Jyothy Labs Limited · NSE:JYOTHYLAB
Jyothy Labs — Jyothy Laboratories — Q1 FY2014 Earnings Presentation
27 slides from Jyothy Labs's earnings presentation, Aug 12, 2013
Slide 1: Analyst Call
Analyst Call August 12,2013 dyothy LABORATORIES LIMITED @
Slide 2: Agenda
Agenda Company Overview Financial Performance: Q1FY14 • Results • Analysis New Business Initiatives • Key Initiatives – Q1FY14 • Key Initiatives FY14 2
Slide 3: Company Overview
Company Overview
Slide 4: About us
About us Mumbai based FMCG company founded in 1983 by Mr. M. P. Ramachandran Pan India presence catering to consumer needs in various categories Our portfolio includes leading household brands led by the flagship brand Ujala, with 71%* market share, Ujala continues its dominance in fabric whitener m
Slide 5: Our Network
Our Network Extensive Distribution Network* *Source: Ac Nielsen • Products available in 2.9 mn outlets in India as of March 31, 2013 • Directly reaching 1 million outlets • Strong presence across geographies, Urban and Rural Offering Value-for-Money Products to the Common Man 5
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Slide 7: Results - Profit & Loss
Results - Profit & Loss Quarter Ended Year Ended Particulars 30-06-2013 31-03-13 30-06-2012 31-03-13 Net Sales 31,819 27,212 28,122 1,01,738 Other Income - Operating 96 40 27 136 Total Income 31,915 27,252 28,149 1,01,874 Cost of Goods Sold 16,811 15,536 16,766 56,767 Employee cost 3,049 2,299 2,759
Slide 8: Highlights for Q1 FY2014
Highlights for Q1 FY2014 Sales growth of 13%. Growth of power brand sales is 15%. Advt. and Sales Promo exp. for the quarter Rs 39 crore increase of 69%. A&P Ratio 12% of Net Sales Gross Margin now stands at 47% improvement of 6.8% EBITDA improved to 15.3% of Net Sales from 11.6% in last year same p
Slide 9: UJALA New Packaging
UJALA New Packaging Ujala new packaging well received at the market place Growth in Ujala Fabric Whitener Sales for Q1 is 37% 9
Slide 10: EBITDA Analysis - Quarterly
EBITDA Analysis - Quarterly EBITDA % • Reasons for EBITDA improvement in Q1 of FY 18% 2013-14 16% 15.3% 14% • Change in product sales mix in favour of high 12.4% margin products 11.6% 12% 10% Product Q1 Q4 Q1 2012-13 2012-13 2013-14 8% 6% Ujala Fabric 16% 15% 20% Whitener 4% Maxo 13% 17% 11% 2% 0% O
Slide 11: Sales Analysis
Sales Analysis Segmentwise Sales Growth Segmentwise Sales Contribution Sales - June'13 Segment 2013-14 2012-13 Growth % 2% 18% Soaps & Detergent Soaps & Detergent 25,345 21,749 17% Home Care 80% Other Products Home Care 5,827 5,937 -2% Other Products 646 436 48% Sales - June'12 31,819 28,122 13% 2%
Slide 12: Increase in Advertisement Expenditure
Increase in Advertisement Expenditure Particulars Q1 2013-14 Q1 2012-13 % Increase Advertisement Expenses 2,953.73 1,491.78 98% Sales Promotion Expenses 914.13 797.28 15% Total 3,867.86 2289.06 69% % of Sales 12.16% 8.1% 12 In Rs. Lacs
Slide 13: Cash Profit
Cash Profit Particulars Amount in lacs Revenue 31,819 EBITDA 4,862 PAT 2,870 Depreciation 404 *Amortisation 1,115 Cash Profit 4,388 Charge of Rs. 4470 lakhs (every year) will be there in financials for next 9 years This will be tax deductible 13
Slide 14: Debt Status – June 30, 2013
Debt Status – June 30, 2013 Particulars 30/06/13 31/03/13 Term Loan from Banks 413 430 (Tenure – 5 years starting from January 27, 2012 @ 11.25%) Working Capital – 11.5% from Axis Bank 58 62 Commercial Paper @ 10.95% - 25 Commercial Paper (@ 9.3% to 9.5%) - 40 Non Convertible Debenture @ 10.25% 50 5
Slide 15: Market Share – Our Brands
Market Share – Our Brands 80 73 71 70 59 60 57 50 40 June'12 June'13 30 22 21 19 20 20 16 17 16 16 11 11 9 9 10 5 5 5 5 *Source: Ac Nielsen 0 Value Volume Value Volume Value Volume Value Volume Value Volume Ujala Fabric Whitener Maxo Coil Maxo Liquid Pril Liquid Exo Bar Brand investments have kicked
Slide 16: Business Initiatives
Business Initiatives iy dyothy LABORATORIES LIMITED
Slide 17: Key Initiatives – Q1 2013-14
Key Initiatives – Q1 2013-14 • Focus on EBITDA improvement through better Gross Margin and reduction in overheads • New Brand Creative on all 7 Power Brands Executed and aired on TV • Hindi Speaking Media (HSM) spends increased significantly over last year • Thrust on Regional Brands becoming nation
Slide 18: EBITDA Improvement
EBITDA Improvement Particulars % EBITDA % - June'12 11.6 Other Operating Income 0.2 Gross Margin 6.8 Employee Cost 0.2 Advertisement & Sales Promotion (4.0) Other Expenditure 0.5 EBITDA % - June'13 15.3 18
Slide 19: New Brand Creative Stills
New Brand Creative Stills Henko Happy Clothes TVC HSCP + Exo Bar Promo TVC Exo Family Healthy Family TVC
Slide 20: New Brand Creative Stills
New Brand Creative Stills Pril Bartan Chamke in Aur Rishtey Bhi TVC
Slide 21: Ujala IBF 100 TVC
100 ai 197 Gr iGa 31 ere eae, a e 100 ait Gaisisisnir ntastic A,
Slide 22: Thrust on Regional Brands becoming National
Thrust on Regional Brands becoming National Q1FY2013 Q1FY2014 42% South 49% South 51% Non South Non South 58% 22
Slide 23: Launched Ujala Detergent IBF in South India
Launched Ujala Detergent IBF 100 in South India 23
Slide 24: Ujala IBF Launch
Strictly Private & Confidential Ujala IBF 100 Launch
Slide 25: Supply Chain Efficiencies
Supply Chain Efficiencies Efforts taken to control COGS in an inflationary environment. • Combined strategy of spot & forward booking for highly fluctuating Rms. • Shift from conventional negotiations to cost plus model for packing materials • E- auction for bulk commodities and secondary packaging
Slide 26: Key Initiatives – 2013-14
Key Initiatives – 2013-14 • Continue Brand Investments PAN India • Gain market shares across all Power Brands • Consolidate Sales & Distribution across India • Grow detergent business and House Hold Insecticide business through breakthrough innovations ? 26
Slide 27: Thank You
Thank You 27
Jyothy Laboratories — Q1 FY2014 Earnings Presentation on 6ix