dabur investor presentation 2011

7/30/2019 dabur investor presentation 2011

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Dabur India Ltd

Investor Communicat ion

Quarter ended June 30, 2010

July 26, 2010 Invest or Communicat ion Q1 FY2010-11


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Highlights Q1 FY2010-11

9Strong volume led growth of 19.5% in consolidated sales whichincreased to Rs. 924 crores for the quarter.

9 International Business Division (IBD) achieved growth of 28.7% while

CCD grew by 18.9%.

9PAT increased by 20.6% to Rs. 107.4 crores for Q1 FY2010-11 on

9EBIDTA Margins more or less stable in spite of inflationary pressure

9Board approved Bonus Issue of 1:1 to commemorate 125 years of

9Dabur signs deal to acquire Hobi Kozmetik, Turkey its first overseas


acquisition for US$69 million 2


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Sales Performance

9241000

1200

in Rs. Cror es

200

400

600

800

Q1FY10 Q1FY11

Sales for Q1FY11 increased by 19.5%

Volume growth constitutes 90% of the increase in topline



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PAT Performance

106.8110

PAT: Q1FY11 v/ s Q1FY10in Rs. Cro res

89.5

50

70

90

Q1FY10 Q1FY11

ncrease y . ur ng e ue o s rong op ne

and operating leverage despite higher ad spend & increased taxation.


Not e: PAT refers t o Net Prof i t af t er Minor i t y Int erest4


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Q1 FY 2010-11 EBITDA Analysis

9Margin pr essure in dom est ic business led t o incr ease in m at er ial cost .

How ever on consoli dat ed basis m at er ial cost incr eased by 20 bps only.

9A& P expend it ur e t o sales higher at 16.3% in Q1FY11 v/ s 15.9% last

9Em pl oyee cost s w er e l ow er at 7. 9% of sales in Q1FY11 vis--vis 8. 2% in

e prev ous year.

9Ot her expend it ur e w as low er at 13.2% in Q1FY11 vis--vi s 13.4% in

Q1FY10

9Ot her incom e w as low er at 0. 39% of sales in Q1FY11 as com par ed t o

0.41% in Q1FY10



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Consolidated Capital Employed

1,144.9

781.4

1,347.6As on Jun 09 As on Jun 10

156.1 139.8-43.8

.

210.0378.2

67.8

Tot al capit alemployed

Net Fixed Asset s Invest m ent s Net currentasset s

Net currentasset s w / o Cash

in Rs. Crore

Net w orki ng capit al w ent up due t o st rat egic st ocking and higher Loans and

Advances level d uri ng t he quart er

Net cash posit ion ( incl uding invest m ent s and net of d ebt ) at Rs. 299 crores

Marginal i ncrease in d ebt f rom Rs. 217. 5 cror es as of June 2009 t o Rs. 221.7

crore in June 2010



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Dabur India : SBU Performance Q1 FY11

SBU Sales Contr ibut ion: Q1 FY11 SBU Wise Growth : Q1 FY11

Others28.7%

35%

20.8%

.

18.9%

10.2%15%

20%

25%

CCD69.7%

CHD7.5%

0%

5%

CCD CHD IBD

CCD recorded highest ever grow t h of 18. 9% w hich w as lar gel y volum e led

CHD grow t h w as at 10.2%

IBD post ed grow t h of 28.7% led by st rong volum e upsurge



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Category growth dur ing Q1 FY11 Category wise break up of Sales (Q1FY11)

CCD Category Performance

Hair Care31%Hom e Care

6%

Foods16%

42.8%

31.5%

Digest ives

7%

Ski n Care6%

8.9%

20.2%14.7%

12.4%

.

Oral Care18%

Supplemen

t s16%

HairCare

OralCare

Health

Supplem

en

ts

Digestives

SkinCare

Hom

eCare

Foods

Hair care t he largest cat egory post ed grow t h of 8. 9% dur ing FY10 w it h Hair Oil s grow ing

at 16.5%

Oral car e post ed 20.2% grow t h duri ng Q1FY11 w it h grow t h in t oot hpast es at 28.1%

Healt h Supp le m ent s grew at 42.8% in Q1 FY11 led by Chyaw anpr ash and Glucose Home Care b ounced back w it h a 31.5% grow t h i n Q1FY11

Foods repor t ed robust grow t h of 21. 2% dur ing Q1FY11


n care nc u ng e em por o o grew a .

8


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Hair Oils

Dabur Am la Hair Oil w it nessed grow t h of 18.9% in Q1FY11 in spit e of incr easedcompet i t ive act iv i t y.

Vat ika Hair Oil grew by 22.2% in FY10 driven b y f ocused m arket ing and prom ot ionalact ivi ty.

Anm ol Coconut Oil recor ded a grow t h of 15.6% f or Q1FY11

Vat ika Enr iched Alm ond Oi l and Dabur Aml a Flower Ma ic: f ocused market in ef f or t s

Key Init iat ives:

Dabur Amla Nelli Hair Oil Mudi MassageMarathon

Vatika Enriched Almond HairOil: Activation in Modern Trade



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Shampoos

Sham poos wi t nessed cont ract ion of 17.1% in Q1 FY11 Disrupt ive compet i t ive act iv i t y w i t h h igh int ensi t y of consumer promot ions and

m edia spends

Brand being re st aged wi t h new mi x: packaging, communicat ions and variant s

Ke In it i at i ves:

Vat ika Shampoos : In st ore p rom ot ions



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Oral Care

.at 28.1%

Dabur Red Toot h Past e post ed grow t h of 31.2% dur ing Q1FY11 w it h st ron g gains in

Babool br and incl uding Babool Mint Fresh Gel and ot her variant s grew by 29.4% f or

dur ing Q1FY11

Mesw ak t oot hpast e grew by 14. 4% f or Q1FY11

Red Toot hpow der grew by 2. 4% in Q1FY11 dri ven by consum er act ivat ion p rogram sand l aunch of Re. 0. 5 SKU

Key Init iat ives:

Red Toothpaste Rs.10 pack



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Health Supplements

Healt h Supp lem ent s recor ded 43% grow t h dur ing Q1FY11 Dabur Chyawanprash grew by 94% led by campaign f or bui ld ing imm unit y

Dabur Hone recorded 17.7% rowth d r i ven b in t roduc t ion o f new SKU

Dabur Glucose w it nessed st rong grow t h of 53.6% dri ven by new variant s and f ocusedmarket ing act iv i t ies

Key Init iat ives:

Dabur Glucose: New Packaging



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Digestives and Baby Care

.

Haj mol a Tablet s grew b y 17.7%

Haj mol a Candy grew by 8.1%

For Haj mol a, new variants and innovat i ve consumer act i vat i ons have been keygrowt h dr ivers

.

Key Init iat ives:

Tablet s new packaging



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Skin care rew b 12. 4% in 1FY11

Skin Care

Gulabar i (w it h Variant s) grew by 22.9% dr iven by consum er act ivat ions

Fem p ort f ol i o grew by 8% w it h grow t h in Fem bl eaches at 14%.

Gulabari In-shop promotions



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Home Care

Home car e recorded grow t h of 31. 5% in Q1FY11.

Sanif r esh perf orm ed w el l w i t h growt h of 33.6%.

- - launched dur ing the quart er

Odomos regist ered 8.5% grow t h ; Odomos Oi l l aunched t o capt ure rur al market s

Key Init iat ives:

launched in

May 2010

Electrical Air Freshener launched in May 2010



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Foods

Foods del iver ed a grow t h of 21.2% in Q1FY11 and cr ossed t he Rs. 100 cror e m ark f or aQuart er dr iven by cont i nuat i on of Frui t Power Campaign and impr ovement in on groundvis ib i l i ty

ea ru t u ces recor e grow t o w e ct v range grew y

Homm ade brand compr ising the cul inary range grew by 37.2%

Key Init iat ives:



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CHD re i ste red 10.2% row t h i n Q1FY11. Sales im ac ted b su l i ssues in som e OTC

Consumer Health Division (CHD)

productsEt hical s grew by 14. 5% and OTC grew by 8% in Q1FY11

Brand Per f orm ance i n Q1FY11:

Pudi n Hara: 12.8%; new Pudi n Hara Lemon Fizz launch ed

Honit us f ranchise: 3.7%

Shi la i t : 16.3%

Dashmularishta: 19.1%

St rat egic r eview f or CHD complet ed and new i nit iat ives planned during FY11

Key Init iat ives:

Pudin Hara Fizz : Refreshing



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International Business Division (IBD)

28. 7% f or Q1FY11

Same cur rency growt h of 37%59%

74% 72%

56%

50%

60%

70%

80%

Nigeria, Egypt , Levant and Nort h

Af r ica regist ered st rong grow t h

26%

10%

20%

30%

40%

Toot hpast e and Vat ika Oli ve Oilwer e the st rong product growt h

Egypt Nigeria GCC NorthAfrica

Levant Pakist an

St rong im pr ovem ent in EBIDTAmargins and prof i t abi l i t y due to

Key Products Growth rate: Q1 FY11

73%70%

80%

14%

44%36%

20%

30%

40%

50%

60%

0%

10%

Amla Hair Oil Vati ka OliveOil

Hai r Cream Toothpaste



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DIL Consolidated P&L Q1 FY11 and FY10

.

Gross Sales 924.4 773.6 19.5% 3,416.7 2,834.1 20.6%Less: Excise Dut y 7. 9 5. 4 25. 3 28. 7

Net Sales 916.5 768.3 19.3% 3,391.4 2,805.4 20.9%. . . . . - .

Mat er ial Cost 434. 6 362. 3 20. 0% 1, 550. 7 1, 376. 2 12. 7%

%of Sales 47.0 46.8 45.4 48.6

Em ployee Cost s 72. 8 63. 7 14. 3% 284. 7 234. 7 21. 3%. . . .

Ad Pro 150. 7 122. 6 22. 9% 493. 5 343. 3 43. 8%%of Sales 16.3 15.9 14.4 12.1Ot her Expenses 121. 6 103. 7 17. 3% 432. 4 380. 8 13. 5%

. . . .

Other Non Operat ing Income 3. 6 3. 2 12. 7% 15. 1 21. 3 -29. 2%EBITDA 148.9 123.6 20.2% 669.7 517.3 29.4%

%of Sales 16.1 16.0 19.6 18.3 - -. . . . . .

Depreciat ion/ Am or t i zat ion 14. 5 13. 0 11. 7% 56. 2 49. 2 14. 1%

Prof it Before Tax (PBT) 133.7 107.9 23.9% 600.9 444.8 35.1%Tax Expenses 26. 3 18. 8 39. 9% 100. 5 54. 0 85. 9%

-. .

PAT(Before except ional item) 107.4 89.0 20.7% 502.4 390.8 28.6%%of Sales 11. 6% 11. 5% 14. 7% 13. 8%PAT (After exceptional Items) 107. 4 89. 0 20. 7% 502. 4 390. 8 28. 6%


. . . . . .

Diluted EPS (Rs) 1.23 1.05 5.78 4.50


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DIL Consolidated Balance Sheet : June 30, 2010

In Rs. crores As on Jun 10 As on Jun 09

Sources Of FundsShareholders' Fund:

Share Capi t al 87. 0 86. 6

Reserves & Surplus 1, 019. 5 823. 2, . .

Minor i t y Int er est 4. 4 7. 3

Loan Funds:Secured Loans 138. 7 108. 9

Unsecured Loans 83. 0 221. 7 108. 6 217. 5

Def f ered Tax Liabi l i t y 15. 0 10. 4

TOTAL 1,347.6 1,144.9

Applicat ion of funds:

Gross Block 1, 015. 8 1, 100. 0less: Depr eciat ion 349. 3 318. 6Net block 666. 5 781. 4

Capi t al WIP 24. 6 59. 3nves men s . .

Current Assets,Loans & Advances

Invent or ies 513. 9 403. 5Sundry Debt ors 156. 9 211. 1

Cash & Bank balances 310. 4 183. 6Loans & Advances 453. 2 1,434.4 302.3 1,100.4

Less: Current Liabil it ies and Provisions:

Cur rent Liabi l i t ies 604. 4 589. 1Provisions 451. 8 371. 5

1,056.2 960.6


Net Current Assets 378.2 139.8TOTAL 1,347.6 1,144.9


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Disclaimer

only and should not be used as a basis for any investment and any investment related decisions/ analysis.

No r epr esentat ion or war r anty , ex pr ess or implied is made as to, and no r eliance should be placed on, the

fair ness, accur acy , completeness or cor r ectness of such infor mation or opinions contained her ein. Thei nf or m a t io n co nt a in ed i n t h i s p r e se nt a t io n i s o nl y cu r r en t a s o f i t s d at e . Cer t a in st a t em e n t s m a d e i n t h i s

pr esentat ion may not be based on histor ical infor mation or facts and may be for war d look ing statements ,

including those relating to the general business plans and strategy of Dabur, its future f inancial condit ion and

gr owth pr ospects , futur e dev elopments in i ts industr y and i ts competit iv e and r egulator y envir onment, and

statements w hich contain wor ds or phr ases s uch as wi l l , ex pected to, hor izons of gr owth, str ong gr owth

prospects, etc., or similar expressions or variations of such expressions. These forward-looking statements

involv e a number of r isk s, uncer taint ies and other factor s that could cause actual r esults, oppor tunit ies and

growth potential t o differ m aterially from those suggested by the forward-looking statements.In no event shall the Company be l iable for any direct, special indirect or consequential damages, or any other

damages of any kind, including but not l imited t o loss of use, loss of profits, or loss of data, whether in an action

in co nt r act t o rt i ncl ud in b ut n ot li m it ed t o n e l i en ce o r o t her w ise ar isi n ou t of o r i n an w a co nn ect ed

with the use of this presentation or the materials contained in, or accessed through, this presentation.

No p er so n i s a u t h or i zed t o g iv e a ny i nf or m a t io n o r t o m a k e a ny r ep r esen t a t io n n ot co nt a in ed i n a nd n ot

consistent with this presentation and, if given or made, such information or representation must not be relied

upon as having been authorized by or on behalf of Dabur. This presentation cannot be copied and disseminated.



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dabur investor presentation 2011

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