Dabur India Limited · NSE:DABUR
Dabur India — Kotak Chasing Growth Investor Conference 2018
35 slides from Dabur India's conference presentation, February 2018
Slide 1: Investor Presentation
Investor Presentation February 2018
Slide 2: Contents
Contents 1. Dabur – Overview 2. Q3 FY18 – Overview 3. Category Highlights 4. Business Initiatives 5. Recent Launches 6. International Business – Overview 7. Business Strategy 8. Annexure 2
Slide 3: Dabur – Overview
Dabur – Overview Overview Awards Established in 1884 – 133 years of trust and Dabur Red Paste rated as 2nd most excellence trusted brand by the consumers in the Oral Care category by the Brand Equity India’s Most Trust Brand 2017 One of the world’s largest in Ayurveda and natural healthcare Dabur Va
Slide 4: Manufacturing facilities
Manufacturing facilities 12 manufacturing locations in India 8 international manufacturing locations UAE Baddi Jammu Egypt Sahibabad ` Alwar Pantnagar Tezpur Newai Nigeria Katni South Africa Turkey Narendrapur Silvasa Sri Lanka Nasik Pithampur Bangladesh Nepal 4
Slide 5: Distribution network
Distribution network Urban Rural Factory Factory C&F C&F Super GT Stockist MT Stockist Insti Stockist Stockist Wholesaler Sub Stockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer Distribution reach of 6.3 mn retail outlets; Cover over 40,000 villages directly 5
Slide 6: Sales by Business Vertical
Sales by Business Vertical Domestic FMCG – Business Verticals1 Key categories Revenue Category Contribution Key Brands Domestic FMCG (FY17) Hair Care 22% Healthcare (31%) Foods 19% HPC Health 17% (50%) Supplements Oral Care 16% Foods (19%) OTC & Ethicals 9% Others 17% 1. Based on FY17 Revenue 6
Slide 7: Market leader in categories
Market leader in 6 categories Leading position in key categories across verticals #Relative Competitive Position1 #1 #1 #2 #2 #2 #3 #1 #2 #1 #1 #1 Honey Chyawanprash Baby Glucose Hair Oils Oral Care Skin Toilet Cleaners Air Mosquito Juices Massage Care - Fresheners Repellant Oil Bleaches Creams Heal
Slide 8: Building bigger brands
Building bigger brands 10 bn+ 1 bn+ 16 brands with turnover of INR 1bn+ with 3 brands which are 10bn+ 8
Slide 9: Contents
Contents 1. Dabur – Overview 2. Q3 FY18 – Overview 3. Category Highlights 4. Business Initiatives 5. Recent Launches 6. International Business – Overview 7. Business Strategy 8. Annexure 9
Slide 10: Q3 FY18 – Consolidated Financials
Q3 FY18 – Consolidated Financials Revenue Profit After Tax 1,966.4 332.1 6.1% 13.1% 1,852.9 293.8 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 • Consolidated revenue increased by 6.1% on • Consolidated Profit After Tax (PAT) grew by reported basis, GST adjusted constant currency 13.1% growth was 12.9% • Material
Slide 11: Q3 FY18 – Impact of GST and Currency on Growth
Q3 FY18 – Impact of GST and Currency on Growth Consolidated Revenue from Operations 3.6% 12.9% 3.3% 6.1% Reported Value Growth GST Impact Currency Impact Underlying GST and Currency Adjusted Growth Domestic FMCG Revenue 4.7% 17.7% 13.0% Reported Value Growth GST Impact Underlying GST Adjusted Growth
Slide 12: Q3 FY18 – Business Overview
Q3 FY18 – Business Overview Q3 FY17 Q3 FY18 4.0% 2.8% 27.0% 30.5% 65.5% 70.2% Domestic International Others • Contribution of Domestic FMCG increased to 70% from 65% last year • International Business contributed 27% as compared to 30% last year 12
Slide 13: Domestic FMCG – Category-wise Sales
Domestic FMCG – Category-wise Sales Q3 FY17 Q3 FY18 17% 18% 14% 18% 10% 10% 15% 5% 16% 5% 6% 6% 23% 6% 24% 7% Hair Care Oral Care Skin Care Home Care Health Supplements Digestives OTC & Ethicals Foods • Share of Hair Care category remained stable at 18% • Oral Care category increased share from 15%
Slide 14: Contents
Contents 1. Dabur – Overview 2. Q3 FY18 – Overview 3. Category Highlights 4. Business Initiatives 5. Recent Launches 6. International Business – Overview 7. Business Strategy 8. Annexure 14
Slide 15: Home and Personal Care (HPC) – Q3 FY18
Home and Personal Care (HPC) – Q3 FY18 • HPC posted a growth of 22.9% in Q3 FY18 • Oral care recorded a growth of 23% driven by increase in penetration, strengthening foothold in MT, strong growth in South and increase in commerce sales – Toothpaste category recorded growth of 26% and gained market
Slide 16: Healthcare (HC) – Q3 FY18
Healthcare (HC) – Q3 FY18 • Healthcare vertical posted growth of 16.6% in Q3 FY18 • Health Supplements grew by 19.5% on the back of strong growth of Chyawanprash and Honey • Dabur Honey reported a strong recovery growing by 33.2% and gaining market share • Digestives posted growth of 19.3% led by st
Slide 17: Foods – Q3 FY18
Foods – Q3 FY18 • Foods category remained flat during Q3 primarily on account of high base as Foods had grown at 52% in Q3FY17. • Shifting of Diwali season & proliferation of value players also impacted sales in First Ever TVC For Real Pomegranate the quarter • Culinary business impacted by supply i
Slide 18: Contents
Contents 1. Dabur – Overview 2. Q3 FY18 – Overview 3. Category Highlights 4. Business Initiatives 5. Recent Launches 6. International Business – Overview 7. Business Strategy 8. Annexure 18
Slide 19: Project Buniyaad – Distribution enhancement
Project Buniyaad – Distribution enhancement Enabling Technology Urban Strategy Using technology to track and improve performance Leveraging potential through Channel based approach and automate processes Rural Strategy New Avenues of Growth Split the front line teams into two to increase reach Lever
Slide 20: Consumer/ Marketing Initiatives (1 of 2)
Consumer/ Marketing Initiatives (1 of 2) Generating Trials for School Contact Programs Winter Special Offers on Festive TV Campaign Bleach through (Oral Care) Gulabari Workshops and Seminars Odonil Zipper – Title Odonil Zipper - Khushboo Odomos – Associating Sponsor of ITA Awards on Wheels with Gove
Slide 21: Consumer/ Marketing Initiatives (2 of 2)
Consumer/ Marketing Initiatives (2 of 2) Monsoon Campaign for Dabur Honey – New Year Resolutions Hajmola branded boats at Dabur Chyawanprash Weight Management Campaign Chitrakoot Mela, UP Ayurved Parv Honitus Hot Sip – Real Mocktails Dabur Amla TV Campaign Miss North India 21
Slide 22: Contents
Contents 1. Dabur – Overview 2. Q3 FY18 – Overview 3. Category Highlights 4. Business Initiatives 5. Recent Launches 6. International Business – Overview 7. Business Strategy 8. Annexure 22
Slide 23: Recent Launches
Recent Launches Real Mocktails – Pina Colada and Virgin Mary Odomos Fabric Roll-On GlycoDab tablets - Ayurvedic Odonil Nature Air Freshener – Sani Fresh Bathroom Cleaner medicine Fruit Blast 23
Slide 24: Contents
Contents 1. Dabur – Overview 2. Q3 FY18 – Overview 3. Category Highlights 4. Business Initiatives 5. Recent Launches 6. International Business – Overview 7. Business Strategy 8. Annexure 24
Slide 25: International Business – Q3 FY18
International Business – Q3 FY18 • International Business posted 5% growth in constant currency terms during Q3 FY18 • Severe currency devaluation in Egyptian Pound, Naira and Turkish Lira led to significant translation loss of INR 66 crore impacting ~3.6% of consolidated sales • GCC markets witness
Slide 26: Consumer & Marketing Initiatives – International
Consumer & Marketing Initiatives – International Dentist Advice to go back Oral Care Program in In Store visibility - International Dental to Nature UAE Schools shampoos Conference, Iraq Dabur Amla – Youtube Vatika Enrich Oil – New Packaging for Vatika Vatika Shampoo – campaign Regional Arab TVC Air
Slide 27: Contents
Contents 1. Dabur – Overview 2. Q3 FY18 – Overview 3. Category Highlights 4. Business Initiatives 5. Recent Launches 6. International Business – Overview 7. Business Strategy 8. Annexure 27
Slide 28: Business strategy – India Business
Business strategy – India Business Healthcare Home & Personal Care Foods • Leadership in Ayurveda – • Ayurvedic / Herbal focus • Maintain leadership in Juices scientific evidence & • Premiumization & & Nectars category research Differentiation • Leveraging the Fruit equity • OTC portfolio to be scal
Slide 29: Business Strategy – IBD
Business Strategy – IBD Brands positioned on “Herbal and Natural” platform Product portfolio customized to local preferences Strong investments in brands and business Leveraging Digital platform to enhance consumer awareness and brand visibility Local supply chain & management offers strategic advan
Slide 30: The next growth wave
The next growth wave Build bigger brands More than 15 brands in the range of INR >0.1 to 1 bn which can grow to INR 1bn+ Continued Innovation NPD pipeline primed to deliver new products in key categories – 4-5 new products every year Driving distribution expansion Direct reach of 1 mn +, increasing
Slide 31: Contents
Contents 1. Dabur – Overview 2. Q3 FY18 – Overview 3. Category Highlights 4. Business Initiatives 5. Recent Launches 6. International Business – Overview 7. Business Strategy 8. Annexure 31
Slide 32: Consolidated Profit & Loss – Q3 FY18
Consolidated Profit & Loss – Q3 FY18 Q3 FY18 Q3 FY17 Y-o-Y (%) 9M FY18 9M FY17 Y-o-Y (%) Revenue from operations 1,966.4 1,852.9 6.1% 5,715.4 5,786.8 (1.2%) Other Income 66.3 83.1 (20.1%) 231.9 233.3 (0.6%) Total Income 2,032.8 1,936.0 5.0% 5,947.4 6,020.1 (1.2%) Material Cost 952.3 938.3 1.5% 2,844
Slide 33: Consolidated Balance Sheet (1 of 2)
Consolidated Balance Sheet (1 of 2) All figures are in INR crores, unless otherwise stated As at 30/09/2017 As at 31/03/2017 Particulars (Unaudited) (Audited) A Assets 1 Non-current assets (a) Property, plant and equipment 1,508 1,479 (b) Capital work-in-progress 55 42 (c) Investment property 55 55
Slide 34: Consolidated Balance Sheet (2 of 2)
Consolidated Balance Sheet (2 of 2) All figures are in INR crores, unless otherwise stated As at 30/09/2017 As at 31/03/2017 Particulars (Unaudited) (Audited) B Equity and Liabilities 1 Equity (a) Equity share capital 176 176 (b) Other Equity 5,100 4,671 Equity attributable to shareholders of the Co
Slide 35: Thank You
Thank You 35
Dabur India — Kotak Chasing Growth Investor Conference 2018 on 6ix