Dabur India Limited · NSE:DABUR
Dabur India — Q4 FY20 Earnings Presentation
40 slides from Dabur India's earnings presentation, May 27, 2020
Slide 1: Exchange cover letter on investors communication
!^^f ^?^< Ref: SEC/SE/2020-21 x^^^^^. •». <f Date: May 27, 2020 ^< <1» f y^ ^r^^*^ •Scrip Symbol: NSE- DABUR, BSE Scrip Code: 500096 To, India Ltd. Corporate Relation Department National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot No. C/l, G Block B
Slide 2: Q4 FY20 – Results Presentation
Q4 FY20 – Results Presentation 27th May 2020
Slide 3: Agenda
Agenda Coronavirus in India FY20 and Q4 FY20 – Performance Overview How are we coping with Covid-19 pandemic
Slide 4: Coronavirus in India
Coronavirus in India The curve in India hasn’t flattened yet Covid-19 cases in India 151,767 160,000 (as on 27th May 2020) • According to the Public Lockdown 4.0 Health Foundation of 140,000 announced (18th India (PHFI), at the May to 31st May) current rate, with the 120,000 Lockdown 3.0 expectation
Slide 5: Agenda
Agenda Coronavirus in India FY20 and Q4 FY20 – Performance Overview How are we coping with Covid-19 pandemic
Slide 6: FY20 – Performance Summary
FY20 – Performance Summary FY20 11 months ending 29 Feb’20* Reported Growth % Consolidated Revenue Growth 2.0% 6.4% India FMCG Volume Growth 1.1% 6.2% International Business 4.9% 6.9% Growth Operating Profit Growth 3.0% 11.3% Consolidated PAT Growth 0.2% 7.9% Consolidated PAT before 5.8% 12.8% Excep
Slide 7: Impact of Covid-19 on FY20 Financials
Impact of Covid-19 on FY20 Financials Revenue Profit after Tax (PAT) Revenue Growth (assuming no Covid): 6% PAT before exceptional growth (assuming no Covid): 14% 77 1,637 360 9,064 PAT growth: 0.2% 115 Growth: 2% 8,704 1,445 1,442 8,533 FY19 PAT FY20 PAT Covid Impact Exceptional FY20 PAT Items (Pos
Slide 8: Domestic FMCG Growth – By Verticals – FY20
Domestic FMCG Growth – By Verticals – FY20 FY19 Sales Contribution FY20 Sales Contribution Foods Foods 15.9% 17.1% Healthcare Healthcare 32.3% 33.9% HPC HPC 50.6% 50.1% Healthcare Home & Personal Care (HPC) Foods 11.4% 0.1% 5.0% 5.9% Healthcare Healthcare Healthcare (0.0%) YTD Feb'20 Growth % FY20 G
Slide 9: Domestic Business – Category Wise Growths
Domestic Business – Category Wise Growths YTD Feb’20 Growths vs FY20 Growth – Category Wise 14.2% 12.9% 8.2% 8.0% 6.7% 7.0% 5.1% 4.3% 1.8% 1.1% 1.8% 0.1% (0.1%) (1.1%) (2.7%) (6.1%) Health Digestives OTC & Ethicals Hair Care Oral Care Home Care Skin & Salon Foods Supplements YTD Feb'20 Growth % FY20
Slide 10: Q4 FY20 – Performance Summary
Q4 FY20 – Performance Summary Q4 FY20 2 months ending Reported Growth % 29 Feb’20* Consolidated Revenue Growth (12.3%) 4.5% India FMCG Volume Growth (14.6%) 4.6% International Business Growth (0.6%) 8.4% Operating Profit Growth (22.9%) 5.9% Consolidated PAT Growth (24.1%) 4.1% Consolidated PAT befor
Slide 11: Impact of Covid-19 on Dabur’s Q4 FY20 Performance
Impact of Covid-19 on Dabur’s Q4 FY20 Performance Revenue Profit after Tax (PAT) PAT before exceptional growth (assuming no Covid): 12.5% Revenue Growth assuming no Covid: 4.5% PAT growth: (24.1%) 15 Growth: (12.3%) 115 412 360 2,225 370 2,128 1,865 281 Q4 FY19 PAT Q4 FY20 PAT Covid Impact Exception
Slide 12: Domestic FMCG Growth – By Verticals – Q4 FY20
Domestic FMCG Growth – By Verticals – Q4 FY20 Q4 FY19 Sales Contribution Q4 FY20 Sales Contribution Foods Foods 15.9% Healthcare 15.2% Healthcare 33.6% 35.4% HPC HPC 50.5% 49.4% Healthcare Home & Personal Care (HPC) Foods Decline of 12.6% Decline of 18.9% Decline of 20.6% 755 238 503 613 189 Healthc
Slide 13: International Business – Q4 FY20 and FY20
International Business – Q4 FY20 and FY20 • International Business reported -0.6% growth in Q4FY20 Constant Currency Growth • The business grew by 5% in FY20. (7.7%) MENA 1.6% • Egypt recorded growth of 14.3% during Q4FY20 14.3% Egypt 8.0% • Hobby had a strong quarter in spite of Covid, growing by 4
Slide 14: Agenda
Agenda Coronavirus in India FY20 and Q4 FY20 – Performance Overview How are we coping with Covid-19 pandemic
Slide 15: Strategy to manage Covid-19
Strategy to manage Covid-19 Consumer Cost and Cash Employee Streamlining Community Marketing GTM Approach Flow Well-Being Manufacturing Welfare Reorientation Management 14
Slide 16: Employee Well-Being
Employee Well-Being As we progressed through various phases of lockdown, we ensured employee safety and productive work practices 1 2 3 • Work from Home was swiftly • As our factories re-opened and sales • With our offices opening and employees implemented with comprehensive force went to field, com
Slide 17: Consumer Marketing Reorientation
Consumer Marketing Reorientation Re-purpose Brand Retool Media Mix in Communication in current context COVID Context Entry into newer Higher Focus on categories and Healthcare and launch of relevant Hygiene NPDs 16
Slide 18: Consumer Marketing Reorientation
Consumer Marketing Reorientation 1. Repurpose Brand Communication in Covid Context Repurposed our Communication around Highlighted benefits of Ayurveda in fighting Covid-19 Immunity and Germ Protection Healthcare Portfolio HPC Portfolio Foods Portfolio 17
Slide 19: Consumer Marketing Reorientation
Consumer Marketing Reorientation 1. Repurpose Brand Communication in Covid Context Increased Digital Presence Higher Engagement on Social Media 18
Slide 20: Consumer Marketing Reorientation
Consumer Marketing Reorientation 1. Repurpose Brand Communication in Covid Context Vocal for Local – Created special videos emphasizing our local roots and heritage 19
Slide 21: Consumer Marketing Reorientation
Consumer Marketing Reorientation 2. Retooling Media Mix in Current Context Medium Change Shifted focus to Digital and News Channels, Advertisements on DD with serials like Kids Channels, Movie Channels on TV Ramayana, Mahabharata TV (News, Kids, Movies, DD) TV (GEC) Digital High Impact Integration w
Slide 22: Consumer Marketing Reorientation
Consumer Marketing Reorientation 3. Higher Focus on Health and Hygiene Relevant Launches in these categories Higher media spends on Relevant Categories 21
Slide 23: New Product Launches – Healthcare
New Product Launches – Healthcare Dabur Tulsi Drops Dabur Haldi Drops Dabur Immunity Kit (Immunity Booster) (Immunity Booster) Trikatu Churna Dabur Amla Juice Dabur Giloy, Neem, Tulsi Juice (Relieves Throat Infection and Improves (Immunity Booster) (Immunity Booster) Digestion) 22
Slide 24: New Product Launches – HPC
New Product Launches – HPC Dabur Sanitize Hand Fem Hand Wash with Germ Odonil Air Sanitiser Dazzl Surface Cleaner Dabur Suraksha Kit Sanitisers Kill Dabur Sanitize Air Dabur Sanitize Disinfectant Vatika Ayurvedic Shampoo Meswak – New Packaging Dabur Veggie Wash Sanitisers Spray 23
Slide 25: New Product Launches - Foods
New Product Launches - Foods Real Pink Guava Real Masala Sugarcane Real Activ Coconut Water 24
Slide 26: New Product Launches – International Business
New Product Launches – International Business Dabur Herb’l Alpha Range Vatika Sanitizing Body Wash Dermoviva Sanitizing Range (Gel, Soap, Spray & Wipes) (UAE and Oman) (across GCC) (across markets) 25
Slide 27: New Product Launches – International Business
New Product Launches – International Business Dabur Amla Hair Repair Solutions Garden of Eden Liquid Soap (UAE and Oman) (Turkey) ORS Colorblast Range Hobby Marshmallow Shower Gels Hobby Fresh Care Shower Gels (USA) (Turkey) (Turkey) 26
Slide 28: GTM Approach
GTM Approach Sales Order Taking Automation in Order Taking under Covid Incentive scheme for salesmen and delivery boys during early lockdown period • Enabled SSMs to telecall and take order on SFA directly from home at start of Covid • Piloted order taking through WhatsApp & Centralized Tele-Agents
Slide 29: GTM Approach
GTM Approach Retailer Safety, Field Force Safety and Delivery of Goods Reaching Consumers Directly Motivation Rolled out 1 lakh Dunzo & Swiggy Stockists Operating ‘Suraksha Stores’ Partnership for from Home with Ministry of Delivery Consumer Affairs Partnered with 3P ‘Immunity at Health Insurance of
Slide 30: Streamlining Manufacturing
Streamlining Manufacturing Covid Timeline in Factories • All factories had to be shut down in last week based of Mar’20 post Government notification of lockdown • Factory operations re-started selectively from 2nd week of April, post approvals from local authorities, with limited manpower. Adopted a
Slide 31: Cost and Cash Flow Management
Cost and Cash Flow Management Cash Flow Management Project Samriddhi • Debtors: The collections were driven by regular follow ups and Initiated Project Samriddhi in India for cost optimisation and selective incentives to distributors for early payments and value enhancement across various levers of
Slide 32: Community Welfare
Community Welfare • Dabur Group has earmarked INR 21 crores towards Support and Relief Activities • INR 11 crores contributed to PM Care Fund by Dabur and other Group entities For Frontline Police For Frontline Health and For Migrant Workers For Community Members Special Communication to Personnel S
Slide 33: On-going impact in Q1 FY21
On-going impact in Q1 FY21 • The month of April and part of May 2020 saw complete lockdown which led to a significant impact on the company’s revenue but with the easing of restrictions, we are seeing sequential improvement in the revenue trajectory of the company. • Impact on revenue from operation
Slide 34: Annexure
` Annexure
Slide 35: Consolidated Profit & Loss Statements
Consolidated Profit & Loss Statements All figures are in INR cr Q4 FY20 Q4 FY19 Y-o-Y (%) FY20 FY19 Y-o-Y (%) Revenue from operations 1,865.4 2,128.2 (12.3%) 8,703.6 8,533.1 2.0% Other Income 75.7 66.1 14.6% 305.2 296.2 3.1% Total Income 1,941.1 2,194.3 (11.5%) 9,008.8 8,829.2 2.0% Material Cost 949
Slide 36: Standalone Profit & Loss Statements
Standalone Profit & Loss Statements All figures are in INR cr FY20 FY19 Y-o-Y (%) FY20 FY19 Y-o-Y (%) Revenue from operations 1,321.2 1,598.4 (17.3%) 6,309.8 6,273.2 0.6% Other Income 67.1 63.1 6.3% 276.9 274.7 (75.5%) Total Income 1,388.2 1,661.5 (16.4%) 6,586.7 6,547.9 0.6% Material Cost 676.6 820
Slide 37: Consolidated Balance Sheet
Consolidated Balance Sheet As at As at As at As at Particulars 31/03/2020 31/03/2019 Particulars 31/03/2020 31/03/2019 (Audited) (Audited) (Audited) (Audited) A Assets B Equity and Liabilities 1 Non-current assets 1 Equity (a) Property, plant and equipment 1,821 1,548 (a) Equity share capital 177 17
Slide 38: Standalone Balance Sheet
Standalone Balance Sheet As at As at As at As at Particulars 31/03/2020 31/03/2019 Particulars 31/03/2020 31/03/2019 (Audited) (Audited) (Audited) (Audited) A Assets B Equity and Liabilities 1 Non-current assets 1 Equity (a) Property, plant and equipment 1,061 972 (a) Equity share capital 177 177 (b
Slide 39: Revenue from Operations Breakdown
Revenue from Operations Breakdown All figures are in INR crores, unless otherwise stated Q4 FY20 FY20 YTD Feb'20 Division Q4 FY20 Q4 FY19 FY20 FY19 Growth% Growth % Growth % Health Supplements 242 268 (9.5%) 1,115 1,030 8.2% 12.9% Digestives 87 96 (9.5%) 372 345 8.0% 14.2% OTC & Ethicals 110 139 (20
Slide 40: For more information & updates, visit dabur.com
` For more information & updates, visit : http://www.dabur.com/in/en-us/investor 39