Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q1 FY2020 Earnings Presentation
29 slides from Bajaj Consumer Care's earnings presentation, Jul 15, 2019
Slide 1: Investor Presentation Q1 – FY 2020
Investor Presentation Q1 – FY 2020 Date: 15/07/2019
Slide 2: Flow
FLOW • BCL TRANSFORMATION FOR GROWTH PILLARS & ACTION TAKEN • INDUSTRY OVERVIEW • FINANCIAL INFORMATION 2
Slide 3: Transforming for Growth – BCL Pathfinder
TRANFORMING FOR GROWTH – BCL PATHFINDER VISION MISSION VALUES PILLARS OF GROWTH WINNING WINNING WINNING WINNING WITH IN WITH WITH BRANDS MARKET PROCESSES PEOPLE 3
Slide 4: Growth Pillars into Action
GROWTH PILLARS INTO ACTION WINNING WITH BRANDS - INNOVATIONS , RENOVATIONS, COLLABORATIONS Haircare • Bajaj Cool Almond Drops Launched in March 19 to extend Almond Drops Equity into the cooling segment • Increase in TV advertising spends to improve penetration • Focus on using Digital media to targe
Slide 5: Q1 – Market Context
Q1– MARKET CONTEXT HAIROILS • Hair Oils category grew by 8.9% in volume in MAT Jun 19, whereas value growth has been 16% • Volume MS% of Bajaj Almond Drops improved to 7.7% in MAT Jun 19 vs 7.4% in MAT Jun 18 • Value MS% of Bajaj Almond Drops improved to 9.6% in MAT Jun 19 vs 9.5% in MAT Jun 18 • St
Slide 6: ADHO Volume Share Has Increased Steadily across Urban and Rural
ADHO Volume Share has Increased Steadily across Urban and Rural 8.5 8.3 8.3 8.4 8.4 8.3 8.3 8.2 8.3 8.2 8.2 8.1 8.0 7.9 7.9 8.0 7.8 7.8 7.8 7.8 7.8 7.7 7.8 7.7 7.8 7.8 7.7 7.6 7.7 7.5 7.5 7.5 7.3 7.4 7.2 7.3 7.2 7.1 7.2 7.1 7.1 7.1 7.1 7.1 7.0 7.1 6.9 6.9 7.0 6.8 6.7 6.7 6.6 6.6 6.7 6.5 6.0 MAT MAT
Slide 7: Nomarks has maintained share at a higher level post restage
Nomarks has maintained share at a higher level post restage MS Val 9.0 8.6 8.7 8.7 8.6 8.5 8.6 8.6 8.5 8.5 8.5 8.3 8.2 8.2 8.2 8.1 8.1 8.0 8.0 7.9 8.0 7.8 7.6 7.5 7.0 6.5 6.0 7 Source: Nielsen Retail Audit Report, Jun 2019
Slide 8: Building a Hair Oil Portfolio – Bajaj Cool Almond Drops
Building a Hair Oil Portfolio – Bajaj Cool Almond Drops • Pricing - ~ 20% Premium to ADHO • Packaging - • Classic ADHO shape to leverage ADHO Equity • Red Color to tie in with category codes • Available in Rs. 1 Sachet also • Ravindra Jadeja taken on Board as Brand Ambassador • Brand supported with
Slide 9: Cool Almond Drops: Positive early results
Cool Almond Drops : Positive early results Value Offtakes (Lac) 163 135 134 112 35 31 23 29 9 9 4 0 AI (U+R) AI- U AI-R Mar-19 Apr-19 May-19 Jun-19 • Bajaj Cool Almond Drops has the highest offtake amongst new launches in Hair oil ( 4 months since launch ) • Market Share of 1.3 % in cooling oils in
Slide 10: Bajaj Nomarks Ayurvedic Antimarks Sunscreen
Bajaj Nomarks Ayurvedic Antimarks Sunscreen • Sunscreen is Rs 250 Crs category but with Low Penetration • Consumers hesitant to use current options because of perception of harsh chemicals • Opportunity to extend Nomarks equity of Ayurveda + Marks Prevention • Launched with Proposition of – Protecti
Slide 11: Sunscreen – Supported through Digital Media and On ground Visibility
Sunscreen – Supported through Digital Media and On ground Visibility • Campaign reached 4.3Mn women and even got 5Mn Video Views - in Launch Markets - Delhi + NCR, UP, Kolkata and Bangalore • Campaign used Multiple Digital platforms like – YouTube, Facebook, Instagram, Voot, Google Displays etc. • S
Slide 12: Growth Pillars into Action
GROWTH PILLARS INTO ACTION WINNING IN MARKET – QUALITY & QUANTITY Enhancing Quantity and Quality of Distribution • Improving Quality and quantity of coverage through effective use of SFA • Numeric and Weighted distribution at an all time high • Bajaj Almond Drops now available in over 40 lakh outlet
Slide 13: Q4 – Market Context
Q4 – MARKET CONTEXT General Trade: • Growth have been sluggish across rural and urban • Rural markets continues to lead growths across states , sequential slowdown observed • Wholesale has seen sharper sequential slowdown • Urban Retail continues to be stable • Cool Almond Drops accepted well by tra
Slide 14: Winning with People
WINNING WITH PEOPLE • Annual Rewards Cycle of FY 20 was implemented effective April 1, 2019 alongwith introduction of market competitive and flexible compensation and benefits. • Key highlights of ARC’20 cycle was: • Compensation Benchmarking completed for all Critical Roles • 100% employees covered
Slide 15: Industry Overview
Daj) consumer care INDUSTRY OVERVIEW THINK TOMORROW
Slide 16: Industry Size and Structure
Industry Size and Structure FMCG Rs. 3,97,003 cr Hair Care 6% CONTRIBUTION Rs. 25,562 cr Shampoo Coconut Oil Hair Oil Hair Dyes Hair Conditioners Rs. 7,622 cr Rs. 4,520 cr Rs. 8,261 cr. Rs. 4,464 cr Rs. 695 cr. (30%)* (18%)* (32%)* (17%)* (3%)* 25% 25% 17% 12% 14% Amla Based Oils Light Hair Oils VAC
Slide 17: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 14,000 13,168 350 309 283 12,000 11,200 300 269 264 10,103 236 238 247 255 254 9,390 9,928 10,000 8,676 (In ‘000 KLtr) 250 7,867 (Rs. Cr.) Growth -5.3% Growth -0.2% 6,981 Growth 21.9% Growth 12.7% Growth 7.4% Growth
Slide 18: Market Share Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 9.0% 12.0% 7.8% 7.7% 8.0% 9.9% 9.8% 7.4% 7.3% 7.3% 7.4% 9.7% 9.7% 9.5% 9.6% 9.6% 7.1% 10.0% 9.5% 9.5% 7.0% 6.6% 6.7% 8.5% 5.8% 8.0% 7.7% 6.0% 5.0% 4.7% 6.0% 4.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 10-11
Slide 19: Strong Distribution Network
Updated Strong Distribution Network Distribution Network Distribution Structure 53 Factory (9) The company reaches consumers through 40.12 Million retail outlets serviced by 8869 distributors OWN – Himachal Pradesh -2, Uttarakhand- 1, Guwahati 1 80 THIRD PARTY - Himachal Pradesh-2, Bangladesh-1, 294
Slide 20: Organisation Structure
Daj) consumer care ORGANISATION STRUCTURE THINK TOMORROW
Slide 21: Management team
Apoorv Nayan Bajaj Dilip Kumar Maloo Rohit Saraogi Chief Financial Officer Assistant Vice President - Executive President Joined BCCL on April 1991. He is a Finance qualified CA & CS professional and has Joined BCCL on Mar 2019. He is a commerce more than 30 years of experience across graduate from
Slide 22: Financials
Dalal consumer cane Financials THINK TOMORROW
Slide 23: Sales Value Growth Q1 FY20
Sales Value Growth Q1 FY20 Sales Vertical Salience% Growth Salience% Growth Q1FY20 Q1FY20 Q1FY20 Q1FY20 (Value) (Value) (Volume) (Volume) General Trade 89.47% 6.04% 89.97% 2.60% Modern Trade 7.60% 20.64% 6.50% 13.15% Total Domestic excluding 97.07% 7.05% 96.46% 3.25% CSD Canteen Stores 0.00% -100.00
Slide 24: Financial Information (Standalone)
Financial Information (Standalone) Summary Income statement Summary Balance Sheet Particulars Particulars As on As on Q1FY20 Q1FY19 FY19 30.06.2019 31.03.2019 (Rs. In Crore) (Rs. In Crore) Sales (Net) 232.46 214.97 880.94 Shareholders Equity 543.56 485.12 Other Operating Income 7.78 6.44 28.41 EBITD
Slide 25: Profit & Loss Quarter ended June 30, 2019 (Standalone)
Profit & Loss Quarter ended June 30,2019 (Standalone) Rs. in Cr. Particulars Q1FY20 Q1FY19 YoY% FY19 Net Sales 232.46 214.97 8.14% 880.94 Other Operating Income 7.78 6.44 28.41 Total Operating Income 240.24 221.41 8.50% 909.36 Material Cost 77.49 73.94 301.10 % of Sales 33.34% 34.40% 34.18% Employee
Slide 26: Performance over the last 13 quarters
Performance over the last 13 quarters 40.00% 35.37% 34.82% 35% 33.44% 34.08% 35.00% 32.96% 32.79% 32.61% 33.17% 31.51% 30.93% 30.10% 29.26% 30.00% 25.00% 20.00% 12.50% Gr 11.10% 15.00% (Value) 9.45% 8.68% 8.14% Gr (Vol) 7.00% 10.00% 5.86% 5.86% 5.50% 5.17% 5.09% 5.01% 4.66% 3.84% 3.47% 1.80% 5.00% E
Slide 27: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg Landed Rates of LLP Per Kg Landed Rates of RMO 100 100 80 80 Amount (Rs.) Amount (Rs.) 60 60 40 40 85.98 88.21 89.22 71.89 79.53 70.12 70.47 61.40 20 20 0 0 Qtr1 FY19 vs FY20 FY18 vs FY19 Qtr1 FY19 vs FY20 FY18 vs FY19 ✓The landed cost of LLP for the quarte
Slide 28: 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.) 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 16,962.50 1150% 11.50 2014-15 1,475 1 16
Slide 29: Thank you
For more information & updates Contact: Mr. Kushal Maheshwari kushal@bajajconsumer.com Thank you
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