Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Jyothy Laboratories — Q4 FY19 Earnings Presentation
42 slides from Jyothy Labs's earnings presentation, May 7, 2019
Slide 1: Analyst Meet Presentation cover letter to exchanges
LABORATORIES LIMITED CIN - L24240MH1992PLC128651 'UJALA HOUSE', Ramakrishna Mandir Road, Kondivita, Andheri (East), Mumbai - 400 059. o Tel.: 6689 2800 0 Fax: 6689 2805 0 e-mail: info@jyothy.com 0 www.jyothylaboratories.com UJALA To, May 7, 2019 National Stock Exchange India Limited Exchange Plaza,
Slide 2: Analyst Presentation Q4FY19 & FY19
Analyst Presentation Q4FY19 & FY19 May 7, 2019 1
Slide 3: Index
Index About Us Market Scenario Result highlights Big Picture & Organizational Journey Innovations & Progress of Innovations Significant step up in investment behind brands Way Forward 2
Slide 4: About Us
About Us • Founded in 1983 by a first generation entrepreneur Mr MP Ramachandran • Jyothy Laboratories is present in Home Care (includes Fabric wash, & Household cleaners) and Personal Care which contributes 50% of the total FMCG industry • Key product categories: Fabric care, Dish wash, Household I
Slide 5: Market Scenario
Market Scenario Stable demand environment expected to continue Signs of premiumisation in key segments visible Naturals/Organic offerings continue to gain traction 4
Slide 6: Result Highlights
Result Highlights 5
Slide 7: What did we achieve in 2018-19
What did we achieve in 2018-19 Guidance Delivery Sales Growth 12% - 14% Sales Growth 9.3%* (Non HI 11.3%) EBITDA 15% to 16% EBITDA 16.2% Note* Adverse seasonality in HI Business Impact of floods in Kerala (negative impact of Rs 25 cr to Rs 30 cr) Slowdown in CSD business (negative impact of Rs
Slide 8: Q4 FY19 Snapshot (Standalone)
Q4 FY19 Snapshot (Standalone) Revenue growth 6.3%. Non HI revenue growth 9.3%. A&P Expense at Rs 31.4 cr vs Rs 24.9 cr, A&P to Sales ratio at 6.2% vs 5.3%. Gross Margin at 44.5% Vs 46.7% in the same period last year. Operating EBITDA at 16.4% (Rs 82.6 cr) Vs 18.5% (Rs 87.8 cr) in the same period las
Slide 9: FY19 Snapshot (Standalone)
FY19 Snapshot (Standalone) GST comparable revenue growth 9.3% (on GST adjusted sales). Non HI revenue growth 11.3% (on GST adjusted sales) A&P Expense at Rs 109.3 cr vs Rs 102.7 cr, A&P to Sales ratio at 6.2% vs 6.3% (on GST adjusted sales). Gross Margin at 45.6% Vs 46.8% (on GST adjusted sales) in
Slide 10: Category wise Net revenue
Category wise Net revenue All values in INR Crore Quarter ended Year ended PY (GST Category Key Brands CY PY Gr % CY Gr % Compa rable ) Ujala FW, Henko, Mr White, Fabric Care Ujala Crisp & Shine 186 182 2.2% 725 674 7.6% Dishwashing Exo, Pril 162 133 21.6% 587 501 17.3% Household Insecticides Maxo 1
Slide 11: Brand wise Net revenue
Brand wise Net revenue All values in INR Crore Quarter ended Year ended PY (GST Brand CY PY Gr % CY Comparabl Gr % e) Ujala 102 101 1.5% 390 371 5.0% Exo 125 100 24.7% 444 376 18.3% Maxo 100 105 -4.4% 224 230 -2.5% Henko 45 47 -4.7% 193 175 10.3% Margo 42 40 4.8% 169 157 7.8% Pril 37 33 11.7% 145 12
Slide 12: Q4 & FY19 Snapshot Company's Performance
Q4 & FY19 Snapshot Company’s Performance All values in Rs Crore except EPS Quarter Ended Standalone Particular/Growth Q4FY19 Q4FY18 YoY % FY 19 FY 18 # YoY % Revenue from Operation 504.3 474.5 6.3% 1,768.9 1,618.3 9.3% Operating EBITDA * 82.6 87.8 -6.0% 285.8 264.1 8.2% PAT ** 67.0 60.3 11.1% 193.2
Slide 13: EBIDTA Movement
EBIDTA Movement Standalone (GST Comparable) Particulars Q4 YTD EBITDA % - Previous period 18.5% 16.3% Gross Margin -2.2% -1.2% Employee Cost -0.7% -0.3% Advertisement & Sales Promotion -1.0% 0.2% Other Expenditure 1.7% 1.1% EBITDA % - Current period 16.4% 16.2% Previous year percentage are based on
Slide 14: Financial Highlights (Standalone)
Financial Highlights (Standalone) Net Worth (Rs in crores) Working Capital in Days 1,000 35 854 31 800 683 30 23 25 600 20 400 15 10 200 5 0 0 Mar-18 Mar-19 Mar-18 Mar-19 Dividend pay out ratio Net Debt - Equity ratio 0.40 80% 0.36 67% 69% 70% 65% 0.35 60% 0.30 50% 0.25 40% 0.20 0.03 30% 0.15 20% 14
Slide 15: Brand Performance & Initiatives
Brand Performance & Initiatives 14
Slide 16: Our Category Strategy
Our Category Strategy Household Post Wash Main Wash Dish wash Personal Care Insecticide • Extending • Establishing • Leveraging Two • Increasing • Reinvigorating Dominant uniqueness brand portfolio footprint Brand position • Building for • Innovation • Winning • Relevant • Premiumization future • le
Slide 17: Category wise business share (Q4FY19)
Category wise business share (Q4FY19) Other 2% Fabric Care (Post wash) HI 14% 20% Fabric Care (Main Personal Care wash) 9% 23% Dishwashing 32% 16
Slide 18: Fabric Care
Fabric Care 37% of Total Business FY19 GST Q4FY19 Category Comparable Growth % Growth % Fabric Care 2.2% 7.6% 17
Slide 19: Post Wash
Ujala Fabric Whitener Market Share in % 2018 MS CY16 CY17 CY18 DQ18 MQ19 Category Growth 3.7% UJALA * Source – AC Nielsen (Calendar Year) 78.3 80.4 80.5 80.0 81.1 SUPREME Source – AC Nielsen (Calendar Year) Post Wash Significant share gain in the low MS states State DQ18 MQ19 Gain (BPS) Mah 61.4% 64
Slide 20: Brand Activations – Rural
Brand Activations – Rural Consumer Engagement Retailer/Consumer Engagement Successful pilot activations. Plan to extend in 500 villages in Low Market Share states 19
Slide 21: Detergents
Ujala Detergent Market Share in % (Kerala) MS CY18 Mar 19 Qtr UJALA IDD 17.1 15.5 Source – AC Nielsen (Calendar Year) Detergents Category Growth 2018 (Kerala) (in%) * 8.5% Ujala IDD (Q4FY19) (Gr in %) 24% Ujala IDD (FY19) (On GST adjusted sales) (Gr 18% in %) * Source – AC Nielsen (Calendar Year) •
Slide 22: Detergents & Bars
Henko Franchise Brand Gr% Henko Franchise Detergents & Bars -4.7% (Q4FY19) Henko Franchise (FY19) 10.3% (On GST adjusted sales) The ‘Premiumisation trend ’ is driving the demand for the premium detergents. Focused approach and drive by sales teams 21
Slide 23: Henko New Mix
Henko New Mix Brand Henko is set to launch in digital media in Q1 Leveraging proposition of ‘Clothes Care’ to maintain price premium 22
Slide 24: Dishwashing
Dishwashing 32% of Total Business FY 19: Year of Milestones Q4FY19 FY19 GST Comparable Category Growth in % Growth in % Dishwashing 21.6% 17.3% • Q4 FY 19/FY 19 Growth: Highest in history 23
Slide 25: Dishwashing
Dishwashing 32% of Total Business Market Info (Liquid) Category Growth 11.8% Pril Liquid (Q4FY19) 14.4% Pril Liquid (FY19) (On GST 16.3% adjusted sales) Pril Tamarind added 9% incremental growth (in comparable skus) since launch 24
Slide 26: Dishwashing
Dishwashing 32% of Total Business • Digital footprint: • Pril Tamarind – 2.4 million views • Exo Bactoscrub – 4.4 million views 25
Slide 27: Dish wash
Dish wash Brand CY16 CY17 CY18 March19 Market Info (Bar) Qtr Category Growth 10.7% Market Share Progress in % Exo Bar 10.9 11.4 11.2 11.0 Exo Bar (Q4FY19) 31.9% Exo Bar (FY19) (On GST 20.2% Pril liquid 17.3 16.4 16.7 16.0 adjusted sales) Source – AC Nielsen (Calendar Year) Exo Dishwash Bar Year 2014
Slide 28: Dish wash
Dish wash Q4: Innovation on Exo Bar • Superior shine on utensils • Zero worries about white residue any more 27
Slide 29: Dishwash: Superior Brands - Superior execution
Dishwash: Superior Brands - Superior execution A) Product Positioning B) Strong and relevant product Innovation C) Media Presence • Sponsored popular programs in key markets D) In Store visibility and presence 28
Slide 30: Household Insecticides
Household Insecticides 20% of Total Business Net sales Growth FY19 Q4FY19 GST Comparable Category Growth in % Growth in % Maxo Franchise -4.4% -2.5% Category Growth : Coil + LV • 5 Year CAGR : 4% • 3 Year CAGR : -2% • 2 Year CAGR : -2% 29
Slide 31: Household Insecticide
Household Insecticide Brand CY18 DQ 18 MQ19 Market Share Maxo Coil 21.2 21.1 19.7 Progress in % 7.7 8.1 6.5 Maxo LV Source – AC Nielsen (Calendar Year) Maxo Genius Combi sales up 44.5% YOY & 69% Q4 FY 19 Vs Q4 FY 18 • Launch of New Genius Combi in select markets in Jan’19 • Supported with new commun
Slide 32: Maxo Agarbathi
Maxo Agarbathi Maxo Agarbathi : 100% Natural , effective solution Visibility drive & Activation States having over 1% MS for Maxo Incense sticks Guj : 2.1 TG : 3.4 AP : 1.1 KAR: 6.9 TN : 1.4 31
Slide 33: Personal Care
Personal Care 9% of Total Business Net sales Growth FY19 Q4FY19 Growth in Category GST Comparable % Growth in % Personal Care 2.8% 6.9% Market Share % 1.6% 1.1% 1.3% 1.3% Yr 16 Yr 17 Yr 18 Yr 19 Derived share; category Growth @2.5% Non traditional Consumer activities markets grew by & visibility dri
Slide 34: Margo: FY19
Margo: FY19 Further strengthening the product offering Product with a New communication on 1000 neem Positioning leaves Product Launch of Margo Glycerine in WB, followed by Kerala Innovation Media Presence across Key mainline and GEC’s Genre- Movie, Music, Kids, News Presence In Store Visibility dri
Slide 35: T-Shine update (Kerala Market)
T-Shine update (Kerala Market) Market Info (Liquids) 2018 Category Growth 18.6% T shine : Market share in Kerala in % CY18 MQ19 T-SHINE 4.3 4.4 Source – AC Nielsen Calendar Year 34
Slide 36: Innovations & Progress of Innovations
Innovations & Progress of Innovations Unique Features 1,000 Neem Leaves Anti-bacterial Touch Instant Dirt Dissolver (IDD) & Shine Disruptive Product For crisp & Shiny clothes First of its kind: Automatic 100% Organic with genius machine no stain formula World Class packaging & Design 35
Slide 37: FY20: Significant Step Up in Investment Behind Brands
FY20: Significant Step Up in Investment Behind Brands Ujala: Accelerating Growth Dish Wash: Stepping Up Growth in Our “Star” Category Margo: Investing to Leverage Our Natural Portfolio Innovation: Extending into Newer Geographies 36
Slide 38: Way Forward
Way Forward Increased level of investment behind brands and innovations Focus on volume growth & improvement in operating margin IT led focus on improving sales productivity 37
Slide 39: Shareholding Pattern
Shareholding Pattern as on Mar 31, 2019 FII 16.08% DII 11.94% Promoter and Promoter Public Group 67.11% 4.87% 38
Slide 40: For more information
For more information Please contact Sanjay Agarwal Snighter Albuquerque CFO, Jyothy Laboratories Ltd Adfactors PR Tel: +91-22- 6689 2800 M: +91 98191 23804 E-mail: sanjay.agarwal@jyothy.com Email: snighter.a@adfactorspr.com Please visit www.jyothylaboratories.com 39
Slide 41: Disclaimer
Disclaimer Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include change
Slide 42: Thank You!!!
Thank You!!! 41