Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Q3 FY2020 Earnings Presentation
36 slides from Jyothy Labs's earnings presentation, Feb 5, 2020
Slide 1: Jyothy Labs filing cover letter
Jyothy labs February 5, 2020 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 refer
Slide 2: Analyst Presentation Q3FY20
Analyst Presentation Q3FY20 February 5, 2020 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, Household Insecticides, Person
Slide 5: Market Scenario
Market Scenario Overall Slowdown in Economy which has impacted the demand for FMCG products - Urban demand is stable, muted Rural demand Stretched Working Capital of Channel Partners New users are Driving Growth in Lower Penetration Categories (Dishwash/Household Insecticide) 4
Slide 6: Result Highlights
Result Highlights 5
Slide 7: Q3 FY20 Snapshot (Consolidated)
Q3 FY20 Snapshot (Consolidated) Revenue down by 5.9% (Volume down by 5.6%) Gross Margin improved to 48.7% from 46.5% Advertisement expenditure at Rs 25.2 cr vs Rs 24.8 cr, up by 1.8% Advertisement expenditure to Sales ratio at 6.0% vs 5.5%. Operating EBITDA at 15.8% (Rs 66.3 cr) Vs 16.1% (Rs 72.1 cr
Slide 8: YTD FY20 Snapshot (Consolidated)
YTD FY20 Snapshot (Consolidated) Revenue growth 1.6% (Volume Growth of 2.6%) Gross Margin improved to 47.8% from 47% Advertisement expenditure at Rs 87.1 cr vs Rs 80.4 cr, up by 8.4% Advertisement expenditure to Sales ratio at 6.6% vs 6.2%. Operating EBITDA at 16% (Rs 210.5 cr) Vs 15.4% (Rs 199.8 cr
Slide 9: Q3FY20 Sales
Q3FY20 Sales Reduction in Revenue of 5.9% primarily due to : - 4% One-off Moderation in Institutional Sales - 1.9% as a result of General Trade (GT) channel facing rural slowdown & working capital constraints at distributor & wholesale level GT continues to operate on Cash and Carry Despite the abov
Slide 10: Category wise Net revenue
Category wise Net revenue All values in INR Crore Quarter ended Nine months ended Category Key Brand CY PY Gr % CY PY Gr % Ujala FW, Henko, Mr White, Ujala Crisp & Fabric Care Shine 172 193 -11.1% 552 542 2.0% Dishwashing Exo, Pril 150 150 0.2% 440 426 3.3% Household Insecticides Maxo 43 42 1.7% 117
Slide 11: Q3FY20 Snapshot Company's Performance (Consolidated)
Q3FY20 Snapshot Company’s Performance (Consolidated) All values in Rs Crore except EPS Quarter Ended Nine months ended Particular/Growth CY PY % change CY PY % change Revenue from Operation 421 447 -5.9% 1,318 1,298 1.6% Operating EBITDA 66.3 72.1 -8.0% 210.5 199.8 5.4% PAT 45.0 51.1 -12.0% 136.0 13
Slide 12: EBIDTA Movement (Consolidated)
EBIDTA Movement (Consolidated) EBITDA % - Previous period 16.1% 15.4% Gross Margin 2.2% 0.8% Employee Cost -2.1% -0.9% Advertisement & Sales Promotion -0.5% -0.4% Other Expenditure 0.0% 1.1% EBITDA % - Current period 15.8% 16.0% * As per new IND AS 116, Rent expenses of Rs 5.27 cr in Q3FY20 & Rs 15.
Slide 13: Brand Performance & Initiatives
Brand Performance & Initiatives 12
Slide 14: Our Category Strategies
Our Category Strategies Household Post Wash Main Wash Dish wash Personal Care Insecticide • Extending • Establishing • Leveraging Two • Increasing • New Extensions Dominant uniqueness brand portfolio footprint • Differentiated position • Building for • Innovation • Winning propositions on • Premiumi
Slide 15: Category wise business share (Q3FY20)
Category wise business share (Q3FY20) Other 5% Fabric Care (Post HI wash) 10% 14% Personal Care 8% Fabric Care (Main wash) 27% Dishwashing 36% 14
Slide 16: Fabric Care
Fabric Care 41% of Total Business Q3FY20 YTDFY20 Category Growth in % Growth in % Fabric Care (-) 11.1% 2% 15
Slide 17: Post Wash: Ujala Fabric Whitener
Ujala Fabric Whitener Market Share in % MS CY16 CY17 CY18 CY19 Ujala 78.3 80.4 80.6 81.7 supreme Source – AC Nielsen Post Wash • Activations in trade to drive visibility through Dangler Packs. • Driving superiority of Ujala Supreme over Low-cost Blues through consumer activations. 16
Slide 18: Post Wash: Ujala Crisp & Shine
Ujala Crisp & Shine YTDFY20 Brand Growth in % Ujala Crisp & 12.9% Shine Post Wash • Drive category growth- Enhanced visibility of new variants to generate consumer interest. • Extending the marketing mix ix to new market Karnakata 17
Slide 19: Detergents: Ujala IDD Detergent
Ujala IDD Detergent Market Share in % (Kerala) MS MQ19 JQ19 SQ19 DQ19 UJALA 15.5 16.1 15.5 16.3 IDD Source – AC Nielsen Detergents • The brand maintains its leadership position as the largest mid priced detergent brand in Kerala • New TVC featuring the brand ambassador Manju Warrier launched in Kera
Slide 20: Detergents & Bars: Henko Franchise
Henko Franchise Brand YTD Growth in % Henko Franchise 11% Detergents & Bars Strong double digit growths continue for the Henko Franchise – Henko Stain Care @ 13% & Henko Matic @ 15% YTD Growth. Focused BTL (Dealer Boards & In-shop) Initiatives to drive visibility in Key Markets. Exclusive Tie-up wit
Slide 21: Dishwashing
Dishwashing 36% of Total Business Q3FY20 YTDFY20 Category Growth in % Growth in % Dish wash 0.2% 3.3% Market Brand CY18 CY19 Share Exo Bar 11.1 11.2 Progress in % Pril liquid 16.7 16.0 Source – AC Nielsen (Calendar Year) 20
Slide 22: New Launches
New Launches • Multi Active Concentrate in Exo Dishwash Super Gel straddles the benefits of both Bar and liquid. • Launched revolutionary sub- category in dishwash category – Exo Super Gel in Kerala MRP Rs. 50/- for 250 gm pack 21
Slide 23: Small packs helping to reach new consumers
Small packs helping to reach new consumers Exo Bar • Small packs grew at 19% in this quarter – All India Pril Liquid • Drive in Pril Tamarind helped to make this variant 10% of Pril Brand. 22
Slide 24: Household Insecticides
Household Insecticides 10% of Total Business Net sales Growth Q3FY20 YTDFY20 Category Growth in % Growth in % Maxo Franchise 1.7% (-) 5.6% 5% Volume growth in HI category (Q3FY20) Growing Salience of Genius LV which contributed 15% to total LV sales in Q3 23
Slide 25: Household Insecticide
Household Insecticide Brand CY18 CY19 Market Share Maxo Coil 21.2 21.1 Progress in % 7.6 8.1 Maxo LV Source – AC Nielsen (Calendar Year) Maxo Genius Combi sees strong growths at 70% QoQ. Continuous Media in select geographies done to ensure right support to Maxo Genius 24
Slide 26: Mosquito Repellent Incense Sticks – Category details
Mosquito Repellent Incense Sticks – Category details Source – AC Nielsen (Calendar Year) 900 Incense Sticks Value at MRP (in Cr.) 800 776 700 600 551 500 400 295 300 200 136 100 73 0 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 The coil category continue to be challenged by growth of Incense Sticks (primarily spur
Slide 27: Personal Care
Personal Care 8% of Total Business Net sales Growth YTDFY20 Category Growth in % Personal Care 4% • Visibility drives & trade activations across Key towns. • New consumer promos introduced in key markets to generate trials. • Geographical extension of Margo Glycerine: Launched in Tamilnadu after Ker
Slide 28: Margo FaceWash Launched in West Bengal
Margo FaceWash Launched in West Bengal India’s 1st Neem Paste FaceWash MRP Rs. 120/- for 100 gm pack & MRP Rs. 65/- for 50 gm pack 27
Slide 29: T-Shine update (Kerala Market)
T-Shine update (Kerala Market) T shine : Market share in Kerala in % • Relaunch of T-Shine with revised Brand CY19 SQ19 DQ19 formulation T-SHINE 3.4 2.0 2.4 • To aid sampling T-Shine Toilet Source – AC Nielsen Calendar Year Specialist (Lavender) was sampled with Ujala IDD • Promoter activity was don
Slide 30: Innovations & Progress of Innovations
Innovations & Progress of Innovations Differentiated positioning Power of Bar Meets 1000 Neem Leaves Exo Ginger twist Instant Dirt Goodness of Liquid Dissolver (IDD) Disruptive Product Gives form & First of its kind: Automatic 100% Organic India’s 1st Neem finish to clothes genius machine toilet cle
Slide 31: Way Forward
Way Forward Government Initiatives aimed at Rural India and Middle Class will improve consumption offtakes Continue to Focus on Gaining Market Share across Brands Focus on BTL activities to enhance Secondary Sales Improving Frequency of Retail Service to Tackle Slowdown Strengthening Distribution wi
Slide 32: Shareholding Pattern
Shareholding Pattern As on December 31, 2019 FII 15.59% Promoter and DII Promoter Group 16.06% 62.89% Public 5.46% 31
Slide 33: Seek the light, Spread the light!
Seek the light, Spread the light!
Slide 34: 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 33
Slide 35: 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 36: Thank You!!!
Thank You!!! 35