Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Q2 FY2021 Earnings Presentation
36 slides from Jyothy Labs's earnings presentation, Nov 4, 2020
Slide 1: Cover letter to stock exchanges: Copy of Presentation
November 4, 2020 To, 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 reference to the
Slide 2: Slide 2
Slide 3: Presentation Q2 FY2021
PRESENTATION Q2 FY2021 November 4, 2020 2
Slide 4: Contents
➢ About Us ➢ Market Scenario ➢ Our Resilient Performance CONTENTS Title will com here ➢ Result Highlights Subtitle will come here ➢ Brand Performance & Initiatives ➢ Way Forward www.jyothylabs.com 3
Slide 5: About Us
ABOUT US • Founded in 1983 by a first generation entrepreneur, our ‘Chairman Emeritus’ Mr MP Ramachandran. • Jyothy Labs is primarily in Home Care (includes Fabric wash, Dishwash and Household Insecticide) and Personal Care segments which constitute 50% of the Indian FMCG industry. • Our Key Product
Slide 6: Market Scenario
MARKET SCENARIO • Overall consumer sentiment have improved with economy and life almost back to normal. Businesses have been aligned for ‘new normal’ or ‘new abnormal’. We are at crossroads and underlying consumption trends are yet to settle. • Trust of brands have been very important for consumers
Slide 7: Our Resilient Performance
OUR RESILIENT PERFORMANCE PORTFOLIO FLAWLESS FINANCIAL AGILITY EXECUTION PRUDENCE Sales for Q2FY2021 have delivered Positive Growth. PORTFOLIO AGILITY Leverage on our core ‘Essential & Hygiene’ Product Portfolio. FLAWLESS EXECUTION Determination, Passion and Commitment of every member of Jyothy Labs
Slide 8: Portfolio Agility: Our Core Essential & Hygiene Portfolio
PORTFOLIO AGILITY DISHWASH Exo Bar, Gel Dishwash, Scrubber Pril Liquid Dishwash & Bar PERSONAL CARE Margo (Neem Based) OUR CORE Soap, Facewash, Handwash, Sanitizer ESSENTIAL & HYGIENE DETERGENTS PORTFOLIO Ujala Instant Dirt Dissolver & Fast Wash Bar Henko Stain Care & Henko Matic HOUSEHOLD INSECTICI
Slide 9: Flawless Execution
FLAWLESS EXECUTION Go To Market (‘GTM’) • Adding more Sub-stockists and focus on Van Coverage to enhance Rural Coverage • Driving sales of Low Unit Packs across brands of Rs.5 and Rs.10 • Enhanced focus on E-commerce platforms (contactless delivery) . New Launches • Addition to Hygiene Portfolio: Ex
Slide 10: Financial Prudence
FINANCIAL PRUDENCE SALES VOLUME • Detailed SKU and Plant Specific Sales Planning for ensuring seamless supply to consumers across India. EBITDA • Significant improvement in Net Working Capital days to 17 days as at R September 30, 2020 from 23 days at September 30, 2019 I S PAT • Net Cash Surplus Ba
Slide 11: Result Highlights – Q2FY21 Snapshot (Consolidated)
RESULT HIGHLIGHTS – Q2FY21 SNAPSHOT (CONSOLIDATED) Revenue up 6.2% (FMCG Sales up by 7.6% and Volume up by 8.5%). Gross Margin increased to 47.7% from 46.4% in the same period last year. A&P Spend at Rs 30 Crores versus Rs 28.2 Crores in the same period last year, an increase by 6.4%. Operating EBIT
Slide 12: Result Highlights – H1 FY21 Snapshot (Consolidated)
RESULT HIGHLIGHTS – H1 FY21 SNAPSHOT (CONSOLIDATED) Revenue up 4.5% (FMCG Sales up by 6% and Volume up by 7.3%). Gross Margin at 47% from 47.4% in the same period last year. Operating EBITDA at 17.5% (Rs 163.8 Crores) versus 16.1% (Rs 144.2 Crores) in the same period last year, an increase by 13.6%.
Slide 13: Category Wise Net Revenue
CATEGORY WISE NET REVENUE QUARTER ENDED HALF YEAR ENDED CATEGORY KEY BRAND CY PY GR % CY PY GR % Ujala FW, Henko, Ujala FABRIC CARE Crisp & Shine 171 194 -11.7% 313 380 -17.6% DISHWASHING Exo, Pril 192 155 23.6% 348 289 20.4% HOUSEHOLD INSECTICIDES Maxo 60 49 22.6% 124 75 66.3% PERSONAL CARE Margo,
Slide 14: Q2 FY21 Snapshot of Company's Performance (Consolidated)
Q2 FY21 SNAPSHOT OF COMPANY’S PERFORMANCE (CONSOLIDATED) QUARTER ENDED HALF YEAR ENDED PARTICULAR/GROWTH CY PY % CHANGE CY PY % CHANGE REVENUE FROM OPERATION 504 475 6.2% 937 897 4.5% OPERATING EBITDA 87.4 78.7 11.1% 163.8 144.2 13.6% PAT 60.1 53.6 12.2% 110.1 91.0 21.1% EPS (INR) (NOT ANNUALISED) 1
Slide 15: EBITDA Movement (Consolidated)
EBITDA MOVEMENT (CONSOLIDATED) PARTICULARS Q2FY21 H1FY21 EBITDA % - PREVIOUS PERIOD 16.6% 16.1% GROSS MARGIN 1.3% -0.4% EMPLOYEE COST -0.2% 0.0% ADVERTISEMENT & SALES PROMOTION 0.0% 1.6% OTHER EXPENDITURE* -0.3% 0.2% EBITDA % - CURRENT PERIOD 17.3% 17.5% * Other Expenditure includes donation of Rs 5
Slide 16: Financial Highlights (Consolidated)
FINANCIAL HIGHLIGHTS (CONSOLIDATED) Net Worth (Rs in crores) Working Capital in Days 40 1,600 1,343 35 1,400 1,289 1,229 35 1,200 30 1,000 25 23 800 20 17 600 15 400 10 200 5 0 0 Sep-19 Mar-20 Sep-20 Sep-19 Mar-20 Sep-20 ROCE Net Debt equity ratio 45.0% 42.2% 38.1% 39.3% 0.30 40.0% 0.27 0.26 35.0% 0
Slide 17: Brand Performance and Initiatives
BRAND PERFORMANCE AND INITIATIVES 16
Slide 18: Our Category Strategy
OUR CATEGORY STRATEGY HOUSEHOLD POST WASH MAIN WASH DISH WASH PERSONAL CARE INSECTICIDES • Extending • Establishing • Leveraging • Increasing • New Extensions Dominant uniqueness Two brand footprint • Differentiated position • Building for portfolio • Winning propositions on • Premiumisation future
Slide 19: Category Wise Business Share (Q2FY21)
CATEGORY WISE BUSINESS SHARE (Q2FY21) FABRIC CARE (MAIN WASH) 23% FABRIC CARE (POST WASH) 11% DISHWASHING OTHER 38% 4% HI 12% PERSONAL CARE 12% 18
Slide 20: Fabric Care - 34% of Total Business
FABRIC CARE - 34% OF TOTAL BUSINESS Q2FY21 Category Growth in % Fabric Care (11.7%) 19
Slide 21: Fabric Care (Post Wash) – Ujala Supreme
FABRIC CARE (POST WASH) – UJALA SUPREME Market Share in % Brand CY 17 CY 18 CY 19 Ujala Fabric Whitener 80.4% 80.6% 81.7% Source – AC Nielsen (CY - Calendar Year) Brand Performance: • Brand has seen recovery steadily from the slow down seen in the Q1FY21 owing to the lockdowns. • Witnessed good reco
Slide 22: Fabric Care (Post Wash) – Ujala Crisp & Shine
FABRIC CARE (POST WASH) – UJALA CRISP & SHINE Brand Performance: RETAIL VISIBILITY • The continued suspension of schools, and offices functioning with restraints has affected the demand for the product. • Brand is showing an improved trajectory in Q2, growing above 40% over last quarter. Marketing i
Slide 23: Fabric Care (Detergents) – Ujala
FABRIC CARE (DETERGENTS) – UJALA Market Share in % (Kerala) Brand CY 17 CY 18 CY 19 Ujala Instant Dirt 17% 17% 16% Dissolver(‘IDD’) Source – AC Nielsen Brand Performance: Ecom Offer Banner • GT sales growth has been positive, however restraint operations at MT and CSD impacted overall growth Marketi
Slide 24: Fabric Care (Detergents) - Henko
FABRIC CARE (DETERGENTS) - HENKO Brand Performance: • GT sales continued to outperform with higher sales growth • Restricted operations in MT and CSD stores Marketing Initiatives: • TV campaign in Key markets • Continued aggressive retail visibility & drives in focus markets. • Retail drives initiat
Slide 25: Dishwashing - 38% of Total Business
DISHWASHING - 38% OF TOTAL BUSINESS Q2FY21 Market Brand CY18 CY19 Category Growth in % Share Progress in Exo Bar 11.1 11.2 Dishwash 23.6% % Pril liquid 16.7 16.0 EXO AND PRIL - LIQUID DISHWASH AND BAR • Households focussing on Health & Hygiene aiding Source – AC Nielsen (Calendar Year) dishwash bran
Slide 26: Exo and Pril: Winning with the Consumers
EXO NEWAND PRIL : WINNING LAUNCH: WITH SPECIALIST T-SHINE FLOOR THE CONSUMERS Digital campaign to establish Exo as an indispensable product in Kitchen Pril Vogon Campaign: Unique Search Based communication on Youtube A set of 22 relevant creatives – one of which smartly plays at the right time creat
Slide 27: New Launch: Super T-Shine Gel
NEW EXO LAUNCH: SUPER DISHWASH T-SHINEGEL FLOOR SPECIALIST Placement of Exo Gel in vantage points in outlets across GT and MT Promoter led advocacy campaign 26 26
Slide 28: Launched Exo Bioh Fresh – 100% Organic Vegetable & Fruit Cleaner
LAUNCHED EXO BIOH FRESH – 100% ORGANIC VEGETABLE & FRUIT CLEANER Removes Bacteria, Virus, Fungi, Wax and Pesticides Just Spray it | Leave It | Rinse It 27 27
Slide 29: Household Insecticides - 12% of Total Business
HOUSEHOLD INSECTICIDES - 12% OF TOTAL BUSINESS Q2FY21 Market Brand CY18 CY19 Category Growth in % Share Maxo Coil 21.2 21.1 Household Insecticides 22.6% Progress in % Maxo Liquid Vaporiser 7.6 8.1 MAXO - LIQUID VAPORISER, COILS AND INCENSE STICKS • Persistent TV Media Support crucial in offtake gene
Slide 30: Digital Campaign & Retail Visibility
DIGITAL CAMPAIGN & RETAIL VISIBILITY Influencers video Post Consumer testimonials Retail visibility 29
Slide 31: Personal Care – 12% of Total Business
PERSONAL CARE – 12% of Total Business Q2FY21 Category Growth in % Personal Care 14.5% Brand Performance: • Increased consumer preference towards products made from natural ingredients was noted as a generic trend in current times. • The newly launched Margo Handwash and Hand santizer has seen Brande
Slide 32: T-Shine Floor Specialist Showing Encouraging Offtakes
T-SHINE FLOOR SPECIALIST SHOWING ENCOURAGING OFFTAKES New Launch campaign featuring Navya Nair in Kerala in Sept FY 21 - aiding offtakes. 31 31
Slide 33: Way Forward
WAY FORWARD • While business environment and consumer sentiment remain volatile, we focus on our core Essential & Hygiene Portfolio • Company is on track to deliver, sustainable profitable, volume led growth through focus on strengthening brand franchise • Driving full potential of business categori
Slide 34: Shareholding Pattern
SHAREHOLDING PATTERN As on 30 September 2020 FII 13.10% DII 17.67% Promoter and Promoter Group 62.89% Public 6.34% FII DII Public Promoter and Promoter Group 33
Slide 35: 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 36: Thank You
THANK YOU Contact for any queries Sanjay Agarwal – CFO Email: Sanjay.Agarwal@Jyothy.com Contact No: +91 22 6689 2800/+91 9167012328 35