Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Q4 FY2020 Earnings Presentation
39 slides from Jyothy Labs's earnings presentation, Jun 5, 2020
Slide 1: Analyst Meet Presentation cover letter to exchanges
To, June 5, 2020 National Stock Exchange India Limited Exchange Plaza, C-1, Block-G, Bandra Kurla Complex, Bandra – (East). Mumbai - 400051 Scrip Code: JYOTHYLAB BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400023 Scrip Code: 532926 Dear Sirs, Sub: Analyst Meet Presentation With ref
Slide 2: Jyothy Labs logo
Slide 3: Presentation Q4FY20 and FY20
PRESENTATION Q4FY20 and FY20 JUNE 5, 2020 2
Slide 4: Content
➢ About Us ➢ Market Scenario CONTENT ➢ Result highlights Title will com here Subtitle will come here ➢ Brand Performance & Initiatives ➢ Way Forward www.jyothylabs.com 3
Slide 5: About Us
ABOUT US • Founded in 1983 by a first generation entrepreneur Mr MP Ramachandran -Our Chairman Emeritus. • Jyothy Labs is present primarily in Home Care (includes Fabric wash, & Household cleaners) and Personal Care segments which constitute 50% of the Indian FMCG industry. • Our key product categor
Slide 6: Market Scenario – COVID Phase
MARKET SCENARIO – COVID 19 PHASE Pre - 20 March 2020 • Overall Economic Slow Down. Rural Growth was weak while Urban growth was stable. During - 20 March 2020 to 31 March 2020 (Lock down Phase 1) • Severe Disruption of Operations from 20 March 2020 onwards. All factories and sales operations were ha
Slide 7: COVID Phase - Key Activities
COVID 19 PHASE - KEY ACTIVITIES Innovations Launched Alcohol Based ‘Margo Hand Sanitiser’ infused with Neem Extracts giving additional protection and care to Skin in a record time of 21 days under lockdown conditions from concept to production start date. Refined Go To Market (GTM) Strategy • Partne
Slide 8: COVID Phase - Our Short Term Priorities
Current Status of Operations COVID 19 PHASE - OUR SHORT TERM PRIORITIES Product Portfolio • Leverage on our core ‘Essential’ household brands (85-90% of our product portfolio are ‘Essential Goods’). • Focus on Middle Class India with aspirations for better quality. • Focus on Rural Market (Green and
Slide 9: Result Highlights – Q4FY20 Snapshot (Consolidated)
RESULT HIGHLIGHTS – Q4FY20 SNAPSHOT (CONSOLIDATED) Revenue down by 23.8% (Volume down by 22.1%) Gross Margin at 45.7% from 45.2% in the same period last year. Advertisement Expenditure at Rs 35.6 Crores versus Rs 32.3 Crores. Up by 10.2% Advertisement Expenditure to Sales ratio at 9.1% versus 6.3%.
Slide 10: FY20 Snapshot (Consolidated)
FY20 SNAPSHOT (CONSOLIDATED) Revenue down by 5.6% (Volume down by 4.4%). Gross Margin improved to 47.4% from 46.5%. Advertisement expenditure at Rs 122.7 Crores versus Rs 112.7 Crores, up by 8.9% Advertisement expenditure to Sales ratio at 7.2% versus 6.2%. Operating EBITDA at 14.7% (Rs 251.1 Crores
Slide 11: Sales Growth
SALES GROWTH 1 April 2019 – 31 December 2019 +2% 1 January 2020 – 20 March 2020 Normal growth adjusted +5%* for Covid-19 impact is mid-single digit. 1 January 2020 – 31 March 2020 -23.8% 1 April 2020 – 31 May 2020 Positive Growth* Sales decline in HI accelerated due to loss of sales in later part of
Slide 12: Category Wise Net Revenue
CATEGORY WISE NET REVENUE QUARTER ENDED YEAR ENDED CATEGORY KEY BRAND CY PY GR% CY PY GR% Ujala FW, Henko, Mr White, FABRIC CARE Ujala Crisp & Shine 156 188 -17.2% 708 730 -3.0% DISHWASHING Exo, Pril 127 162 -21.4% 567 587 -3.5% HOUSEHOLD INSECTICIDES Maxo 64 100 -35.9% 181 224 -19.1% PERSONAL CARE
Slide 13: Q4 FY20 Snapshot Company's Performance (Consolidated)
Q4 FY20 SNAPSHOT COMPANY’S PERFORMANCE (CONSOLIDATED) Quarter ended Year ended Particular/Growth CY PY % change CY PY % change Revenue from Operation 393 516 -23.8% 1,711 1,814 -5.6% Operating EBITDA 40.6 81.3 -50.1% 251.1 281.1 -10.7% PAT 26.6 66.8 -60.2% 162.6 197.6 -17.7% EPS (INR) (not annualise
Slide 14: EBITDA Movement (Consolidated)
EBITDA MOVEMENT (CONSOLIDATED) Consolidated Particulars Q4 FY20 EBITDA % - Previous period 15.8% 15.5% Gross Margin 0.5% 0.9% Employee Cost -2.5% -1.4% Advertisement & Sales Promotion -2.8% -1.0% Other Expenditure -0.7% 0.6% EBITDA % - Current period 10.3% 14.7% * As per new IND AS 116, Rent expense
Slide 15: Brand Performance and Initiatives
BRAND PERFORMANCE AND INITIATIVES 14
Slide 16: Our Category Strategy
OUR CATEGORY STRATEGY Household Post Wash Main Wash Dish wash Personal Care Insecticide • Extending • Establishing • Leveraging • Increasing • New Extensions Dominant uniqueness Two brand footprint • Differentiated position • Building for portfolio • Winning propositions on • Premiumisation future •
Slide 17: Category Wise Business Share (Q4 FY20)
CATEGORY WISE BUSINESS SHARE (Q4 FY20) OTHER FABRIC CARE 4% HOUSEHOLD (POST WASH) INSECTICIDES 12% 16% PERSONAL CARE 8% FABRIC CARE (MAIN WASH) 28% DISHWASHING 32% 16
Slide 18: Fabric Care - 40% of Total Business
FABRIC CARE- 40% OF TOTAL BUSINESS Q4FY20 YTDFY20 Category Growth in % Growth in % Fabric Care (-) 17.2% (-) 3% 17
Slide 19: Fabric Care (Post Wash) – Ujala Supreme
FABRIC CARE (POST WASH) – UJALA SUPREME Market Share in % Brand CY 16 CY 17 CY 18 CY 19 Ujala 78.3% 80.4% 80.6% 81.7% Source – AC Nielsen (CY- Calendar Year) • Brand Performance: Brand was on a recovery path until lockdown in Q4 20. • 5% growth before lock-down • Marketing initiatives: ATL presence
Slide 20: Fabric Care (Post Wash) – Ujala Crisp & Shine
FABRIC CARE (POST WASH) – UJALA CRISP & SHINE RETAIL VISIBILITY • Brand Performance: Brand achieved 4% growth (YTD) till lock-down. • Marketing initiatives: • Visibility drives taken in Kerala & TN 19
Slide 21: Fabric Care (Detergents) – Ujala
FABRIC CARE (DETERGENTS) – UJALA Market Share in % (Kerala) Brand Q4 19 Q1 20 Q2 20 Q3 20 Ujala Det 15.5% 16.1% 15.5% 16.3% Powder Source – AC Nielsen • Brand Performance: The brand maintains its leadership position as the largest mid priced detergent brand in Kerala. • Marketing initiatives: A high
Slide 22: Fabric Care (Detergents) - Henko
FABRIC CARE (DETERGENTS) - HENKO • Brand performance: Strong growth momentum continued in both Henko Stain Care and Henko Matic • Marketing initiatives: ATL presence for 6 weeks in Q4 (focus markets) • Co-Sponsorship with KBC (Ningalkum Aakam Kodishwaran - 2020) in Kerala. Unique consumer activation
Slide 23: Dishwashing: 32% of Total Business
DISHWASHING: 32% OF TOTAL BUSINESS Q4FY20 YTDFY20 Category Growth in % Growth in % Dish wash (-) 21.4% (-) 3.5% Market Brand CY18 CY19 Share Exo Bar 11.1 11.2 Progress in % Pril liquid 16.7 16.0 Source – AC Nielsen (Calendar Year) 22 22
Slide 24: Exo Bar: Consumer Touch Points - FY20
EXO BAR: CONSUMER TOUCH POINTS - FY 20 Digital Media Exo Ginger communication on air since May FY 20 Switch to Bacteria Free Dabba, Switch to Exo Seeing is believing: Swab test at housing society and • Communication aired in 9 Languages # In association with Dabbawala Mumbai amplification of activit
Slide 25: Exo Gel: Consumer Touch Points - FY20
EXO GEL: CONSUMER TOUCH POINTS - FY 20 Exo Dishwash Super Gel communication - on air since Feb FY 20 Strong Placement activity in progress 24 24
Slide 26: Pril: Consumer Touch Points - FY20
PRIL: CONSUMER TOUCH POINTS - FY 20 Digital Media Pril Tamarind communication on air since Nov FY 19 2 part video series on intricacies in Modern Day relationships in association with Colours • Communication aired in 7 Languages Social Media Powerful presence at outlet helping to induce offtakes Pri
Slide 27: T-Shine Toilet Specialist: Consumer Touch Points - FY20
T-SHINE TOILET SPECIALIST: CONSUMER TOUCH POINTS - FY 20 Powerful presence in shelf T-Shine Toilet Specialist communication (with celebrity) on air since Nov FY 20 Sampling with Ujala IDD 1 Kg to reach out to 3.2 Lakh Households Promoter led activity in OFOs across Kerala to induce offtake 26
Slide 28: Household Insecticide: 16% of Total Business
HOUSEHOLD INSECTISIDE : 16% OF TOTAL BUSINESS Q4FY20 YTDFY20 Category Growth in % Growth in % Maxo Franchise (-) 35.9% (-) 19.1% Sales decline in HI accelerated due to loss of sales in later part of March which marks the onset of high mosquito infestation in North & East India Double digit growths i
Slide 29: Household Insecticide
HOUSEHOLD INSECTISIDE Brand CY18 CY19 Market Share Maxo Coil 21.2 21.1 Progress in % 7.6 8.1 Maxo LV Source – AC Nielsen (Calendar Year) Continuous Media in key Markets ensures offtakes of Maxo Genius LV refill market share gained by 49 bps and Combi market share by 44 bps in All India in the year 2
Slide 30: Personal Care - Margo
PERSONAL CARE - MARGO Marketing initiatives: • ATL presence for 6 weeks across variants in select markets • Digital campaign targeting social media users with “influencers’ to drive brand engagement • BTL drives to amplify visibility 29
Slide 31: Personal Care – New Launch
PERSONAL CARE – NEW LAUNCH New Margo Hand PR COVERAGE Wash • Aimed at extending the franchise • Launched in all southern states. • Offered in bottle and refill packs RETAIL VISIBILITY 30
Slide 32: Personal Care – New Launch
PERSONAL CARE – NEW LAUNCH BRAND POSTS ON COVID-19 IN DIGITAL MEDIA New Margo Hand Sanitizer • Leverage Neem Equity to introduce liquid Sanitizer – Natural protection from illness causing germs • Prioritizing supplies to states with higher RETAIL VISIBILITY Covid 19 cases. 31
Slide 33: Hygiene May Not Just Be 'Hygiene' Any More
HYGIENE MAY NOT JUST BE “HYGIENE” ANY MORE Opportunity for Jyothy Labs OUR HYGEINE PORTFOLIO DETERGENTS DISHWASH - Exo Anti Bacterial Dishwash Pril Liquid Dishwash PERSONAL CARE - Margo (Neem Based) Soap, Facewash, Handwash, Sanitizer HOUSEHOLD INSECTICIDE - Maxo Excerpts from article published in M
Slide 34: Innovations & Progress of Innovations
INNOVATIONS & PROGRESS OF INNOVATIONS Differentiated positioning Power of Bar Meets 1000 Neem Leaves Goodness of Liquid Instant Dirt Dissolver (IDD) Exo Ginger twist Gives form & finish to clothes Disruptive Product 100% Organic India’s 1st Neem First of its kind: Automatic Hand Sanitiser with geniu
Slide 35: #VocalForLocal
#VocalForLocal COVID-19 has taught India the importance of being self-reliant, being local. With our borders sealed, our demands during the crisis were met locally. Hence it is time to be ‘vocal about local’ products and help them become global. With a soul that reflects India for all intents and pu
Slide 36: Way Forward
WAY FORWARD • Focus on our core Essential & Hygiene Portfolio • Deploying new strategies and finding innovative solutions to ensure uninterrupted supply of essential products to our retail partners during these unprecedented times. • Crude oil-led gross margin savings would sustain; besides, lower a
Slide 37: Shareholding Pattern
SHAREHOLDING PATTERN As on 31 March 2020 FII 15.03% PROMOTER & DII PROMOTER GROUP 16.34% 62.89% PUBLIC 5.74% FII DII Public Promoter and Promoter Group 36
Slide 38: 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 39: Thank You
THANK YOU Contact for any queries Sanjay Agarwal – CFO Email: Sanjay.Agarwal@Jyothy.com Contact No: +91 22 6689 2800/+91 9167012328 38