Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q3 FY2019 Earnings Presentation
41 slides from Bajaj Consumer Care's earnings presentation, January 2019
Slide 1: Investor Presentation Q3 - 2018
Bajaj Consumer Care Limited INVESTOR PRESENTATION Q3 - 2018
Slide 2: Flow
FLOW • BCL TRANSFORMATION FOR GROWTH PILLARS & ACTION TAKEN • INDUSTRY OVERVIEW • FINANCIAL INFORMATION 1
Slide 3: 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 2
Slide 4: Growth Pillars into Action: Winning with Brands
GROWTH PILLARS INTO ACTION WINNING WITH BRANDS - INNOVATIONS , RENOVATIONS, COLLABORATIONS Haircare • Multi Media support behind ADHO Relaunch continued in Q3 to increase penetration of ADHO in the THO category • Rs 10 pack launched in PET jar as a part of the drive to boost our penetration growth i
Slide 5: Q3 – Market Context
Q3– MARKET CONTEXT Strong Volume Growth Across Categories HAIROILS • Volume MS% of Bajaj Almond Drops improved to 7.7% in MAT Nov 18 vs 7.2% in MAT Nov 17 • Share within the LHO segment continued to surge forward with MAT Nov 18 at 60% vs 58.4% for MAT Nov 17 • 2X Offtake growth on ADHO in Mat Nov 1
Slide 6: Bajaj Almond Drops Multi Media Support on Restage
Q3 - BAJAJ ALMOND DROPS MULTI MEDIA SUPPORT ON RESTAGE - Innovative In Program Integration for High Impact. - New TVC for Pack Launch - 13% SOV For the Restage Period Innovative Press Ads Jhandewalan 16'x8' 1 Delhi Metro – Outdoor Support 5
Slide 7: Q3 Key Initiative Update – Rs. 10 Pack for Rural
Q3 KEY INITIATIVE UPDATE– Rs. 10 PACK FOR RURAL • Objective of Upgrading the huge base of Rs 1 sachet • Rs 10 pack in a Secondary Pack of PET Jar format for increasing Distribution in Rural • 40% Increase in Sales in Sep – Dec period vis a Vis Q1/Q2. 6
Slide 8: Positive Results across all Parameters on ADHO
Positive Results across all Parameters on ADHO MS Val - LHO Val Sales (Cr) MS Val - THO 63.0 62.3 211 9.50 9.3 9.4 220 62.0 60.8 200 61.0 174 9.00 60.0 180 59.0 160 58.0 140 8.50 57.0 120 56.0 100 8.00 55.0 Oct-Nov'17 Oct-Nov'18 Oct-Nov'17 Oct-Nov'18 Oct-Nov'17 Oct-Nov'18 High growth in Val Offtakes
Slide 9: Nomarks Offtake post restage
Q3 Key Initiative NOMARKS OFFTAKE post restage Strong offtake growth post restage continued in Q3 . NOMARKS OFFTAKES AND GROWTH % 1,00,000 32% 90,000 0.1% 80,000 49% 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Q1 Q2 Oct-Nov'18 17-18 18-19 Source: Nielsen Retail Audit Report, Nov 2018 8
Slide 10: Nomarks Market Share trend
NOMARKS Market Share trend Highest growth in Market Share in Antimarks Re-launch MS VAL 11.0 9.6 9.7 9.7 9.6 9.6 9.6 9.8 10.1 10.3 10.0 9.5 9.5 9.5 9.1 9.2 9.0 8.5 8.6 8.2 8.1 8.1 8.0 8.2 8.3 7.8 7.9 8.1 8.0 8.0 7.5 7.6 7.0 6.0 5.5 5.3 5.3 5.4 5.3 5.3 5.5 5.0 5.2 5.4 5.5 5.0 4.8 4.8 4.9 4.0 MAT MAT
Slide 11: Nomarks MS trend in Key Market - UP
NOMARKS MS trend in Key Mkt - UP Highest growth in Market Share Re-launch in Antimarks MS VAL 12.0 11.8 11.6 11.0 11.2 10.6 10.3 10.3 10.2 10.0 9.9 10.0 9.7 9.0 9.1 8.6 8.0 8.2 7.8 7.1 7.2 7.3 6.8 6.6 6.9 7.0 6.5 6.6 6.6 6.0 6.3 6.0 5.3 5.5 5.7 5.0 4.5 4.6 4.6 4.5 4.6 4.2 4.4 4.2 4.4 4.0 3.8 4.0 3.6
Slide 12: Nomarks – Market Share post restage
NOMARKS – Market Share post restage Oct- MARKET SHARE % Q1 Q2 Nov’18 CHEMIST 7.1 8.4 8.9 COSMETIC 13.2 18 21.1 GROCERS 8.2 11 9.0 TOTAL 7.5 9.2 9.3 Market Share increases across channels Source: Nielsen Retail Audit Report, Nov 2018 11
Slide 13: 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 i
Slide 14: Q3 – Market Context
Q3 – MARKET CONTEXT General Trade: • Rural markets still leading the overall growths in the overall market. • Witnessed buoyancy in the rural offtakes in Q3 vs Q2 • Better traction in Wholesale in the latter part of Q3 • Urban Retail continues to be stable Alternate Channel: • Strong growth continue
Slide 15: Growth Pillars into Action: Winning with People
GROWTH PILLARS INTO ACTION WINNING WITH PEOPLE – ENGAGE and DEVELOP • As part of the Performance Management process, Mid-Year Review assessments for all employees were completed on time. • The Internal Complaints Committee (ICC) has been reconstituted with induction of External Member as per POH man
Slide 16: Industry Overview
INDUSTRY OVERVIEW A WORK CERTIFIED
Slide 17: 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 18: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 283 12,000 11,200 300 269 264 247 255 254 9,928 10,103 236 238 10,000 9,390 250 8,676 8,746 (In ‘000 KLtr) 206 7,867 (Rs. Cr.) 8,000 6,981 Growth -5.3% 200 Growth -0.2% Growth 8.4 % Growth 7.4% Growth 10.3% Growth 1
Slide 19: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 40.0 2,000 34.9 1,743 33.1 1,800 1,639 35.0 31.9 31.3 32.2 1,576 30.0 1,600 1,474 1,502 1,321 (In ‘000 KLtr) 30.0 26.8 26.5 1,400 1,311 Growth 14.9 % 25.0 22.4 1,200 1,080 Growth 12.5% Growth 21.4% Growth 30.0% Growth 4.0
Slide 20: 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% 60.0% 62.4% 60.0% 57.8% 58.3% 58.0% 58.8% 58.4% 60.3% 61.0% 60.7% 61.3% 60.9% 56.6% 58.4% 54.4% 60.0% 56.9% 51.9% 55.0% 53.0% 50.0% 48.0% 49.1% 50.7% 50.0% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0
Slide 21: 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 12.0% 9.0% 9.9% 9.7% 9.8% 8.0% 7.7% 10.0% 9.5% 9.7% 9.5% 9.6% 9.6% 7.4% 7.3% 7.3% 7.1% 7.2% 6.7% 8.5% 7.0% 6.6% 8.0% 7.7% 5.8% 7.1% 6.0% 5.0% 4.7% 6.0% 4.5% 4.0% 4.0% 3.0% 2.0% 2.0% 1.0% 0.0% 0.0% 09-10
Slide 22: Anti Marks Category Growth
Anti Marks Category Growth Q-o-Q Gr Val (All India) Q-o-Q Gr Val (UP) 60.0 100.0 49.0 84.9 50.0 45.2 80.0 40.0 58.0 55.1 60.0 32.5 29.7 30.0 36.5 23.4 40.0 18.4 20.0 15.1 25.2 20.0 8.3 10.4 3.4 10.0 7.9 0.0 0.1 Q3'17-18 Q4'17-18 Q1'18-19 -1.6 0.4 Q2'18-19 Oct-Nov'18 0.0 -5.6 -20.0 Q3'17-18 Q4'17-18
Slide 23: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure 53 Factory (9) The company reaches consumers through 4.00 Million retail outlets serviced by 9292 distributors OWN – Himachal Pradesh -2, Uttarakhand- 1, Guwahati 1 80 THIRD PARTY - Himachal Pradesh-2, Bangladesh-1, 294 Uttarakh
Slide 24: Organisation Structure
ORGANISATION STRUCTURE
Slide 25: Management Board
Management Board Kushagra Nayan Bajaj Chairman He has been Vice Chairman of Bajaj Hindustan Ltd. Since April 30, 2011 and as its Joint Managing Director since April 24, 2007. He is also the promoter of the company. Mr. Bajaj served as the Chief Executive Officer of Bajaj Hindustan Ltd., since August
Slide 26: Management Committee
Management Committee Sandeep Verma President – Sales,Marketing and R&D Joined BCL on Jan 2016. Sandeep is a Mechanical Engineer from NIT- Allahabad and a PGDBM from IIM – Lucknow. Prior to joining BCL, he has worked for 15 years in HUL/Unilever across various roles in Sales, Strategy and Marketing.
Slide 27: Management Committee
Management Committee Dipankar Ghosh Abhishek Prasad Assistant Vice President - Human Resources Head - Marketing Joined BCL on Aug 2018. He is Fullbright Fellow and Joined BCL on May 2018. He holds a MBA from FMS, holds a MBA from Jadavpur University and has 20+ Delhi and has 20 years of experience i
Slide 28: Management Committee
Management Committee Makarand Karnataki Dharmesh Sanghavi Head - Legal General Manager - IT Joined BCL in Sep 2017. Makarand is Commerce and Joined BCL on Sep 2012. He is a computer Engineer Law Graduate from Mumbai University and also a and a diploma in Business Management from ICFAI member of Inst
Slide 29: Financials
Financials WOR CERTIFIED ote
Slide 30: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Particulars Q3 FY19 Q3 FY18 9M FY 19 9M FY 18 As on As on (Rs. In Crore) 31.12.2018 31.03.2018 (Rs. In Crore) Sales (Net) 221.98 197.32 642.68 597.40 Other Operating Shareholders Equity 7.5
Slide 31: Q3 FY19 Adjusted EBITDA & PAT
Q3FY 19 Adjusted EBITDA & PAT Rs. in Crore Unadjusted (as per Result) Adjusted (Net of Q2 Refund) Particulars Q3FY19 Q3FY18 Growth% Q3FY19 Q3FY18 Growth% Sales (Value) 221.98 197.32 12.50% 221.98 197.32 12.50% Other Operating Income 7.59 10.73 7.59 5.53 EBITDA 72.39 69.10 4.75% 72.39 63.90 13.28% EB
Slide 32: Profit & Loss Quarter ended Dec 31, 2018
Profit & Loss Quarter ended Dec 31,2018 Rs. in Crore Particulars Q3 FY19 Q3 FY18 (Adjusted) YoY% Net Sales 221.98 197.32 12.50% Other Operating Income 7.59 5.53 Total Operating Income 229.57 202.85 Material Cost 74.81 64.39 % of Sales 33.70% 32.63% Employees Cost 24.04 19.26 % of Sales 10.83% 9.76%
Slide 33: Profit & Loss 9M ended Dec 31, 2018
Profit & Loss 9M ended Dec 31, 2018 (9M FY19) Rs. in Crore Particulars 9M FY 19 9M FY 18 YoY% Net Sales 642.68 597.40 7.58% Other Operating Income 21.02 12.21 Total Operating Income 663.70 609.61 Material Cost 218.24 200.54 % of Sales 33.96% 33.57% Employees Cost 70.18 55.52 % of Sales 10.92% 9.29%
Slide 34: Sales Value Growth Q3 FY19
Sales Value Growth Q3 FY19 Q3FY19 Growth Sales Vertical Salience % Q3FY19 General Trade 84.82% 10.33% Modern Trade 8.16% 27.87% Total Domestic ( Excluding CSD) 92.98% 11.68% Canteen Stores Department 4.14% 35.27% Total Domestic 97.12% 12.51% International Business 2.88% 11.84% Total for the Company
Slide 35: Sales Value Growth 9M FY19
Sales Value Growth 9M FY19 9MFY19 Growth Sales Vertical Salience % 9MFY19 General Trade 87.35% 9.88% Modern Trade 7.77% 28.37% Total Domestic ( Excluding CSD) 95.12% 11.18% Canteen Stores Department 2.87% -14.14% Total Domestic 97.98% 10.23% International Business 2.02% -34.05% Total for the Company
Slide 36: Sales Volume Growth Q3 FY19
Sales Volume Growth Q3 FY19 Q3FY19 Growth Sales Vertical Salience % Q3FY19 General Trade 85.12% 5.15% Modern Trade 7.17% 21.79% Total Domestic ( Excluding CSD) 92.29% 6.28% Canteen Stores Department 4.52% 34.25% Total Domestic 96.80% 7.33% International Business 3.20% -2.05% Total for the Company 10
Slide 37: Sales Volume Growth 9M FY19
Sales Volume Growth 9M FY19 9MFY19 Growth Sales Vertical Salience % 9MFY19 General Trade 87.86% 6.05% Modern Trade 6.76% 21.38% Total Domestic ( Excluding CSD) 94.63% 7.01% Canteen Stores Department 3.18% -14.27% Total Domestic 97.80% 6.16% International Business 2.20% -43.59% Total for the Company
Slide 38: Performance over the last 15 quarters
Performance over the last 15 quarters 40.00% 35.37% 34.82% 35% 33.62% 33.44% 32.96% 34.08% 35.00% 32.79% 32.61% 31.67% 32.35% 31.51% 30.86% 30.10% 29.26% 30.00% 25.00% 20.00% Gr (Value) 15.00% Gr (Vol) 10.00% EBIDTA 5.00% 14.29% 12.11% 10.68% 12.50% 3.59% 7.00% 8.34% 2.96% 1.80% 0.77% 3.47% 3.84% 5.
Slide 39: 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 90.79 88.35 40 73.93 40 80.52 77.23 71.86 61.22 59.80 20 20 0 0 Qtr3 FY18 vs FY19 9M FY18 vs FY19 Qtr3 FY18 vs FY19 9M FY18 vs FY19 ✓ The adjusted landed cost (Net of input credi
Slide 40: 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.) 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 1
Slide 41: For More Information
For More Information For more information & updates Contact: Kushal Maheshwari kushal@bajajcorp.com • Please Visit www.bajajcorp.com 40
Bajaj Consumer Care — Q3 FY2019 Earnings Presentation on 6ix