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Conference Call Overview • Date: August 14, 2024 • Hosted by: ICICI Securities • Key Management Present: • Mr. Jaideep Nandi (Managing Director) • Mr. Dilip Kumar Maloo (CFO) • Mr. Richard Dsouza (AVP of Finance) • Format: Recorded call with Q&A session
Financial Performance • Sales: INR 236.9 crores • 3% sequential growth • 8.8% year-on-year decline • Gross Margin: Improved to 55.2% • EBITDA: INR 38.4 crores (16.2% margin) • Wholesale Channel Correction: Reduced reliance on top wholesalers, improved market hygiene
Market Segments • Retail and Rural: Stable performance; loyalty programs expanded to 12,000 outlets • Organized Trade: Grew by 12% year-on-year • E-commerce: Increased by 27% • International Business: Grew 28% quarter-on-quarter
Product Performance • Almond Drops: Significant growth; focus on digital and influencer marketing • Coconut Oil: Strong double-digit growth, 40% share of voice in category • Bajaj Gulabjal: Successful phased launch, expanding presence
Strategic Initiatives • Project Aarohan: Distribution enhancement project targeting high-potential areas • Advertising Spend: INR 37.2 crores focused on digital media • Cost Management: Stable raw material prices, cost-saving initiatives in place
Growth Expectations • Revenue Split: Non-ADHO products increased from 5% to over 18%; target of 40% in 4-5 years • Growth Projections: Mid- to high single-digit growth for the year, aiming for double-digit long-term growth • Margin Expansion: New products expected to maintain strong margins despite initial costs
Capital Expenditure and Retail Growth • FY '25 Plans: No significant investments in manufacturing; focus on automation and ESG • Retail Volume Growth: Positive but modest; value growth projected at 6-7%
Quick Commerce and General Trade • Q-commerce Growth: Increased by 83% this year; partnerships with platforms like Zepto and Flipkart • General Trade Strategy: Restructuring to stabilize inventory and improve sales dynamics
Competitive Landscape • Larger Pack Sizes: Growing preference noted; competition from lower-priced almond products • Sachet Packs: Decline post-COVID; efforts to stabilize this segment
Closing Remarks • Focus Areas: Maintaining organizational processes and enhancing brand portfolios • Advertising Strategy: Maintain 16-18% of sales for marketing while being prudent • Commitment: Deliver on strategic goals and ensure consistent growth moving forward
Conference Call Overview • Date: May 15, 2024 • Hosted by: ICICI Securities • Key Management: • Mr. Jaideep Nandi (Managing Director) • Mr. Dilip Kumar Maloo (CFO) • Format: Presentation followed by Q&A
Financial Performance • Consolidated Sales: INR 968 crores for FY24 (2% value growth, 6.6% volume growth) • Quarterly Sales: INR 234.2 crores (down 4.9% YoY) • Gross Margins: FY24 at 54.3%, quarterly at 54.7% • EBITDA: Grew by 11% to INR 162.6 crores • PAT: Increased by 13.6% to INR 158.8 crores
Product and Market Insights • Growth Areas: Coconut and Amla product lines with double-digit growth • Distributor Stock Correction: Implemented to enhance market execution • Loyalty Programs: Expanded to 11,000 outlets • International Growth: 24% growth, especially in the Middle East and Africa • Almond Drop Brand: Slight volume increase; marketing strategies adjusted for rural markets
Operational Efficiency • Cost Savings: INR 6 crore through alternative packing materials • Productivity Improvements: 8% in Guwahati, 34% in Paonta Sahib • Water Conservation: 28% reduction in Guwahati, 50% in Paonta • Energy Optimization: 19% reduction in specific energy consumption
Human Resources • Talent Retention: 89% of employees completed nearly 8,000 learning hours • Certification: Maintained "great place to work" for six consecutive years (score: 86%)
Future Growth Strategies • FMCG Sector Opportunities: Driven by rising incomes and urbanization • Diversification Plans: Into three new categories, aiming for 40% contribution from new products in five years • M&A Opportunities: Pursuing to enhance execution capabilities
Market Strategy • Go-to-Market Strategy: Pilot testing in two states planned for Q3 • International Market Share Goal: Increase from 5% to 20% in five years • Optimism for FY25: Supported by favorable macroeconomic conditions and rural demand growth
Q&A Highlights • Rural Segment Trends: Improvement noted, with rural performance outpacing urban sales • Buyback Explanation: INR 166.5 crores buyback to enhance shareholder value • Rising Expenses: Attributed to IT investments and operations in Bangladesh • ADHO Brand Repositioning: New variants aimed at broader consumer needs • Consultant Impact on Margins: Minimal impact expected (<0.5%)
Closing Remarks • Acknowledgment of past challenges but highlighted successes in new product launches and market expansion • Confidence in strong performance for FY25 due to favorable market conditions and ongoing initiatives.
Bajaj Consumer Care Limited Q3 FY'24 Conference Call Summary
Conference Call Overview • Date: February 6, 2024 • Hosted by: ICICI Securities • Key Participants: • Mr. Jaideep Nandi (Managing Director) • Mr. Dilip Kumar Maloo (CFO) • Mr. Karan Bhuwania (Moderator) • Communication signed by: Vivek Mishra (Head of Legal and Company Secretary)
Financial Performance • Sales: • Q3 consolidated sales: INR 236.4 crores (4.3% growth) • Nine months sales: INR 733.7 crores • Growth Drivers: • Non-ADHO portfolio contributed to high-single-digit volume growth. • Margins: • Improved gross margins due to lower raw material costs. • EBITDA growth: 13% for the quarter, 22% for nine months. • Profit After Tax (PAT) growth: 12% for the quarter, 23% for nine months.
Market Insights • Demand Conditions: • Urban markets: Mid-single-digit growth. • Rural markets: Subdued due to high consumer food prices. • E-commerce and International Growth: Strong performance noted. • Future Outlook: Optimism for rural market growth driven by government initiatives.
Product Portfolio and Strategy • Non-ADHO Products: • 35% growth attributed to market dynamics and new launches. • Stable market share around 10.2-10.3%. • Organized Trade Contributions: • Modern trade and e-commerce account for ~20% of business. • Growth in independent chains, especially in southern markets. • New Product Development (NPD): • Target gross margin for new products: 45-50%. • Non-ADHO products contributed 19% of revenue in the quarter.
Strategic Initiatives • Sachet Formats for Shampoos: • Consideration for Tier 2 and Tier 3 cities. • GCC Market Presence: • Strengthening distribution with smaller FMCG distributors. • Marketing Strategies: • Comprehensive approach including traditional media and digital marketing.
Challenges and Future Plans • Hair Oil Consumption Decline: • Phased growth approach focusing on product portfolio expansion. • Sales Distribution: • Gradual expansion in South India through modern trade and e-commerce. • Inventory Correction: • Impacting volume growth, but confidence in future growth remains.
Conclusion • Jaideep Nandi expressed optimism for future growth despite current macroeconomic challenges, emphasizing a balanced approach to growth and margin targets.
Conference Call Overview • Date: November 17, 2023 • Hosted by: ICICI Securities • Key Personnel: • Mr. Jaideep Nandi (Managing Director) • Mr. Dilip Kumar Maloo (CFO) • Mr. Richard D'souza (AVP of Finance) • Structure: Opening remarks followed by Q&A session
Financial Performance • Q2 FY'24 Standalone Sales: INR 228.7 crores • 0.5% value growth • 4% volume growth • H1 FY'24 Sales: INR 488.4 crores • 4% value growth • 7% volume growth • Hair Oil Segment: 4% growth, impacted by festival buying • Gross Margins: Improved to 54.5% • EBITDA: Increased by 22% to INR 38.8 crores
Market Dynamics • Decline in general trade due to weak rural demand • Urban markets and modern trade performed well, with modern trade growing by 19% • Strong growth in e-commerce, especially in B2C segments
Strategic Focus • Product Range Expansion: New launches in Almond Drops and ethnic products • Sustainability Initiatives: Commitment to cost reduction strategies • Future Margin Projections: Expected EBITDA margin of 18% to 20%
Product Development Insights • Impact of New Product Development (NPD) on gross margins acknowledged • Ayurvedic hair oil category influenced by seasonal variability • Plans for fewer product launches in H2 FY'24
Advertising and Marketing Strategy • 75% of advertising investment in traditional TV, 25% in digital • Clarification on advertising spend not solely urban-focused • Emphasis on maintaining a balance between volume and margin growth
Distribution and Market Reach • Focus on expanding distribution, particularly in West and East regions • Aspirational target of 1 million direct reach in the long term • Acknowledgment of increased competitive intensity in the market
Closing Remarks • Signs of improvement in rural markets • Strong performance in modern trade, e-commerce, and international segments • Optimism for market recovery and solid company fundamentals • Best wishes for Diwali and festival season
Conference Call Details • Date: August 10, 2023 • Submitted to: BSE and NSE on August 18, 2023 • Hosted by: ICICI Securities • Key Management: • Jaideep Nandi (Managing Director) • Dilip Kumar Maloo (CFO)
Financial Performance Highlights • Consolidated Sales: INR 265.7 crores (8% YoY increase) • Hair Oils Portfolio Growth: 9% • EBITDA: INR 49 crores (30% increase) • Growth in Channels: • Modern Trade: 34% • E-commerce: 55% • International Business: 42%
Product Development and Marketing • New product launches: Almond drop range, Bajaj Ethnic line • Marketing initiatives: Digital platforms and influencer partnerships • Focus on cost optimization and sustainability
Q&A Session Insights • Modern Trade & E-commerce: Expected to grow from 17% to 20-22% of business • Coconut Hair Oil Segment: Strong EBITDA; focus on market expansion • Gross Margin Movements: Stable despite fluctuations in raw material prices • Almond Drops Contribution: Increased sales share; strong market presence
Future Growth Strategies • New Product Launches: Amla and coconut oils, extensions of Almond Drops • Market Recovery: Urban markets performing well; rural recovery cautious • EBITDA Margin Projections: 18% to 20% based on raw material price stability • Advertising Spend: INR 44 crores (18-19% of sales)
Strategic Focus Areas • Expanding Almond Drops portfolio and exploring international markets • Enhancing execution capabilities domestically • Potential for international revenue growth from 5% to 20-25% in the mid to long term
Competitive Landscape • Larger players benefit from economies of scale • E-commerce provides a level playing field • Ongoing evaluations for potential acquisitions; no deals finalized yet
Conclusion • Confidence in achieving consistent growth and improving EBITDA through strategic initiatives and market expansion.
Conference Call Details • Date: May 4, 2023 • Transcript Submission: May 9, 2023 • Hosted by: ICICI Securities • Key Management Present: • Mr. Jaideep Nandi (Managing Director) • Mr. Dilip Kumar Maloo (CFO) • Mr. Richard D'Souza (AVP of Finance) • Moderator: Mr. Karan Bhuwania (ICICI Securities)
Company Performance Overview • Q4 Standalone Sales: INR 241 crores • Value Growth: 11.7% • Volume Growth: 9.9% • FY23 Total Sales: INR 938.1 crores • Value Growth: 8.4% • Gross Margins: Impacted by commodity price inflation but improved sequentially. • EBITDA for Q4: INR 43.3 crores (17.9% margin) • Advertising & Promotion (A&P) Spending: Increased significantly for new product development and digital marketing. • International Business Growth: 151% in Q4.
Strategic Focus Areas • Product Expansion: Strong growth in hair oil portfolio, particularly Coconut and Amla. • Digital Portfolio: Focus on expanding digital-first brands and entering the premium personal care market. • Distribution: Direct distribution expanded to 8.5 lakh outlets. • Sustainability Initiatives: Ongoing ESG efforts to reduce carbon footprint.
Future Outlook • Margin Target: Aim to maintain margins above 18%, targeting 20% mid-term. • Growth Projections: Sustainable double-digit growth rate for the next five years. • Market Recovery: Gradual recovery in the personal care market, particularly in hair oils.
Key Questions and Responses • Margin Performance: Improved from 14-14.5% to over 17%. • Growth Sustainability Concerns: Positive trends from past investments; focus on diversifying product range. • Wholesale and Retail Contributions: Balanced distribution with 25% each for retail and wholesale. • Inventory Management: Typically holds 20 days of raw material inventory.
Investment and Marketing Strategy • Digital Marketing Focus: Significant budget allocation towards ADHO products. • Product Launches: New products to adhere to a strict gross margin threshold of 40-45%. • Competitive Positioning: Benchmarking against market leaders; no price reductions in the past year.
Shareholder Engagement • Buyback Program: INR 100 crore open market buyback aimed at increasing shareholder stakes. • Future Considerations: Potential for a tender offer based on feedback from the buyback experience.
Conclusion • Confidence in Future Growth: Positive results from foundational changes; commitment to long-term goals for revenue and profitability.
Bajaj Consumer Care Q3 FY2023 Earnings Call Summary
Conference Call Overview • Date: February 10, 2023 • Hosted by: ICICI Securities • Key Management: • Jaideep Nandi (Managing Director) • Dilip Kumar Maloo (CFO) • Richard D’Souza (AVP of Finance) • Communication signed by: Vivek Mishra (Head of Legal and Company Secretary)
Company Performance Highlights • Sales Figures: • Quarterly sales: Rs. 225.5 Crores (flat) • Nine-month sales increase: 7.3% • Market Trends: • Hair oil market volume decline: 4.4% • Rural markets significantly impacted • New Product Development (NPD): • Contributes 13% to total sales • Gross Margins: • Decreased to 53% due to commodity price inflation • Sequential improvement noted
Growth Areas • Sales Growth: • Modern trade: 41% • E-commerce: 84% • International business: 36% • Brand Marketing: • Ongoing investments in sustainability and marketing initiatives
Q&A Session Insights • ADHO Segment: • Urban markets performing well; rural markets facing declines • Potential for 4-5% volume growth in normalized market • Market Positioning: • Strategy to dominate almond category • New products contributing 13% to sales • Advertising Budget: • Primarily allocated to ADHO (85% of total sales) • Shift towards digital marketing
Product Performance • Amla and Coco Ranges: • Confirmed as largest product ranges • Slight decline in Amla revenue this year, but overall growth of 3% over three years • Margins and Costs: • EBITDA margins impacted by gross margin dilution and marketing costs • Expectation of return to high teens margins as raw material prices stabilize
Future Strategies • Portfolio Expansion: • Focus on derisking and identifying key growth areas in hair oil and personal care • Rural Market Challenges: • Strategic avoidance of low-margin products to maintain profitability • Skepticism about significant rural demand recovery in the near term
Conclusion • Market Share: • Stable market share in almond drops (63-65%) • Buyback Strategy: • Aimed at rewarding shareholders; considering investments and M&A opportunities • Future Outlook: • Optimism for growth contingent on stabilization of rural markets and raw material prices.