Companies Investing September 17, 2020September 17, 2020 JST Investments Hindustan Unilever HUL Analysis – 2020 Annual Report Takeaways! Reading Time: 5 minutes Let’s dig deeper into Hindustan Unilevel, HUL Analysis. About HUL Each of their divisions – Home Care, Beauty & Personal Care, Foods, and Refreshment – include a portfolio of brands that serve consumers across the length and breadth of India. With more than 44 brands across 14 distinct categories including Fabric Solutions, Home and Hygiene, Life Essentials, Skin Cleansing, Skin Care, Hair Care, Colour Cosmetics, Oral Care, Deodorants, Tea, Coffee, Ice Cream & Frozen Desserts, Foods, Health Food Drinks (HFD), the Company is part of the daily life of millions of consumers. The portfolio includes leading brands such as Surf excel, Rin, Wheel, Sunlight, Vim, Pureit, Lux, Lifebuoy, Dove, Fair & Lovely, Pond’s, Vaseline, Clinic Plus, Sunsilk, Indulekha, Lakmé, Pepsodent, Closeup, Axe, Brooke Bond, Lipton, BRU, Kwality Wall’s, Knorr and Kissan. Effective 1st April 2020, the Company, after the merger of the business of GlaxoSmithKline Consumer Healthcare Limited (GSK CH), has also acquired iconic brands like Horlicks and Boost, amongst others. Their products are available in over eight million outlets across India. FMCG – Recent behavior The FMCG market saw disparate trends across divisions. There was a significant shift in discretionary spends and this impacted the Beauty & Personal Care division. Despite the challenges, categories such as Skin, Hair, and Oral Care delivered good growth. With on-trend innovations such as Matte revolution and 3D makeup, Lakmé continued to be India’s No. 1 Cosmetics brand. In Skin Cleansing, brands such as Dove and Pears led the premiumization agenda. During the year, we also launched, a purpose-driven brand from Unilever stable, ‘Love, Beauty and Planet’ – made from sustainably sourced ingredients and packaged in recycled plastic. Brands All the brands that the behemoth HUL owns! &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5779″ width=”975″ height=”837″&amp;amp;amp;gt; Segmental Updates Home Care division sustained its robust volume-driven and profitable growth during the year. Fabric Solutions business delivered a strong performance with a focus on premiumization with Surf excel and Rin liquids. To strengthen the premium portfolio further, it launched ‘Love & Care’, an expert Fabric Solutions brand. They drove market development across Home and Hygiene business with Vim and Domex. While Vim continued to upgrade existing bar consumers to liquid and drive adoption of bars in rural India, Domex launched a powder format in select geographies to address the need for affordable and efficacious sanitation solutions. This year, they also launched Pureit Copper+, an innovation inspired by the age-old tradition of storing water in copper vessels, which adds the goodness of copper to RO purified water. The Foods & Refreshment division witnessed competitive and profitable growth across categories. The Jams and Ketchup business continued to deliver good growth and in Spreads, they launched the iconic Hellmann’s Mayonnaise in Kolkata this year. With on-trend, superior product offering, Tea continued to deliver robust, volume-led growth. The Ice Cream and Frozen Desserts business delivered strong growth on the back of innovations that catered to both global and local palates. For instance, it launched the Cornetto Brownie Silk, Magnum Hazelnut, a Sundae Cup alongside flavors crafted to address local tastes such as Aamras, Dryfruit Rabri Kulfi, and Tender Coconut tub. They successfully completed the integration of the GlaxoSmithKline Consumer Healthcare Limited (GSK CH) business into HUL. The merger, one of the biggest in the Indian FMCG space was completed virtually while the entire nation was under lockdown. The merger brings to HUL household brands such as Horlicks and Boost that are deeply in sync with their beliefs on purpose and just like their Water, Sanitation, and Hygiene (WASH) agenda, in clear alignment with both the Sustainable Development Goals and the Government’s thrust on ‘Poshan Abhiyan’ alongside ‘Swachh Bharat’. The merger between the two companies presents them with an opportunity to combine their respective strengths and work towards further strengthening their position in Foods, Nutrition, and Refreshments. Board of Directors &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479761_914_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5780″ width=”864″ height=”1041″&amp;amp;amp;gt; Management Committee &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479764_795_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5781″ width=”858″ height=”1018″&amp;amp;amp;gt; Segmental performance in 2019-20 &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479765_673_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5784″&amp;amp;amp;gt; Financial performance in 2019-20 &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479766_491_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5785″&amp;amp;amp;gt; Non – Financial performance* &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479768_766_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5786″&amp;amp;amp;gt; Unilever Sustainable Living Plan (USLP) &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479770_658_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5787″&amp;amp;amp;gt; &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479772_938_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5788″&amp;amp;amp;gt; &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479773_45_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5789″ width=”789″ height=”943″&amp;amp;amp;gt; FMCG Industry Overview Fast-Moving Consumer Goods (FMCG) industry continues to be one of the biggest structural opportunities that our country offers. Despite being one of the fastest-growing markets globally for FMCG products, the per capita FMCG consumption in India is still amongst the lowest in the world, giving the industry a long runway for growth. In these times, as the economy, consumer, and channel landscape rapidly evolve, they continue to be agile and responsive to leverage market opportunities and navigate through the challenges. By staying close to consumers and their needs, we ensure that business continues to grow while having a positive impact on people and the planet. Their strategy is constantly evolving to adapt to the trends and forces shaping markets and impacting their multi-stakeholders. Strategy &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479775_101_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5791″&amp;amp;amp;gt; Risks and Mitigation Techniques &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479777_648_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5792″&amp;amp;amp;gt; &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479779_390_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5793″&amp;amp;amp;gt; &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479781_201_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5794″&amp;amp;amp;gt; Balance Sheet &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479782_810_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5795″&amp;amp;amp;gt; &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479784_684_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5796″&amp;amp;amp;gt; P&L &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479786_525_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5797″&amp;amp;amp;gt; Cash Flow &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479787_92_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5798″&amp;amp;amp;gt; The CFO increased from 5800 Cr in FY19 to Rs 7623 Cr in FY20. The Free cash flow has increase from 5105 Cr in FY19 to Rs 6773 in FY20. Advertising Expense &amp;amp;amp;lt;img src=”https://finmedium.com/wp-content/uploads/2020/09/1599479788_232_Hindustan-Unilever-2020-Annual-Report-Takeaways.png” alt=”” class=”wp-image-5799″&amp;amp;amp;gt; Just look at the advertising expense of HUL here, that puts other FMCG majors’ ad spends to shame! Who are the biggest advertisers and the biggest spenders on R&D in the FMCG Sector?Why this study?Marketing % – Can help us distinguish between push and pull marketersR&D costs – Customer habits shift quickly and its imperative to spend on innovation.#FMCG pic.twitter.com/fL0CvXuWPt— JST Investments (@JstInvestments) August 25, 2020 Watch this video – What does HUL look for in its interns? Source link Also Read on FinMedium: Simplanations - SimplanationsCover Image: DNA India Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers. Join Them Now! 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