Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q4 FY2020 Earnings Presentation
37 slides from Bajaj Consumer Care's earnings presentation, Jun 18, 2020
Slide 1: Cover letter to stock exchanges
June 18, 2020 DCS-CRD Listing Compliance BSE Limited National Stock Exchange of India Ltd. First Floor, New Trade Wing Exchange Plaza, 5th Floor Rotunda Building, Plot No.C/1, ‘G’Block Phiroze Jeejeebhoy Towers Bandra- Kurla Complex Dalal Street, Fort, Mumbai 400 023 Bandra East, Mumbai 400 051 Stoc
Slide 2: Investor Presentation Q4 & FY 2020
INVESTOR PRESENTATION Q4 & FY 2020 MAKING CONSUMERS FEEL AND LOOK GOOD
Slide 3: Key Indicators – FY 2020
Key Indicators – FY 2020 SALES Growth: -7.17% (Y-o-Y) Gross Margin: 66.63% Market Share (Val) = 10.1% ASP to Sales: 20.68% Household Penetration = 21.1% EBITDA Margin:26.44% PAT Margin: 23.30% Source: HH Penetration Kantar, Feb 2020, 2 Nielsen Retail Audit Report, Feb 2020, All India
Slide 4: Performance Q4 FY20 and FY20
Performance Q4 FY 20 and FY 20 Q4FY20 performance was hugely impacted due to disruption in sales in the month of March 20 led by lockdown to contain the outbreak of COVID 19. This has greatly impacted overall FY 20 performance to a great extent. ➢ Sales declined by 29.2% & 7.2% in Q4FY20 & FY20 resp
Slide 5: Key Growth Drivers
Key Growth Drivers ➢Strengthening ADHO Equity ➢ Focus on Specific Channels/Geographies ➢MT + Ecommerce ➢ Digital platforms For Marketing ➢State Specific Initiatives ➢IT & Automation tools ➢ Developing Manpower ➢ Agility and Response to COVID 4
Slide 6: Strengthening ADHO Equity
Strengthening ADHO Equity Bajaj Consumer Care Ltd 5
Slide 7: Building ADHO Equity on Nourishment
Building ADHO Equity on Nourishment “Hair fall isn’t an ordinary problem” Almond oil with 3X Vitamin E for extra nourishment to reduce hair fall • Communication emphasis shifted from Lightness to Nourishment • 360 Campaign on TV + Digital + Onground Visibility 6
Slide 8: Focus on Specific Channels/Geographies
Focus on Specific Channels/ Geographies Bajaj Consumer Care Ltd 7
Slide 9: Modern Trade Activation
Modern Trade Activation 29% 30% 26% 22% 21% 21% 22% 13% Audio + Video Large Unpaid Branded Visibility Dec-19 Jan-20 communication at Visibility assets + Market Share in POS offers Key Chains 360 Activation – Visibility + Promotions + Activation has helped increase shares in Key Chains 8
Slide 10: Driving Growth on Ecommerce
Driving Growth on Ecommerce ➢ Targeted Marketing activities on Multiple E Commerce Platforms ➢ Offtake Increased by up to 4x in large E Com Platforms Activities were conducted between Dec’19 to Feb’20. Comparison with Avg nos of Q1/ Q2/ Q3 FY20 9
Slide 11: Consistent Success Stories from Digital
Consistent Success Stories from Digital CONTEXTUAL TARGETTING INFLUENCER OUTREACH Target Microsegments with relevant hairfall situations #Whereisyourhair Influencer Videos on Instagram #Oilingisgood 3.8 Mn 0.5 Mn 1.5X Industry >0.8Mn 1.7X benchmark on engagement consumers Industry Benchmark in terms
Slide 12: Micromarketing in Key States
Micromarketing in Key States ➢Marketing/ Sales Plan made by Clusters within States ➢Specific Initiatives rolled out for HIGH MEDIA PRESSURE COVERAGE EXPANSION Clusters- ➢High Media Pressure + Local Media ➢Tailored SKU’s ➢Increase in Direct Coverage RURAL ACTIVATIONS SKU Specific Plans 11
Slide 13: Positive Results - Bajaj Hair oil Market Share
Positive Results - Bajaj Hair oil Market Share Change in Market share Vs Same Value Share % Month LY 11.5 0.5 0.4 11.0 0.4 0.3 0.3 0.3 0.3 10.5 0.2 0.2 0.1 10.0 0.1 0.1 0.0 9.5 -0.1 0.0 9.0 -0.2 -0.2 -0.2 8.5 -0.3 -0.3 -0.3 -0.4 8.0 -0.4 FEB19 MAR19 APR19 MAY19 JUN19 JUL19 AUG19 SEP19 OCT19 NOV19 DE
Slide 14: IT Initiatives & Automation tools
IT Initiatives & Automation tools 13
Slide 15: SAP HANA 1809 Launch
SAP HANA 1809 Launch Organization has successfully launched SAP HANA 1809 version on 4th April 2020 Flexibility Realtime Finance and Costing in adoption data of new visibility processes Sales and Distribution Innovation Increase Capabilities efficiency Material Management Help in Single Production P
Slide 16: Success Factors – Go Live
Success Factors – Go Live We are live on SAP Success Factors platform with successful implementation of Employee Central, Recruitment, Performance Management and L&D Modules. Performance Succession & Employee Central Management Development • Employee Life-Cycle • Goal Setting Succession Planning Pro
Slide 17: Human Resources – Developing Manpower
Human Resources – Developing Manpower 16
Slide 18: Winning with People
Winning with People • Annual Performance Review process for year 2019-20 was initiated in Feb’20 with the launch of Performance Management Module in Success Factors Annual Performance • Employees/Managers spent quality time discussing achievements and developmental Reviews opportunities. Success Fac
Slide 19: Winning with People – Engagement & Celebration
Winning with People – Engagement & Celebration ▪ Diwali / Christmas /Holi / Women’s Day / Festival / Environment Day / Independence Day / Events Republic Day Regional Zones Personalized ▪ Birthday Celebration ▪ Work Anniversary Reward & ▪ Spot Recognition, Long Service Award, Localized Recognition S
Slide 20: Winning with People – Talent Management
Winning with People – Talent Management Sales KEY HIGHLIGHTS Initiatives delivering top • 1427 mandays of training / capability intervention programs in 19- line impact 20 under Saksham umbrella Functional • 95% of employees across all functions were provided training Capability Support Initiatives
Slide 21: GPTW Certification 2020
GPTW Certification 2020 BCCL has been now been certified as a “Great Place to Work” by the Great Place to Work (GPTW) Institute for the second consecutive year with a steadily improving score from previous years. Our score is at par with other FMCG / FMCD companies of India. The certification is con
Slide 22: Management Team of BCCL
Kushagra Sumit Malhotra Jaideep Nandi Ankit Chudiwala Management Nayan Bajaj Managing Director He is Managing Director of the CEO Appointed as CEO in Jan’20, he Head - Internal Audit Joined BCCL in Feb 2017. He’s a company from Aug’2011. He is a BE in Mechanical Team of BCCL Chairman holds a B.Pharm
Slide 23: COVID-19 Response
COVID-19 Response bajaj CONSUMER CARE
Slide 24: COVID – Impact & Response
COVID 19 – Impact & Response ➢ The macroeconomic situation has been challenging throughout 2019-20 with the Hair oil category facing significant headwinds with tepid growth. The impact on industry has worsened since lockdown in March due to COVID 19 pandemic ➢ From March 23rd till the first fortnigh
Slide 25: Response to COVID - HR
Response to COVID 19 - HR ➢Extensive fortnightly communication by Chairman, MD & CEO with each employee through virtual Town Halls ➢ Personal Communication and thank you note to spouse of each employee by the Chairman ➢ Firm commitment of Chairman to protect job of each employee and support towards
Slide 26: Hand Sanitizer Launch during Lockdown
Hand Sanitizer Launch during Lockdown ➢ First line of defense against Covid-19 ➢ Heritage of Bajaj Nomarks ➢ Ingredients with Strong Consumer Linkage of Efficacy and Goodness ➢ Better Product Sensorials 25
Slide 27: Product Features
Product Features ➢Efficacy On germs -- 65% w/w Alcohol Based Formulation ( 73% by Volume ) ➢Goodness of Neem and Aloe Vera: ➢For Germ Free + soft skin ➢Fresh Lemon Perfume ➢1 step protection – ➢Quick Drying Formula ➢No Need of Water 26
Slide 28: Key Indicators
Key Indicators bajaj CONSUMER CARE
Slide 29: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure 53 Factory (8) The company reaches consumers through 4.1 Million retail outlets serviced by 8789 distributors OWN – Himachal Pradesh -1, Uttarakhand- 1, Guwahati 1 80 THIRD PARTY - Himachal Pradesh-2, Baroda -1 294 Uttarakhand-
Slide 30: Sales & Distribution
Sales & Distribution ✓ Our distribution has reached 41 lakh outlets as per Nielsen data Distribution Outlets ADHO (in Lacs) 42 41 41 40.4 40 39.9 40.1 40.1 39.7 39.6 40.1 39 39 38 38 37.9 37.6 37.5 37.4 37.6 37.6 37 37 36.5 36.6 36 35.8 35 35 34 33 32 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16
Slide 31: Sales Value Breakup by Channel (Q4 FY 20)
Sales Value Breakup by Channel (Q4 FY 20) Rs. Crs Channel Q4FY20 Q4FY19 Growth% Salience% General Trade 144.35 203.94 (29.22%) 85.60% Modern Trade 16.13 18.36 (12.17%) 9.56% Total Domestic excluding CSD 160.48 222.30 (27.81%) 95.16% Canteen Stores Department 4.92 9.23 (46.63%) 2.92% Total Domestic 1
Slide 32: Standalone Financials for Q4 FY 2020
Standalone Financials for Q4 FY 2020 Rs. Crs Particulars Q4FY20 Q4FY19 Growth % FY20 FY19 Growth % Sales 168.63 238.26 -29.23% 817.75 880.94 -7.17% Revenue from Operations 175.39 245.66 -28.60% 844.20 909.36 -7.17% EBITDA 25.04 79.04 -68.32% 216.24 283.85 -23.82% EBITDA % 14.85% 33.17% 26.44% 32.22%
Slide 33: Breakup of Material Costs (for Q4 FY 20)
Breakup of Material Costs (for Q4 FY 20) % to Total Cost LLP 25% 29% Bottles Refined Mustard Oil 9% Perfumes & other 13% 25% additives Others 32
Slide 34: Change in prices of Key Ingredients
Change in prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Oil 100 100 80 80 Amount (Rs.) Amount (Rs.) 60 60 99.83 87.21 84.97 88.84 40 40 62.04 58.94 61.96 60.01 20 20 0 0 Q4FY19 vs Q4FY20 FY19 v FY20 Q4FY19 vs Q4FY20 FY19 v FY20 33
Slide 35: Performance over the last 16 quarters
Performance over the last 16 quarters 40.00% 35.37% 34.82% 35% 33.44% 32.96% 34.08% 33.17% 32.79% 32.61% 31.51% 30.93% 29.26% 30.10% 30.12% 30.00% 27.10% 12.50% 20.00% 11.10% 14.85% 9.45% 8.68% 8.14% 7.00% 5.86% 5.86% 5.50% 5.17% 5.09% 5.01% 4.66% 3.84% 3.47% 10.00% 2.65% 1.80% 1.01% 0.77% Gr (Value
Slide 36: Dividend Payout History
Dividend Payout History No. of Shares Dividend Payout Dividend per Year Face Value % to Capital (in Lacs) (Rs in Lacs) share(Rs.) 2019-20 1,475.34 1 2,950.68 200% 2.00 2018-19 1,475 1 20,650.00 1400% 14.00 2017-18 1,475 1 17,700.00 1200% 12.00 2016-17 1,475 1 16,962.50 1150% 11.50 2015-16 1,475 1 16
Slide 37: Thank you
Thank you For more information & updates Contact: Mr. Kushal Maheshwari kushal@bajajconsumer.com 36
Bajaj Consumer Care — Q4 FY2020 Earnings Presentation on 6ix