Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q3 FY2018 Earnings Presentation
36 slides from Bajaj Consumer Care's earnings presentation, January 2018
Slide 1: Investor Presentation January 2018
INVESTOR PRESENTATION JANUARY - 2018 Version -3
Slide 2: Flow
FLOW • BAJAJ PATHFINDER AND NEW VISION MISSION VALUES • BUSINESS CONTEXT & INITIATIVES OF Q3 • Q3 RESULTS SUMMARY • WAY FORWARD • DETAILED PERFORMANCE
Slide 3: The Naya Bajaj Pathfinder
THE NAYA BAJAJ PATHFINDER VISION MISSION VALUES PILLARS OF GROWTH WINNING WINNING WINNING WINNING WITH IN WITH WITH BRANDS SALES PROCESSES PEOPLE
Slide 4: 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 5: 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 6: Naya Bajaj – Values
NAYA BAJAJ – VALUES 1. Consumer First : Our first priority is to our CONSUMERS and then to our customers, employees and the communities we serve in. 2. Entrepreneurship : We will think and act like owners of our business and develop a strong growth mentality and a positive outlook to our work. 3. In
Slide 7: Q3 – Market Context
Q3 – Market Context • Trade • WS is still depressed though there are signs of sequential recovery now • Urban Retail remains unaffected and there is no negative impact of GST • CSD channel is looking slightly better but difficult to predict if it will ever go back to its earlier size • Offtakes • To
Slide 8: BCL - Key Initiatives in Q3
BCL - Key Initiatives in Q3 Marketing – Innovation / Innovation / Innovation • Re-launch of Brahmi Amla Hair oil • Benefits of Ayurvedic Brahmi + Amla extracts to help reduce hairfall • Brand Ambassador – Dhrashti Dhami ( TV celeb) • New Premium Carton Packaging • Bajaj Almond Drops enters Guinness
Slide 9: BCL - Key Initiatives in Q3
BCL - Key Initiatives in Q3 Sales - Automation / Direct Distribution • Rural Coverage Expansion Continues – doubling in the first 9 months till now • SFA rollout in Rural – making us fully automated across all channels now • MT we continued to drive momentum on our brands through better and more off
Slide 10: Q3 Results – Consistent Volume Driven Growth
Q3 Results – Consistent Volume Driven Growth • Overall Company Value growth of 5.9% • Led by a strong domestic Value Growth of 8.8% and volume growth of 8.2% • Domestic growths led by a 9.2% value growth in GT and 9.9% in MT • CSD continues to depress the overall growth and is at -2.7% • IB has seve
Slide 11: Q3 Results - Growth From Both Categories
Q3 Results - Growth From Both Categories • 100% of our Brands have grown in Q3 in domestic business • Haircare category has grown at 7.5 % value and 7.9% in volume • Skincare category has grown at 70% value and 33% in volume • No Marks in growth for the first time in 2 years • UP growth at 1.6 times
Slide 12: Way Forward..
WAY FORWARD.. • What Do We Expect in Q4 • Improvement in WS Channel pick-up • Input cost inflation to continue further • Our Plan • Keep working on our innovation pipeline to tap into the whitespace opportunities in both haircare and skincare. • Keep driving momentum in MT channel and on enhancing d
Slide 13: Industry Overview
INDUSTRY OVERVIEW
Slide 14: Industry Size and Structure
INDUSTRY SIZE AND STRUCTURE FMCG Rs. 275,183 cr Hair Care 7% CONTRIBUTION Rs. 19,671 cr Shampoo Coconut Oil Hair Oil Hair Dyes Hair Conditioners Rs. 5,952 cr Rs. 3282 cr (-7%) Rs. 6,646cr (5%) Rs. 3,285 cr Rs. 506 cr (30%)* (17%)* (34%)* (17%)* (3%)* 24% 25% 17% 11% 14% Amla Based Oils Light Hair Oi
Slide 15: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 12,000 300 269 9,928 10,103 255 254 264 9,390 238 247 10,000 250 236 8,676 8,327 214 212 7,867 8,000 6,981 (In ‘000 KLtr) 200 5,728 (Rs. Cr.) Growth 3.9 % 6,000 5,044 Growth -0.2% Growth 8.5 % Growth 3.9% Growth 21.
Slide 16: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,800 1,639 35.0 31.9 32.2 33.1 1,576 31.3 1,600 1,474 1,502 30.0 30.0 26.8 1,400 1,311 1,290 25.9 25.0 22.4 1,200 1,080 (In ‘000 KLtr) 19.9 20.0 Growth 19.5 % 1,000 831 Growth 12.5 % Growth 2.7 % (Rs. Cr.) Growth 17.1 % G
Slide 17: Market Share Trends in Light Hair Oil Category
Market Shares Trends in Light Hair Oil Category (AI – U+R) Volume MS Value MS 70.0% 70.0% 57.8% 58.3% 58.0% 57.8% 58.5% 60.3% 61.0% 60.7% 60.6% 61.1% 60.0% 54.4% 56.6% 60.0% 56.9% 58.4% 51.9% 55.0% 53.0% 48.0% 49.1% 50.7% 50.0% 50.0% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0% 10.0% 10.0% 0.0% 0.0% 09-10 10
Slide 18: Market Share Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (AI – U+R) Volume MS Value MS 12.0% 9.9% 9.7% 9.7% 9.8% 9.8% 10.0% 9.5% 9.6% 8.0% 7.4% 7.3% 7.3% 7.1% 7.2% 8.5% 7.0% 6.6% 6.7% 7.7% 8.0% 7.1% 5.8% 6.0% 5.0% 4.5% 4.7% 6.0% 4.0% 4.0% 3.0% 2.0% 2.0% 1.0% 0.0% 0.0% 09-10 10-11 11-12 12-13 13-14 14-15 15-1
Slide 19: MS Trends Qtrly - THO AI (U+R)
MS Trends Qtrly - THO AI(U+R) MS Val MS Vol Q1'17 Q2'17 Q3'17 Q1'17 Q2'17 Q3'17 ADHO 9.6 9.3 9.4 7.2 7 7.2 All Bajaj 10 9.7 9.9 7.7 7.6 7.8 Brands* Overall positive trends in for ADHO in THO category on both MS vol & MS val Source: Nielsen Retail Audit Report, Dec 2017 18
Slide 20: 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 21: Bajaj Brahmi Amla Hair Oil Restage in Q3
Bajaj Brahmi Amla Hair Oil Restage in Q3 • Restaged Bajaj Brahmi Amla Hair oil • Benefits of Ayurvedic Brahmi + Amla extracts to help reduce hairfall • Brand Ambassador – Dhrashti Dhami ( of Madhubala fame) • New Premium Packaging Source: AC Nielsen RMS Nov 17
Slide 22: Nomarks Cream Performance in 17-18
Nomarks Cream Performance in 17-18 Internal volume sales : Bajaj Nomarks Cream 10564.9 9924 10138 8698 4759 4925 4240 3555 3336 3454 3227 1162 1149 1299 Apr-Jun 16 Jul -Sep 16 Oct-Dec 16 Jan -Mar 17 Apr- Jun 17 Jul -Sep 17 Oct-Dec 17 HSM UP YTD Growth of 111% in HSM markets and 178% in pilot market
Slide 23: Distribution
Distribution
Slide 24: Strong Distribution Network
Strong Distribution Network Strong Distribution Network Distribution Network Distribution Structure 56 Factory (9) The company reaches consumers through 3.8 lakh retail outlets serviced by 9321 distributors and 20328 OWN – Himachal Pradesh -2, Uttarakhand- 1, wholesalers Guwahati 1 71 THIRD PARTY -
Slide 25: Sales Force Automation
Sales Force Automation • SFA program was launched under the name of Project Saathi last year. • It was started with the objective of better coverage & control of distribution, better efficiency • Currently all 1300 ISRs are under SFA (As on 31st December ) • Fastest National Roll out with FMCG space
Slide 26: Financials
Financials
Slide 27: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Q3FY18 Q3FY17 9MFY18 9MFY17 As on As on Particulars Sales (Net) 197.32 186.40 597.40 586.28 31.12.2017 31.03.2017 EBITDA 69.10 62.33 190.60 202.68 EBITDA Margin 35.02% 33.44% 31.90% 34.57%
Slide 28: Profit & Loss Q3 and 9M FY2018
Profit & Loss Q3 and 9M FY2018 Rs. in Crore Particulars Q3 FY18 Q3 FY17 YoY% 9M FY 18 9M FY 17 YoY% Net Sales 197.32 186.40 5.86% 597.40 586.28 1.90% Other Operating Income 10.73 0.51 12.21 1.72 Material Cost 64.39 64.38 200.54 200.94 % of Sales 32.63% 34.54% 33.57% 34.27% Employees Cost 19.26 15.71
Slide 29: Sales Value Growth
Sales Value Growth Growth Q1 FY 18 Growth Q2 FY Growth Q3 FY Sales Vertical 18 18 General Trade -3.03% 10.20% 14.09% Modern Trade 11.65% 22.85% 13.83% Total Domestic ( Exc. CSD) -2.26% 11.06% 14.07% Canteen Stores Department -39.21% -20.28% -2.72% Total Domestic -3.83% 8.96% 13.38% International Bus
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 15 successive quarters
Consistent Performance over the last 15 successive quarters 30
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 83.97 80.52 79.21 77.23 61.22 59.80 20 46.37 44.86 20 0 0 Qtr3 FY17 vs FY18 9M FY17 vs FY18 Qtr3 FY17 vs FY18 9M FY17 vs FY18 ✓ During the quarter average landed price of L
Slide 33: Fund Position
Fund Position • Fund Position: • The total Fund available with the company as on 31st Dec 2017 is Rs. 470.02 Crores • This has been invested in Bank Fixed Deposits, top rated PSU Bonds & Liquid MFs • There is no investment in ANY Inter Corporate Deposit Particulars Amount (Rs. in Crores) Bank FDs 19
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
Slide 36: Thank You
THANK YOU
Bajaj Consumer Care — Q3 FY2018 Earnings Presentation on 6ix