Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Bajaj — Q4 FY2014 Earnings Presentation
30 slides from Bajaj Consumer Care's earnings presentation, April 2014
Slide 1: Investor Presentation April 2014
Investor Presentation April 2014
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.220,594 cr (USD 36.77 bn) Hair Care 7% salience Rs. 15,994 cr (USD 2.67 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 4958cr Rs. 4,714 cr Rs. 3386 cr Rs. 480 cr Rs. 2,559 cr (USD 826 mn) (USD 786mn) (USD 564mn) (USD 80 mn) (USD 427 mn)
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 300,000 9,000 8,408 7,867 247,478 255,178 8,000 250,000 235,539 238,283 6,981 214,002 7,000 197,057 5,728 200,000 6,000 (Rs. Cr.) 172,528 5,044 (In KLtr) 5,000 4,498 132560 Y-o-Y 10.1% Y-o-Y 6.9% Y-o-Y 12.7% Y-o-Y 3
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,600 1,471 35,000 31,928 29,958 1,400 1311 30,000 26,768 1,200 1,080 25,000 22,406 (Rs. Cr.) 1,000 19,908 831 20,000 18,390 (In KLtr) Y-o-Y 19.5% Y-o-Y 6.6% Y-o-Y 12.2% 710 Y-o-Y 11.9% 800 Y-o-Y 12.5% Y-o-Y 8.3% 15,603 Y-
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 70% 59.5% 60% 56.9% 55.0% 57.9% 53.0% 60% 50.7% 54.4% 51.9% 50% 46.5% 48.0% 49.1% 50% 40.3% 44.1% 40% 38.4% 40% 30% 30% 20% 20% 10% 10% 0% 0% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 07-08 08-09 09-10 10-11 11-12 12-13 13-14
Slide 7: ADHO – Relative Market Share – Value Trend
ADHO – Relative Market Share – Value Trend Relative Market share is the ratio of Almond Drops market share to the next largest competitor in LHO segment Relative MS - Val 5 4.34 4.44 4.5 4.04 4 3.43 3.5 3.17 3 2.65 2.5 2.08 2 1.5 1 0.5 0 2008 2009 2010 2011 2012 2013 2014 Source – AC Nielsen Retail
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 4.4 1st Madhya Pradesh 4.2 1st Rajasthan 1.7 1st Chhattisgarh 7.0 1st Uttar Pradesh 3.7 1st Gujarat 2.3 1st Punjab 3.6 1st HP-JK 4.0 1st Central Zone 3.9 1st Haryana 4.9 1st Mumbai 3.8 1st Uttaranchal 4.0 1st M
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Apr 13- Mar 14 Saliency Urban Rural Total Urban Rural All India (U+R) 100.00% 65% 35% 57.86% 55.63% 62.02% Punjab 6.42% 75% 25% 53.23% 50.86% 60.40% Haryana 6.09% 75% 25% 60.17% 56.73% 70.43% Delhi 5.47% 100% 0% 59.40% 59.40% N
Slide 10: Light Hair Oil Market – Key Characteristics
Light Hair Oil Market – Key Characteristics Rural –Urban break up of LHO market Share of Distribution Channels in LHO market Modern Others, Cosmetic Trade, 3% 6% s, 7% Large All India Grocer/ Traditional Chemists, - Rural Urban dominated GS, 29% channels dominate 6% 35% segment due to its distributi
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 25,000 1,000 869 875 900 19,498 760 20,000 18,520 18,243 800 16,610 700 667 14,655 594 15,000 600 Rs. Cr. 3M-o-3M –(-1.8&) 3M-o-3M– (-4.8%) 12,416 485 Y-o-Y – (-6.4%) KLtr Y-o-Y – 5.0% 500 Y-o-Y – 0.7% Y-o-Y - 18% Y-
Slide 12: Company Overview
Company Overview
Slide 13: Bajaj Corp Ltd. (BCL) – An Overview; Haircare Portfolio
Bajaj Corp Ltd. (BCL) – An Overview Haircare Portfolio Part of Bajaj Group which has business interests Bajaj Almond Drops Hair Oil - A premium perfumed in varied industries including sugar, consumer hair oil containing almond oil and Vitamin E goods, power generation & infrastructure Competitors
Slide 14: Skincare Portfolio
Skincare Portfolio Bajaj NOMARKS Creams for All Skin, Oily Skin & Dry Skin Types, available in sizes 12g & 25g Bajaj NOMARKS Facewash for All Skin, Oily Skin & Dry Skin Types & Neem Facewash, available in sizes 15g, 50g, 100g Bajaj NOMARKS Soaps for All Skin, Oily Skin & Dry Skin Types & Neem Soap,
Slide 15: Bajaj Almond Drops - A Premium Brand
Bajaj Almond Drops - A Premium Brand Strong Market Share Growth in Recent Years . . . But not at the cost of pricing power 70.0% 70 59.5% 58 55 60.0% 53.0% 55.0% 56.9% 60 50 50.7% 50 46 50.0% 46.5% 40 42 38 40.3% 40 35 36.7% 30 32 40.0% 28 29 31.4% 30 30.0% 20 20.0% 10 10.0% 0 0.0% 05-06 06-06 07-08
Slide 16: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) 47 consumers through 2.67mn retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhanh- 1 6964 distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1, Guwahati-1 50 15,488 wholesale
Slide 17: Organization Structure
Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra President Operations Director – Business GM – Marketing GM – HR Head- Sales Mr. Apoorv Bajaj Development Mr. Gurpreet S. Mr. Subhamay Mr. Sudhir Mr. Jimmy Anklesaria Amrit Chatterjee Taneja Head Internation
Slide 18: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q4FY14 Q4FY13 FY14 FY13 2013-14 2012-13 (Rs. In Crore) Sales (Net) 184.18 183.69 670.68 605.66 (Rs. In Crore) EBITDA 52.76 51.84 186.65 172.81 Shareholders Equity 522.08 483.81 EBITDA Margin 28.65% 28.22% 27
Slide 19: EBITDA & PAT Performance
EBITDA & PAT Performance Rs. in Crore Particulars Q4FY14 Q4FY13 YoY% FY14 FY13 YoY% EBITDA 52.76 51.84 1.77% 186.65 172.81 8.01% Profit Before Tax & Exceptional Item 58.43 61.65 -5.22% 217.23 209.50 3.68% Exceptional Item (Trademark & 11.75 - 28.60 - Intellectual Properties) Profit Before Tax 46.68
Slide 20: Profit & Loss Q4FY2014 and for the year 2013-14
Profit & Loss Q4FY2014 and for the year 2013-14 Rs. in Crore Particulars Q4FY14 Q4FY13 YoY% FY14 FY13 YoY% Net Sales 184.18 183.69 0.26% 670.68 605.66 10.74% Other Operating Income 0.33 0.49 1.05 1.06 Material Cost 76.89 77.45 272.13 260.08 % of Sales 41.75% 42.16% 40.57% 42.94% Employees Cost 8.59
Slide 21: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q4FY13 v/s Q4FY14 FY13 v/s FY14 200 800 In ` Crores In ` Crores 150 600 100 183.69 184.18 400 605.66 670.68 50 200 0 0 Q4 FY13 Q4 FY14 FY13 FY14 Sales for the quarter ended March’14 has increased by 0.26% value wise and decreased by 6.40% volume wi
Slide 22: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) ADHO KPCO BAHO ASHO Nomarks Others Total % Inc over PY FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 21,653 Q1 1,163,796 952,959 28,665 9,853 11,481 1,732 2,455
Slide 23: Consistent Performance over the last 16 successive quarters
Consistent Performance over the last 16 successive quarters Gr (Vol) Gr 40.00% (Value) EBIDTA 35.00% 35.12% 30.29% 28.19% 29.03% 30.00% 24.96% 25.51% 28.25%28.37% 28.65% 27.09%27.04% 28.53% 28.76% 25.00% 28.26% 25.68% 20.00% 23.17% 15.00% 10.00% 21.09% 14.91% 11.19% 19.19% 17.39% 24.07% 27.60% 19.96
Slide 24: Breakup of RM/PM Costs (for FY14)
Breakup of RM/PM Costs (for FY14) Key Raw & Packing Material % to Sales % to Total Cost LLP 14.64% 36.08% Glass Bottles 9.43% 23.24% Refined Veg. Oil 4.09% 10.08% Perfumes & other additives 1.95% 4.80% Corrugated Boxes 1.69% 4.18% Caps 2.30% 5.68% Others 6.47% 15.94% TOTAL 40.57% 100.00% * Consumpti
Slide 25: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per kg Rates of LLP 90.00 Per kg Rates of Oil 84.00 2012-13 2012-13 81.43 2013-14 84.93 82.00 85.00 2013-14 80.40 80.32 81.15 80.00 78.81 79.80 79.71 78.63 78.43 80.00 78.00 76.16 75.64 75.85 75.75 75.00 73.58 76.00 75.33 71.89 74.48 70.85 73.54 70.00 74.00 72.00
Slide 26: Fund Position
Fund Position Fund Position: The total Fund available with the company as on 31st March 2014 is Rs. 284.09 Crores This has been invested in Bank Fixed Deposits, Certificate of Deposits of Banks , PSU Bonds, Government Securities and Liquid MFs. There is no investment in ANY Corporate Deposit
Slide 27: Dividend Payout History
Dividend Payout History Dividend per No. of Shares Face Dividend Payout Year % to Capital share (in Lacs) Value (Rs in Lacs) (Rs.) 2013-14 1,475 1 9587.50 650% 6.50 2012-13 1,475 1 9,587.50 650% 6.50 2011-12 1,475 1 5,900.00 400% 4.00 2010-11 295 5 2,802.50 190% 9.50
Slide 28: Corporate Governance
Corporate Governance Bajaj Corp Ltd is a part of the Bajaj Group of companies. The other listed entity in the group is Bajaj Hindusthan Ltd Bajaj Corp Ltd has not and will not transfer funds from and to from any other company within the Bajaj Group The Company acquired in September 2011 (Uptow
Slide 29: Growth Strategy
Growth Strategy Strategy Action Steps Convert coconut hair oil users to light hair oil users through sampling, targeted advertising Market share gains from campaigns, product innovation and creating awareness about product differentiation including other hair oil segments communicating the advanta
Slide 30: Thank You
Thank You