HUL - Premiumisation, Category Development Key To Growth: ICICI Direct

ICICI Direct Report

We attended Hindustan Unilever Ltd.’s analyst meet to get a sense of backroom work behind mammoth scale of marketing, distribution and manufacturing.

• HUL has grown revenues at 9% compound annual growth rate with 5% volume CAGR in the last decade. It has seen 1000 basis points operating margin improvement driven by premiumisation trend largely in fabric care and market development of margin accretive categories with large growth potential.

• The company has introduced and established 19 new brands (including brand extensions and acquisitions) across brands in the last 10 years present. These include five digital first brands (‘Simple’, ‘Baby-Dove’, ‘Love Beauty And Planet’, ‘ACNESQUAD’ and ‘Find Your Happy Place’).

• Market development of many categories such as liquid fabric wash, matic detergent, hand and body wash, green tea, spice tea, spread and dressings, premium skin care, premium hair care and premium colour cosmetics, are now contributing Rs 10,000 crore to sales.

• Overall premium products are contributing 33% to sales in FY22 versus 22% in FY12. Moreover, digital demand capture is close to 25% versus nil a decade ago.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.