Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q4 FY22 Earnings Presentation
39 slides from Bajaj Consumer Care's earnings presentation, 2022
Slide 1: Earnings Presentation Q4 & Full Year FY22
Earnings Presentation Q4 & Full Year FY 22
Slide 2: Company Snapshot
Company Snapshot Legacy “Bajaj” among India’s most Products in existence since Bajaj Almond Drops, India’s trusted industrial houses pre-Independence Largest single hair oil brand Positioning 15 new Hair Care products Over 64% Market share launched in FY22 15 Brands, 100+ SKUs in Light Hair Oil segm
Slide 3: Company Overview
Company Overview • Bajaj Consumer Care Ltd. (BCCL) is the second-largest entity in the Shishir Bajaj Group of companies, with a rich history dating back to 1953 when Late. Kamalnayan Bajaj established Bajaj Sevashram to market and sell hair oils and other beauty products • Today under the chairmansh
Slide 4: Macro Context
Macro Context
Slide 5: Hair Oil Market Growth Trends
Hair Oil Market Growth Trends Value Growth % Volume Growth % Key Highlights • Hair oil category grew by 4.2% in -5.3 -3.7 -4.6 -7.0 -5.9 -6.5 FY 22, recovering to Pre Covid levels Q4-FY22 Q4-FY22 • Market Growth however was Urban Rural All India Urban Rural All India subdued in Q4, with volumes decl
Slide 6: Performance Highlights
Performance Highlights
Slide 7: Bajaj Hair Oils Market Share
Bajaj Hair Oils Market Share Value Market Share Total Bajaj Hair oils MAT Mar’ 21 MAT Mar’ 22 All India (U+R) 10.3% 10.3 % All India –Urban 10.8% 10.9 % All India –Rural 9.7% 9.7% Source: Nielsen Retail Audit Report, March 2022, All India Bajaj Consumer Care 7
Slide 8: Business Highlights
Business Highlights General Trade Channel-wise contribution to Revenue (%) • Clear slow down in demand coupled with downtrading being observed in rural markets especially in key HSM impacting both Wholesale and Sub Stockist 2.5% 2.4% • Retail grew over last year while the decline was mainly in whole
Slide 9: General Trade – New Product Placements
General Trade – New Product Placements Bajaj Consumer Care 9
Slide 10: Modern Trade Activations
Modern Trade Activations Bajaj Consumer Care 10
Slide 11: Distribution – E-Commerce
Distribution – E-Commerce • Tie-up with all major E-commerce players like Amazon, Flipkart, Grofers, Big Basket, Nykaa, Swiggy, Milk Basket, Purplle, Health & Glow and Deal Share • Other digital first brands, Natyv Soul and Bajaj 100% Pure (Castor, Jojoba, Kalonji, Coconut & Olive) are listed on all
Slide 12: Marketing
Marketing
Slide 13: Marketing - Traditional Media
Marketing - Traditional Media New Thematic: 2x Hairfall Reduction Campaign Launch New thematic – High on Energy, Glamour & Styling launched in Jan, On Ground Activation build to strengthen relevance in Younger, Modern TG • Launched across leading Hindi channels • Urban Retail visibility drive in top
Slide 14: Marketing – Digital Media
Marketing – Digital Media Social media marketing over Facebook & Search Marketing on Flipkart, Amazon Launch Of Stylebook with different Instagram and Bigbasket hairstyles on Instagram Record 9.3 Mn views on YouTube for our new ADHO TV ad • 360 degree activation across TV, Digital and • Digital Mark
Slide 15: ADHO “Style Fearlessly” Campaign a SuperHit among Consumers
ADHO “Style Fearlessly” Campaign a SuperHit among Consumers #Stylefearlessly reached 2.2 Cr consumers with 211 entries in the #Stylefearless challenge with 4% engagement rate Teaching India How to #stylefearlessly like Parineeti with Hairstyle video Tutorial Bajaj Consumer Care 15
Slide 16: ADHO “Style Fearlessly” Campaign
ADHO “Style Fearlessly” Campaign New Communication and Claims • Dial up element of “ Style“ as younger consumers are looking for enhancement along- with nourishment New Claim of “2X Hairfall Reduction“ to keep New Campaign of , “Style strengthening Nourishment Fearlessly” that appeals to Equity Baja
Slide 17: ADHO “Style Fearlessly” Digital Campaign
ADHO “Style Fearlessly” Digital Campaign Engagement-driven activity #Stylefearlessly Stylebook Audience gets a chance to choose the hairstyle for Audience gets a chance to feature along side with Parineeti’s look Parineeti in #stylefearlessly Style Book on Instagram Followed by Film and tutorials on
Slide 18: VACNO Launch: Bajaj Coco Onion for 2X faster Hair Growth
VACNO Launch : Bajaj Coco Onion for 2X faster Hair Growth Hair Growth in 4 weeks 2X • Amongst the newest ingredients preferred by X consumers, especially younger consumers • Time Tested and Trusted ingredient • Stimulates hair Growth Untreated Hair Bajaj Coco Onion Hair Bajaj Consumer Care 18
Slide 19: Bajaj Coco Onion Campaign
Bajaj Coco Onion Campaign Bajaj Coco Onion hair oil campaign featuring Ileana D Cruz started from 15th April 2022 Campaign has TV + Digital + In Store visibility Components Bajaj Consumer Care 19
Slide 20: Amla & Coconut Portfolio: Ramping Up Quarter By Quarter
Amla & Coconut Portfolio : Ramping Up Quarter By Quarter Amla Portfolio • Amla Portfolio in Q4 has continued to ramp up • Share on Amla Portfolio has hit 3% in Q4, with Sarson Amla at 0.3% • Focussed brand led initiatives and distribution drives planned in Q1 to continue building up the momentum Coc
Slide 21: Almond Drop Extension - New Products to Drive Premium Imagery
Almond Drop Extension - New Products to Drive Premium Imagery ALMOND DROPS HAS A SEAMLESS FIT ACROSS HAIR + SKIN CARE • Almond and Vitamin E - Perceived by consumers to be : ❖ Highly beneficial for Hair and Skin ❖ Premium and not just kitchen Ingredients • ADHO equity of lightness / non sticky is al
Slide 22: Natyv Soul
NATYV SO U, cE HAIRMASQUE HAIRSERUM PUREOIL ENRICHEDOIL CONTACTUS BEAUTY SECRETS FROM FARAWAY LANDS
Slide 23: Natyv Soul: Beauty Secrets From Faraway Lands
Natyv Soul : Beauty Secrets From Faraway Lands Natyv Soul Natyv Soul is a brand of luxuriant beauty made of rare natural ingredients procured from distant corners of the world From Ghanaian Cocoa Butter to French Sea Satin™, every ingredient of Natyv Soul is a hidden exotic treasure coming to light
Slide 24: Natyv Soul: 9 Products Launched
Natyv Soul : 9 Products Launched, Listed on Amazon , Flipkart and Purplle Hair Serum : 2 Variants Hair Oil: 5 Variants French Sea Beet + Peruvian Sacha Inchi California Almond, Moroccan Argan, African Marula, Chilean Rosehip, French Apple Seed Hair Mask : 2 Variants African Shea Butter + Brazilian B
Slide 25: Natyv Soul: Digital Marketing in Q4 & Beyond
Natyv Soul : Digital Marketing in Q4 & Beyond Ecommerce Social Media Google Search + Influencers YouTube Posts Display 3.7Mn Impressions served with a CTR of 16 Cr Impression 0.28% and conversion of served with a CTR of 1500 Influencers 4.7M views & 4.8% 1 Cr reach 2% Post in Q4 VTR of 32% • You Tub
Slide 26: Bajaj 100% Pure Oils
Bajaj 100% Pure Oils • CTR on Amazon – 0.33% and Click to conversion is 6.34%. Good Traction on Castor which has a conversion of 9.63% • Social Media Has an Engagement Rate of 5% Bajaj Consumer Care 26
Slide 27: Business Operations
> Business Operations ae
Slide 28: Key Raw Materials
Key Raw Materials Refined Mustard Oil (RMO) Price (INR / Litre) Refined Mustard Oil (RMO) 178 160 160 • Prices have corrected downwards in RMO 145 considering the good crop in India 117 124 87 89 105 • Due to the issues in supplies of other edible oils, the price correction has been lesser than expe
Slide 29: ESG Initiatives – Approach to sustainable Packaging
ESG Initiatives – Approach to sustainable Packaging Reduce consumption of packaging material to reduce carbon footprint and GHG emissions Initiatives taken: Optimization of specifications resulting in Glass: Reduction in consumption of glass bottles by 16% Paper: Reduction in consumption of paper by
Slide 30: ESG initiatives in operations
ESG initiatives in operations Conservation of resources at plants • Key focus areas being reduction in usage of natural resources like water, reduction of carbon footprint and reduction in wastages • We have started work in the area of water conservation by measuring the water consumption sources, i
Slide 31: GPTW Certification
GPTW Certification • Bajaj Consumer Care Ltd. certified as a Great Place to Work© by the Great Place to Work (GPTW) Institute • We have now been certified for 4th consecutive year Bajaj Consumer Care 31
Slide 32: Future Growth Strategies
Future Growth Strategies Leveraging on Bajaj Trust & Brand name Continuous thrust towards Premiumization of ADHO Brand Launching new products in Hair care & Skin Expanding the Hair Oil portfolio care categories Digital First Brands for new age consumers Entrenching further into Rural markets and exp
Slide 33: Financial Overview
Financial Overview
Slide 34: Expenses To Sales Trend – Standalone
Expenses To Sales Trend – Standalone Material cost Employee cost ASP Other Expenses 19.0% 44.6% 17.6% 17.8% 12.1% 43.8% 9.8% 39.4% 8.6% 8.8% 10.4% 10.9% Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Q4FY21 Q3FY22 Q4FY22 Material cost Employee cost ASP Other Expenses 42.7% 17.1% 16.6
Slide 35: Financial Performance – Q4 FY22 Standalone
Financial Performance – Q4 FY 22 Standalone Particulars (In Crore) Q4-FY21 Q3-FY22 Q4-FY22 Y-o-Y Q-o-Q Sales (Value) 241.9 225.3 216.1 -10.7% -4.1% Total Operational Income 246.0 228.6 219.3 -10.8% -4.0% Gross Contribution 146.7 124.7 121.3 Total Expenses (excl Material cost) 88.6 86.5 86.0 EBITDA 6
Slide 36: Financial Performance – FY22 Standalone
Financial Performance – FY 22 Standalone Particulars (In Crore) FY21 FY22 Y-o-Y Sales (Value) 898.0 865.5 -3.6% Total Operational Income 914.6 878.4 -4.0% Gross Contribution 568.5 495.7 Total Expenses (excl Material cost) 336.3 324.8 EBITDA 248.8 183.8 -26.1% Other Income 34.5 38.6 Depreciation 5.8
Slide 37: Balance-sheet - Standalone
Balance-sheet - Standalone Particulars (INR Crore) FY21 FY22 Particulars (INR Crore) FY21 FY22 ASSETS EQUITY AND LIABILITIES Non-Current Assets Equity Property, Plant & Equipment 40.8 45.2 Share Capital 14.8 14.8 Capital Work in progress 7.1 1.4 Other Equity 766.7 824.4 Other Intangible Assets 2.0 1
Slide 38: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 39: Thank You
Thank You