Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q4 FY2019 Earnings Presentation
37 slides from Bajaj Consumer Care's earnings presentation, Apr 9, 2019
Slide 1: Exchange filing cover letter
bajaj coNsuMER cARE April 9, 2019 DCS-CRD Listing Compliance BSE Limited National Stock Exchange of India Ltd. First Floor, New Trade Wing Exchange Plaza, 5th Floor Rotunda Building, Plot No.C/1, 'G'Block Phiroze Jeejeebhoy To rs Bandra- Kurla Complex Dalal Street, Fort Bandra East Mumbai 4000 Mumba
Slide 2: Investor Presentation Q4 – FY 2019
b~~ CONSUMER CARE Investor Presentation Q4 – FY 2019 Date: 09/04/2019
Slide 3: Flow
FLOW • BCCL TRANSFORMATION FOR GROWTH PILLARS & ACTION TAKEN • INDUSTRY OVERVIEW • FINANCIAL INFORMATION bajaj CONSUMER CARE 2
Slide 4: Transforming for Growth – BCCL Pathfinder
TRANFORMING FOR GROWTH – BCCL PATHFINDER VISION MISSION VALUES PILLARS OF GROWTH WINNING WINNING WINNING WINNING WITH IN WITH WITH BRANDS MARKET PROCESSES PEOPLE bajaj coNsuMrn cAnE 3
Slide 5: Growth Pillars into Action
GROWTH PILLARS INTO ACTION WINNING WITH BRANDS - INNOVATIONS , RENOVATIONS, COLLABORATIONS Haircare • ADHO Relaunch activation continued in Q4 to increase penetration of ADHO • Bajaj Cool Almond Drops Launched in March 19 to extend Almond Drops Equity into the cooling segment Skincare • NOMARKS rela
Slide 6: Building a Hair Oil Portfolio – Extending Almond Drops
Building a Hair Oil Portfolio – Extending Almond Drops Bajaj Cool Almond Drops • Cooling Category is Rs. 1000 Crs category , dominated by 2 players • Opportunity to Extend ADHO equity of Non Sticky + Lightness and leverage distribution Strength in core ADHO markets • Launched with Proposition of – C
Slide 7: Cool Almond Drops Range
Cool Almond Drops Range 2.5ml 45ml 95ml 190ml Re. 1 Rs. 38 Rs. 75 Rs.135 bajaj coNsuMrn cAnE 6
Slide 8: Q4 – Market Context
Q4– MARKET CONTEXT Strong Growth Across Categories HAIROILS • Volume MS% in Total Hair Oil of Bajaj Almond Drops improved to 7.8% in MAT Feb 19 vs 7.2% in MAT Feb 18 • 2X Offtake growth on ADHO in Mat Feb 19 Period vs the Category in the same period (17.5 vs 8.8%) • Strong Penetration increase in AD
Slide 9: Positive Results across all Parameters on ADHO
Positive Results across all Parameters on ADHO Val Sales (Crs) MS Val - THO 230 10.1 220 218 10.0 10.0 210 9.9 9.9 200 9.8 190 183 9.7 180 170 9.6 160 9.5 Jan-Feb'18 Jan-Feb'19 Jan-Feb'18 Jan-Feb'19 High growth in Val Offtakes Growths in MS Val Vol Sales (Tonnes/KL) MS Vol - THO 4,100 4,049 8.1 8.0
Slide 10: Positive Results across all Parameters on ADHO (YTD)
Positive Results across all Parameters on ADHO Val Sales (Crs) 1,200 MS Val - THO 1,157 9.6 9.6 1,150 9.6 1,100 9.6 1,050 9.5 1,000 973 9.5 9.5 9.5 950 9.5 900 9.5 850 9.4 YTD Feb'18 YTD Feb'19 YTD Feb'18 YTD Feb'19 High growth in Val Offtakes Growths in MS Val Vol Sales (Tonnes/KL) 23,000 MS Vol -
Slide 11: ADHO Volume share across Urban and Rural
ADHO Volume share across Urban and Rural ( MAT Feb 19) Restage 8.5 • • • 7.9• 8.0 l 8.1 • 8.2 • 8.2 - 8.2 ! - 8.3 • 8.3 8.3 ... .... .. ..-·........ 7.9 -- --7.7 ~ 8.0 7.8 7.8 7.8 ., ., 7.7 7.8 7.7 ., .,7.7 7.6 ; ; ; Highest ever 7.5 ''\ 7.5 • • • 7.4 • 7.4 7.5 • • ,,~ ' • • • • \ MS Vol achieved 7.
Slide 12: NOMARKS Market Share (Value) trend
NOMARKS Market Share (Value) trend Re-launch 11.0 10.0 9.0 9.1 • 9.2 ___. • 9.5 -----·__....~.__,.............,.---..........------· ~ 9.6 9.7 9.7 9.6 9.6 9.5 I l - 9.5 - 9.6 9.8 10.1 10.3 I 8.6 10.4 10.5 10.4 e 8.7 e 8.6 8 8.6 8.3 8.5 8.1 8.2 8.1 8.1 8.0 8.0 8.2 7.8 7.9 8.0 7.5 7.6 7.0 6.0 5.0 4.0
Slide 13: Extending Nomarks to Adjacent Categories
Extending Nomarks to Adjacent Categories Bajaj Nomarks Ayurvedic Antimarks Sunscreen new • Sunscreen is Rs 250 Crs category but with Low Penetration • Consumers hesitant to use current options Ant,rnarks SUNSCREEN because of perception of harsh chemicals • Opportunity to extend Nomarks equity of Ayu
Slide 14: Growth Pillars into Action – Winning in Market
GROWTH PILLARS INTO ACTION WINNING IN MARKET – QUALITY & QUANTITY Enhancing Quantity and Quality of Distribution • Improving Quality and quantity of coverage through effective use of SFA • Focus on increasing Numeric as well as Weighted Distribution of Hair Oils • Bajaj Almond Drops now available in
Slide 15: Q4 – Market Context
Q4 – MARKET CONTEXT General Trade: • Rural markets continues to lead growths across states • Rural Off takes showing better traction in Q4 than Q3 • Wholesale also mirroring Rural traction • Urban Retail continues to be stable Alternate Channel: • Strong growth continues in Modern Trade with quarter
Slide 16: Winning with People
WINNING WITH PEOPLE • Great Place to Work Certification Survey for 2019 received positive response from our employees. 87% of our employees participated in the Survey and our Trust Index Score at 77% has gone up by 8% points over 2018 • BCCL received “Best Company in FMCG Sector” award from CNBC Awa
Slide 17: BCCL - CSR initiatives for FY 2019
BCCL - CSR initiatives for FY 2019 • Water Conservation - Rejuvenation of Rivers/Streams - Construction of Recharge Pits - Support in Construction of Wells of farmers - Support in deepening of existing wells of farmers • Alternative Energy - Construction of Biogas • Agriculture Development - Horticu
Slide 18: Industry Overview
b~~ CONSUMER CARE INDUSTRY OVERVIEW
Slide 19: Industry Size and Structure
Industry Size and Structure FMCG Rs. 3,97,003 cr Hair Care 6% CONTRIBUTION Rs. 25,562 cr _ _ . _ _ .- • - • - - •- •- •I I • Shampoo Coconut Oil Hair Oil I Hair Dyes Hair Conditioners ■ Rs. 7,622 cr Rs. 4,520 cr Rs. 8,261 cr. I Rs. 4,464 cr Rs. 695 cr. (30%)* (18%)* (32%)* ■ (17%)* (3%)* I - - - ~ =
Slide 20: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 14,000 300 283 283 12,062 269 264 11,200 247 255 254 12,000 236 238 9,928 10,103 250 9,390 10,000 8,676 (In ‘000 KLtr) 200 7,867 (Rs. Cr.) Growth 7.4% Growth -5.3% Growth -0.2% 6,981 Growth 9.1% 8,000 Growth 8.7% Gr
Slide 21: Market Shares Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 12.0% 9.0% 7.8% 9.9% 9.7% 9.8% 8.0% 10.0% 9.5% 9.7% 9.5% 9.5% 9.6% 7.4% 7.3% 7.3% 7.2% 7.1% 7.0% 6.6% 6.7% 8.5% 8.0% 7.7% 5.8% 7.1% 6.0% 5.0% 4.7% 4.5% 6.0% 4.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 09-10
Slide 22: Market Share Trends Quarterly
Market Share Trends Quarterly MS Val MS Vol Jan- Jan- Q1 FY19 Q2 FY19 Q3 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Feb’19 Feb’19 ADHO 9.5 9.5 9.5 10.0 7.7 7.8 7.8 8.0 (THO) Overall positive trends for ADHO in THO category on both MS vol & MS val Source: Nielsen Retail Audit Report, Feb’19 bajaj coNsuMrn cAnE 21
Slide 23: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure 53 Factory (9) The company reaches consumers through 3.98 Million retail outlets serviced by 8869 distributors OWN – Himachal Pradesh -2, Uttarakhand- 1, Guwahati 1 80 THIRD PARTY - Himachal Pradesh-2, Bangladesh-1, 294 Uttarakh
Slide 24: Organisation Structure
b~~ CONSUMER CARE ORGANISATION STRUCTURE
Slide 25: Management team
Apoorv Nayan Bajaj Dilip Kumar Maloo Chief Financial Officer Rohit Saraogi Executive President Assistant Vice President - Joined BCCL on April 1991. He is a qualified CA & CS professional and has more than 30 Finance years of experience across Finance, Accounts, Taxation & Secretarial Joined BCCL on
Slide 26: Financials
b~~ CONSUMER CARE Financials
Slide 27: Financial Information
Financial Information Summary Income statement Summary Balance Sheet Particulars Particulars Q4 FY19 Q4 FY18 FY19 FY18 As on As on (Rs. In Crore) 31.03.2019 31.03.2018 (Rs. In Crore) Sales (Net) 238.26 214.45 880.94 811.85 Shareholders Equity 485.12 505.36 Other Operating Income 7.39 7.15 28.41 19.3
Slide 28: Profit & Loss Quarter ended March 31, 2019
Profit & Loss Quarter ended March 31,2019 Particulars Q4 FY19 Q4 FY18 Rs. in Cr. YoY% Net Sales 238.26 214.45 11.10% Other Operating Income 7.39 7.15 Total Operating Income 245.66 221.60 Material Cost 82.86 72.53 % of Sales 34.78% 33.82% Employees Cost 23.84 19.95 % of Sales 10.01% 9.30% Advertiseme
Slide 29: Profit & Loss year ended March 31, 2019
Profit & Loss year ended March 31,2019 Rs. in Cr. Particulars FY19 FY18 YoY% Net Sales 880.94 811.85 8.51% Other Operating Income 28.41 19.36 Total Operating Income 909.36 831.21 Material Cost 301.10 273.07 % of Sales 34.18% 33.64% Employees Cost 94.02 75.47 % of Sales 10.67% 9.30% Advertisement & S
Slide 30: Highlights Quarter IV & FY
Highlights Quarter IV & FY 19 Rs. in Lacs Particulars Q4FY19 Q4FY18 Growth% FY19 FY18 Growth% Sales (Value) 23,826.23 21,444.81 11.10% 88,094.49 81,185.12 8.51% 1,507,043 1,428,489 5.50% 5,627,997 5,385,724 4.50% Sales (Volume-In Cases) 24,565.61 22,160.18 90,935.69 83,121.33 Total Operating Income
Slide 31: Sales Value Growth - GST Adjusted
Sales Value Growth - GST Adjusted Sales Vertical Growth Q4FY19 Growth FY19 General Trade 10.78% 10.11% Modern Trade 21.79% 26.56% Total Domestic excluding CSD 11.61% 11.30% Canteen Stores Department -15.64% -14.65% Total Domestic 10.18% 10.22% International Business 56.37% -17.84% Total For the Comp
Slide 32: Performance over the last 16 quarters
Performance over the last 16 quarters 40.00% 35.37% 34.82% 35% 33.62% 33.44% 34.08% 35.00% 32.96% 32.79% 32.61% 33.17% 31.67% 32.35% 30.86% 31.51% 30.10% 29.26% 30.00% 25.00% 20.00% 14.29% 12.50% 12.11% 11.10% Gr (Value) 10.68% 15.00% 9.45% 8.68% 8.34% 7.00% 10.00% Gr (Vol) 5.86% 5.86% 5.50% 5.17% 5
Slide 33: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg landed Rates of LLP Per Kg landed Rates of Oil 100 100 80 80 Amount (Rs.) Amount (Rs.) 60 60 85.51 91.57 89.22 40 40 79.53 65.45 71.97 71.89 61.40 20 20 0 0 Qtr4FY18 vs FY19 FY18 vs FY19 Qtr4FY18 vs FY19 FY18 vs FY19 ✓The adjusted landed cost (net of credit
Slide 34: Breakup of RM/PM Costs (for Q4 FY 19)
Breakup of RM/PM Costs (for Q4 FY 19) Key Raw & Packing Material % to Sales % to Total Cost LLP 10.62% 30.44% Bottles (Glass & Pet) 9.03% 25.88% Refined Veg. Oil 4.26% 12.20% Perfumes & other additives 3.09% 8.85% Corrugated Boxes 1.78% 5.10% Caps 2.37% 6.80% Others 3.74% 10.73% TOTAL 34.90% 100.00%
Slide 35: Fund Position
Fund Position • Total Fund available with the company as on 31st March 2019 is Rs. 266.06 crores • This has been invested in Bank Fixed Deposits, AAA rated Bonds and Liquid Mutual Funds • There is no investment in ANY Inter Corporate Deposit Particulars Amount (Rs. In Crores) Bank Fixed Deposits 11.
Slide 36: Dividend Payout History
Dividend Payout History No. of Shares Dividend Payout Dividend per Year Face Value % to Capital (in Lacs) (Rs in Lacs) share(Rs.) 2018-19 1,475 1 20,650.00 1400% 14.00 2017-18 1,475 1 17,700.00 1200% 12.00 2016-17 1,475 1 16,962.50 1150% 11.50 2015-16 1,475 1 16,962.50 1150% 11.50 2014-15 1,475 1 16
Slide 37: For more information & updates
b~~ CONSUMER CARE For more information & updates Contact: Mr. Kushal Maheshwari kushal@bajajconsumer.com Thank you
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