Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q2 FY2020 Earnings Presentation
33 slides from Bajaj Consumer Care's earnings presentation, Oct 11, 2019
Slide 1: Investor Presentation Q2 – FY 2020
Investor Presentation Q2 – FY 2020 Date: 11/10/2019
Slide 2: Flow
FLOW • MARKET CONTEXT • PROJECT VISTAAR • INDUSTRY OVERVIEW • FINANCIAL INFORMATION 2
Slide 3: Q2 – Market Context
Q2– MARKET CONTEXT HAIROILS • Hair Oils category grew by 5.9% in volume in MAT Sep 19, whereas value growth has been 11.6%. • Hair Oil Category growth has slowed down in FY 19/20 , YTD Volume Growth Rate is 2.4% vs MAT Growth rate of 5.9%. • Volume MS% of Bajaj Almond Drops is steady at 7.6% in MAT
Slide 4: Stable ADHO MAT Vol Share in Urban India; Slight decline in Rural India
Stable ADHO MAT Vol Share in Urban India; Slight decline in Rural India 8.5 8.3 8.3 8.4 8.4 8.3 8.3 8.2 8.2 8.3 8.2 8.2 8.2 8.2 8.1 8.0 7.9 7.9 8.0 7.8 7.8 7.8 7.8 7.8 7.7 7.8 7.7 7.8 7.8 7.7 7.7 7.7 7.6 7.5 7.6 7.6 7.5 7.5 7.3 7.4 7.2 7.3 7.2 7.1 7.2 7.1 7.1 7.1 7.1 7.1 7.0 7.1 7.0 6.9 7.0 6.9 7.0
Slide 5: Bajaj Cool Almond Drops - Early results are positive
Bajaj Cool Almond Drops - Early results are positive All India (U+R), Value offtake (lacs) 200 163 135 147 150 121 125 106 100 79 83 78 84 56 56 36 42 36 50 26 24 31 25 35 19 20 33 26 21 25 9 11 0 MAR19 APR19 MAY19 JUN19 JUL19 AUG 19 SEP 19 True Roots HnC Dry Fruit PACCO CAD • Bajaj Cool Almond Drop
Slide 6: Growth Pillars into Action
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 • Bajaj Almond Drops now available in over 40 lakh outlets • Lowering of WS contribution from 60% to 33% over the
Slide 7: Snapshot of Sales across Channels
Snapshot of Sales across Channels General Trade: • Growth has been sluggish across channels • Rural demand witnessing substantial sequential slowdown • Wholesale holding volumes with higher inputs • Urban Retail off takes have seen sharp decline • Discretionary spends witnessing sharp drop across ch
Slide 8: Project Vistaar – Test Market for Increasing Share
Project Vistaar– Test Market for Increasing Share 8
Slide 9: Q3 Plan: Continued emphasis on advertising, digital media and on-ground activation
Q3 Plan: Continued emphasis on advertising, digital media and on-ground activation Launch of new ad Consistent focus on Increased focus on Rural focused on- copy featuring local high SOV digital media ground activation celebrity
Slide 10: ADHO ad awareness is significantly higher than competition
ADHO ad awareness is significantly higher than competition ATL INVESTMENTS 91% of these respondents could correctly identify ADHO brand from the ad 80% 74% 70% 66% 60% 50% 40% 30% 30% 20% 10% 0% Bajaj Almond Drops Sep Nihar Naturals Jasmine Sep Hair & Care Dry fruit oil Sep Source: Customized resear
Slide 11: New 5s ad clip to increase awareness of ADHO 50 ml
New 5s ad clip to increase awareness of ADHO 50 ml • Highlights Price point Of Rs. 35 • “Nourishment for Month” in Just Rs. 35” 11
Slide 12: Significantly increased ATL spend since July with consistent and high Share of Voice
ATL INVESTMENTS Significantly increased ATL spend since July with consistent and high Share of Voice 16%
Slide 13: Project Vistaar: Primary and secondary sales have gone up in Q2 vs. LY
Project Vistaar: Primary and secondary sales have gone up in Q2 vs. LY Overall ADHO Q2’18 Q2 FY19 Q2 FY20 Q2 Growth vs. YA Growth Primary sales (Rs. Lacs) 1,333 1,524 14% AG Secondary sales (Rs. Lacs) 1,292 1,543 19% July August September Overall ADHO Jul’18 Jul’19 Growth Aug’18 Aug’19 Growth Sep’18
Slide 14: Vistaar Upside: Natural dip in sales in Q2 vs. Q1 offset by Vistaar initiatives
Vistaar Upside: Natural dip in sales in Q2 vs. Q1 has been offset by Vistaar initiatives 20%
Slide 15: Winning with IT Initiatives & Automation
Winning with IT Initiatives & Automation H1 initiatives: Business Intelligence Tool - Senior sales team of BCCL have been given a BI tool to see the dashboards on the go. This will help sales leadership team in following areas: ❑ Data driven decision making ❑ Sales KPI monitoring on regular basis ❑
Slide 16: Winning with IT Initiatives & Automation
Winning with IT Initiatives & Automation Planned H2 initiatives: SAP HANA and SAP Success Factor – Organisation has tied up with IBM as implementation partner for SAP HANA 1809 implementation. The advantages SAP will bring: ❑ Real time data visibility ❑ Increase efficiency ❑ Single source of truth ❑
Slide 17: Organisation Structure
D aja) consumer care ORGANISATION STRUCTURE THINK TOMORROW
Slide 18: Apoorv Nayan Bajaj, Executive President, and management team
Apoorv Nayan Bajaj Dilip Kumar Maloo Rohit Saraogi Chief Financial Officer Assistant Vice President - Executive President Joined BCCL on April 1991. He is a Finance qualified CA & CS professional and has Joined BCCL on Mar 2019. He is a commerce more than 30 years of experience across graduate from
Slide 19: Winning with People
Winning with People • BCCL was conferred Maharashtra State’s “Best Employer Award” from World HRD Congress. • BCCL won “Best Employee Engagement Practices” award during India Human Capital Summit & Awards 2019. • An engaging Employee Townhall was organized on 9th August. Fireside Chat with MD, Leade
Slide 20: Industry Overview
D aja) consumer care INDUSTRY OVERVIEW THINK TOMORROW
Slide 21: Industry Size and Structure
Industry Size and Structure FMCG Rs. 3,97,003 cr Hair Care 6% CONTRIBUTION Rs. 25,562 cr Shampoo Coconut Oil Hair Oil Hair Dyes Hair Conditioners Rs. 7,622 cr Rs. 4,520 cr Rs. 8,261 cr. Rs. 4,464 cr Rs. 695 cr. (30%)* (18%)* (32%)* (17%)* (3%)* 25% 25% 17% 12% 14% Amla Based Oils Light Hair Oils VAC
Slide 22: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 350 309 14000 13168 283 10103 247 269 255 254 264 300 11200 236 238 12000 9390 9928 (In ‘000 KLtr) 250 10000 7867 8676 6903 (Rs. Cr.) 6981 Growth -5.3% Growth -0.2% Growth 21.9% Growth 12.7% Growth 8.7% Growth 3.9%
Slide 23: 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 9.0% 12.0% 7.8% 7.8% 7.6% 7.6% 8.0% 7.4% 7.3% 9.9% 9.7% 9.7% 9.8% 7.1% 10.0% 9.5% 9.5% 9.6% 9.6% 9.5% 7.0% 6.6% 6.7% 8.5% 5.8% 7.7% 6.0% 8.0% 5.0% 4.7% 6.0% 4.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 10-11
Slide 24: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure 53 Factory (9) The company reaches consumers through 40.15 Million retail outlets serviced by 8869 distributors OWN – Himachal Pradesh -2, Uttarakhand- 1, Guwahati 1 80 THIRD PARTY - Himachal Pradesh-2, Bangladesh-1, 294 Uttarak
Slide 25: Financials
Dalal consumer cane Financials THINK TOMORROW
Slide 26: Sales Growth Q2 FY20
Sales Growth Q2 FY20 Sales Vertical Salience% Growth Salience% Growth Q2 FY20 Q2 FY20 Q2 FY20 Q2 FY20 (Value) (Volume) General Trade 84.43% 0.78% 85.02% -2.20% Modern Trade 9.79% 19.11% 8.21% 14.04% Total Domestic excluding CSD 94.22% 2.41% 93.23% -0.96% Canteen Stores Department 3.04% 20.97% 3.41%
Slide 27: Sales Growth HY1 FY20
Sales Growth HY1 FY20 Sales Vertical Salience% Growth Salience% Growth HY1 FY20 HY1 FY20 HY1 FY20 HY1 FY20 (Value) (Volume) General Trade 87.07% 3.54% 87.59% 0.31% Modern Trade 8.64% 19.81% 7.32% 13.63% Total Domestic excluding CSD 95.71% 4.83% 94.91% 1.22% Canteen Stores Department 1.45% -29.18% 1.
Slide 28: Financial Information (Standalone)
Financial Information (Standalone) Summary Income statement Summary Balance Sheet Particulars Particulars As on As on Q2FY20 Q2FY19 HY1 FY20 HY1 FY19 30.09.2019 31.03.2019 (Rs. In Crore) (Rs. In Crore) Sales (Net) Shareholders Equity 211.19 205.74 443.66 420.70 601.34 485.12 Other Operating Income 5
Slide 29: Profit & Loss Quarter ended Sept. 30, 2019 (Standalone)
Profit & Loss Quarter ended Sept. 30,2019 (Standalone) Rs. in Cr. Particulars Q2FY20 Q2FY19 YoY% HY1 FY20 HY1 FY19 YoY% Net Sales 211.19 205.74 2.65% 443.65 420.70 5.46% Other Operating Income 5.90 6.99 13.68 13.44 Total Operating Income 217.09 212.73 2.05% 457.33 434.14 Material Cost 71.41 69.49 14
Slide 30: Performance over the last 14 quarters
Performance over the last 14 quarters 40.00% 35.37% 34.82% 35% 33.44% 34.08% 35.00% 32.96% 32.79% 32.61% 33.17% 31.51% 30.93% 30.10% 30.12% 29.26% 30.00% 25.00% 20.00% 12.50% Gr 11.10% 15.00% (Value) 9.45% 8.68% 8.14% 7.00% Gr (Vol) 5.86% 5.86% 10.00% 5.50% 5.17% 5.09% 5.01% 4.66% 3.84% 3.47% 2.65%
Slide 31: 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 88.59 89.23 87.13 88.66 40 40 71.75 70.60 70.83 70.53 20 20 0 0 Qtr2 FY19 vs FY20 HY1FY19 v FY20 Qtr2 FY19 vs FY20 HY1FY19 v FY20 ✓The landed cost of LLP for the quarter decrease
Slide 32: 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 33: Thank you
For more information & updates Contact: Mr. Kushal Maheshwari kushal@bajajconsumer.com Thank you 33
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