Dabur India Limited · NSE:DABUR
Dabur India — BofA 2024 India Conference
47 slides from Dabur India's conference presentation, May 29, 2024
Slide 1: Schedule of Analyst/Institutional Investor Meet
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Slide 2: Investor Presentation June 2024
Investor Presentation June 2024
Slide 3: Key Agendas for Today
KEY AGENDAS FOR TODAY FY24 PERFORMANCE DABUR OVERVIEW STRATEGIC PILLARS ANNEXURE HIGHLIGHTS
Slide 4: Dabur Overview
1 FY24 PERFORMANCE DABUR OVERVIEW STRATEGIC PILLARS ANNEXURE HIGHLIGHTS
Slide 5: Dabur's Year Heritage
Dabur’s 140 Year Heritage 1884 1994 2005 2010 2023 Acquires Balsara to Birth of Dabur in an Listed on BSE; IPO strengthen Oral Care Twin overseas Acquires Badshah Ayurvedic pharmacy in oversubscribed 21 portfolio & enter Home acquisitions – Namaste Masala to foray into Kolkata times Care (US) and Ho
Slide 6: Strong Track Record
Strong Track Record Revenue from Operations EBITDA Market Capitalization 12.2% 14.7% 83x 20 Year CAGR 20 Year CAGR In last 20 Years Revenue from Operations EBITDA Market Cap 19.4% 12,404 1,00,000 2,400 12.5% 1,236 155 1,200 FY 2004 FY 2024 FY 2004 FY 2024 FY 2004 FY 2023 Figures in INR Crores
Slide 7: Dabur – A Leader in Ayurveda and Natural Healthcare
Dabur – A Leader in Ayurveda and Natural Healthcare 8 out 10 Households AMONG TOP 4 FMCG consuming Dabur COMPANIES IN INDIA Products ONE OF THE LARGEST 22 MANUFACTURING DISTRIBUTION ~ 7.9 MN FACILITIES OUTLETS STRONG OVERSEAS • FY24 SALES: INR 124 BN PRESENCE WITH 25% SALIENCY • FY24 PAT: INR 18 BN
Slide 8: Business Structure
Business Structure Domestic Business 75% International Business 25%
Slide 9: INR 1 billion club brands
INR 1 billion club brands Revenue (INR) Brands >1500 Cr 1,000-1,500 Cr 500-1,000 Cr 100-500 Cr
Slide 10: Market Leadership in Domestic Business
Market Leadership in Domestic Business Leading position in key categories across verticals Market Leaders Juices & Air Chyawanprash Honey MRC Bleaches Nectars Fresheners #2 Player Hair Oils Oral care BMO Glucose
Slide 11: Market Leadership in International Business
Market Leadership in International Business #1 #2 #3 Hair Oil Hair Cream Hair Serums Hair Gel Depilatories Hair Mask Saudi Arabia Hair Oil Hair Cream Hair Gel Hair Serums Hair Mask Egypt Hair Oils Hair Cream Hair Serums Toothpaste Hair Gel Depilatories Hair Mask United Arab Emirates
Slide 12: Diverse Manufacturing Locations
Diverse Manufacturing Locations 14 Locations in India 8 International Locations Jammu Baddi Pantnagar Sahibabad 8 Alwar Tezpur Turkey Newai (EU) Katni Egypt Nepal (COMESA) Indore Narendrapur Pitampur Bangladesh Silvassa UAE Umbergaon Nigeria (GCC + Nasik (ECOWAS) GAFTA) Sri Lanka Owned Manufacturing
Slide 13: FY24 Performance Highlights
2 FY24 PERFORMANCE DABUR OVERVIEW STRATEGIC PILLARS ANNEXURE HIGHLIGHTS
Slide 14: FY24 Summary
FY24 Summary Supported by Strong Quality Growth across all levers Balance Sheet 7.6% 16.4% INR 64 Bn Net Cash as on 31st March 24 Consolidated Revenue Growth International Revenue CC Growth 0.14x Debt to Equity Ratio 240 bps 11% 38% Operating Profit Growth Gross Margin Expansion Return on Invested 6
Slide 15: FY24 Domestic FMCG Business Growth – By Verticals
FY24 | Domestic FMCG Business Growth – By Verticals Sales Contribution by Verticals FY23 FY24 Healthcare Home & Personal Care (HPC) Food & Beverage (F&B) 4-year CAGR: 7.6% 4-year CAGR: 8.8% 4-year CAGR: 16% 2,689 4,157 2,581 3,846 1,724 1,711 Gr: 4.2% Gr: 8.1% Gr: (0.8)% FY23 FY24 FY23 FY24 FY23 FY2
Slide 16: FY24 International Business – Performance Overview
FY24 | International Business – Performance Overview Sales Contribution by Verticals FY23 FY24 Others 3.6% Others 5.4% International International 25.1% 24.8% Domestic Domestic 71.3% 69.8% International Business grew by 16.4% in CC terms (6.2% in INR terms) FY24 Constant Currency Growth % 52.3% 46.6
Slide 17: Strategic Pillars
3 FY24 PERFORMANCE DABUR OVERVIEW STRATEGIC PILLARS ANNEXURE HIGHLIGHTS
Slide 18: Business Metamorphosis continues
Business Metamorphosis continues BUILDING CAPABILITIES & OPERATIONAL EXCELLENCE TRANSFORMING CULTURE & ESG 03 04 FIT FOR PURPOSE 02 05 DIGITISATION GTM 01 06 WINNING PORTFOLIO PROFITABILITY AND ENHANCEMENT INNOVATION Dedicated to health and well-being
Slide 19: Business Metamorphosis continues
Business Metamorphosis continues BUILDING CAPABILITIES & OPERATIONAL TRANSFORMING CULTURE EXCELLENCE & ESG 03 04 FIT FOR PURPOSE 02 05 DIGITISATION GTM 01 06 WINNING PORTFOLIO PROFITABILITY AND ENHANCEMENT INNOVATION
Slide 20: Winning Portfolio and Innovation for Changing India
1 WINNING PORTFOLIO AND INNOVATION FOR CHANGING INDIA 1 2 Restaging Core Power Brands to Power For Younger India Platforms Expansion of Existing Categories/ Entry into Focusing on Digital with 3 Adjacencies increasing prominence 4
Slide 21: Stronger Scientific Claims
Stronger Scientific Claims 1 Restaging Core For Younger India Stronger Scientific Claims Increasing Relevance through New Age Formats Aspirational Packaging
Slide 22: Increasing Relevance through New Age Formats
Increasing Relevance through New Age Formats 1 Restaging Core For Younger India Stronger Scientific Claims Increasing Relevance through New Age Formats Aspirational Packaging
Slide 23: Increasing Relevance through New Age Formats
Increasing Relevance through New Age Formats 1 Restaging Core For Younger India Stronger Scientific Claims Increasing Relevance through New Age Formats Aspirational Packaging
Slide 24: Aspirational Packaging
Aspirational Packaging 1 Restaging Core For Younger India Stronger Scientific Claims Increasing Relevance through New Age Formats Aspirational Packaging
Slide 25: Transition from Power Brands to Power Platforms | F&B
Transition from Power Brands to Power Platforms | F&B Real Nectars – 100% Activ Real Nectars Real Vitamin Boost Real Masala Range Real Mango Drink Real PET Real Aloe Power Real Plant Based Drinks Real Fizzin Real Milkshakes Real Activ Coconut Water Real Seeds/Superfoods Real Peanut Butter
Slide 26: Transition from Power Brands to Power Platforms | HPC
Transition from Power Brands to Power Platforms | HPC Red Bae Fresh Gel Red Pulling Oil Sarson Amla Badam Amla Brahmi Amla Amla Aloe Vera Amla Kids Premium Shampoo Range (Onion & Olive) Neelibhringa21 Hair Oil International Range
Slide 27: Transition from Power Brands to Power Platforms | Healthcare
Transition from Power Brands to Power Platforms | Healthcare Health Variants Organic Honey Honey Tasties (Spreads) Himalayan Honey Chyawanprakash DCPK Tablets Gur Chyawanprash Kesar Prash Variants Maha Candy (Albela Aam, Amla Candy Tingoli (Chatcola, Limcola) Chulbuli Imli, ChatCola)
Slide 28: Scaling Existing Categories by Entry into New Adjacencies
Scaling Existing Categories by Entry into New Adjacencies Therapeutics Baby Care Hair Oils Toothpastes Tea Foods
Slide 29: Digital continues to gain prominence
Digital continues to gain prominence New-age command center established for Social Listening Spends towards digital increased E-commerce Building a to direct connect business 30% with consumers built up in last few years, through contributing to DaburShop ~9% of the business in FY24 (vs <10% in FY18
Slide 30: Business Metamorphosis continues
Business Metamorphosis continues BUILDING CAPABILITIES & OPERATIONAL TRANSFORMING CULTURE EXCELLENCE & ESG 03 04 FIT FOR PURPOSE 02 05 DIGITISATION GTM 01 06 WINNING PORTFOLIO PROFITABILITY AND ENHANCEMENT INNOVATION
Slide 31: Fit for Purpose GTM
2 Fit for Purpose GTM Ghar Ghar Dabur Category Specific GTM Urban Business Rural Expansion and Driving new age channels Become an Intelligent & Extraction Data Driven Sales Town Class level segmented Reaching Top 1 Lac Operation model change Organization Healthcare +Chemist Focused strategy on Villa
Slide 32: Expanded Distribution
Expanded Distribution FY19 FY24 Increase/(Decrease) Total Reach 6.7 7.9 1.2 (Mn Outlets) Direct Reach 1.1 1.4 0.3 (Mn Outlets) Village Coverage 44 122 78 (in ‘000s) Yoddhas 0 21,357 21,357 Chemist Coverage 216 293 77 (in’000s)
Slide 33: Business Metamorphosis continues
Business Metamorphosis continues BUILDING CAPABILITIES & OPERATIONAL TRANSFORMING CULTURE EXCELLENCE & ESG 03 04 02 05 PURPOSE DRIVEN GTM DIGITISATION 01 06 WINNING PORTFOLIO PROFITABILITY AND ENHANCEMENT INNOVATION
Slide 34: Transforming Culture & Building Capabilities
3 Transforming Culture & Building Capabilities A. Operating Model Change for more agile and accountable BUs B. Connect & Develop Open Innovation Culture C. Fearless Approach Fail Fast D. Progression vs Perfection E. Building Capabilities
Slide 35: Business Metamorphosis continues
Business Metamorphosis continues BUILDING CAPABILITIES & OPERATIONAL TRANSFORMING CULTURE EXCELLENCE & ESG 03 04 02 05 PURPOSE DRIVEN GTM DIGITISATION 01 06 WINNING PORTFOLIO PROFITABILITY AND ENHANCEMENT INNOVATION
Slide 36: Dabur Operations | Digital, Disruptive, Diverse & Sustainable
4 Dabur Operations | Digital, Disruptive, Diverse & Sustainable Delivering Today & Transforming for a Brighter Tomorrow Planning & Logistics Procurement Manufacturing • Serving 3000+ distributors • Global sourcing network across 4 • Spread across 3 continents • 8 million+ outlets continents,15 count
Slide 37: Among the top FMCG companies in India with 140% improvement in DJSI score
Among the top FMCG companies in India with 140% improvement in DJSI score Climate & Biodiversity Circular Economy Sustainable Sourcing Governance Target Target Target • Achieve Net Zero by 2045 • Maintain Plastic Waste Positivity • Ensure zero deforestation of in FY24 high-risk materials by FY26 Ach
Slide 38: Entered S&P Sustainability Yearbook
“Industry Mover” in Personal Products Entered S&P Sustainability Yearbook Industry as per S&P
Slide 39: Business Metamorphosis continues
Business Metamorphosis continues BUILDING CAPABILITIES & OPERATIONAL TRANSFORMING CULTURE EXCELLENCE & ESG 03 04 02 05 FIT FOR PURPOSE GTM DIGITISATION 01 06 WINNING PORTFOLIO PROFITABILITY AND ENHANCEMENT INNOVATION
Slide 40: Dabur Tech for Digital Transformation
5 Dabur Tech for Digital Transformation Company Factory Distribution Consumer Leveraging AI to capture Industrial IOT Customer Engagement Consumer Engagement business insights • Using AI to get predictive and prescriptive • Asset Management improvement – • Drive salesmen efficiencies, Improve data •
Slide 41: Business Metamorphosis continues
Business Metamorphosis continues BUILDING CAPABILITIES & OPERATIONAL TRANSFORMING CULTURE EXCELLENCE & ESG 03 04 FIT FOR PURPOSE 02 05 DIGITISATION GTM 01 06 WINNING PORTFOLIO PROFITABILITY AND ENHANCEMENT INNOVATION
Slide 42: Profitability Continues
6 Profitability Continues Journey from FY19 to FY24 Going Forward Operating Margin Gross Margin Expansion & Saving Initiatives ~20% 18.8% 19.4% Value Op. Sourcing WC Engg. Efficiency Efficiency Improv. Brand Investments FY19-22 FY23 FY24 Price Increases* Project Samriddhi Medium to Long Term COUNTER
Slide 43: Business Metamorphosis continues
Business Metamorphosis continues BUILDING CAPABILITIES & OPERATIONAL TRANSFORMING CULTURE EXCELLENCE & ESG 03 04 FIT FOR PURPOSE 02 05 DIGITISATION GTM 01 06 WINNING PORTFOLIO PROFITABILITY AND ENHANCEMENT INNOVATION Dedicated to health and well-being
Slide 44: Annexure
4 FY24 PERFORMANCE DABUR OVERVIEW STRATEGIC PILLARS ANNEXURE HIGHLIGHTS
Slide 45: FY24 | Consolidated P&L
FY24 | Consolidated P&L In INR crores FY24 FY23 Y-o-Y (%) Revenue from operations 12,404 11,530 7.6% Material Cost 6,447 6,269 2.8% Employee expense 1,238 1,137 8.9% Advertisement and publicity 850 640 32.7% Other Expenses 1,469 1,320 11.3% Operating Profit 2,400 2,164 10.9% % of Revenue 19.4% 18.8%
Slide 46: FY24 | Standalone P&L
FY24 | Standalone P&L In INR crores FY24 FY23 Y-o-Y (%) Revenue from operations 9,136 8,684 5.2% Material Cost 4,929 4,855 1.5% Employee expense 782 726 7.7% Advertisement and publicity 676 527 28.3% Other Expenses 910 876 3.9% Operating Profit 1,839 1,701 8.1% % of Revenue 20.1% 19.6% EBITDA 2,257
Slide 47: Thank You
fg] CH ¥. a sop 5) WORLD’S\NO. 1* Chany f HONEY BRAND WHICH CLEARS PURITY, \Y, 100+ QUALITY TESTS HAJMOLA Thank You Swad Sugandh ka Raja