Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Jyothy Laboratories — Q2 FY2014 Earnings Presentation
22 slides from Jyothy Labs's earnings presentation, Oct 22, 2013
Slide 1: Analyst Call
Analyst Call October 22,2013
Slide 2: Agenda
Agenda Company Overview Financial Performance: Q2FY14 • Results • Analysis New Business Initiatives • Key Initiatives – Q2FY14 • Key Initiatives FY14 2
Slide 3: Company Overview
Company Overview
Slide 4: About us
About us Mumbai based FMCG company founded in 1983 by Mr. M. P. Ramachandran Pan India presence catering to consumer needs in various categories Our portfolio includes leading household brands led by the flagship brand Ujala, with 71%* market share, Ujala continues its dominance in fabric whitener m
Slide 5: Our Network
Our Network Extensive Distribution Network* *Source: Ac Nielsen • Products available in 2.9 mn outlets in India as of March 31, 2013 • Directly reaching 1 million outlets • Strong presence across geographies, Urban and Rural Offering Value-for-Money Products to the Common Man 5
Slide 6: Financial H1 FY14
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Slide 7: Results - Profit & Loss
Results - Profit & Loss Quarter Ended Half Year Ended Year Ended Particulars 30.09.2013 30.06.2013 30.09.2012 30.09.2013 30.09.2012 31-03-13 Net Sales 30,592 31,819 22,983 62,411 51,105 1,01,738 Other Income - Operating 17 96 31 114 58 136 Total Income 30,609 31,915 23,014 62,524 51,163 1,01,874 Cos
Slide 8: Highlights for Q2 FY2014
Highlights for Q2 FY2014 Sales growth of 33%. 8% by price and 25% by volume. Advt. and Sales Promo exp. for the quarter Rs 30 crore increase of 31%. A&P Ratio 9.68% of Net Sales Gross Margin stands at 47% as compared to 46% in last year same period EBITDA improved to 13.9% of Net Sales from 9.3% in
Slide 9: Thrust on Regional Brands becoming National
Thrust on Regional Brands becoming National Q2FY2014 Q2FY2013 45% South 49% South Non South 55% 51% Non South H1FY2014 H1FY2013 43% South 49% South Non South 51% Non South 57% 9
Slide 10: EBITDA Analysis - Quarterly
EBITDA Analysis - Quarterly • Improvement in EBITDA in current Quarter as EBITDA % compared to last year same period is sales mix in 18.0% favour of ujala and margin efficiency drives. 16.0% 15.3% 13.9% 14.0% • Decrease in EBITDA in Q2 as compared to Q1 of FY 12.0% 2013-14 is sales mix in favour of
Slide 11: EBITDA Improvement
EBITDA Improvement In % Q2FY14 vs Q2FY14 vs H1FY14 vs Particulars Q2FY13 Q1FY14 H1FY13 EBITDA % - Previous period 9.3 15.3 10.5 Other Operating Income (0.1) (0.2) 0.1 Gross Margin 0.9 (0.3) 4.1 Employee Cost 3.6 0.2 1.7 Advertisement & Sales Promotion 0.2 2.5 (2.0) Other Expenditure 0.1 (3.5) 0.2 EB
Slide 12: Sales Analysis
Sales Analysis Segmentwise Sales Growth Segment wise Sales Contribution Segment 2013-14 2012-13 Growth % Sales - Sep' 13 Soaps & Detergent 22,752 16,828 35% 439 Home Care 7,761 5,683 37% Other Products 439 478 -8% 7,761 Soaps & Detergent Total 30,952 22,989 35% Home Care 22,752 Other Products Less:
Slide 13: Increase in Advertisement Expenditure
Increase in Advertisement Expenditure Particulars Q2 2013-14 Q2 2012-13 % Increase Advertisement Expenses 1,996 1,632 22% Sales Promotion 964 636 52% Total 2,960 2,268 31% % of Sales 9.68% 9.87% Particulars H1 2013-14 H1 2012-13 % Increase Advertisement Expenses 4,950 3,124 58% Sales Promotion 1,878
Slide 14: Cash Profit
Cash Profit In Rs. Lacs Particulars Q2 FY14 H1 FY14 Revenue 30,592 62,411 EBITDA 4,266 9,128 PAT 2,087 4,957 Depreciation 418 822 *Amortisation 1,127 2,241 Cash Profit 3,632 8,020 *Charge of Rs. 4470 lakhs (every year) will be there in financials for next 9 years This will be tax deductible 14
Slide 15: Debt Status – September 30, 2013
Debt Status – September 30, 2013 Particulars 30/09/13 31/03/13 Term Loan from Banks 396 430 (Tenure – 5 years starting from January 27, 2012 @ 11.25%) Working Capital – 11.5% from Axis Bank 104 62 Short Term Loan from Banks 20 - Commercial Paper @ 10.95% - 25 Commercial Paper (@ 9.3% to 9.5%) - 40 N
Slide 16: Market Share – Our Brands
Market Share – Our Brands 80 71 71 70 60 57 57 50 40 30 Q2FY13 20 19 21 20 20 18 17 16 16 Q2FY14 11 11 10 9 10 5 5 5 5 0 Value Volume Value Volume Value Volume Value Volume Value Volume *Source: Ac Nielsen Ujala Fabric Maxo Coil Maxo Liquid Pril Liquid Exo Bar Whitener Brand investments have kicked
Slide 17: Business Initiatives
Business Initiatives iy dyothy LABORATORIES LIMITED
Slide 18: Management Team
Management Team New Appointment Vice President – Sales & Marketing - RAJNIKANT SABNAVIS B.E & MBA 22 years of experience with HUL in Hair Care, Fabric Care and Personal Care Bangladesh Commercial operation started for production of Ujala on August 29,2013. 18
Slide 19: R&D Laboratory
R&D Laboratory R&D Lab operational from 9th July 2013 at Corporate Office • In house Analytical, Product Appraisal & Microbiological facility operational. • R&D facility to improve the quality of the product in line with the competitor brands. • Set up to reduce the innovation turnover time and attr
Slide 20: Supply Chain Efficiencies
Supply Chain Efficiencies • Centralised the sourcing of Indirect spent items like House Keeping, stationary and courier thru e sourcing. • Successfully implemented collaborative partnership of primary logistics for North and East Zones thru Enterprise force and expect a cost reduction of Rs50lacs pe
Slide 21: Key Initiatives – 2013-14
Key Initiatives – 2013-14 • Continue Brand Investments PAN India • Gain market shares across all Power Brands • Consolidate Sales & Distribution across India • Grow detergent business and House Hold Insecticide business through breakthrough innovations ? 21
Slide 22: Thank You
Thank You 22
Jyothy Laboratories — Q2 FY2014 Earnings Presentation on 6ix