Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q4 FY2018 Earnings Presentation
36 slides from Bajaj Consumer Care's earnings presentation, April 2018
Slide 1: Investor Presentation April 2018
INVESTOR PRESENTATION APRIL - 2018
Slide 2: BCL Vision
BCL VISION Harness our heritage of 90 years and combine it with leading edge scientific knowledge to bring innovative high quality products for consumers across the world to help them get more out of life.
Slide 3: Naya Bajaj – Mission 2020
NAYA BAJAJ – MISSION 2020 • We aspire to make BCL a complete FMCG company by introducing a culture of innovation here to create newer pathbreaking products for consumers across the globe • We will help our consumers feel good, look good and get more out of life with our premium mixes and make them a
Slide 4: Q4 – Market Context
Q4 – Market Context • Trade • WS showing signs of sequential recovery now • Urban Retail looking positive with no residual impact of GST • CSD channel is looking slightly better but difficult to predict if it will ever go back to its earlier size • Offtakes • Strong momentum on ADHO in both rural an
Slide 5: Q4 Highlights
Q4 Highlights Strong Competitive Growth Across Categories HAIROILS • Good sequential MS growths over qtrs. in both value & volume terms for ADHO (9.3% / 9.4%/9.8% and 7%/7.2% and 7.6%) • 120 BPS improvement over Q3, leading to its highest ever shares for ADHO in the LHO segment at 62.2% (Q4 MS Val)
Slide 6: BCL - Key Initiatives in Q4
BCL - Key Initiatives in Q4 Marketing – Innovation / Innovation / Innovation • Launch of Bajaj Coco Jasmine Hair oil in Maharashtra • Entry into the value added coconut oil segment • Combination of Coconut oil, Jasmine extracts & Vit E reduces hair breakage by 3 times. • Bajaj Almond Drops New Campa
Slide 7: BCL - Key Initiatives in Q4
BCL - Key Initiatives in Q4 Sales - Automation / Direct Distribution • Urban – Focus on range selling with higher throughput • Rural - Post doubling reach in the first 9 months, extraction & maximization of each point • SFA rollout in Rural – Successful rural SFA launch and consolidation in Q4 with
Slide 8: Q4 Results – Consistent Volume Driven Growth
Q4 Results – Consistent Volume Driven Growth • Overall Company Value growth of 5% • Led by a strong domestic Value Growth of 6.2% and volume growth of 6.9% • Domestic growths led by a 5.4% value growth in GT and 18.1% in MT • CSD has started picking up and registered growth of 5.6% • IB continues to
Slide 9: Going Forward..
GOING FORWARD.. • In the Short Term • Further improvement in WS Channel pick-up • Demand to strengthen further especially in rural • Inflationary impact of 10% for 2018-19 predominantly driven by crude, lower mustard crop and MSP increase. • Our Plan • Keep Driving the upgradation agenda even strong
Slide 10: Industry Overview
INDUSTRY OVERVIEW
Slide 11: Industry Size and Structure
INDUSTRY SIZE AND STRUCTURE FMCG Rs. 3,53,277 cr Hair Care 6% CONTRIBUTION Rs. 22,575 cr Shampoo Coconut Oil Hair Oil Hair Dyes Hair Conditioners Rs. 6,788 cr Rs. 3,806 cr Rs. 7,394 cr. Rs. 4,010 cr Rs. 577 cr. (30%)* (17%)* (33%)* (18%)* (3%)* 25% 25% 17% 12% 14% Amla Based Oils Light Hair Oils VAC
Slide 12: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 12,000 11,200 300 283 269 264 9,928 10,103 247 255 254 10,000 9,390 250 236 238 8,676 214 7,867 8,000 6,981 (In ‘000 KLtr) 200 (Rs. Cr.) 5,728 Growth 3.9 % Growth -0.2% Growth 7.4 % Growth 3.9% Growth 21.9% Growth 1
Slide 13: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 40.0 34.9 2,000 35.0 31.9 32.2 33.1 1,744 31.3 1,800 30.0 1,576 1,639 30.0 26.8 1,600 1,474 1,502 1,311 (In ‘000 KLtr) 25.0 22.4 1,400 19.9 Growth 19.5 % 1,080 Growth 12.5 % 1,200 Growth 2.7 % (Rs. Cr.) Growth 17.1 % Growt
Slide 14: MS Trends Qtrly - THO AI (U+R)
MS Trends Qtrly - THO AI(U+R) MS Val MS Vol Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ADHO 9.6 9.3 9.4 9.8 7.2 7 7.2 7.6 All Bajaj 10 9.7 9.9 10.3 7.7 7.6 7.8 8.3 Brands* Strong positive trends for ADHO in THO category on both MS Vol & MS Val Source: Nielsen Retail Audit Report, Mar 2018 13 13
Slide 15: Market Shares Trend in Light Hair Oil Category
Market Shares Trend in Light Hair Oil Category (All India - Urban + Rural) Volume MS Value MS 70.0% 70.0% 60.3% 61.0% 60.7% 61.3% 58.3% 58.0% 58.8% 56.9% 58.4% 60.0% 56.6% 57.8% 60.0% 55.0% 54.4% 53.0% 51.9% 50.7% 50.0% 48.0% 49.1% 50.0% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0% 10.0% 10.0% 0.0% 0.0% 09-1
Slide 16: Market Shares Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (All India - Urban + Rural) Volume MS Value MS 8.0% 12.0% 7.4% 7.3% 7.3% 7.1% 7.0% 6.6% 6.7% 9.9% 9.7% 9.7% 9.8% 10.0% 9.5% 9.5% 6.0% 5.8% 8.5% 8.0% 7.7% 5.0% 4.7% 7.1% 4.5% 4.0% 6.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 09-10 10-11 11-12 12-13 13-14 14-
Slide 17: ADHO – Relative Market Share – Value Trend
ADHO – Relative Market Share – Value Trend Relative Market share is the ratio of Bajaj Almond Drops market share to the next largest competitor in LHO segment 5.0 Relative MS Value 4.6 4.5 4.5 4.3 4.3 4.3 4.0 4.0 3.4 3.5 3.2 3.0 2.7 2.5 2.0 1.5 1.0 0.5 0.0 09-10 10-11 11-12 12-13 13-14 14-15 15-16 1
Slide 18: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value Relative Relative States Rank Market Share States Market Rank Share Delhi 4.8 1 North East 13.8 1 Rajasthan 1.4 1 Orissa 7.2 1 Punjab 3.0 1 WB 3.2 1 HP-JK 3.8 1 Maharashtra 4.7 1 Haryana 4.8 1 Mumbai 3.2 1 Madhya Pradesh 3.8 1 Gujarat 1.9 1 Chhattisgarh 6.2 1 AP
Slide 19: Bajaj Brahmi Amla Ayurvedic Hair Oil: Growth momentum continues in Q4
Bajaj Brahmi Amla Ayurvedic Hair Oil: Growth momentum continues in Q4 Restaged Bajaj Brahmi Amla Ayurvedic Hair Oil • Benefits of Ayurvedic Brahmi and Amla extracts to reduce hairfall • New Premium packaging • TV Commercial featuring Brand Ambassador- Drashti Dhami Value Offtake (000 Rs) Dealers ('0
Slide 20: Bajaj Coco Jasmine Hair Oil: Launch in Q4 17-18
Bajaj Coco Jasmine Hair Oil : Launch in Q4 17-18 • Launched Bajaj Coco Jasmine Hair Oil in Maharashtra • Its unique combination of Coconut oil, Jasmine extracts & Vit E reduces hair breakage by 3 times. • Brand Ambassador - Hruta Durgule (Popular Regional TV celeb in Maharashtra)
Slide 21: Bajaj Nomarks Cream continues to grow faster than the Antimarks category
Bajaj Nomarks Cream continues to grow faster than the Antimarks category. Q-o-Q Gr Val (All India) Q-o-Q Gr Val (UP) 60.0 100.0 88.8 84.5 84.9 48.3 50.0 45.7 43.8 43.1 80.0 40.0 35.5 58.0 60.0 30.1 30.0 22.6 39.4 40.0 20.0 24.8 9.6 20.0 10.0 8.3 0.0 0.0 Q1'17-18 Q2'17-18 Q3'17-18 Q4'17-18 Q1'17-18 Q
Slide 22: NM Cream continues to show an increase in value MS in UP
NM Cream continues to show an increase in value MS in UP. Nomarks MS Val Trend – UP (Anti Marks Women’s Category) 14.0 13.0 12.5 12.0 11.5 10.6 10.0 10.3 10.0 9.7 9.0 8.0 8.2 8.3 8.3 7.9 7.8 6.0 6.1 6.3 5.0 5.3 4.9 4.6 4.0 4.0 4.2 3.9 2.0 0.0 JUN16 JUL16 AUG16 SEP16 OCT16 NOV16 DEC16 JAN17 FEB17 MAR
Slide 23: Distribution
Distribution 22
Slide 24: Strong Distribution Network
Strong Distribution Network Strong Distribution Network Distribution Network Distribution Structure 51 Factory (9) The company reaches consumers through 3.92 million retail outlets serviced by 9341 distributors OWN – Himachal Pradesh -2, Uttarakhand- 1, Guwahati 1 71 THIRD PARTY - Himachal Pradesh-2
Slide 25: Sales Force Automation
Sales Force Automation • SFA program has been launched under the name of Project Saathi last year. • It was started with the objective of better coverage & control of distribution, better efficiency • Current all 1200 ISR are in under SFA (As on 31st March-2018 ) • Future ISR addition will be with S
Slide 26: Financials
Financials 25
Slide 27: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Q4FY18 Q4FY17 FY18 FY17 As on As on Particulars Sales (Net) 214.45 204.21 811.85 790.49 31.03.2018 31.03.2017 EBITDA 73.08 67.32 263.67 270.00 EBITDA Margin 34.08% 32.97% 32.48% 34.16% Shar
Slide 28: Profit & Loss Q4 and FY2018
Profit & Loss Q4 and FY2018 Rs. in Crore Particulars Q4 FY18 Q4 FY17 YoY% FY18 FY17 YoY% Net Sales 214.45 204.21 5.01% 811.85 790.49 2.70% Other Operating Income 7.15 0.33 19.36 2.05 Material Cost 72.53 66.96 273.07 267.90 % of Sales 33.82% 32.79% 33.64% 33.89% Employees Cost 19.95 15.22 75.47 59.39
Slide 29: Sales Value Growth
Sales Value Growth Sales Vertical Growth Q4FY 18 Growth FY 18 General Trade 11.07% 7.69% Modern Trade 23.93% 18.29% Total Domestic ( Exc. CSD) 11.94% 8.39% Canteen Stores Department 5.56% -14.10% Total Domestic 11.59% 7.23% International Business -32.90% -26.30% Total for the Company 10.12% 5.81% No
Slide 30: Statement of Quarter wise Sales (Volume)
Statement of Quarter wise Sales (Volume) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) % Inc ADHO KPCO BAHO AHO Nomarks Others Total over PY FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 Q1 1,185,731 1,269,703 7,407 7,483 9,408 11,801 32,058 45,072 24,817
Slide 31: Consistent Performance over the last 16 successive quarters
Consistent Performance over the last 16 successive quarters 40.00% 35.37% 34.82% 35% 33.62% 33.44% 32.96% 34.08% 35.00% 31.88% 32.35% 31.67% 31.51% 30.86% 28.58% 28.27% 29.24% 29.26% 30.00% 25.00% 20.00% Gr (Value) 15.00% Gr (Vol) EBIDTA 10.00% 5.00% 12.36% 18.55% 29.83% 21.06% 27.82% 23.03% 14.29%
Slide 32: 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 40 40 81.68 85.51 79.89 79.53 65.45 61.40 20 48.22 45.80 20 0 0 Qtr4 FY17 vs FY18 FY17 vs FY18 Qtr4 FY17 vs FY18 FY17 vs FY18 ✓ During the quarter average landed price of LLP inc
Slide 33: Fund Position
Fund Position • Fund Position: • The total Fund available with the company as on 31st Mar 2018 is Rs. 319.20 Crores • This has been invested in Bank Fixed Deposits and top rated Corporate & PSU Bonds • There is no investment in ANY Inter Corporate Deposit Particulars Amount (Rs. in Crores) Bank FDs
Slide 34: Dividend Payout History
Dividend Payout History Dividend Dividend per No. of Shares Face Year Payout % to Capital share (in Lacs) Value (Rs in Lacs) (Rs.) 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 16,962.50 1150% 11.50 2013-14 1,475 1 9
Slide 35: For More Information
For More Information • Please Visit www.Bajajcorp.com 34
Slide 36: Thank You
THANK YOU 35
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