Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Q2 FY23 Earnings Presentation
31 slides from Jyothy Labs's earnings presentation, Nov 14, 2022
Slide 1: Exchange cover letter: Copy of Presentation
To, November 14, 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
Slide 2: Jyothy Labs logo
Slide 3: Presentation Q2FY23
PRESENTATION Q2FY23 November 14, 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 : • Volume growth impacted with high inflationary pressure on the households • Inspite of volatile environment, our strategy is to focus on strengthening our consumer franchise • Stable Growth across all channels resulting in overall double digit sales growth •
Slide 7: Our Strategic Levers - Delivers Robust Performance Across Categories
OUR STRATEGIC LEVERS- DELIVERS ROBUST PERFORMANCE ACROSS CATEGORIES Growth (%) Q2FY23 33.7% 5.6% -30.7% 10.8% Q2FY23 29.4% 9.1% -15.1% 8.0% (2Y CAGR) Q2FY23 13.9% 13.7% -4.0% 10.1% (3Y CAGR) 6 6
Slide 8: High Input Prices Persists..
High Input Prices Persists.. Unit Currency Mar-20 Mar-21 Mar-22 Jul-22 Oct-22 % Increase % Increase (Oct’22 vs (Oct’22 vs Key Products Mar’21) Mar’22) Linear Alkyl Benzene ** Tonne $ 1195 1580 1743 2250 1800 14% 3% Soda Ash Kg. ₹ 23 24 35 43 39 63% 11% Caustic Soda LYE * Tonne $ 331 340.8 850 645 80
Slide 9: Result Highlights – Q2FY23 Snapshot (Consolidated)
RESULT HIGHLIGHTS – Q2FY23 SNAPSHOT (CONSOLIDATED) Revenue at Rs 659 Crores increase by 12.6%. (Ex-HI 17.8%). Volume grew by 1.4% (Ex-HI 5.0%) Gross Margin at Rs 267 Crores (40.5% of Net Sales) versus Rs 235 Crores (40.1% of Net sales) in the same period last year, an increase by 13.7% A&P Spend at
Slide 10: Result Highlights – H1FY23 Snapshot (Consolidated)
RESULT HIGHLIGHTS – H1FY23 SNAPSHOT (CONSOLIDATED) Revenue at Rs 1,256 Crores increase by 13.1% (Ex-HI 19.7%) Gross Margin at Rs 505 Crores (40.2% of Net Sales) versus Rs 462 Crores (41.6% of Net Sales) in the same period last year, an increase by 9.2% A&P Spend at Rs 86.6 Crores (6.9% of Net Sales)
Slide 11: Category Wise Net Revenue
CATEGORY WISE NET REVENUE Q2FY23 H1FY23 Q2 FY23 Revenue Growth 20% CY PY GR% CY PY GR% 16.0% Ujala FW, Henko, Mr 286 214 33.7% 537 395 35.9% 15% Fabric Care 12.6% White, Ujala C & S 10% Dishwashing Exo & Pril 228 216 5.6% 437 407 7.5% 6.2% 5% Personal Margo, Neem & JLL 73 66 10.8% 143 134 6.4% Care
Slide 12: Snapshot of Company's Performance (Consolidated)
SNAPSHOT OF COMPANY’S PERFORMANCE (CONSOLIDATED) QUARTER ENDED HALF YEAR ENDED PARTICULAR/GROWTH CY PY % CHANGE CY PY % CHANGE REVENUE FROM OPERATION 659 585 12.6% 1,256 1,111 13.1% OPERATING EBITDA 80.4 66.6 20.8% 140.3 129.8 8.0% PAT 65.4 44.0 48.6% 113.1 84.2 34.3% Financial Parameters QUARTER EN
Slide 13: EBITDA Movement (Consolidated)
EBITDA MOVEMENT (CONSOLIDATED) PARTICULARS Q2FY22 H1FY22 EBITDA % - PREVIOUS PERIOD 11.4% 11.7% GROSS MARGIN 0.4% -1.4% EMPLOYEE COST 0.0% 0.7% ADVERTISEMENT & SALES PROMOTION 0.6% 0.6% OTHER EXPENDITURE -0.1% -0.4% EBITDA % - CURRENT PERIOD 12.2% 11.2% 12
Slide 14: Financial Highlights (Consolidated)
FINANCIAL HIGHLIGHTS (CONSOLIDATED) Net Worth (Rs in crores) Working Capital in Days 40 1,750 1,367 1,444 1465 35 1,500 30 28 1,250 25 1,000 20 20 750 12 15 500 10 250 5 0 0 Sep-21 Mar-22 Sep-22 Sep-21 Mar-22 Sep-22 ROE Net Debt equity ratio 40.0% 35.6% 0.25 35.0% 29.0% 0.20 30.0% 24.2% 25.0% 0.15 2
Slide 15: Brand Performance & Initiatives
BRAND PERFORMANCE & INITIATIVES 14
Slide 16: Category Wise Business Share
Fabric Care (Main wash) 32% Q2 FY23 Category Wise Fabric Care (Post wash) 11% Dishwashing 35% Business Share HI Other 7% 4% Personal Care 11% 15
Slide 17: Our brands continue to delight our consumers with superior value
Q2 FY23 Our brands continue to delight our consumers with its superior value offering and availability. In a challenging economic environment, the company has delivered a robust 12.6% growth with equal emphasis on offering superior value and focus on distribution. 16
Slide 18: Category highlights in Q2 FY23
Category highlights in Q2 FY23 Fabric care Home Care Dish Wash Personal Care • Strong performance in Fabric Care. • Focus on distribution in key geographies across the portfolio continues • Demand revival seen in all channels • Mid priced detergent brands More Light and Mr. White continue to registe
Slide 19: Fabric care (post wash)
Fabric care (post wash) Performance: Market share Brand continued its growth momentum MQ22 JQ22 SQ22 registering strong double digit growth 84.1% 84.1% 83.7% riding on the new campaign. Source – NielsenIQ Key initiatives: Ujala Continued media support with TVC featuring Superstar Ms. Taapsee Pannu.
Slide 20: Fabric care (post wash)
Fabric care (post wash) Performance: The brand continued its strong double-digit value & volume growth indicating faster demand revival. Key initiatives: Ujala TV commercial featuring superstar Ms. Nayanthara promoted in Crisp & TV, OTT and digital medium. Shine Continued retail visibility to drive
Slide 21: Fabric care (main wash)
Fabric care (main wash) Performance: Ujala Detergent powder continues to be No. 1 brand in Kerala with a healthy Market share (Detergent double digit growth. powder in Kerala) Ujala liquid detergent launched in MQ21 MQ22 JQ22 SQ22 April’21 in Kerala & Tamil Nadu is 19.3% 21.9% 20.3% 20% Source – Nie
Slide 22: Fabric care (main wash)
21 Fabric care (main wash) Performance • Brand continued its growth momentum with high double-digit growth across the product portfolio. Key initiatives • High decibel Campaign featuring Superstar Ms. Kajal Aggarwal • Active promotion on social media through influencers HenkoHenko • New large packs
Slide 23: Dishwash (Exo)
Dishwash (Exo) Performance • Relentless drive on LUPs is helping the brand to recruit more consumers onto to the brand and become stronger No: 2 player • Consistent investment behind the brand is helping Exo to be brand of choice Market Share (Bar) Brand MQ21 MQ22 JQ22 SQ22 Exo EXO 13.3% 13.7% 13.7%
Slide 24: No need to worry when Exo is around
No need to worry when Exo is around • “Exo Bar helps to Kill bacteria in 10 seconds and Sanitize utensils” - Through school contact program reached out to 4 Lakh+ Parents of students to tell them on how Exo Bar can help to address worry of Bacterial infestation on kids utensils • This is an initiati
Slide 25: Dishwash (Pril)
Dishwash (Pril) Performance • Focused drive on LUPs helped the brand to reach highest ever number of outlets and thereby aid in efforts to reach to wider consumer base Market Share (Liquid) Brand MQ21 MQ22 JQ22 SQ22 PRIL 15.3% 14.3% 15.1% 15.1% Source – NielsenIQ Pril Key initiatives • High Decibel
Slide 26: Household Insecticide
Household Insecticide Market Share Format MQ21 MQ22 JQ22 SQ22 Coil 22.4% 22% 24.2% 23.2% Liquid 8.2% 8.9% 10% 8.4% Source – NielsenIQ Performance • HI Category degrew by 8% vs same period last year. Higher decline seen in East & North India markets which contribute to significant sales of Maxo. • IM
Slide 27: Personal Care
Personal Care Performance • Registered strong double digit growth across channels. Small packs helping in driving trials. Key initiatives • Consumer promos to drive trials • Active presence on social media Margo • Continued visibility drives across key markets TVC In Key Markets Display & Search Ads
Slide 28: Way Forward
WAY FORWARD • Overall, demand environment is positive. With focus on digital led direct distribution, focus on rural India and investment in brand building will help us to achieve consistent sales growth and value creation • Higher Scale of Business operations will drive operating leverage • Enhance
Slide 29: Shareholding Pattern
SHAREHOLDING PATTERN As on September 30, 2022 FII 13.11% DII 17.92% Promoter and Promoter Group 62.89% FII Public 6.08% DII Public Promoter and Promoter Group 28
Slide 30: 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 31: Thank You
THANK YOU Contact for any queries Sanjay Agarwal – CFO Email: Sanjay.Agarwal@Jyothy.com Contact No: +91 22 6689 2800/+91 9167012328 30