Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Q2 FY22 Earnings Presentation
29 slides from Jyothy Labs's earnings presentation, Nov 2, 2021
Slide 1: Cover letter to stock exchanges
ae Jyothy labs To, November 2, 2021 National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Scrip Code: JYOTHYLAB Mumbai - 400051 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Scrip Code: 532926 Mumbai - 400 023 Dear Sir, Sub: Copy of Presentation With re
Slide 2: Jyothy Labs
Slide 3: Presentation Q2FY22
PRESENTATION Q2FY22 November 2, 2021 2
Slide 4: Content Flow
Content Flow 01. Overview 03. Our Performance Journey 05. Brand Performance & Initiatives 04. Result Highlights 02. Market Scenario 06. Way forward 3
Slide 5: Overview
OVERVIEW • Founded in 1983 by a first generation entrepreneur, our ‘Chairman Emeritus’ Mr. MP Ramachandran. ~Rs 1900+ cr Revenue in FY 2021 • Jyothy Labs is primarily in Home Care and Personal Care 2.8 Mn Outlets – Pan India availability segments which constitute 50% of the Indian FMCG industry. 0.8
Slide 6: Market Scenario
MARKET SCENARIO • Business Environment : • Stable Consumer Demand Trends • Stabilisation in all Distribution Channels • New users are driving Growth in Lower Penetration Categories (Dishwash/Household Insecticide) • Government Initiatives aimed at Rural India to drive consumption offtakes • Margin H
Slide 7: Our Strategic Levers - Robust Performance Across Categories
OUR STRATEGIC LEVERS- DELIVERS ROBUST PERFORMANCE ACROSS CATEGORIES #4 Relevant #1 Distribution #2 Brand Investment #3 Digital Technology #5 Sustainability Innovation Growth (%) Q2FY22 25.2% 12.7% 4.1% 5.3% H1FY22 26.2% 16.8% 8.5% 9.3% Q2FY22 (2Y CAGR) 5.1% 18.0% 12.9% 9.8% 6 6
Slide 8: High Input Prices
High Input Prices Unit Currency Mar-20 Mar-21 Oct-21 % Increase Key Products (Oct’21 vs Mar’20) Linear Alkyl Benzene ** Tonne $ 1195 1580 1894 58% Caustic Soda LYE * Tonne $ 331 340.8 516.8 56% Crude Palm Oil *** Tonne ₹ 2882 5306 6358 121% LDPE-Laminate Grade * Kg. ₹ 84 133 136 62% PET-Bottle Grade
Slide 9: Result Highlights – Q2FY22 Snapshot (Consolidated)
RESULT HIGHLIGHTS – Q2FY22 SNAPSHOT (CONSOLIDATED) Revenue at Rs 585.4 Crores increase by 16% (FMCG Volume growth of 11.4% ) Gross Margin at 40.1% from 47.7% in the same period last year A&P Spend at Rs 40.7 Crores (6.9% of Net Sales) versus Rs 30 Crores (5.9% of Net Sales) in the same period last y
Slide 10: Result Highlights – H1FY22 Snapshot (Consolidated)
RESULT HIGHLIGHTS – H1FY22 SNAPSHOT (CONSOLIDATED) Revenue at Rs 1,111 Crores increase by 18.5% (FMCG Volume growth of 13.9%) Gross Margin at 41.6% from 47% in the same period last year A&P Spend at Rs 83.6 Crores (7.5% of Net Sales) versus Rs 50 Crores (5.3% of Net Sales) in the same period last ye
Slide 11: Category Wise Net Revenue
CATEGORY WISE NET REVENUE Q2FY22 H1FY22 2Yr Quarterly Revenue Growth CY PY GR% CY PY GR% 25% Fabric Care 214 171 25.2% 395 313 26.2% 21.4% Dishwashing 216 192 12.7% 407 348 16.8% 20% JLL Household Insecticides 63 60 4.1% 135 124 8.5% 16.0% 15% Personal Care 66 63 5.3% 134 123 9.3% 10% Other Products
Slide 12: Q2FY22 & H1FY22 Snapshot of Company's Performance
Q2FY22 & H1FY22 SNAPSHOT OF COMPANY’S PERFORMANCE (CONSOLIDATED) QUARTER ENDED HALF YEAR ENDED PARTICULAR/GROWTH CY PY % CHANGE CY PY % CHANGE REVENUE FROM OPERATION 585 504 16.0% 1,111 937 18.5% OPERATING EBITDA 66.6 87.4 -23.8% 129.8 163.8 -20.8% PAT 44.0 60.1 -26.9% 84.2 110.1 -23.6% EPS (INR) (N
Slide 13: EBITDA Movement (Consolidated)
EBITDA MOVEMENT (CONSOLIDATED) PARTICULARS Q2FY22 H1FY22 EBITDA % - PREVIOUS PERIOD 17.3% 17.5% GROSS MARGIN -7.6% -5.4% EMPLOYEE COST 1.7% 1.1% ADVERTISEMENT & SALES PROMOTION -1.0% -2.2% OTHER EXPENDITURE 0.9% 0.7% EBITDA % - CURRENT PERIOD 11.4% 11.7% 12
Slide 14: Financial Highlights (Consolidated)
FINANCIAL HIGHLIGHTS (CONSOLIDATED) Net Worth (Rs in crores) 25 Working Capital in Days 1,750 20 17 1,500 1,343 1,429 1367 15 1,250 15 12 1,000 10 750 500 5 250 0 0 Sep-20 Mar-21 Sep-21 Sep-20 Mar-21 Sep-21 42.2% ROE Net Debt equity ratio 45.0% 0.05 40.0% 0.03 35.0% 31.5% 31.1% 0.03 30.0% 25.0% 16.8
Slide 15: Brand Performance & Initiatives
BRAND PERFORMANCE & INITIATIVES 14
Slide 16: Category Wise Business Share
15 Fabric Care (Main Wash) 27% Fabric Care (Post Wash) 10% Q2 FY 2022 Dishwash Other 4% Category Wise 37% Household Business Share Insecticide 11% Personal Care 11% 15
Slide 17: Driving availability and standing by the assurance in quality
16 Q2 FY2022 Driving availability and standing by the assurance in quality. The demand for our brands improved with the slowing down of the pandemic. Our approach was to continue to make our products available and maintain the assured quality despite the increase in the input costs. . 16
Slide 18: Category highlights
Category highlights Fabric care Home care Dish Wash Personal Care Driving Ujala Liquid Maxo leveraging High growth backed by Continued focus on Detergent penetration Innovation in machine to superior product the 100 years heritage in key markets penetrate in low share offerings of Margo markets 17
Slide 19: Fabric care (post wash)
Fabric care (post 18 wash) Performance Improvement in sales performance with Market share offices resuming offline work and opening CY19 CY20 MQ21 SQ21 of educational institutions in many states 82.0% 82.6% 84.0% 84.9% leading to increased mobility. Source – AC Nielsen; CY-Calendar Year Ujala Key in
Slide 20: Fabric care (post wash)
19 Fabric care (post wash) Performance Registered double-digit growth (albeit on lower base), with offices and educational institutes beginning to work offline. Ujala Key initiatives Crisp & Driving trials through targeted sampling in new market. Shine Continued high visibility ATL communication cam
Slide 21: Fabric care (main wash)
20 Fabric care (main wash) Performance Market share Ujala IDD powder and bar continued to register a healthy CY19 CY20 MQ21 SQ21 double-digit growth. 19.2% 19.9% 19.3% 21.1% Source – AC Nielsen; CY-Calendar Year Key initiatives Ujala Detergent Focused drives to increase penetration of the newly laun
Slide 22: Fabric care (main wash)
21 Fabric care (main wash) Performance A strong comeback seen with opening of Large format stores of Modern Trade and Canteen Stores Department. Brand continued to offer superior efficacy against competing brands giving consumers desired performance. Henko Key initiatives Continued ATL spends streng
Slide 23: Dish wash
22 Dish wash Performance Dishwash grew at 12.7% on back of superior Market Share brand promise and product delivery Brand CY 19 CY 20 MQ21 SQ21 Focused work on consumer relevant packs Exo 11.3% 12.5% 13.2% 13.4% enabled the brand to reach new consumers Pril 16.3% 17.5% 15.3% 15.2% Source – AC Nielse
Slide 24: Household Insecticide
23 Household Insecticide Performance Registered a robust strong double- Market Share digit growth in Liquid Vaporiser; Format CY 19 CY 20 MQ21 SQ21 leveraging ‘India’s first automatic Coil 21.2% 22.9% 23.3% 24.0% Liquid 8.3% 8.7% 8.6% 9.8% machine proposition’. Source – AC Nielsen; CY-Calendar Year
Slide 25: Personal Care
24 Personal Care Performance Consistent growth in Brand performance Continues to outperform in E-Commerce Platforms . Key initiatives ATL spends including print ads in leading dailies across India. Margo Higher focus in social media promotions – Driven by influencers Visibility drives in large selec
Slide 26: Way Forward
WAY FORWARD • Volume Led Growth to achieve Higher Scale with Agility • Sharp management focus on • Brand Building & relevant innovations • Gaining Market Share across Brands • Strengthening Distribution with Aid of Technology and addition of manpower to enhance market execution • Inflationary Input
Slide 27: Shareholding Pattern
SHAREHOLDING PATTERN As on 30 September 2021 FII 12.72% DII 16.93% Promoter and Promoter Group 62.89% Public FII 7.46% DII Public Promoter and Promoter Group 26
Slide 28: 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 29: Thank You
THANK YOU Contact for any queries Sanjay Agarwal – CFO Email: Sanjay.Agarwal@Jyothy.com Contact No: +91 22 6689 2800/+91 9167012328 28