Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q1 FY2019 Earnings Presentation
49 slides from Bajaj Consumer Care's earnings presentation, 2018
Slide 1: Investor Presentation Q1 - 2018
INVESTOR PRESENTATION Q1 - 2018
Slide 2: Flow
FLOW • BCL TRANSFORMATION FOR GROWTH PILLARS & ACTION TAKEN • MARKET CONTEXT & MARKETING INITIATIVES OF Q1 • Q1 RESULTS SUMMARY • WAY FORWARD • DETAILED PERFORMANCE 1 1
Slide 3: BCL - Transforming for Growth
BCL - TRANSFORMING FOR GROWTH 12 QoQ Vol Grth (2015-18) 20.0% 15.0% 14.8% 12.0% 10.0% 8.2% 8.8% 6.6% 7.0% 5.0% 1.8% 0.0% Qtr-1 Qtr-2 Qtr-3 Qtr-4 Qtr-1-1.5% Qtr-2 Qtr-3 Qtr-4 Qtr-1 Qtr-2 Qtr-3 Qtr-4 Qtr-1 -5.0% -4.3% -7.1% -6.8% -6.9% -9.1% -10.0% -15.0% Domestic BCL Total • Green-shoots of turnaroun
Slide 4: Transforming for Growth – BCL Pathfinder
TRANFORMING FOR GROWTH – BCL PATHFINDER VISION MISSION VALUES PILLARS OF GROWTH WINNING WINNING WINNING WINNING WITH IN WITH WITH BRANDS MARKET PROCESSES PEOPLE 3
Slide 5: BCL Vision
BCL VISION Harness our heritage of 90 years and combine it with leading edge scientific knowledge to bring innovative high quality products for consumers across the world to help them get more out of life. 4
Slide 6: Naya Bajaj – Mission 2020
NAYA BAJAJ – MISSION 2020 • We aspire to make BCL a complete FMCG company by introducing a culture of innovation here to create newer pathbreaking products for consumers across the globe • We will help our consumers feel good, look good and get more out of life with our premium mixes and make them a
Slide 7: Growth Pillars into Action – Winning with Brands
GROWTH PILLARS INTO ACTION WINNING WITH BRANDS - INNOVATIONS , RENOVATIONS, COLLABORATIONS Haircare • Enhance ADHO’s ownership of the LHO category by strengthening current mix further • Increase ADHO penetration in the THO category by questioning the current choices of other HO users • Get into a po
Slide 8: Growth Pillars into Action – Winning in Market
GROWTH PILLARS INTO ACTION WINNING IN MARKET – QUALITY & QUANTITY Enhancing Quantity and Quality of Distribution : – Reached our highest ever coverage in Nielsen – Doubled our rural direct reach in the last 1 year. – Overall doubling of direct distribution in the last 2 years – Lowering of WS contri
Slide 9: Growth Pillars into Actionable Points – Winning with People
GROWTH PILLARS INTO ACTIONABLE POINTS WINNING WITH PEOPLE – TRAIN , SHARE , EMPOWER – Developing High Quality Second Line Across each level : – Online assessment centres to identify a high talent pool and create IDPs to develop them for the next level – Formal 1-1 coaching and mentoring of all the m
Slide 10: Growth Pillars into Actionable Points – Winning with Process
GROWTH PILLARS INTO ACTIONABLE POINTS WINNING WITH PROCESS • Full Automation In Sales • 100% SFA rollout in the country (including rural) • Rollout of BI tool happening in Q2 now • Piloting new ARS tool for a seamless end to end integration of offtakes to production planning • Automation In HR Proce
Slide 11: Market Context & Initiatives – Q1
MARKET CONTEXT & INITIATIVES –Q1
Slide 12: Q1 – Market Context
Q1 – MARKET CONTEXT • Trade • Rural showing strong signs of recovery and growing faster than urban • Urban Retail looking positive and mostly out of any GST related woes • WS softness exists in pockets but recovering at an overall level • CSD channel continues its unpredictable journey over the last
Slide 13: Q1 Highlights
Q1 HIGHLIGHTS Strong Volume Growth Across Categories HAIROILS • Volume MS% improved to 7.4% in MAT Jun 18 vs 7.2% in MAT Jun 17 , backed by sequential Qtr on Qtr share increase ( 7%, 7.2% ,7.6% , 7.7%) • Share within the LHO segment continued to surge forward with MAT Jun 18 at 61.3% vs 60.7% for MA
Slide 14: Q1 Key Initiative – No Marks Relaunch
Q1 KEY INITIATIVE – NO MARKS RELAUNCH 13
Slide 15: Q1 Key Initiative – No Marks Relaunch
Q1 KEY INITIATIVE – NO MARKS RELAUNCH New Current • Strong Ayurvedic Yet Modern Identity . • Harmonized Brand Iconography across Variants. • Ingredient Story on Pack to build Efficacy Cues. 14
Slide 16: Q1 Key Initiative – No Marks Relaunch
Q1 KEY INITIATIVE – NO MARKS RELAUNCH 15
Slide 17: Q1 - Bajaj Brahmi Amla Ayurvedic Hair Oil
Q1 - Bajaj Brahmi Amla Ayurvedic Hair Oil Bajaj Brahmi Amla Ayurvedic Hair Oil : • Benefits of Ayurvedic Brahmi and Amla extracts to reduce hairfall • New Premium packaging • Launch supported with TV featuring Brand Ambassador- Drashti Dhami • Both offtakes and Distribution are showing a positive tr
Slide 18: Q1 - Bajaj Coco Jasmine Hair Oil
Q1 - Bajaj Coco Jasmine Hair Oil Bajaj Coco Jasmine Hair oil : • Launched with TV support on Regional Network. • Good Feedback on Product, need to build further awareness • To be supported with other Local Media Channels in to build Brand Awareness and Trials from Q2 onwards. Value Offtake (000 Rs)
Slide 19: Q1 – Almond Drops
Q1 – Almond Drops • Bajaj Almond Drops Load Mat Lo continued on air • Load Mat Lo : To aggressively drive users of heavy Hair Oils to Almond Drops. • Full 360 support and use of innovative mediums like the IPL to drive higher salience for the brand 18
Slide 20: Q1 – Growth from Both Categories
Q1 – GROWTH FROM BOTH CATEGORIES • 4 Consecutive Qtr of volume growths upwards of 5% for the company • Growths led by the domestic business with MT growing at 2.5 times higher than GT. • Both Core Brands Leading the growth • Almond Drops has grown at 14 % value and No Marks has grown at 41% value fo
Slide 21: Q1 Results – Consistent Volume Driven Growths
Q1 RESULTS – CONSISTENT VOLUME DRIVEN GROWTHS • Overall Company Value growth of 9.45% • Led by a strong domestic Value Growth of 13.5% and volume growth of 13.9% • Domestic growths led by a 13.4% value growth in GT and 31.8% in MT • Both CSD and Export are underperforming and bring down Company grow
Slide 22: Going Forward..
GOING FORWARD.. • In the Short Term • Further improvement in WS Channel pick-up • Expecting the demand to strengthen further in rural • Our Plan • Driving the No Marks relaunch harder across more markets • Keep driving the premiumization agenda even stronger on Almond Drops • Keep driving offtakes h
Slide 23: Industry Overview
INDUSTRY OVERVIEW A WORK CERTIFIED
Slide 24: Industry Size and Structure
INDUSTRY SIZE AND STRUCTURE FMCG Rs. 3,53,277 cr Hair Care 6% CONTRIBUTION Rs. 22,575 cr Shampoo Coconut Oil Hair Oil Hair Dyes Hair Conditioners Rs. 6,788 cr Rs. 3,806 cr Rs. 7,394 cr. Rs. 4,010 cr Rs. 577 cr. (30%)* (17%)* (33%)* (18%)* (3%)* 25% 25% 17% 12% 14% Amla Based Oils Light Hair Oils VAC
Slide 25: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 12,000 11,200 300 283 269 264 9,928 10,103 247 255 254 10,000 9,390 250 236 238 8,676 7,867 8,000 6,981 (In ‘000 KLtr) 200 (Rs. Cr.) 5,728 Growth -5.3% Growth -0.2% Growth 2.6 % Growth 10.9 % Growth 7.4% 6,000 Growt
Slide 26: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 40.0 34.9 2,000 35.0 31.9 32.2 33.1 1,743 31.3 30.0 1,800 1,576 1,639 30.0 26.8 1,600 1,474 1,502 (In ‘000 KLtr) 1,400 1,311 25.0 22.4 Growth -1.9% Growth 11.9 % Growth 2.7 % (Rs. Cr.) 1,080 Growth 5.5 % Growth 19.5 % Grow
Slide 27: MS Trends Qtrly - THO AI (U+R)
MS Trends Qtrly - THO AI(U+R) MS Val MS Vol Q1'17 Q2'17 Q3'17 Q4’17 Q1’18 Q1'17 Q2'17 Q3'17 Q4’17 Q1’18 ADHO 9.6 9.3 9.4 9.8 9.5 7.2 7 7.2 7.6 7.7 All Bajaj 10 9.7 9.9 10.3 10 7.7 7.6 7.8 8.3 8.4 Brands* ◼ Positive trend for ADHO in THO category on volume share . ◼ Value share impacted due to Price
Slide 28: 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% 58.8% 58.0% 59.4% 60.3% 61.0% 60.7% 61.3% 60.7% 61.8% 60.0% 56.6% 57.8% 58.3% 58.0% 60.0% 56.9% 58.4% 54.4% 55.0% 51.9% 50.0% 50.0% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0% 10.0% 10.0% 0.0% 0.0%
Slide 29: Market Share Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (U+R) Volume MS Value MS 8.0% 12.0% 7.4% 7.3% 7.3% 7.2% 7.4% 7.1% 7.0% 6.6% 6.7% 9.9% 9.7% 9.7% 9.8% 10.0% 9.5% 9.5% 9.8% 9.5% 6.0% 5.8% 8.5% 8.0% 5.0% 4.0% 6.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 11-12 12-13 13-14 14-15 15-16 16-17 17-18 MAT MAT 11-12
Slide 30: 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 4.5 4.5 4.3 4.3 4.3 4.0 4.0 3.4 3.0 2.0 1.0 0.0 11-12 12-13 13-14 14-15 15-16 16-17 17-18 Q1 17-18 Q1 18-19
Slide 31: Anti Marks Category Growth Slow Down in Q1
Anti Marks Cat Growth Slow Down in Q1 Q-o-Q Gr Val (All India) Q-o-Q Gr Val (UP) 60.0 100.0 88.8 84.5 84.9 48.3 50.0 45.7 80.0 43.8 43.1 58.0 40.0 35.5 60.0 30.1 39.4 30.0 40.0 22.6 24.8 20.0 20.0 8.3 3.3 9.6 10.0 7.1 0.0 -5.6 -1.7 Q1'17-18 Q2'17-18 Q3'17-18 Q4'17-18 Q1'18-19 0.3 0.0 -20.0 Q1'17-18
Slide 32: Slight Decline for NM Cream in UP
Slight decline for NM cream in UP Nomarks MS Val Trend – UP (Antimarks Women Category) 14.0 13.0 12.5 12.0 11.5 11.7 10.6 10.3 10.0 10.0 9.9 9.7 9.0 9.0 8.2 8.3 8.3 8.0 7.9 7.8 6.1 6.3 6.0 5.3 4.9 5.0 4.6 4.0 4.0 4.2 3.9 2.0 0.0 UP-Urban UP-Rural UP (U+R) Nielsen Jun 18 31
Slide 33: Distribution
Distribution WOR CERTIFIED ote
Slide 34: Strong Distribution Network
Strong Distribution Network Strong Distribution Network Distribution Network Distribution Structure 51 Factory (9) The company reaches consumers through 3.9 mn retail outlets serviced by 9341 distributors OWN – Himachal Pradesh -2, Uttarakhand- 1, Guwahati 1 71 THIRD PARTY - Himachal Pradesh-2, Bang
Slide 35: Organization Structure
Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra GM - Operations President Operations Head – Supply Chain VP – HR Head - Legal President- Sales & Mr. Naresh Mr. Apoorv Bajaj & Procurement Mr. Subhamay Mr. Makarand Marketing Gehlaud Mr. Devendra Jain Chatt
Slide 36: Financials
Financials WOR CERTIFIED ote
Slide 37: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Q1FY19 Q1FY18 FY18 Particulars As on As on 31.03.2018 31.03.2018 Sales (Net) 214.97 196.40 811.85 Shareholders Equity 559.13 505.36 EBITDA 70.48 61.89 263.67 EBITDA Margin 32.48% Net Fixed
Slide 38: Profit & Loss Q1 FY2019
Profit & Loss Q1 FY2019 Rs. in Crore Particulars Q1 FY19 Q1 FY18 YoY% FY18 Net Sales 214.97 196.40 9.45% 811.85 Other Operating Income 6.44 1.03 19.36 Material Cost 73.94 68.80 273.07 % of Sales 34.40% 35.03% 33.64% Employees Cost 22.08 16.88 75.47 % of Sales 10.27% 8.59% 9.30% Advertisement & Sales
Slide 39: Sales Value Growth
Sales Value Growth Sales Vertical Growth Q1 FY 18-19 Growth Q1 FY 17-18 General Trade 17.51% -3.03% Modern Trade 36.25% 11.65% Total Domestic ( Exc. CSD) 18.63% -2.26% Canteen Stores Department -21.84% -39.21% Total Domestic 17.52% -3.83% International Business -94.12% 2.83% Total for the Company 13
Slide 40: Statement of Quarter wise Sales (Volume)
Statement of Quarter wise Sales (Volume) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) % Growth PRODUCT Q1 FY 19 % to Total Q1 FY 18 % to Total Q-Q ADHO 1,318,489 95.92% 1,185,731 93.75% 11.20% Nomarks 25,756 1.87% 24,817 1.96% 3.78% BAHO 7,147 0.52% 9,408 0.74% -24.03% AHO 14,342 1.04% 32,058
Slide 41: Statement of Quarter wise Sales (Value)
Statement of Quarter wise Sales (Value) STATEMENT OF QUARTERWISE SALES (Value - In Cr ) % Growth PRODUCT Q1 FY 19 % to Total Q1 FY 18* % to Total Q-Q ADHO 202.35 94.13% 177.49 93.46% 14.00% Nomarks 8.11 3.77% 5.74 3.02% 41.18% BAHO 1.59 0.74% 1.91 1.01% -17.01% AHO 1.28 0.60% 2.86 1.51% -55.12% KPCO
Slide 42: Performance over the last 13 quarters
Performance over the last 13 quarters 40.00% 35.37% 34.82% 35% 33.62% 33.44% 34.08% 35.00% 32.96% 32.79% 32.35% 31.67% 31.51% 30.86% 29.26% 30.00% 25.00% 20.00% Gr (Value) 15.00% Gr (Vol) EBIDTA 10.00% 5.00% 14.29% 12.11% 10.68% 8.34% 3.59% 2.96% 1.80% 0.77% 3.47% 3.84% 5.09% 5.86% 5.17% 5.01% 5.86%
Slide 43: Breakup of RM/PM Costs (for Q1FY 19)
Breakup of RM/PM Costs (for Q1FY 19) Key Raw & Packing Material % to Sales % to Total Cost LLP 10.59% 30.93% Bottles (Glass & Pet) 9.02% 26.33% Refined Veg. Oil 4.58% 13.36% Perfumes & other additives 2.44% 7.12% Corrugated Boxes 1.64% 4.77% Caps 1.79% 5.23% Others 4.20% 12.25% TOTAL 34.25% 100.00%
Slide 44: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Oil 100 100 80 80 Amount (Rs.) Amount (Rs.) 60 60 40 40 85.98 79.89 79.53 70.12 75.39 58.28 61.40 20 45.80 20 0 0 Qtr1 FY18 vs FY19 FY17 vs FY18 Qtr1 FY18 vs FY19 FY17 vs FY18 ✓ The adjusted landed cost of LLP during the quarter
Slide 45: Fund Position
Fund Position • Fund Position: • The total Fund available with the company as on 30th June 2018 is Rs. 342.34 Crores • This has been invested in Bank Fixed Deposits and top rated Corporate & PSU Bonds • There is no investment in ANY Inter Corporate Deposit Particulars Amount (Rs. in Crores) Bonds 31
Slide 46: M2M Effect on Other Income
M2M Effect on Other Income • As part of Accounting standards, we have recognized fair value of our investments in Corporate bonds as on 30th June 2018 • There has been an MTM loss of Rs. 5.47 crores at the quarter end against MTM gain of Rs. 2.79 crores in corresponding quarter in previous year • Th
Slide 47: Dividend Payout History
Dividend Payout History Dividend Dividend per No. of Shares Face Year Payout % to Capital share (in Lacs) Value (Rs in Lacs) (Rs.) 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 16,962.50 1150% 11.50 2013-14 1,475 1 9
Slide 48: For More Information
For More Information • Please Visit www.Bajajcorp.com 47
Slide 49: Thank You
THANK YOU WOR CERTIFIED ote
Bajaj Consumer Care — Q1 FY2019 Earnings Presentation on 6ix