Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q3 FY2022 Earnings Presentation
30 slides from Bajaj Consumer Care's earnings presentation, February 2022
Slide 1: Earnings Presentation Q3/9M-FY22
EARNINGS PRESENTATION Q3/9M-FY22
Slide 2: Company Snapshot
Company Snapshot Legacy “Bajaj” among India’s most Products in existence since Bajaj Almond Drops, India’s trusted industrial houses pre Independence Largest single hair oil brand Positioning 8 new Hair Care products 63% Market share in launched in Q3 FY22, more 14 Brands, 100+ SKUs Light Hair Oil s
Slide 3: Company Overview
Company Overview • Bajaj Consumer Care Ltd. (BCCL) is part of the Shishir Bajaj Group of companies, with a rich history dating back to 1953 when Late. Kamalnayan Bajaj established Sales Revenue (INR Crore) & EBITDA Margins (%) Bajaj Sevashram to market and sell hair oils and other beauty products •
Slide 4: Macro Context
Macro Context
Slide 5: Hair Oil Market Growth Trends
Hair Oil Market Growth Trends Value Growth % Volume Growth % Key Highlights 0.5% • Hair Oil Market Growth 0.1% -1.7% continued to be subdued in Q3, -2.0% -2.3% with volumes declining vs LY -0.5% Q3-FY22 Q3-FY22 • Sharp decline in rural impacted by inflationary pressure Urban Rural All India Urban Ru
Slide 6: Performance Highlights
Performance Highlights
Slide 7: Business Performance
Business Performance Segmental Sales Saliency Value Market Share Total Bajaj Hair oils MAT Dec-20 MAT Dec-21 3.3% 1.1% All India (U+R) 10.4% 10.6 % 98.9% 96.7% All India –Urban 10.9% 11.2 % Q3-FY21 Q3-FY22 All India –Rural 9.7% 10.0 % Hair Oil Non-Hair Oil* 5.2% 1.4% • Q3 FY22 sales declined by 7.2%
Slide 8: Business Highlights
Business Highlights General Trade Channel-wise contribution to Revenue (%) • Clear slow down in demand coupled with downtrading being observed in rural, especially in key Hindi Speaking Markets 2.7% 2.4% • Wholesale remains under stress due to impact of rural • Retail performs the best. Being streng
Slide 9: Marketing
Marketing
Slide 10: Bajaj Almond Drop: Marketing Support in Q3
Bajaj Almond Drop: Marketing Support in Q3 Media Support Increased Across Mediums: • TV: SOV up by 4% in high teens • Digital: Social + Influencers tying with Localized Festive occasions • Print: Media Support for Diwali in Maharashtra • E – Commerce: Search / Displays in Amazon + Flipkart Consumer
Slide 11: ADHO Style Fearlessly Campaign
ADHO “ Style Fearlessly “ Campaign New Communication and Claims • Dial up Element of “ Style“ as Younger Consumers are looking for Enhancement Along-with Nourishment New Campaign of , “Style Fearlessly” that New Claim of “ 2X Hairfall Reduction“ to keep appeals to the youth strengthening Nourishment
Slide 12: ADHO Style Fearlessly Digital Campaign
ADHO “ Style Fearlessly” Digital Campaign Audience gets a chance to choose the hairstyle for Audience gets a chance to feature along side with Parineeti’s look . Parineeti in #stylefearlessly Style Book on Instagram Followed by Film and tutorials on How to Style the same hairstyle as Parineeti in th
Slide 13: Amla Portfolio
Amla Portfolio Amla Oils Portfolio • Bajaj Amla Aloe Vera has made steady progress with share in Amla Category at ~3% • Sarson is a Rs 300 Cr market , ~ 15% of the Amla category. Sells primarily in rural markets of HSM. This variant has a 2-year CAGR of 10% • Bajaj Sarson Amla Launched in Dec ’21 to
Slide 14: Amla Media Support
Amla Media Support TV Commercial YouTube Digital Campaign (UP) - Delivered 3.2Mn completed video views and 33,221 clicks • First time supported the brand with TVC • Played in all Hindi leading channels ShareChat Digital Campaign (UP) - Delivered 3.9Mn impressions and ~1.1Mn video views. • Special Fo
Slide 15: Coconut Portfolio
Coconut Portfolio 100 % Pure Coconut • Rs 20 SKU launched in December - this SKU contributes to 10% of category sales • 175 ml wide mouth jar launched for winter months • Launched across E Com in Nov - December 2021 • Good repeats coming in from West Bajaj Consumer Care 15
Slide 16: New Launches: Bajaj 100% Pure Oil
New Launches: Bajaj 100% Pure Oil Bajaj 100% pure Castor Oil Bajaj 100% pure Olive Hair Oil Bajaj 100% pure Jojoba Oil • 100% Pure Castor Oil • 100% Pure Olive Oil • 100% Pure Jojoba Oil • Virgin and Cold Pressed. No Additives • Virgin and Cold Pressed • Virgin and Cold Pressed • Prevents hair break
Slide 17: New Launches: Natyv Soul
New Launches: Natyv Soul Hair Serum with French Sea Beet Hair Serum with Peruvian Sacha Inchi Oil 24 Hours Frizz Control* 2x Frizz Control* 24 Hours Long Lasting Conditioning * 2X Softer Hair* Hair Masque with Buriti Oil from Brazil Hair Masque with West African Shea Butter Damage Repair of 4x Bette
Slide 18: Business Operation
a, Business Operation
Slide 19: Key Raw Material Trends
Key Raw Material Trends Refined Mustard Oil (INR/Litre) Refined Mustard Oil (RMO) 160 178 • Prices at multi year high due to increase in other 145 edible oils prices as well as limited availability of 117 124 105 mustard crop. Price of RMO in Q3 FY22 is 11% 79 85 87 89 higher over Q2 FY22 • The cost
Slide 20: ESG Initiatives
ESG Initiatives ➢ Reduce consumption of packaging material to reduce carbon footprint and GHG emissions ✓ Initiatives taken: Optimization of specifications resulting in o Glass: Reduction in consumption of glass bottles by 16% o Paper: Reduction in consumption of paper by 7% o Laminates: Reduction i
Slide 21: Recognitions
Recognitions • Bajaj Consumer Care Ltd. received a special recognition for "Commitment To Being a Great Place to Work” from ‘Great Place to Work Institute’ The honor is given to celebrate the consistency in seeking employee feedback and acting on the same over the years and building a High-Trust, Hi
Slide 22: Recognitions
RECOGNITIONS Our Guwahati & Paonta plants won Par Excellence Award in 46th International Convention on Quality Control Circles – 2021 (ICQCC-2021) (Highest Category Award) in November’21. More than 3000 teams from various sectors of manufacturing/service/ IT sectors participated from across the glob
Slide 23: Strategic Priorities
Strategic Priorities
Slide 24: Update on Strategic Priorities
Update on Strategic Priorities • Broad basing of hair oil portfolio to continue with further expansion in Q4 • Premium range of hair and skin care products launch planned under Almond Drops brand from Q4 • Thrust on digital first brands with more product introductions in Natyv Soul & Bajaj 100% Pure
Slide 25: Financial Overview
Financial Overview
Slide 26: Quarterly Financial Performance – Q3 FY22 Standalone
Quarterly Financial Performance – Q3 FY22 Standalone Particulars (In Crore) Q3 FY21 Q2 FY22 Q3 FY22 Y-o-Y Q-o-Q Sales (Value) 242.8 212.2 225.3 -7.2% 6.2% Total Operational Income 247.3 215.1 228.6 -7.6% 6.2% Gross Contribution 154.1 125.3 124.7 Total Expenses (excl. Material cost) 94.1 78.2 86.5 EB
Slide 27: YTD Financial Performance – 9M FY22 Standalone
YTD Financial Performance – 9M FY22 Standalone Particulars (In Crore) 9M FY21 9M FY22 Y-o-Y Sales (Value) 656.0 649.5 -1.0% Total Operational Income 668.6 659.0 -1.4% Gross Contribution 421.8 374.4 Total Expenses (excl Material cost) 247.7 238.7 EBITDA 186.7 145.2 -22.2% Other Income 28.2 28.0 Depre
Slide 28: Expenses To Sales Trend
Expenses To Sales Trend Material cost Employee cost 41.3% 44.6% 39.4% 40.9% 10.8% 10.7% 36.5% 9.8% 8.3% 8.6% Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 Q3-FY21 Q4-FY21 Q1-FY22 Q2-FY22 Q3-FY22 ASP cost Other expense 19.2% 11.3% 10.9% 17.6% 17.8% 10.4% 10.5% 10.2% 15.9% 13.6% Q3-FY21 Q4-FY21 Q1-FY22 Q2-F
Slide 29: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 30: Thank You
Thank You
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