Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Jyothy Laboratories — Q4 FY2017 Earnings Presentation
51 slides from Jyothy Labs's earnings presentation, May 18, 2017
Slide 1: Jyothy Laboratories Limited Analyst Presentation Q4 FY 17
Jyothy Laboratories Limited Analyst Presentation Q4 FY 17 May 18, 2017
Slide 2: Index
Index FY 17 : Result highlights Business Initiatives Big Picture : Strategy and Organisational Journey Market Scenario Brand Performance & Initiatives Capability Journey Way Forward 2
Slide 3: FY 17 Result Highlights
oly LABORATORIES LIMITED FY 17 Result Highlights
Slide 4: Q4 FY 17 Snapshot
Q4 FY 17 Snapshot All Figures as per IND AS Sales growth of 3.7%; 5.1% by volume Sales growth excluding Household Insecticides of 7.1 %; 9.7 % by volume A&P Expense at Rs 28.1 cr ; A&P to Sales ratio at 6.0% (6.1% in PY) Gross Margin at 42.0% Vs 43.6% in the same period last year. Operating EBITDA a
Slide 5: FY17 Snapshot
FY17 Snapshot All Figures as per IND AS Sales growth of 5.4 % ; 6.9% by volume Sales growth excluding Household Insecticides of 7.8 %; 9.4 % by volume A&P Expense at Rs 118.5 cr ; A&P to Sales ratio at 6.8% (7.1% in PY) Gross Margin at 45.0% Vs 45.5% in the same period last year. Operating EBITDA at
Slide 6: Q4 FY 17 Snapshot
Q4 FY 17 Snapshot All Figures as per IND AS Sales Growth Power Brand Sales Growth A&P Expense 50 40 27.5 28.1 30 5.1% 3.7% 4.1% 20 6.0 10 2.6% 6.1 0 Q4FY16 Q4FY17 Volume Q4 FY 16-17 Value Q4FY 16-17 Rs in Cr % Volume Value Gross Margins Operating EBITDA Margins PAT 100 140 107.4 120 195.8 195.5 80 2
Slide 7: FY17 Snapshot
FY17 Snapshot All Figures as per IND AS Sales Growth Power Brand Sales Growth A&P Expense 118.5 140 118.0 120 100 80 6.9% 6.1% 60 5.4% 4.4% 40 7.1 6.8 20 0 FY16 FY17 Volume Value Volume Value FY17 FY17 Rs in Cr % Gross Margins Operating EBITDA Margins PAT 754.9 787.1 256.9 300 204.2 240 800 238.3 20
Slide 8: Q4 FY 17 Highlights
Q4 FY 17 Highlights All Figures as per IND AS Company’s Consolidated Performance Financials Q4 2017 YTD 2017 Particular/Growth FY 17 FY 16 % Change FY 17 FY 16 % Change Net Sales 465.6 448.8 3.7% 1,747.4 1,657.7 5.4% Operating EBITDA 60.9 60.3 1.0% 256.9 238.3 7.8% PAT 107.4 10.8 895.7% 204.2 73.8 1
Slide 9: Advertisement & Sales Promotion Spend - Regroup
Advertisement & Sales Promotion Spend - Regroup As per IND AS Consolidated INR Lakhs Q4 % of Q4 % of YTD % of YTD % of Line FY 16-17 Sales FY 15-16 Sales FY 16-17 Sales FY 15-16 Sales Advertisement and Sales Promotion expense 7,602 16.3% 5,740 12.8% 25,733 14.7% 23,103 13.9% Sales promotion regroupe
Slide 10: Performance highlights for last five quarters
Performance highlights for last five quarters All Figures as per IND AS Net Sales (INR Cr) Gross Margin (%) Operating EBITDA Margin (%) 500 448.8 454.0 433.5 465.6 50 47.5 46.5 20 43.6 43.9 42.0 17.8 397.7 400 40 14.8 15 13.6 12.8 13.1 300 30 10 200 20 100 10 5 0 0 0 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY
Slide 11: Q4 FY 17 Highlights: Category Wise Consolidated Sales
Q4 FY 17 Highlights All Figures as per IND AS Category Wise Consolidated Sales Consolidated Category Q4FY17 Q4FY16 Growth % FY17 FY16 Growth % Fabric Care 182.0 167.8 8.4% 737.9 683.0 8.0% Dishwashing 120.9 116.1 4.2% 510.3 476.7 7.0% Household Insecticides 111.1 118.8 -6.5% 261.2 278.2 -6.1% Person
Slide 12: Q4 FY17 Highlights: Brand Wise Sales
Q4 FY17 Highlights All Figures as per IND AS Brand Wise Sales Consolidated Brand Q4FY17 Q4FY16 Growth % FY17 FY16 Growth % Ujala 102.0 92.9 9.8% 419.0 391.7 7.0% Exo 90.2 87.3 3.3% 381.3 357.0 6.8% Maxo 111.1 118.8 -6.5% 261.2 278.2 -6.1% Henko 44.0 45.3 -2.9% 181.2 166.6 8.8% Margo 28.9 24.2 19.3%
Slide 13: Financial Highlights Balance Sheet
Financial Highlights Balance Sheet All Figures as per IND AS Net Worth (Rs in cr) Working Capital in Days 1,200 1,088 25 23 1,000 901 20 800 16 15 600 10 400 200 5 0 0 Mar-17 Mar-16 Mar-17 Mar-16 ROCE Debt equity ratio 18.8% 20.0% 0.55 15.0% 0.50 0.50 10.0% 8.2% 0.46 0.45 5.0% 0.0% 0.40 Mar-17 Mar-1
Slide 14: Business Initiative
oly LABORATORIES LIMITED Business Initiative
Slide 15: JCPML Merger with JLL
JCPML Merger with JLL • JCPML ( Formerly Henkel India Marketing Limited) has been merged with JLL . • All the Assets and Liabilities of JCPML have been recorded at their carrying value • Due to Merger of JCPML deferred tax assets/MAT Credit on brought forward losses has been recognised in FY17 – Rs.
Slide 16: Manufacturing
Manufacturing • Successfully commenced the commercial production of Ujala Fabric Whitener, Margo Soap & Maxo Liquid Vaporiser in FY 2017 at Guwahati (North Eastern State). • These manufacturing units are entitled to avail the 100% income tax benefit u/s 80 IE for next 9 years. 16
Slide 17: Information Technology
Information Technology • Successfully commenced SAP S4 Hana from April 1, 2017 for all the group Companies across all modules. • All systems are GST compliant. 17
Slide 18: Big Picture – Strategy & Organisational Journey
Big Picture – Strategy & Organisational Journey 18
Slide 19: Path to Growth : Our Journey
Big Picture Path to Growth : Our Journey Voice of the consumer • Listen to the consumer to bring in genuine insights Process Efficiency • Drive End to End Efficiencies across value chain Build Organisational capabilities • On ground, in the market place
Slide 20: Path to Growth
Big Picture Path to Growth Superior Mixes Superior GTM Profitable Execution play
Slide 21: Our Category Strategy
Our Category Strategy Household Post Wash Laundry Dish wash Personal Care Insecticide • Extending • Establishing • Leveraging • Increasing • Reinvigorating Dominant uniqueness Two brand footprint Brand position • Building for portfolio • Winning future • Strengthening through • Relevant • Innovation
Slide 22: FY17 Key Activities: Superior Mixes-Superior Insights
FY17 : KEY ACTIVITIES Superior Mixes-Superior Insights Rejuvenation of Ujala Crisp & Shine Launch of Maxo Genius Restaging of Margo
Slide 23: Market Scenario
Market Scenario • Overall demand scenario remains muted. Aggressive promotion by competitors to drive growth (especially MT) • Q3 Impacted by Demonetization. Overall demand back to pre demonetization period. Wholesale channel operation normalized barring few areas. • Price increases to neutralize ri
Slide 24: FY17 : Results in Brief
FY17 : Results in Brief 6.8% Growth on Exo & 5.8 % growth on Pril . JLL Growth Ahead of Market Growth Growing # 2 in Indian Dish wash Market Focus brand Henko Grows 8.8 % JLL growth ahead of Market Growth in Washing Powder 4.1% Brand Growth Margo Growth Ahead of Market Ujala Franchise Growth of 7% 3
Slide 25: Brand Performance & Initiatives
Brand Performance & Initiatives
Slide 26: Post Wash: Ujala Fabric Whitener
Ujala Fabric Whitener Rs lakhs Q4 % % Market Info 2015 Product FY17 FY17 Growth Growth Category Size 54,315 Ujala 5,777 3.7% 26,506 2.4% Category Growth 1% Supreme Market Share% 77.6% Post Wash Growth % over Same Qtr Last Year 3.7% 60.0 55.7 57.7 50.0 40.0 30.0 20.0 10.0 - Q4 FY 16 Q4 FY 17
Slide 27: Post Wash: Ujala Fabric Stiffener
Ujala Fabric Stiffener Rs lakhs Product Q4 FY17 % Growth FY17 % Growth Ujala 1,821 37.1% 5,912 29.0% Crisp & shine Post Wash
Slide 28: Ujala Crisp & Shine
Ujala Crisp & Shine • Ujala Crisp & Shine re-staged with a strengthened and differentiated proposition- “The Power of the Executive Look” • New communication highlighting the proposition introduced • Brand has registered 29% growth in FY’17 in Kerala--- highest ever growth registered in the last 3ye
Slide 29: Detergents: Ujala Detergent
Ujala Detergent Rs lakhs % % Category Size Product Q4 FY17 FY17 Growth Growth UJALA WP KERALA WP Ujala 2,509 8.7% 9,118 8.8% Market information YR 2016 Detergent Category Size 30,667 Detergents Category Growth% 2.1% Market Share % 16.7% Ujala Detergent – Kerala Market Share% YOY Val MS% 17.6 16.7 YR
Slide 30: Detergents & Bars: Henko Franchise
Henko Franchise Rs lakhs % % Product Q4 FY17 FY17 Growth Growth Value 4,396 -2.9% 18,124 8.8% Detergents & Bars
Slide 31: Dish Wash: Exo Franchise
Exo Franchise Rs lakhs Product Q4 FY17 % Growth FY17 % Growth Value 9,022 3.3% 38,132 6.8% Dish Wash
Slide 32: Dish Wash: Exo Dish Wash Bar
Exo Dish Wash Bar Rs lakhs Category Size % % Product Q4 FY17 FY17 Growth Growth EXO BARS Value 6,753 5.1% 28,335 7.1% Market information YR 2016 Category Size 2,20,330 Category Growth% 3.1% Dish Wash Market Share % 10.9% Exo Bar – Market Share% YOY Val MS% 10.4 10.9 YR15 YR16 Exo bar
Slide 33: Dish Wash: Exo Scrubber Business
Exo Scrubber Business Rs lakhs Product Q4 FY17 % Growth FY17 % Growth Value 2,005 -5.2% 8,845 4.6% Dish Wash Heading towards Rs 100 cr
Slide 34: Dish Wash: Pril Liquid
Pril Liquid Rs lakhs % % Category Size Product Q4 FY17 FY17 Growth Growth PRIL LIQ DISH WASH Value 2,203 2.1% 9,507 6.5% Market information YR 2016 Category Size 39,992 Dish Wash Category Growth% 10.1% Market Share % 17.8% Pril Liquid – Market Share% YOY Val MS% 16.7 17.8 YR15 YR16 Pril Liquid
Slide 35: Pril 500g Tub is growing at a very fast pace
Pril 500g Tub is growing at a very fast pace and is now 32% of the Pril Bar portfolio Market share (est. basis int. sales fig.) : 4% in the 500g segment in TN • Launch commercial aired in Southern markets in February FY 17 • Plan of continued ATL Support across markets (including HSM)
Slide 36: Household Insecticides: Maxo Franchise
Maxo Franchise Rs lakhs Product Q4 FY17 % Growth FY17 % Growth Maxo Household Insecticides 11,110 -6.5% 26,119 -6.1% Franchise
Slide 37: Household Insecticides: Maxo Coil
Maxo Coil Rs lakhs % % Category Size Product Q4 FY17 FY17 Household Insecticides Growth Growth Maxo Coil 6,887 -7.4% 16,408 -6.8% Maxo Coil Market information YR 2016 Category Size 1,57,848 Category Growth% 0.4% Maxo Coil – Market Share% Market Share % 18.6% YOY Val MS% 18.4 18.6 YR15 YR16 Maxo Coil
Slide 38: Maxo Genius Machine
Maxo Genius Machine • Powered by Intellichip, the machine automatically shifts from attack mode to defend mode for maximum effectiveness.
Slide 39: Household Insecticides: Maxo LV
Maxo LV Rs lakhs % Category Size Product Q4 FY17 FY17 % Growth Growth LIQ Household Insecticides Maxo LV 3,576 11.5% 8,440 -2.3% MAXO VAPORIZER Market information YR 2016 Category Size 1,63,796 Category Growth% 11.4% Maxo LV – Market Share% Market Share % 7.2% YOY Val MS% 6.7 7.2 YR15 YR16 Maxo LV
Slide 40: Household Insecticides: Maxo Cards
Maxo Cards Rs lakhs % % Category Size Product Q4 FY17 FY17 Growth Growth MAXO CARDS Household Insecticides Maxo 510 -47% 998 -21.6% Market information YR 2016 Cards Category Size 36,935 Maxo Cards – Market Share% Market Share % 6.3% YOY Val MS% 6.3 0.0 YR15 YR16 Maxo Cards
Slide 41: Personal Care: Margo Franchise
Margo Franchise Rs lakhs Q4 % % Category Size Product FY17 FY17 Growth Growth MARGO BODY SOAP Margo 2,891 19.3% 13,653 4.1% Market information YR 2016 Category Size 14,99,627 Personal Care Category Growth% -0.7% Market Share % 1.1% Margo Soap – Market Share% YOY Val MS% 1 1.1 YR15 YR16 Margo Soap
Slide 42: ALL NEW MARGO
ALL NEW MARGO Brand Idea: Goodness of 1000 Neem Leaves for Clear & Beautiful skin
Slide 43: ALL NEW MARGO: Core relaunch March 2017
ALL NEW MARGO: Core relaunch March 2017
Slide 44: Capability Journey
oly LABORATORIES LIMITED Capability Journey
Slide 45: FY 18: Igniting growth - Driving Efficiency in sales
FY 18 : Igniting growth - Driving Efficiency in sales Secondary Sales Portal roll out : Maximizing use of resource in small towns/rural markets Rolled out in 281 SD’s which covers 5239 Sub stockist (100% SD on portal). Focus on measuring growth at lowest node. Focus on maximizing range assor
Slide 46: FY 18: Igniting growth - Driving Efficiency in sales
FY 18 : Igniting growth - Driving Efficiency in sales District In charge Rolled out nationally across all zones. All towns above 10k population to be brought under direct coverage by March 31st 2018 District as unit for planning sales efforts Target setting inline with potential Focused
Slide 47: FY 18: Igniting growth - Driving Efficiency in sales
FY 18 : Igniting growth - Driving Efficiency in sales Engaging Channel Partners & Field Force : Rewards & Recognition programme – Annual /Quarterly Recognition for stockist who achieves set parameters. Align goals for Channel partners with Field Force.
Slide 48: Way Forward
Way Forward • Innovation activity on course to drive growths. – Margo restage in Q1 – FY 18 plan on schedule • Full scale operations underway in NE units (Excise & Income tax benefit for 10 years) • GST readiness activity underway – on ground communication & training (where necessary) package will b
Slide 49: Shareholding Pattern
Shareholding Pattern as on 31st March 2017 10.14% 9.60% Promoter & Promoter Group Foreign Institutional Investors (FII) 13.37% Domestic Institutional Investors (DII) 66.89% Public
Slide 50: For more information Please contact
For more information Please contact Neetu Kashiramka Gaurav Kapoor Vice President- Finance, Jyothy Laboratories Ltd Adfactors PR Tel: +91-22- 6689 2800 M: +91 9819775507 E-mail: neetu@jyothy.com E-mail:gaurav.kapoor@adfactorspr.com Please visit www.jyothylaboratories.com
Slide 51: Thank you
oly LABORATORIES LIMITED Thank you
Jyothy Laboratories — Q4 FY2017 Earnings Presentation on 6ix