Conference Call with Hindustan Unilever (HUL) Management and Analysts on Q2FY21 Performance and Outlook. Listen to the full earnings transcript.
Conference Call with Hindustan Unilever (HUL) Management and Analysts on Q1FY21 Performance and Outlook. Listen to the full earnings transcript.
Conference Call by Hindustan Unilever Management with analysts on the results of the quarter Q4FY20 and financial year. Listen in to the full earnings transcript.
Management attending the call: Sanjeev Mehta Chairman and MD, Srinivas Pathak CFO
Introductory comments
We are falling back on our fundamentals at this point. There are many unknowns right now - the virus trajectory, treatments, timeline of containment measures, structural damages. But we do know that we have a strong portfolio and a sound balance sheet, and capable teams to take us through this period. Rural growth over the year slower than FY19.March second half: slowdown was exacerbated by the ensuing national lockdown. Adverse impact was already being felt by state actions such as border lockdowns and restrictions. A large part of the negative growth in March was because of distributor and trade inventory coming down.
15 day disruption impacted 10% sales 6% distributor inventory, 4% trade inventory. When a smooth supply chain gets disrupted, there are big upheavals that happen to the pipeline. We are now working to smoothen these disruptions as we have moved back up 70-80% level.
Completed the GSK Consumer Healthcare acquisition on April 1. Well positioned to scale up this business. Full year performance: Delivered growth of 2% domestic consumer growth, and 11.5% net profit growth.
Quarterly performance
Aggregate level corporate market share grew over 50 bps. Volumes lowered by 7%, as COVID impact started to happen since mid March. Market growth of 2% in the quarter - ours would have been close to 3%. Instead we had a revenue decline about 9%. 50% of that loss can be attributed to loss at distributor locations. Balance from lower stock of retailers and loss of consumer demand.
Quarter EBITDA: Delivered an EBITDA of 2065 crores. On a reported basis this would be a 40 bps reduction in EBITDA margin, but on a comparable basis it came to a 116 bps expansion, adjusting for in days. Net profit saw a decline as well in the quarter of 3.9% YoY.
