth 14,928 cr. Flat 2% EBITDA Margin PAT bei Net Profit 23.7% -2% 1% +10 bps YoY YoY growth YoY Growth Underlying Sales Growth (USG) refers to increase in turnover for the period, excluding any change resulting from acq
Slide 10: Strong business fundamentals
Strong business fundamentals Business Winning Business Gaining Business with growing / stable Business Winning Shares Shares Business Gaining Penetration Business Winning Brand PowerShares Penetration c.60% >75% >80% Product Superiority A&P Investments (₹ crs.) Coverage 1.25X 3X 4.8K 3.3K 3.4K 3.6K
Slide 11: Building for the future
Building for the future Deepening Category focus : Next phase of HUL’s digital journey : Beauty and Personal Care Enhance consumer and customer experience BEAUTY & WELLBEING PERSONAL CARE DIGITAL ACCELERATION Skin Care | Colour Skin Cleansing | Cosmetics | Hair Care | Appointment of Chief Digital Or
Slide 12: Responsible growth: Doing well by doing good
Responsible growth : Doing well by doing good ESG ratings Green energy partnership Building a better 10 years business of Prabhat and a better world 75 64 ICAI award for excellence 32% equity investment in BRSR Best rated Indian FMCG company Solar energy park : 45MW capacity c.10 Mn people, >1200 vi
Slide 13: Ritesh Tiwari, Chief Financial Officer
Ritesh Tiwari Chief Financial Officer Sensitivity: Public
Slide 14: DQ'23 Results
DQ’23 Results Topline EBITDA PAT (bei) Net Profit Underlying Sales Growth Margin INR INR Flat 23.7% 2,541 cr. 2,519 cr. 2% +10 bps -2% 1% Underlying Volume Growth Change YoY Growth YoY Growth YoY 13 Sensitivity: Public
Slide 15: Competitive growth
Competitive growth Strong volume growth on a 2-year basis Healthy market share gains Underlying Volume Growth Corporate Value Shares (MAT) c. 200 bps 2Y CAGR 5% 3% 4% 5% Mar 2021 Dec 2023 Business Winning Shares(MAT) 60% 0% JQ’22 JQ’23 SQ’22 SQ’23 DQ’22 DQ’23 Mar 2021 Dec 2023 Dec 2024 Business winn
Slide 16: Premium portfolio continues to outperform
Premium portfolio continues to outperform Premium vs Mass Strong double-digit value growth YTD Dec’23 Value >2.5X Premium Laundry Premium Beauty Business Unit Mayonnaise & Peanut butter Horlicks Plus Range 15 Sensitivity: Public
Slide 17: DQ'23: Segmental performance
DQ’23 : Segmental performance BEAUTY & PERSONAL FOODS & HOME CARE CARE REFRESHMENT 36% 38% 24% INR 5448 cr. INR 5705 cr. INR 3733 cr. Underlying Volume Mid-single Mid-single Low-single Growth digit growth digit growth digit decline Underlying Sales -1% Flat 1% Growth Segmental Margins 18% 26% 19% Se
Slide 18: HC: Innovations and Activations
HC : Innovations and Activations 17 Sensitivity: Public
Slide 19: HC: Robust volume led performance on a very high base
HC : Robust volume led performance on a very high base ❑ Fabric Wash: Volumes grew in mid-single digit driven by outperformance in premium portfolio ❑ Household Care: Low-single digit volume growth led by Dishwash ❑ Both categories delivered a strong double-digit growth on a 2-year CAGR basis driven
Slide 20: BPC: Innovations and Activations
BPC : Innovations and Activations 19 Sensitivity: Public
Slide 21: BPC: Mid-single digit volume growth led by Hair and Premium Skin
BPC : Mid-single digit volume growth led by Hair and Premium Skin ❑ Skin Cleansing: Declined versus prior year due to impact of price cuts. Market development actions in bodywash continue to yield good results ❑ Hair Care: Volume led double-digit growth with broad based performance across brands. Fu
Slide 22: F&R: Innovations and Activations
F&R : Innovations and Activations 21 Sensitivity: Public
Slide 23: F&R: Price led growth driven by Market Development portfolio
F&R : Price led growth driven by Market Development portfolio ❑ Beverages: Tea further strengthened value and volume market leadership. Muted performance in the quarter as category continued to witness consumers downgrading. Green Tea and flavoured tea performed well. Coffee grew in double-digits dr
Slide 24: Stepping up gross margin, investing behind brands and capabilities
Stepping up gross margin, investing behind brands and capabilities EBITDA Gross Advertising & Employee Benefits DQ’23 Margin Promotion & Other expenses 23.7% 50.6% 10.7% 16.3% 10 bps 400 bps 270 bps 120 bps YoY improvement improvement investment investment Net Productivity | c. ₹400 cr. increase Cap
Slide 25: Gross Margin: Fuel to invest behind brands and capabilities
Gross Margin : Fuel to invest behind brands and capabilities Gross Margin End-to-end net productivity focus 54% ❑ Right price-value equation enabled by ‘Net 52% Revenue Management’ 51% 50% ❑ Premiumisation led mix improvement 46% ❑ Simplification and Digital acceleration ❑ Cost competitiveness FY20
Slide 26: DQ'23: Results summary
DQ’23 : Results summary Rs. Crores Particulars DQ’23 DQ’22 Growth Sales 14,928 14,986 Flat EBITDA 3,540 3,537 Flat EBITDA Margin 23.7% 23.6% +10 bps Other Income (Net) 204 202 Exceptional Items -30 -102 PBT 3,432 3,377 2% Tax 913 872 PAT before exceptional items 2,541 2,581 -2% Net Profit 2,519 2,50
Slide 27: FY'24: 9-month performance
FY’24 : 9-month performance Turnover EBITDA PAT (bei) Net Profit INR INR INR INR 44,886 cr. 10,755 cr. 7,709 cr. 7,708 cr. 3% 6% 6% 4% Growth YoY Change YoY Growth YoY Growth YoY 26 Sensitivity: Public
Slide 28: Outlook
Outlook Sensitivity: Public
Slide 29: Cautiously optimistic in the near term
Cautiously optimistic in the near term ❑ Operating environment: ▪ Expect gradual demand recovery to continue. Rural income growths and winter crop yields key factors determining pace of recovery ▪ With commodity prices remaining benign, competitive intensity likely to stay high ❑ Our outlook: ▪ Focu
Slide 30: Hindustan Unilever Limited DQ'23 Results
Hindustan Unilever Limited DQ’23 Results 19th January 2024 Sensitivity: Public
Slide 31: Press release: Standalone results for the quarter ended 31st December 2023
STANDALONE RESULTS FOR THE QUARTER ENDED 31st DECEMBER 2023 HUL DQ’23 Results: Resilient performance in a challenging environment Mumbai, 19th January 2024: Hindustan Unilever Limited (HUL) announced its results for the quarter ended 31st December 2023. December Quarter 2023 Results HUL delivered a