Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Q2 FY20 Earnings Presentation
35 slides from Jyothy Labs's earnings presentation, Oct 22, 2019
Slide 1: Cover letter to stock exchanges
Jyothy labs October 22,2019 To, National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Scrip Code: JYOTHYLAB Mumbai - 400051 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Scrip Code: 532926 Mumbai - 400 023 Dear Sir, Sub: Copy of Presentation With refere
Slide 2: Analyst Presentation Q2FY20 & H1FY20
Analyst Presentation Q2FY20 & H1FY20 Oct 22, 2019 1
Slide 3: Index
Index About Us Market Scenario Result highlights Brand Performance & Initiatives Way Forward 2
Slide 4: About Us
About Us • Founded in 1983 by a first generation entrepreneur Mr MP Ramachandran • Jyothy Labs is present in Home Care (includes Fabric wash, & Household cleaners) and Personal Care which contributes 50% of the total FMCG industry • Key product categories: Fabric care, Dish wash, Household Insectici
Slide 5: Market Scenario
Market Scenario • Demand environment impacted by overall slowdown in the economy – However, main stay categories of Detergents and Dishwash continue to grow led by innovation Increased competitive pressure – visible in promotional intensity especially in Modern Trade Benign input cost environmen
Slide 6: Result Highlights
Result Highlights 5
Slide 7: Q2 FY20 Snapshot (Consolidated)
Q2 FY20 Snapshot (Consolidated) Revenue growth 8.7% (Volume Growth of 8.3%) Non HI revenue growth 10% (Volume growth 9.1%) Gross Margin at 46.4% Vs 46.7% in the same period last year. A&P Expense at Rs 28.2 cr vs Rs 23.2 cr, up by 21.6% A&P to Sales ratio at 5.9% vs 5.3%. Operating EBITDA at 16.6% (
Slide 8: H1 FY20 Snapshot (Consolidated)
H1 FY20 Snapshot (Consolidated) Revenue growth 5.5% (Volume Growth of 7%) Non HI revenue growth 7.1% (Volume Growth of 8.3%) Gross Margin at 47.4% Vs 47.2% in the same period last year. A&P Expense at Rs 61.9 cr vs Rs 55.6 cr, up by 11.3% A&P to Sales ratio at 6.9% vs 6.5%. Operating EBITDA at 16.1%
Slide 9: Category wise Net revenue
Category wise Net revenue All values in INR Crore Quarter Ended Half Year Ended Category Key Brand CY PY Gr % CY PY Gr % Ujala FW, Henko, Mr White, Ujala Crisp & Fabric Care Shine 194 171 13.1% 380 348 9.2% Dishwashing Exo, Pril 155 143 8.6% 289 276 5.0% Household Insecticides Maxo 49 50 -1.3% 75 82
Slide 10: Q2FY20 Snapshot Company's Performance (Consolidated)
Q2FY20 Snapshot Company’s Performance (Consolidated) All values in Rs Crore except EPS Quarter Ended Half Year Ended Particular/Growth CY PY % change CY PY % change Revenue from Operation 474.9 436.9 8.7% 897.4 850.3 5.5% Operating EBITDA 78.7 71.1 10.7% 144.2 127.7 12.9% PBT (before Exceptional Ite
Slide 11: EBIDTA Movement (Consolidated)
EBIDTA Movement (Consolidated) Particulars Q2FY20 H1FY20 EBITDA % - Previous period 16.3% 15.0% Gross Margin -0.2% 0.2% Employee Cost -0.4% -0.3% Advertisement & Sales Promotion -0.6% -0.4% Other Expenditure * 1.5% 1.6% EBITDA % - Current period 16.6% 16.1% * As per new IND AS 116, Rent expenses of
Slide 12: Brand Performance & Initiatives
Brand Performance & Initiatives 11
Slide 13: Our Category Strategy
Our Category Strategy Household Post Wash Main Wash Dish wash Personal Care Insecticide • Extending • Establishing • Leveraging Two • Increasing • Reinvigorating Dominant uniqueness brand portfolio footprint Brand position • Building for • Innovation • Winning • Relevant • Premiumisation future • le
Slide 14: Category wise business share (Q2FY20)
Category wise business share (Q2FY20) Other Fabric Care 5% (Post wash) HI 13% 10% Personal Care 12% Fabric Care (Main wash) 27% Dishwashing 33% 13
Slide 15: Fabric Care
Fabric Care 40% of Total Business Q2FY20 H1FY20 Category Growth in % Growth in % Fabric Care 13.1% 9.2% 14
Slide 16: Post Wash: Ujala Fabric Whitener
Ujala Fabric Whitener Market Share in % MS CY16 CY17 CY18 MQ19 JQ19 SQ19 Ujala 78.3 80.4 80.6 81.2 81.9 82.1 supreme Source – AC Nielsen (Calendar Year) Q2 FY’20 – Ujala Drive Post Wash • Strong Investment behind Brand to drive growth. • Strong activations at trade and consumer level. 15
Slide 17: Post Wash: Ujala Crisp & Shine
Ujala Crisp & Shine Q2FY20 H1FY20 Brand Growth in % Growth in % Ujala Crisp & 24.8% 23.4% Shine SH FY’20 Planned Post Wash initiatives • New market launch planned – Karnataka 16
Slide 18: Detergents: Ujala IDD Detergent
Ujala IDD Detergent Market Share in % (Kerala) MS MQ19 JQ19 SQ19 UJALA IDD 15.5 16.1 15.5 Source – AC Nielsen (Calendar Year) Detergents • Ujala IDD continues to outperform the category growth. • The brand maintains its leadership position as the largest mid priced detergent brand in Kerala. • Onam
Slide 19: Detergents & Bars: Henko Franchise
Henko Franchise Detergents & Bars New & Powerful product mix driving growth. Focused approach in relevant markets. New initiatives in Ecommerce. 18
Slide 20: Dishwashing
Dishwashing 33% of Total Business Q2FY20 H1FY20 Category Growth in % Growth in % Dish wash 8.6% 5.0% Market Brand CY18 MQ19 JQ19 SQ19 Share Exo Bar 11.1 11.0 11.3 11.2 Progress in % Pril liquid 16.7 16.0 16.1 16.0 Source – AC Nielsen (Calendar Year) 19
Slide 21: Dishwash
Dishwash • In Exo, Low unit packs grew at 10% - helping drive category conversion among non users • Pril Tamarind now contributes to 10%* of the brand * In the SKUs and channel in which it is present 20
Slide 22: Dishwash: Pril Tamarind launch and market trends
Dishwash Q2: Launch of Pril Tamarind Rs 20 Pouch Market Trends : • Liquid Dishwash growing 1.5x bars • High growth as consumers increase proportion of liquids in repertoire • Pouches growing 2x liquids* Experience Shine like never before 21
Slide 23: Household Insecticides
Household Insecticides 10% of Total Business Net sales Growth Q2FY20 H1FY20 Category Growth in % Growth in % Maxo Franchise (-) 1.3% (-) 9.2% Delayed season in key contributing States declines Coil sales 22
Slide 24: Household Insecticide
Household Insecticide Brand CY18 MQ19 JQ19 SQ19 Market Share Maxo Coil 21.2 19.7 21.6 21.7 Progress in % 7.6 6.5 9.8 8.3 Maxo LV Source – AC Nielsen (Calendar Year) Maxo Genius Combi : 55% (Q2 FY20 Growth) Outlet Visibility 23
Slide 25: Spurious Agarbathi in India
Spurious Agarbathi in India Threat to legitimate mosquito repellent Industry Source – AC Nielsen (Calendar Year) Year 19 turnover at MRP estimated at 700 cr.(over 30% of Coils Market) Two pronged attack by industry to curb illegal incense stick menace : • Raids at factory and distribution points • D
Slide 26: Government revises incense stick import policy to Restricted
Positive step by Government of India: “Free” Import policy revised to “Restricted” Jolt to illegal incense sticks importers With the prompt action by Government, consumer will either shift to Natural Agarbathi or to Coil segment Source : Notification no. 15 /2015-2020 dated 31st August 2019 issu
Slide 27: Personal Care
Personal Care 12% of Total Business Net sales Growth Q2FY20 H1FY20 Category Growth in % Growth in % Growth achieved Continued on-air Personal Care 6.9% 10.1% across states support Geographical extension Strong consumer activation across 11 cities of Margo Glycerine: Competition has reduced the price
Slide 28: T-Shine update (Kerala Market)
T-Shine update (Kerala Market) Product Relaunch in Oct 19 Market Info (Liquids) SQ19/SQ18 Category Growth 21.5% Source – AC Nielsen Calendar Year T shine : Market share in Kerala in % Brand CY18 MQ19 JQ19 T-Shine 4.4 4.6 4.8 Source – AC Nielsen Calendar Year 27
Slide 29: Innovations & Progress of Innovations
Innovations & Progress of Innovations Unique Features 1,000 Neem Leaves Exo Ginger twist Instant Dirt Dissolver (IDD) Disruptive Product For crisp & Shiny clothes First of its kind: Automatic 100% Organic with genius machine no stain formula World Class packaging & Design 28
Slide 30: Way Forward
Way Forward • Consumer sentiments improving ahead of festive season. With good monsoon, rural off-take expected to pick up. • Growth driven by innovations and higher investments on brands • Focus on improving sales productivity through technology 29
Slide 31: Shareholding Pattern
Shareholding Pattern As on September 30, 2019 FII 16.05% DII 11.51% Promoter and Public Promoter Group 5.33% 67.11% 30
Slide 32: Seek the light, Spread the light!
Seek the light, Spread the light!
Slide 33: For more information
For more information Please contact Sanjay Agarwal Snighter Albuquerque CFO, Jyothy Labs Ltd Adfactors PR Tel: +91-22- 6689 2800 M: +91 98191 23804 E-mail: sanjay.agarwal@jyothy.com Email: snighter.a@adfactorspr.com Please visit www.jyothylabs.com 32
Slide 34: Disclaimer
Disclaimer Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include change
Slide 35: Thank You!!!
Thank You!!! 34