Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Bajaj — Q2 FY2018 Earnings Presentation
34 slides from Bajaj Consumer Care's earnings presentation, October 2017
Slide 1: Investor Presentation October 2017
Investor Presentation October 2017
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
INDUSTRY SIZE AND STRUCTURE FMCG Rs. 275,183 cr Hair Care 7% CONTRIBUTION Rs. 19,671 cr Shampoo Coconut Oil Hair Oil Hair Dyes Hair Conditioners Rs. 5,952 cr Rs. 3282 cr (‐7%) Rs. 6,646cr (5%) Rs. 3,285 cr Rs. 506 cr (30%)* ( (17%)* )* (34%)* ( (17%)*)* ( )* (3%)* 24% 25% 17% 11% 14% Amla Based Oils
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 12,000 300 269 9,928 10,103 255 254 264 9,390 , 238 247 10 000 10,000 250 236 8,676 214 7,867 8,000 6,981 200 00 KLtr) 5,728 5,546 Growth 11.2 % (Rss. Cr.) 142 Growth 3.9 % 10.1% Growth 3.9% 6,000 5,044 Growth -5.3%
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,800 1,639 35.0 31.9 32.2 33.1 1,576 31.3 1,600 1,474 1,502 30.0 30 0 30.0 26 8 26.8 1 400 1,400 1 311 1,311 25.0 22.4 1,200 1,080 000 KLtr) 19.9 20.0 17.3 1,000 831 859 Growth 19.5 % Growth 12.5 % Growth 17.1 % Growth 2.
Slide 6: Market Share Trends in Light Hair Oil Category
Market Shares Trends in Light Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 70.0% 70.0% 60.3% 61.0% 60.7% 61.0% 58.3% 57.9% 58.4% 56.9% 58.4% 60.0% 6% 57.8% 56.6% 56 60.0% 55.0% 54.4% 53.0% 51.9% 50.7% 50.0% 48.0% 49.1% 50.0% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0% 10.0% 10.0% 0.0%
Slide 7: Market Share Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 8.0% 12.0% 7.4% 7.3% 7.1% 7.1% 7.0% 6.6% 6.7% 9.9% 9.8% 10.0% 9.5% % 9.7% 9.7% 9 4% 9.4% 6.0% 5.8% 8.5% 8.0% 7.7% 5.0% 4.7% 7.1% 4.5% 4.0% 6.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 09‐10 10‐11 11‐12 12‐13
Slide 8: ADHO – Relative Market Share – Value Trend
ADHO – Relative Market Share – Value Trend Relative Market share is the ratio of Bajaj Almond Drops market share to the next largest competitor in LHO segment 6.0 Relative MS Value 5.1 5.0 4.6 4.3 4.3 4.3 4.0 4.0 3.4 32 3.2 3.0 2.7 2.0 1.0 0.0 09‐10 10‐11 11‐12 12‐13 13‐14 14‐15 15‐16 16‐17 YTD Sep
Slide 9: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value Relative Market Relative States Rank States Rank Share Market Share Delhi 4.8 1 North East 6.8 1 Rajasthan Orissa 8.0 1 1.8 1 Punjab WB 3.2 1 3.2 1 HP-JK Maharashtra 5.2 1 4.1 1 Haryana Mumbai 3.7 1 5.5 1 Madhya y Pradesh Gujarat 2.5 1 4.3 1 Chhattisgarh AP 2.3
Slide 10: Statewise Market Share
Statewise Market Share LHO Volume ADHO Proportion % (Vol) ADHO Market Share % (Vol) YTD Aug 17 Saliency Urban Rural Total Urban Rural All India 100.0% 58.4% 41.6% 58.4% 56.2% 61.7% Delhi 6.7% 100.0% 0.0% 59.9% 59.9% Raj 7.0% 56.1% 43.9% 46.5% 47.8% 45.0% Punjab j 4.6% 69.7% 30.3% 50.9% 49.7% 53.7% H
Slide 11: Light Hair Oil Market – Key Characteristics
Light Hair Oil Market – Key Characteristics Rural –Urban break up of LHO market Share of Distribution Channels in LHO market 3% 7% 5% 38% Urban dominated segment due to its 6% Grocers dominate relatively higher distribution 62% pricing 78% AI Urban AI Rural Modern Trade Pan Plus Chemists Cosmetics G
Slide 12: Company Overview
Company Overview
Slide 13: Bajaj Corp Ltd. (BCL) – An Overview Haircare Portfolio
Bajaj Corp Ltd. (BCL) – An Overview Haircare Portfolio Part of Bajaj Group which has business interests Bajaj Almond Drops Hair Oil - A premium perfumed in varied industries including sugar, consumer hair oil containing almond oil and Vitamin E goods, power generation & infrastructure Competitors
Slide 14: Skincare Portfolio
Skincare Portfolio Bajaj Nomarks Creams for Normal Skin, Oily Skin & Dry Skin Types, available in sizes 12g(Normal skin) & 25g Bajaj Nomarks Facewash for Clear Glowing Fairness (50g) & Neem Facewash (15g, 50g & 100g) Bajaj B j j Nomarks N k Soaps S Herbal Scrub Soap and Neem Soap, available in sizes
Slide 15: Bajaj Almond Drops - A Premium Brand
Bajaj Almond Drops - A Premium Brand Strong Market Share (Val) Growth in Recent Years . . . But not at the cost of pricing power 70.0% 70 58.4% 60.3% 61.0% 60.7% 61.0% 60 60 60.0% 53.0% 55.0% 56.9% 60 55 58 50.7% 50 50.0% 50 46 40 42 40.0% 38 40 35 32 30.0% 30 20.0% 20 10.0% 10 0.0% 09‐10 10‐11 11‐1
Slide 16: Consumer Profile - Bajaj Almond Drops Hair Oil Users
Consumer Profile- Bajaj Almond Hair Drops Oil Users For Light Hair Oils, the consumer is skewed towards SEC A,B and younger age group. — Gender Male- 43% Female- 57% — Age Group 25 to 35 yrs ( 58% of users) — Socio Economic Class (SEC)- Urban A – 21% B – 36% C – 30% Source – Last U&A (
Slide 17: Strong Distribution Network
Strong Distribution Network Strong Distribution Network Distribution Network Distribution Structure 52 Factory (9) The company p y reaches consumers through g 3.7 Mil. retail outlets serviced by 9695 distributors and 22317 OWN – Himachal Pradesh -2, Uttarakhand- 1, wholesalers Guwahati 1 69 THIRD PA
Slide 18: Sales Force Automation
Sales Force Automation • SFA program has been launched under the name of Project S thi last Saathi l t year. • It was started with the objective of better coverage & control of distribution, better efficiency • Current all 1158 ISR are in under SFA ((As on 30th September p ) • Future ISR addition wi
Slide 19: Organization Structure
Organization Structure Organization i i Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra GM ‐ Operations President Operations Head – Supply Chain VP – HR Head ‐ Legal President‐ Sales & President Mr. Kabir Sahni Mr. Apoorv Bajaj & Procurement Mr. Subhamay Mr. Makarand
Slide 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Q2FY18 Q2FY17 H1FY18 H1FY17 Particulars As on As on Sales (Net) 203.68 196.15 400.08 399.88 30.09.2017 31.03.2017 EBITDA 59.60 68.30 121.49 140.36 EBITDA Margin 29.26% 34.82% 30.37% 35.10%
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance R in Crore Rs. C Particulars Q2FY18 Q2FY17 YoY% H1FY18 H1FY17 YoY% EBITDA 59.60 68.30 ‐12.74% 121.49 140.36 ‐13.44% Profit Before Tax & 64.47 80.81 ‐20.22% 134.37 158.91 ‐15.44% Exceptional Item Exceptional Item (Trademark 0.00 6.64 0.00 18.38 & Intellectual I t ll t l Prope
Slide 22: Profit & Loss Q2 and I Half FY2018
Profit & Loss Q2 and I Half FY2018 Rs. in Crore Particulars Q2FY18 Q2FY17 YoY% H1FY18 H1FY17 YoY% Net Sales 203.68 196.15 3.84% 400.08 399.88 0.05% Other Operating Income 0.45 0.63 1.48 1.21 Material Cost 67.34 67 34 66.17 66 17 136.14 136 14 136.56 136 56 % of Sales 33.06% 33.74% 34.03% 34.15% Empl
Slide 23: Note on Refund/Budgetary support under GST
Note on Refund/Budgetary support under GST The Government has announced that the Units/Manufacturing facilities established in tax free zones in HP, Uttarakhand, North East and J&K presently, l enjoying j i fi l benefits fiscal b fi shall h ll continue i to get the h budgetary b d support for resi
Slide 24: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q2FY17 v/s Q2FY18 H1FY17 v/s H1FY18 250 450 400 200 In ` Crores 350 In ` Crores 300 150 250 399.88 400.08 100 203.68 200 196.15 150 50 100 50 0 0 Q2 FY17 Q2 FY18 HY1 FY17 HY1 FY18 Sales for the quarter ended September’17 has increased by 3.84%. S
Slide 25: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) ADHO KPCO BAHO AHO Nomarks Others Total % Inc over FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 FY 18 FY 17 PY Q1 1,185,731 1,269,703 7,407 7,483 9,408 11,801 32,058 45,072
Slide 26: Break-up of Sales
Break-up of Sales Sales Vertical Growth Q1FY18 Growth Q2FY18 General Trade ‐7.8% 7.4% Modern Trade 12.8% 20.6% Canteen Stores Department ‐46.3% ‐20.8% International Business 10 5% 10.5% ‐15.4% 15 4% Total Company Compan 7 8% ‐7.8% 5 1% 5.1% 25
Slide 27: Consistent Performance over the last 14 successive quarters
Consistent Performance over the last 14 successive quarters 26
Slide 28: Breakup of RM/PM Costs (for Q2 FY 18)
Breakup of RM/PM Costs (for Q2 FY 18) Key Raw & Packing Material % to Sales % to Total Cost LLP 8.78% 26.13% Glass Bottles 8.47% 25.21% Refined Veg. Oil 4.50% 13.39% Perfumes & other additives 3 39% 3.39% 10 09% 10.09% Corrugated Boxes 1.86% 5.54% Caps 2.11% 6.29% Others 4.48% 13.34% TOTAL 33.59% 10
Slide 29: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients During the quarter average price of LLP increased to Rs 51.80/Kg from Rs 44.55/Kg in corresponding quarter of previous year. Prices of Refined Oil decrease to Rs 72.68/Kg 72 68/Kg from Rs 78.41/Kg 78 41/Kg in corresponding quarter of previous year. 28
Slide 30: Fund Position
Fund Position Fund Position: The total Fund available with the company as on 30th September September’ 2017 is Rs. 436.77 Crores. This has been invested in Bank Fixed Deposits, Liquid Mutual fund and AAA rated Bonds. There is no investment in ANY Inter Corporate Deposit. Particulars Amount (
Slide 31: Dividend Payout History
Dividend Payout History Dividend per No. of Shares Face Dividend Payout Year % to Capital share (in Lacs) Value (Rs in Lacs) (Rs.) 2016-17 1,475 1 16962.50 1150% 11.50 2015-16 1,475 1 16962.50 1150% 11.50 2014 15 2014-15 1 475 1,475 1 16962 50 16962.50 1150% 11 50 11.50 2013-14 1,475 1 9,587.50 650%
Slide 32: Corporate Governance
Corporate Governance Bajaj Corp Ltd is a part of the Bajaj Group of companies. The other listed entity in the group is Bajaj Hindusthan Sugar Ltd Bajaj Corp Ltd has not and will not transfer funds from and to any other company within the Bajaj Group The Company acquired in September 2011 (Upto
Slide 33: Growth Strategy
Growth Strategy Strategy Action Steps Convert coconut hair oil users to light hair oil users through sampling, targeted advertising Market share gains from campaigns, product innovation and creating awareness about product differentiation including other hair oil segments communicating the advanta
Slide 34: Thank You
Thank You