Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Q1 FY23 Earnings Presentation
28 slides from Jyothy Labs's earnings presentation, Jul 25, 2022
Slide 1: Cover letter to stock exchanges
To, July 25, 2022 National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East), Scrip Code: JYOTHYLAB Mumbai - 400051 BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Scrip Code: 532926 Mumbai - 400 023 Dear Sir, Sub: Copy of Presentation With reference to the cap
Slide 2: Jyothy Labs logo
Slide 3: Presentation Q1FY23
PRESENTATION Q1FY23 July 25, 2022 2
Slide 4: Content Flow
Content Flow 01. Overview 03. Our Performance Journey 05. Brand Performance & Initiatives 02. Market Scenario 04. Result Highlights 06. Way forward 3
Slide 5: Overview
OVERVIEW • Founded in 1983 by a first generation entrepreneur, our ‘Chairman Emeritus’ Mr. MP Ramachandran. ~Rs 2,196 cr Revenue in FY 2022 • Jyothy Labs is primarily in Home Care and Personal Care 2.8 Mn Outlets – Pan India availability segments which constitute 50% of the Indian FMCG industry. 1 m
Slide 6: Market Scenario
MARKET SCENARIO • Business Environment : • Demand environment impacted by high inflationary pressure on the households • Successive price increases impacting the volumes • Stable Growth across all channels resulting in overall double digit sales growth • Adverse Seasonality in Household Insecticide
Slide 7: Our Strategic Levers - Robust Performance Across Categories
OUR STRATEGIC LEVERS- DELIVERS ROBUST PERFORMANCE ACROSS CATEGORIES Growth (%) Q1FY23 38.6% 9.6% -37.5% 2.1% Q1FY23 32.9% 15.6% -16.1% 7.6% (2Y CAGR) Q1FY23 10.4% 16.0% 20.9% 5.2% (3Y CAGR) 6 6
Slide 8: High Input Prices Persists..
High Input Prices Persists.. Unit Currency Mar-20 Mar-21 Mar-22 Jun-22 Jul-22 % Increase % Increase (Jul’22 vs (Jul’22 vs Key Products Mar’21) Mar’22) Linear Alkyl Benzene ** Tonne $ 1195 1580 1743 2150 2250 42% 29% Soda Ash Kg. ₹ 23 24 35 39 43 79% 23% Caustic Soda LYE * Tonne $ 331 340.8 850 716 6
Slide 9: Result Highlights – Q1FY23 Snapshot (Consolidated)
RESULT HIGHLIGHTS – Q1FY23 SNAPSHOT (CONSOLIDATED) Revenue at Rs 597 Crores increased by 13.7%. Volume Growth 5% (Ex-HI 21.8%) Gross Margin at 39.9% from 43.3% in the same period last year A&P Spend at Rs 45 Crores (7.5% of Net Sales) versus Rs 43 Crores (8.2% of Net Sales) in the same period last y
Slide 10: Category Wise Net Revenue
CATEGORY WISE NET REVENUE QUARTER ENDED Q1 FY23 Revenue Growth 25% CY PY GR% 21.4% Ujala FW, Henko, Mr White, 20% Fabric Care 251 181 38.6% Ujala Crisp & Shine 15% 13.7% Dishwashing Exo & Pril 209 191 9.6% 10% Household 45 72 -37.5% 5% JLL Maxo 2.5% Insecticides 0% Q1FY21 Q1FY22 Q1FY23 Personal Care
Slide 11: Snapshot of Company's Performance (Consolidated)
SNAPSHOT OF COMPANY’S PERFORMANCE (CONSOLIDATED) QUARTER ENDED PARTICULAR/GROWTH CY PY % CHANGE REVENUE FROM OPERATION 597 525 13.7% OPERATING EBITDA 59.8 63.3 -5.4% PAT 47.7 40.2 18.7% Financial Parameters QUARTER ENDED PARTICULAR/GROWTH CY PY GROSS MARGIN 39.9% 43.3% OPERATING EBITDA MARGIN 10.0%
Slide 12: EBITDA Movement (Consolidated)
EBITDA MOVEMENT (CONSOLIDATED) PARTICULARS Q1FY22 EBITDA % - PREVIOUS PERIOD 12.0% GROSS MARGIN -3.5% EMPLOYEE COST 1.4% ADVERTISEMENT & SALES PROMOTION 0.6% OTHER EXPENDITURE -0.6% EBITDA % - CURRENT PERIOD 10.0% 11
Slide 13: Brand Performance & Initiatives
BRAND PERFORMANCE & INITIATIVES 12
Slide 14: Category Wise Business Share
Fabric Care (Main wash) 30% Q1 FY23 Fabric Care (Post wash) Dishwashing 12% Category Wise 35% Other 3% Business Share Household Insecticides Personal Care 8% 12% 13
Slide 15: Our brands continue to win hearts
Q1FY23 Our brands continue to win hearts with their availability, accessibility and assurance of value. We have kept the momentum going of delivering a double-digit growth amidst an ever-challenging economic environment. 14
Slide 16: Category highlights in Q1FY23
Category highlights in Q1FY23 Fabric care Home care Dish Wash Personal Care • Robust performance in Fabric Care. • Extensive distribution drives for all detergent brands. • Resurgence of demand for detergent products post opening up in large format stores ie Modern Trade, Canteen Stores and E-Commer
Slide 17: Fabric care (post wash)
Fabric care (post wash) Performance Continued robust performance Market share registering a double-digit growth riding MQ21 MQ22 JQ22 high on a new campaign. 83.6% 84.1% 84.1% Source – AC Nielsen Key initiatives Ujala Launch of new media campaign starring superstar Ms. Taapsee Pannu. Supreme Digital
Slide 18: Fabric care (post wash)
Fabric care (post wash) Performance The brand continues to appeal to its lapsers as a result of the pandemic and is successful in building the base back. Key initiatives Ujala Consumer promo with Ujala Supreme to generate trials Crisp & TV commercial featuring superstar Ms. Nayanthara promoted in Sh
Slide 19: Fabric care (main wash)
Fabric care (main wash) Performance Market share (Detergent powder Ujala Detergent continues its in Kerala) good performance with a MQ21 MQ22 JQ22 healthy double-digit growth. 19.3% 21.9% 20.3% Source – AC Nielsen Key initiatives Ujala Continued focus on liquid detergents in select markets Extensive
Slide 20: Fabric care (main wash)
Fabric care (main wash) Performance Henko Portfolio had an encouraging start to FY23 with double-digit growths posted across variants. Key initiatives Launch Sustenance continued in Q1 for the newly launched Henko Matic Liquid. ATL (TV & Digital) Campaign featuring Superstar Kajal Agarwal continued
Slide 21: Dishwash (Exo)
Dishwash (Exo) • Consistent drive and Higher offtake on LUPs to drive penetration enabled brand to reach out to new consumer • Superior Value for money in the Tub segment helped the brand to grow at a higher rate Market Share Exo Brand MQ21 MQ22 JQ22 Exo 13.3% 13.7% 13.7% Source – AC Nielsen Key ini
Slide 22: Dishwash (Pril)
Dishwash (Pril) • High loyalty for the brand in the higher price point pack delivered handsome double-digit growth on those packs • Also, focus on LUPs helped the brand to reach highest ever no: of outlets (on those packs) Market Share Brand MQ21 MQ22 JQ22 Pril Pril 15.3% 14.3% 15.1% Source – AC Nie
Slide 23: Household Insecticide
Household Insecticide Performance • Extreme weather conditions in North and East India continued to Market Share impact Coil and Liquid sales. Format MQ21 MQ22 JQ22 • Decline in Q1 FY23 attributed due to higher base in Q1FY22 Coil 22.4% 22% 24.2% • 3 year CAGR Growth for Q1FY23 is Liquid 8.2% 8.9% 1
Slide 24: Personal Care
Personal Care Performance Price increases on account of significant higher input cost has led to reduced offtake from consumers Key initiatives ATL investments across states to maximize seasonal sales Margo Change in SKU mix with continued focus on small pack Continued promotions in social media giv
Slide 25: Way Forward
WAY FORWARD • Continued focus on Volume Led Growth to achieve Higher Scale of Business operations • Investment towards strategic brand building and direct distribution as it is a critical source of competitive advantage and barrier to entry • Improving frequency of retail service to tackle Slowdown.
Slide 26: Shareholding Pattern
SHAREHOLDING PATTERN As on June 30, 2022 FII 11.82% DII 18.71% Promoter and Promoter Group 62.89% FII Public 6.58% DII Public Promoter and Promoter Group 25
Slide 27: 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 28: Thank You
THANK YOU Contact for any queries Sanjay Agarwal – CFO Email: Sanjay.Agarwal@Jyothy.com Contact No: +91 22 6689 2800/+91 9167012328 27