Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Jyothy Laboratories — Q2 FY2016 Earnings Presentation
39 slides from Jyothy Labs's earnings presentation, Oct 20, 2015
Slide 1: Analyst Call
Analyst Call Oct 20, 2015 dyothy LABORATORIES LIMITED oA
Slide 2: Agenda
Agenda Financial Performance • Results for Q2FY16 & H1FY16 • EBITDA Analysis • Sales Analysis Business Initiatives • Brand Updates Q2FY16 2
Slide 3: Financial Performance Q2 FY16 & H1 FY16
Financial Performance Q? FY16 & H1 FY16 ivy dysthy LABORATORIES LIMITED “4
Slide 4: Highlights for Q2 FY2016: Consolidated
Highlights for Q2 FY2016 : Consolidated Sales growth of 9% (volume) Power Brand sales grew by 11.0 %. Advt. & Sales Promo exp. for the qtr is at Rs 48.8 crore, an increase of 5.5%. A&P to Sales Ratio is at 12.2% Gross Margin increased to 51.5% as compared to 47.8% in last year same period Operating
Slide 5: Highlights for H1 FY2016: Consolidated
Highlights for H1 FY2016 : Consolidated Sales growth of 8.2% (7.3% by volume and 0.9% by value) Power Brand sales grew by 9.9 %. Advt. & Sales Promo exp. for half year is at Rs 99.4 crore, an increase of 12.4%. A&P to Sales Ratio is at 12.2% Gross Margin increased to 51.7% as compared to 47.8% in la
Slide 6: Results – Standalone Profit & Loss
Results – Standalone Profit & Loss In Rs. Lacs Quarter Ended Half year ended Year Ended Particulars 30.09.15 30.06.15 30.09.14 30.09.15 30.09.14 31.03.15 Net Sales 38,316 39,800 35,478 78,115 70,967 1,42,827 Other Income - Operating 72 36 44 104 77 955 Total Income 38,388 39,836 35,522 78,219 71,044
Slide 7: Results – Standalone Profit & Loss
Results – Standalone Profit & Loss In Rs. Lacs Quarter Ended Half year ended Year Ended Particulars 30.09.15 30.06.15 30.09.14 30.09.15 30.09.14 31.03.15 OPERATING EBITDA 5,455 6,819 4,096 12,272 9,559 19,426 Employee stock option 607 1,167 603 1,774 603 2,871 Depreciation and Impairment 566 557 689
Slide 8: Results – Consolidated Profit & Loss
Results – Consolidated Profit & Loss In Rs. Lacs Quarter Ended Half year ended Year Ended Particulars 30.09.15 30.06.15 30.09.14 30.09.15 30.09.14 31.03.15 Net Sales 40,073 41,400 36,767 81,473 75,281 1,50,529 Other Income - Operating 66 34 22 100 56 954 Total Income 40,139 41,434 36,789 81,573 75,3
Slide 9: Results – Consolidated Profit & Loss
Results – Consolidated Profit & Loss In Rs. Lacs Quarter Ended Half Year Ended Year Ended Particulars 30.09.15 30.06.15 30.09.14 30.09.15 30.09.14 31.03.15 OPERATING EBITDA 5,526 6,884 3,946 12,410 9,145 19,172 Employee stock option 607 1,167 603 1,774 603 2,871 Depreciation and Impairment 717 686 8
Slide 10: Operating EBITDA Analysis (Consolidated) – Q2FY16
Operating EBITDA Analysis (Consolidated) – Q2FY16 • EBITDA in Q2FY16 is 13.8% as compared to 10.7% in last year same period. The same is after spending 12.2% in Advertisement and sales promotion EBITDA % expenses. 18.0% 16.6% 15.2% 16.0% Movement is mainly due to : 14.0% 13.8% 12.1% 12.0% 10.7% Incr
Slide 11: Consolidated EBITDA Movement
Consolidated EBITDA Movement In % Particulars Q2FY16 vs Q2FY15 H1FY16 vs H1FY15 EBITDA % - Previous period 10.7 12.1 Other Operating Income 0.1 0.0 Gross Margin 3.7 3.9 Employee Cost (0.1) 0.0 Advertisement & Sales Promotion 0.4 (0.4) Other Expenditure (1.0) (0.4) EBITDA % - Current period 13.8 15.2
Slide 12: Sales Analysis
Sales Analysis Segmentwise Sales Growth In Rs. Lacs Quarter Ended Half Year Ended Segment Q2FY16 Q2FY15 Growth % H1FY16 H1FY15 Growth % Soaps & Detergent 29,455 27,453 7.3% 62,400 57,905 7.8% Home Care 9,269 7,969 16.3% 16,325 14,700 11.1% Other Products 416 428 -2.7% 849 1,029 -17.5% Total 39,140 3
Slide 13: Category Wise Consolidated Sales
Category Wise Consolidated Sales In Rs. Lacs Category Q2FY16 Q2FY15 Growth % H1FY16 H1FY15 Growth % Fabric Care 17,124 15,340 11.6% 35,823 33,171 8.0% Dishwashing 11,262 10,271 9.6% 23,147 20,378 13.6% Mosquito Repellent 6,250 5,485 13.9% 10,526 9,854 6.8% Personal Care 3,646 3,581 1.8% 8,572 8,248
Slide 14: Thrust on Regional Brands becoming National
Thrust on Regional Brands becoming National Q2FY2016 Q2FY2015 41% 40% South South Non South Non South 59% 60% H1FY16 H1FY15 40% 41% South South Non South Non South 60% 59% 14
Slide 15: Consolidated Cash Profit
Consolidated Cash Profit In Rs. Lacs Particulars Q2FY16 Q2FY15 H1FY16 H1FY15 Revenue 40,073 36,767 81,473 75,281 EBITDA 5,525 3,946 12,410 9,145 PAT 3,877 2,513 8,335 6,760 ESOP 607 603 1,774 603 Depreciation 717 873 1,403 1,684 Cash Profit 5,201 3,989 11,512 9,047 15
Slide 16: Net Debt Status – September 30, 2015
Net Debt Status – September 30, 2015 Rs. In cr Particulars Maturity 30/09/15 31/03/15 Non Convertible Debenture @ 10.25% Nov 15 50 50 Non Convertible Debenture @ 9.65% June 15 - 65 Zero Coupon Non Convertible Nov 16 400 400 Debenture @ 11% Excess cash/investment in Debt (136) (230) Funds Total 314 2
Slide 17: Financial Highlights Profit & Loss
Financial Highlights Profit & Loss Net Sales (Rs in crores) EPS (INR) 900 8.2% 815 23.2% 5.00 4.60 800 753 4.50 700 9% 4.00 3.73 600 500 3.50 368 401 400 3.00 300 2.50 54.2% 2.14 200 2.00 100 1.39 1.50 0 Q2FY15 Q2FY16 YTD15 YTD16 1.00 0.50 0.00 Q2FY15 Q2FY16 YTD15 YTD16 EBIDTA (Rs crores) 140 124 12
Slide 18: Financial Highlights Balance Sheet
Financial Highlights Balance Sheet Net Worth (Rs in crores) Working Capital in Days 1,000 882 40 36 798 780 35 800 30 600 25 23 20 17 400 15 10 200 5 0 0 Sep-15 Sep-14 FY15 Sep-15 Sep-14 FY15 ROCE Debt equity ratio 20.0% 18.9% 16.9% 1.00 18.0% 15.5% 16.0% 0.73 14.0% 0.67 12.0% 0.57 10.0% 0.50 8.0% 6
Slide 19: Business Initiatives: Brand Updates
Business Initiatives Brand Updates ivy dysthy LABORATORIES LIMITED “4
Slide 20: Post Wash
Post Wash GROWING CATEGORY Extending the equity….
Slide 21: Ujala: Growing Category
Ujala : Growing Category Brand Q2 Growth % H1 Growth % Ujala 19% 10% ALL India Share Progress : 2015 (Jan to Sept) vs 2014 85 83 82 80 77 75 75 71 69 70 65 60 Urban Share % Rural Share % AI Share April-Sept'15 2014 Source: AC Nielsen (Jan-June-15) Ujala increasing shares despite stagnant Fabric Whit
Slide 22: Ujala: Driving Category penetration
Ujala : Driving Category penetration Top 3 Laundry Problems Experienced BRINGING IN NEW USERS 1 • Stain Removal • Yellowing of Whites Proposition highlights the inefficacy of 2 detergents to solve the problem of 3 • Colors Fading “Yellowing”--- Aims to create dissonance among “detergent happy” users
Slide 23: Launch (JQ'15) - TN
Launch (JQ’15) - TN Form & Finish to Clothes Pleasant sensorials More than just fragrance Keeps clothes looking new, everyday!
Slide 24: TN launch Update
TN launch Update Consistent Media campaigns to drive awareness and trials Forced trials among consumers– 15lac HH’s to be touched through promos, magazine sampling and DTD In-store visibility drives across key outlets undertaken
Slide 25: Our Portfolio & Our Path to Growth: Laundry
Our Portfolio & Our Path to Growth Laundry : Building Brands
Slide 26: Henko Powder: SQ'15 Performance
Henko Powder: SQ’15 Performance *Market Growth % Q2 Volume Growth H1 Volume Growth 10% 13.5% 5.7% Value JAS 14 JAS 15 H1FY15 H1FY16 Henko Brand no value growths Intense ATL and Price offs in the category, Henko det. Pwd holding its fort with focussed approach *Source: AC Nielsen (Jan-June-15)
Slide 27: Formidable #2 in Dish wash
Our Portfolio & Our Path to Growth Formidable # 2 in Dish wash
Slide 28: Exo SQ'15 Performance
Exo SQ’15 Performance *Market Growth (DW Bars)% 140 Volume Growth Exo 140 Value Growth Exo 3.67 15% 7% 110 110 3.3 80 80 50 50 Q2FY15 Q2FY16 Q2FY15 Q2FY16 Volume Value Intense Competition Activity in the face of slow down in markets Relaunch of Exo with new packaging OLD NEW *Source: AC Nielsen (Jan
Slide 29: EXO Dishwash Bar: Re-Launch (SQ '15)
EXO Dishwash Bar: Re-Launch (SQ ‘15) Antibacterial Superior Degreasing. Promise Proprietary ingredients acts as a dispersing agent which effectively removes sticky grease. Unique Superior Shine on Plates. Touch & Shine Special Poly-Shine anti-precipitation property acts as repulsion to re- Formula s
Slide 30: PRIL SQ'15: Strong Growths
PRIL SQ’15 : Strong Growths Volume Growth Value Growth 125 125 7% 17% 110 110 95 95 *Market Growth % 80 80 65 65 3.47 2.69 50 50 Q2FY15 Q2FY16 Q2FY15 Q2FY16 Volume Value Continuing Strong Growths on the back of Re-launch in SQ’14 *Source: AC Nielsen (Jan-June-15)
Slide 31: PRIL Liquid: Superior Market Presence in FY'15
PRIL Liquid : Superior Market Presence in FY’15
Slide 32: Household Insecticide
Household Insecticide Strengthening position in category
Slide 33: Maxo Coil: SQ'15 Performance
Maxo Coil: SQ’15 Performance Volume Growth Value Growth *Market Growth % 5% 5 5% 4 Volume Value Q2FY15 Q2FY16 Q2FY15 Q2FY16 *Source: AC Nielsen (Jan-June-15) Coil Category growth sluggish
Slide 34: Maxo LV: SQ'15 Performance
Maxo LV: SQ’15 Performance Volume Growth Value Growth *Market Growth % 9 35% 39% 6 Volume Value Q2FY15 Q2FY16 Q2FY15 Q2FY16 *Source: AC Nielsen (Jan-June-15) • Maxo LV growth ahead of category growth
Slide 35: Insect Control: Opportunity
Insect Control : Opportunity It takes time for liquid to show action. Card gives instant relief. Especially in the evenings, when windows and doors are open. However, one has to be careful while this is burning. Since its light, it flies off with slightest of breeze. • Simple Insight ‘Safety’ addres
Slide 36: Insect Control: Magic Card (SQ'15)
Insect Control : Magic Card (SQ’15) Maxo Genius Magic Card - Launch Activity • Launched in TN & Ktk in Q2 & AP in Q3 • Rest of India launch in Q4
Slide 37: Market shares at a glance
Market shares at a glance 90 80 76.9 76.4 70 61.5 61.1 60 50 40 30 20.7 20 18.1 18.3 15.9 15.2 16.4 13.9 15.4 8.5 9.9 9.9 8.8 8.8 10 8.1 6 6.3 0 Ujala Fabric Whitener Maxo Coil Maxo Liquid Pril Liquid Exo Dishwash Bar Mar-15 by value Jun-15 by value Mar-15 by volume Jun-15 by volume
Slide 38: Market Scenario and Way forward
Market Scenario and Way forward We see price competition sustaining for some more time in laundry, dish wash and personal care Demand continues to be soft and expected to remain so Aggressive new launches on Exo and Maxo expected to fuel growths further We are confident of weathering the storm in la
Slide 39: Thank You
Thank You
Jyothy Laboratories — Q2 FY2016 Earnings Presentation on 6ix