ITV

Category: Financials

  • Gillette India q-o-q ad spend up 28 per cent in Q4-2014; PAT down 23 per cent

    Gillette India q-o-q ad spend up 28 per cent in Q4-2014; PAT down 23 per cent

    BENGALURU: Procter & Gamble Hygiene and Health Care Limited (P&G) subsidiary Gillette India Limited (Gillette) advertising and sales promotion spend (Ad & SP)in Q4-2014 at Rs 123.84 crore (27.19 per cent of Total Income from Operations of Op Rev) was 27.8 per cent more than the Rs 96.9 crore (22.69 per cent of Op Rev) in the immediate trailing quarter and a whopping 85.92 per cent more than the Rs 66.61 crore (18.66 per cent of Op Rev) during last year’s quarter Q4-2014.

    Note: Gillette’s financial year ends on 30 June. However, in keeping with convention in India, its June ended quarter has been termed as Q1 (instead of Q4 of the previous year), Its September ended quarter has been termed as Q2 (instead of Q1 of Gillette India’s new fiscal), the December ending quarter has been indicated as Q3 (instead of Q2 of Gillette’s fiscal), and the March ended quarter as Q4 (instead of Q3 of Gillette’s fiscal) in this article and figures/graphs.

    Gillette’s ad & SP trends upwards both in terms of absolute rupee value as well as percentage of Op Rev across nine quarters starting Q4-2012 until Q4-2014. Please refer to Fig 1 below for Gillette’s Ad & SP Exp. Over 4 quarters starting Q1-204 to Q4-2014, Gillette’s ad & SP Exp was Rs 387.90 crore or 23.34 per cent of Op Rev.

    Gillette’s PAT has nose-dived (-23.19) per cent to Rs 8.48 crore (1.86 per cent of Op Rev) in Q4-2014 from Rs 11.04 crore (2.59 per cent of Op Rev) in the immediate trailing quarter Q3-2014 and was less than a third (down by -68.78 per cent) of the Rs 27.16 crore (7.16 per cent of Op Rev) of the year ago quarter Q4-2013. Overall, during the nine quarters under consideration, Gillette’s PAT has shown a falling trend in terms of absolute rupee value as well as in terms of percentage of Op Rev. The company’s PAT over four quarters starting Q1-2014 until Q4-2014 was Rs 51.13 crore or 3.08 per cent of Op Rev.

    The company’s Op Rev shows an upward trend. During Q4-2014, Op Rev at Rs 455.50 crore was 6.68 per cent more than the Rs 426.97 crore in Q3-2014 and 27.62 per cent more than the Rs 356.92 crore in Q4-2013. During the last four quarters starting Q1-2014 until Q4-2014, Gillette’s Op Rev was Rs 1662.13 crore. Please refer to Fig 2 below.

    Three segments contribute to the company’s income from operations – grooming, portable power and oral care. Grooming segment includes blades, razors and toiletries, portable power includes batteries and oral care includes toothbrushes, toothpaste and oral care products. Gillette India’s products are sold under the brand Gillette with sub-brands like Fusion and Mach 3. Gillette India caters to men’s personal care products such as razors, blades, shaving creams, gels, men’s skincare products, among others in India.

  • Incubation costs, one time write-offs, event postponement widen NDTV loss in Q4-2014

    Incubation costs, one time write-offs, event postponement widen NDTV loss in Q4-2014

    BENGALURU: New Delhi Television Limited (NDTV) reported a negative PAT of Rs 31.39core in Q4-2014 as compared to a loss of Rs 10.43 crore in the immediate trailing quarter Q3-2014, and a profit of Rs 27.81 crore in the year ago quarter Q4-2013.

     

    For the year as a whole, the company reported a higher loss of Rs 81.18 crore in FY-2014 as compared to a profit of Rs.1.91 crores in the previous fiscal FY-2013.

    (Note: Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million)

     

    The company says in its earnings release that the Q4 numbers for FY-2014 include one-time write-offs amounting to Rs 14 crore. University Cricket Championship, which contributed Rs 33 crore in revenue in Q4 in FY-2013 was also postponed this year.

     

    Further the company informs that this has been an investment year for NDTV with an aim to turn around loss making verticals and incubate new growth businesses. Significant incubation costs for NDTV Prime and NDTV e-tailing venture have contributed to the annual losses. These businesses are now showing robust revenue growth, and are heading for profitability, claims NDTV.

     

    Let us look at the other figures reported by NDTV for Q4-2014 and FY-2014

     

    NDTV reported a 2.62 per cent drop in Income from operations (Op Inc) in Q4-2014 to Rs 124.09 crore from Rs.127.43 crore in Q3-2014 and a drop of 33.48 per cent from Rs 185.56 crore in Q4-2013.

     

    The company reported a 12.66 per cent drop in Op Inc to Rs. 460.10 crore in FY-2014 as compared to Rs.526.81 crore in FY-2013.

     

    Two segments now contribute to NDTV’s revenues – a) Television Media and related operations  (TV) and b) Retail/E-commerce (Retail).

     

    TV revenue in FY-2014 dropped 13.70 per cent to Rs 454.63 crore from Rs.526.81 crore in FY-2013. NDYV’s TV segment’s Q4-2014 Op Inc at Rs 113.61 crore was 13.29 per cent less than the Rs 131.02 crore in the previous quarter Q3-2014 and was 39.10 per cent lower than the Rs 186.56 crore in Q4-2013.

     

    This segment reported a loss of Rs 29.56 crore in Q4-2014 as compared to a positive result of Rs 3.29 crore in Q3-2014 and a positive result of Rs 35.53 crore n Q4-2013. During FY-2014, the TV segment reported a loss of Rs 30.88 crore as compared to a profit of Rs.3.62 crore  in FY-2013.

     

    NDTV’s Retail segment reported an Op Inc of Rs 3.5 crore in Q4-2014 as compared to revenue of Rs 2.31 crore in Q3-2014. In FY-2014, it reported revenue of Rs  6.32 crore. Since the segment commenced operations in FY-2014, the company did not report any numbers for it in FY-2013.

     

    The Retail segment reported a loss of Rs 24.88 crore in FY-2014, while the segment result was NIL in Q4-2014 as compared to a loss of Rs 5.38 crore in Q3-2014.

     

    Marketing, Distribution and Promotional Expenses

     

    The company’s  Marketing, Distribution and  Promotional Expenses  show an upward trend in terms of absolute rupee value; in terms of percentage of Op Inc.,  the movement is downwards during the four quarters of FY-2014.

     

    Excerpts of what the company has to say:

     

    The Board of NDTV has mandated the management to explore means of unlocking sum of parts shareholder value, through various methods including restructuring or a private placement in NDTV Convergence and/or other subsidiaries.

     

    It is worth noting that NDTV 24×7 has been PAT positive for the last 5 years, with an average annual profit of Rs. 40 crores. The channel continues to command unrivalled viewership (50 per cent plus) in the English news genre.

     

    NDTV Convergence has registered a CAGR of 54 per cent over the last 6 years and is targeting a significant jump in revenues to touch Rs. 100 crores in the coming year.

     

    NDTV Lifestyle Holdings has a cash balance of more than Rs. 110 crores.

     

    NDTV Worldwide, the consultancy arm of the group, has been profitable for the past 4 years.

     

    And now, there are successful efforts to turn around businesses which have been loss making.NDTV India historically a loss making channel, has clocked recordbreaking revenues in FY 2014 and achieved EBITDA breakeven.

     

    NDTV Profit which had been making average annual losses of Rs. 40 crores for the last 3 years is expected to turn around after its revamp. The revenues of the dual channel with pre-sponsored bands are up 140 per cent in April 2014.

     

    www.indianroots.com – The e-tailing venture’s revenues are up by 40 per cent on a q-o-q basis. The incubation costs of Rs. 25 crores have been well spent. Talks are on for a private placement at very attractive valuations says the company.

     

  • Titan’s Q4-2014 q-o-q Ad expenses down 26 per cent

    Titan’s Q4-2014 q-o-q Ad expenses down 26 per cent

    BENGALURU:  Titan Company (Titan), formerly known as Titan Industries, reported a (-25.98) per cent drop in advertisement expenses (Advt Exp) in Q4-2014 at Rs 87.37 crore (3.12 per cent of Income from Operations or Op Inc) as compared to the Rs 118.04 crore (4.18 per cent on Op Inc) in the immediate trailing quarter Q3-2014, but 31.13 per cent more than the Rs 66.663 crore (2.55 per cent of Op Inc) spent in the year ago quarter of Q4-2013.

    Note: Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million

    Titan has three revenue segments – watches with five major brands – Titan, Xylus, Nebula, Sonata and Fastrack; Jewellery (the largest segment in terms of revenue and consequently profits) with Tanishq, Zoya, Gold Plus from Tata, Mia and Fq teen diamonds; and ‘Others’ that include eyewear under the Titan EYE+ brand, apparel and eyewear also under Fastrack brand and precision engineering among others.

    Over nine quarters staring from Q4-2012 until Q4-2014, Titan’s Advt Exp shows an upward trend in terms of absolute rupee value, but a drop in terms of Advt Exp as percentage of Op Inc.

    During FY-2014, Titan spent 7.25 per cent more towards Advt Exp at Rs 404.43 crore (3.7 per cent of Op Inc) as compared to the Rs 377.09 crore ((3.73 per cent of Op Inc). Though the Advt Exp in terms of absolute rupees in FY-2014 was higher, in terms of percentage of Op Inc, the drop in Advt Exp was 0.03 per cent.

    Please refer to Fig 1 and Fig 1A below for Titan’s Advt Exp trends.

    Titan’s Op Inc for Q4-2014 at Rs 2803.38 crore was 4.77 per cent more than the Rs 2675.77 crore in Q3-2014 and was 7.28 per cent more than the Rs 2613.24 crore in Q4-2013. In FY-2014, Titan’s Op Inc at Rs 10915.79 crore was 7.94 per cent more than the Rs 10112.67 crore in FY-2013.

    PAT for Q4-2014 at Rs 206.44 crore  (7.36 per cent of Op Inc) was 24.68 per cent more than the Rs 165.57 crore  (6.19 per cent of Op Inc) in Q3-2014 and 11.61 per cent more y-o-y than the Rs 184.97 crore (7.08 per cent of Op Inc). PAT for FY-2014 at Rs 741.14 crore (6.79 per cent of Op Inc) was 2.2 per cent more than the Rs 725.18 crore (7.17 per cent of Op Inc) in FY-2013. Please refer to Fig 2 and Fig 2A for Op Inc and PAT details.

    The company says that weak consumer demand continues and this is affecting growth in both watches and jewellery. It claims that Reserve Bank of India (RBI) has given approval to it for hedging of its gold inventory on international commodity exchanges – brings back efficiency to hedging.

    Titan says further that issues with gold supply in the market persist – high premium on gold continues encouraging smuggling and though the sale of gold coins has resumed the uptake has been very lukewarm.

    It avers that Titan’s focus on retail network expansion continues – 39 stores (44000 sq. ft.) were added during

    Q4-2014 across divisions. Year-to-date there has been an addition of 125 stores (180,000 sq. ft), including 30 TitanOne conversions.

    Titan informs that it has entered into a JV agreement with Montblanc for single brand retail trade in India

  • Sterling Holiday Resorts sales promo spends down 24 per cent in Q4-2014

    Sterling Holiday Resorts sales promo spends down 24 per cent in Q4-2014

    BENGALURU: Sterling Holiday Resorts (India) Limited (Sterling Holidays) sales promotion spend (Sales Promo) Q4-2014 at Rs 2.194 crore (5.91 per cent of net sales) was (-23.99) per cent less than the Rs 2.8866 crore (8.40 per cent of net sales) in the immediate trailing quarter Q3-2014 and (-17.04) per cent less than the Rs 2.6448 crore (9.39 per cent of net sales) of the year ago quarter Q4-2013.

    Note: Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million

    Over nine quarters starting from Q4-2012 until Q4-2014, Sterling Holiday’s sales promo spend shows a slight downward trend in terms on absolute rupee value, but the drop is much steeper in terms of sales promo as percentage of net sales.

    Overall, the company’s net sales show an upward trend and in Q4-2014 at Rs 37.11 crore was 7.98 per cent more than the Rs 34.37 crore in Q3-2014 and was 31.70 per cent more than the Rs 28.18 crore in Q4-2013. Please refer to Fig 1 below.

    Over three years starting FY-2012 until FY-2014, Sterling Holidays sales promo spend at Rs 16.48 crore and 12.50 per cent of net sales was 32.90 per cent more than the Rs 12.40 crore (11.40 per cent of net sales) in FY-2013. The company’s net sales in FY-2014 at Rs 131.89 crore was 21.28 per cent more than the Rs 108.75 crore in FY-2013. Please refer to Fig 1A below

    The company has in general been a loss making company. Please refer to Fig 2 below. With a new tie up with Thomas Cook International Limited expected to be completed by the end of this year, the company expects to turn the corner.

    Sterling Holidays says that the significant improvement in the company’s performance in the year is an indicator of the strong resurgence of brand Sterling, a result of the strategic turnaround initiatives over the last couple of years.

    It says further that the substantial investments the company made in enhancing the overall customer holiday experience through refurbishment of its resorts and an expanded menu of recreational and culinary experiences have resulted in a healthy rise in the number of Vacation Ownership members and non-members holidaying at the company’s resorts, leading to an increase in resort occupancy to 49 per cent from 41 per cent in the previous year.

    Sterling Holidays managing director Ramesh Ramanathan said, “The company’s performance has been improving consistently over the last couple of years. The synergies with Thomas Cook with their wide reach and distribution in the travel space will help us strengthen our market position, increase our occupancy levels and allow expansion to new destinations and markets.”

    completed by the end of this year, the company expects to turn the corner.

  • Emami q-o-q ad and sales promo spend down 44 per cent in Q4-2014

    Emami q-o-q ad and sales promo spend down 44 per cent in Q4-2014

    BENGALURU:  In keeping with its norms, Indian personal and healthcare company Emami Limited (Emami) Advertisement and Sales Promotion (Ad & SP) spend during the last quarter of FY-2014 was the lowest during the year. In Q4-2014, Emami Ad & SP at Rs 49.53 crore was  down (–43.64) per cent as compared to the Rs 87.85 crore in the immediate trailing quarter Q3-2014 and just a meagre 1.18 per cent more than the Rs 48.95 crore in the year ago quarter – Q4-2013.

    Notes: (1) 100,00,000 = 100 lakh = 1 crore = 10 million.

    (2) All trends mentioned in this report are linear trends based on data across nine quarters starting Q4-2012 and ending Q4-2014 and across FY-2012 to FY-2014.

    At 11.11 per cent of net sales, Emami’s Q4-2014 Ad & SP percentage of net sales was the third lowest over a nine month period starting Q4-2012 and ending Q4-2014. The lowest corresponding figure over the nine quarters was in Q4-2012 at 9.19 per cent of net sales (Rs 36.60 crore). During Q3-2014, Ad & SP as percentage of net sales was 15.03 per cent and during Q4-2013 it was 10.85 per cent (second lowest).

    In terms of absolute rupee value terms, Emami’s Ad & SP Exp trends upwards, while in terms of percentage of net sales, it shows a downward trend. Also, in Q1-2013, and Q1-2014, Emami’s Ad& SP Exp was 18.72 per cent (second highest over nine quarters) and 18.85 per cent (highest over nine quarters) respectively of net sales.  If the company follows these norms, Q1-2015 should see a substantial increase in Ad & SP Exp as percentage of net sales. Please refer to Fig 1 and Fig 1A below.

     

    Emami’s PAT and net sales across the quarters under consideration and the three financial years FY-2012 to FY-2014 trends upwards as per Fig 2 and Fig 2A below.

    Among the brands in the company’s portfolio are Zandu, Zandu Balm, Himani Navratna, BoroPlus, Fair and Handsome, Emami Vasocare, Emami Mentho Plus, Himani Fast Relief, Zandu Sona Chandi Chyawnprash Plus, Zandu Kesari Jivan, etc.

  • Discovery Communications reports first quarter 2014 results

    Discovery Communications reports first quarter 2014 results

    MUMBAI: Discovery Communications has reported its financial results for the first quarter ended 31 March 2014.

     

    Discovery president and chief executive officer David Zaslav said, “Discovery’s strong organic growth continued during the first quarter as our unparalleled global reach and sustained investment in diverse and engaging content allowed us to capitalize on the growing demand for pay-tv programming worldwide. The larger audiences and consistent market share gains we are delivering are driving sustained financial results, even as we further invest in our platforms and integrate strategic acquisitions that will enhance our long-term growth prospects. As we look to the remainder of 2014, leveraging the significant opportunities across our existing asset portfolio remains our priority so we can maintain our financial momentum while further building long-term shareholder value.”

     

    Click here to read the full report

  • Bajaj Corp ad & sales promo exp up 11 per cent in FY-2014

    Bajaj Corp ad & sales promo exp up 11 per cent in FY-2014

    BENGALURU:  Note: (1) Bajaj Corp’s  Advertisement and Sales Promotion (ASP) expense comprises  two parts – Advertisement (Ad Exp) and Sales Promotion (SP). The ASP figures have been obtained from the Company’s investors’ presentations over various quarters and the Ad Exp from its financial results. SP results have been obtained by deducting the Ad Exp from the ASP Exp. The figures in the investors’ presentations have been rounded off by the company and hence are assumed as approximate. Consequently the SP figures are assumed to be approximate.

    (2) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million

    Bajaj Corp Limited (Bajaj Corp) spent 10.98 per cent more towards Ad and Sales Promotion Expense (ASP) in FY-2014 at Rs 113.30 crore (16.87 per cent of Operating Income or Op Inc) as compared to the Rs 87.92 crore (14.49 per cent of Op Inc) in FY-2013. The breakup of these figures was – FY-2014 Ad Exp Rs 46.427 crore (6.91per cent of Op Inc), SP Rs 66.872 crore (9.96 per cent of Op Inc) and FY-2013 Ad Exp Rs 41.8354 crore (6.90 per cent of Op Inc), SP Rs 46.0846 crore (7.60 per cent of Op Inc). During three financial years from FY-2012, to FY-2013, ASP, Ad Exp and SP show an increasing trend in terms of absolute value in rupees as well as in terms of percentage of Op Inc.

    Bajaj Corps ASP was just 0.81 per cent more in Q4-2014 at Rs 28.54 crore (15.47 per cent of Op Inc) as compared to the Rs 28.31 crore (17.85 per cent of Op Inc) in the immediate trailing quarter Q3-2014 and (-5.62) per cent lower than the Rs 30.24 crore (16.42 per cent of Op Inc) during the year ago quarter of Q4-2013. Please refer to Fig 1 and Fig 1A below for more details and breakup of ASP. Overall, during nine quarters starting from Q4-2012 until Q4-2014, ASP shows an upward trend in absolute rupee value terms as well as in terms of percentage of Op Inc.

    Fig 1C below indicates that over the nine quarters under consideration, Ad Exp show a decreasing trend, while SP shows an increasing trend.

    Fig 2 and Fig 2 A below indicate the Op Inc and PAT trends of Bajaj Corp

    Bajaj Corp’s mother brand is Bajaj with sub brands/products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan and creams, soaps, face washes and face scrubs under the brand name Nomarks.

    The company in its April 2014 investor presentation says that it intends to gain market share from other hair oil segments. To that end it intends to convert coconut hair oil users to light hair oil users through sampling, targeted advertising campaigns, product innovation and creating awareness about product differentiation including communicating the advantages of switching to lighter hair oils. It is aiming for a market share of 65 per cent by the year 2015-16.

    It says that it will focus on rural penetration and tap the increase in disposable income of rural India and convert rural consumer from unbranded to branded products by providing them with an appropriate value proposition. Also, among its key competitors, Bajaj Corp’s Almond Drops is the only brand which is available in sachets – a marketing initiative to penetrate the rural market.

    Bajaj Corp says that it will leverage its existing strengths to introduce new products. Bajaj Corp claims that it has over the years created a strong distribution network across 26.7 lakhs retail outlets which can be optimally utilized by introducing new products. The company intends to extend ‘Almond Drops’ platform developed by its Almond Drops Hair Oil brand to other personal care products to leverage on the strong connotation of almonds with nutrition.

    It says further that it will also pursue inorganic opportunities in the FMCG and hair oil market as part of growth strategy. The inorganic growth opportunities will focus on targeting niche brands which can benefit from Bajaj Corp’s  strong distribution network so that they can be made pan India brands.

  • Symphony selling & distribution expenses in Q4-2014 flat, could see upsurge in Q1-2015

    Symphony selling & distribution expenses in Q4-2014 flat, could see upsurge in Q1-2015

    BENGALURU: Evaporative air cooler manufacturer, Symphony, spent Rs 19.09 crore (16.42 per cent of Income from Operations or Inc from Ops) towards selling and distribution expenses (Sel & Dist Exp) in Q4-2014, almost the same as the Rs 19.14 crore (16.05 per cent of Inc from Ops) in Q3-2014. Y-o-y, Symphony’s Sel & Dist Exp in Q4-2014 increased 25.59 per cent from Rs.15.2 crores (17.31 per cent of Inc from Ops) in Q4-2013.

    Please note that (1) The company’s accounting year ends on 30 June every year, but in keeping with the convention in India, quarter ended 30 June has been referred to as Q1, quarter ended 30 September as Q2, quarter ended 31 December as Q3 and quarter ended 31 March as Q4 of each respective year in this report.

    (2) 100,00,000=100 Lakh = 1 crore

    (3) All trends mentioned in this report are linear trends based on data across nine quarters starting Q4-2012 and ending Q4-2014 and across FY-2011 to FY-2013.

    In its  corporate presentation, Symphony says that it incurs the highest ad spends in the air cooler category in India and that it has been advertising through television, radio, print, BTL since 1990 and on the internet since 2010. Fig 1 below indicates that the company’s Sel & Dist Exp shows a downward trend as percentage of Inc from Ops across nine quarters starting Q4-2012 and ending Q4-2014.

    However, in terms of absolute value, with the increase in Inc from Ops across their nine quarters, the trend towards higher spends in absolute value is upwards.

    Across three financial years starting FY-2011 to FY-2013, Sel & Dist Exp for Symphony show as upward trend both in absolute rupees as well as Sel & Dist Exp as percentage of Inc from Ops, as is evident from Fig 1A below. Across the nine quarters under consideration, Symphony’s average Sel & Dist Exp is 18 per cent of Inc from Ops, so Q3-2014 and Q4-2014 spends are definitely  below par. However, the company says that its business is seasonal and maybe based on the numbers reported for Q1 -2014 and Q4-2014, a splurge in Sel & Dist Exp could happen in Q1-2015.

    Symphony’s Inc from Ops as well as PAT show as upward trend across the 9 quarters in question as is evident from Fig 2 below.

     

  • Marico Q4-2014 Ad spends down 9 per cent; 6 per cent down in FY-2014

    Marico Q4-2014 Ad spends down 9 per cent; 6 per cent down in FY-2014

    BENGALURU:  Indian consumer products in beauty and wellness space company Marico spent (-9.08) per cent less at Rs 121.91 crore (11.38 per cent of Operating Income or Op Inc) in Q4-2014 towards advertisement and sales promotion (Ad & SP Exp) as compared to the Rs 134.08 crore (11.17 per cent of Op Inc)  in Q3-2014. Further, Marico’s Ad & SP Exp in Q4-2014 was also lower by (-3.0) per cent as compared to the Rs 125.68 crore (12.59 per cent of Op Inc) in the year ago quarter Q4-2013.

    During FY-2014, the company’s Ad & SP Exp was down (-6.15) per cent at Rs 561.17 crore (11.97 per cent of Op Inc) as compared to the Rs 597.94 crore (13.01 per cent of Op Inc) in FY-2013. The company’s average Ad & Sp Exp as percentage of Op Inc over nine quarters starting Q4-2012 until Q4-2014 is 12.48 per cent, and the current year’s Ad & SP Exp throughout the year as well in Q4-2014 are lower than that average.

    Notes: 100,00,000=100 Lakhs = 1 crore

    Marico’s Op Inc for Q4-2014 was (-10.71) per cent lower at Rs 1072.06 crore as compared to the Rs 1200.69 crore in Q3-2014. Y-o-y, Op Inc for Q4-2014 was 7.36 per cent more than the Rs 998.59 crore in Q4-2014.

    Please refer to Fig 1 and Fig 1A below:

    In line with the consumer goods industry trends, the company’s PAT in Q4-2014 has dropped by (-34.42) per cent to Rs 88.77 crore from Rs 135.37 crore in Q3-2014. However, y-o-y, Marico’s PAT in Q4-2014 was 5.85 per cent more than the Rs 83.86 crore in Q4-2013.

    Across the nine quarters in question, PAT trend is upwards, both in terms of absolute rupee value and as percentage of Op Inc.  PAT as per cent of Op Rev also trends upwards between three financial years staring FY-2012 to FY-2014. Please refer to Fig 2 and Fig 2A below.

    Marico says that its business has shown steady recovery in volume growths with sustained improvements in market shares. In India, due to the weak demand environment, the growth rates of various segments have come down. This has impacted the company’s growth rates as well.

    The company entered the Hair Colour category by introducing Livon Conditioning Cream Colour. The initial retailer and consumer feedback across the board has been positive.

    To commemorate 25 years since incorporation, the company has declared a one-time Silver Jubilee Third Interim Dividend of 175 per cent (Rs 1.75 per share) on the equity share capital of Rs 64.48 crore at the meeting of its Board of Directors held in March 2014.

    Marico Managing Director & CEO Saugata Gupta said, “Despite the challenges in the environment during FY1-2014, it has been a satisfying year with Marico’s brands gaining shares across most of the portfolio. In Q4 we have been able to get back to healthy levels of growth in key categories and expect to see a gradual increase in momentum in the coming quarters.

    Here is what the company has to say about its various products and brands:

    Parachute coconut oil in rigid packs (the focus part of the Parachute portfolio) recorded a volume growth of about 10 per cent during the quarter. Q4FY14 has shown a recovery in volume growth from an abnormally low growth in Q3FY14. During the 12 month period ended March 2014, Parachute along with Nihar maintained its market share at 56 per cent.

    The Saffola refined edible oils franchise grew by about 11 per cent in volume terms during Q4FY14 as compared to Q4FY13, reporting a continuous improvement in performance. The brand has been able to reverse a softer performance in 2012-13 and accelerate in the second half of the year based on its effective equity building communication. The brand maintained its leadership position in the super premium refined edible oils segment with a market share of about 55 per cent during the 12 months ended March 2014.

    In the breakfast cereals, Saffola Oats has increased its market share by 24 bps to 14 per cent and has retained its no two position. Saffola Oats crossed Rs 50 crore ($ 8 million) landmark in top line during the year under review. The company expects to continue the robust growth in Oats.

    Marico’s hair oil brands (Parachute Advansed, Nihar Naturals and Hair & Care) grew by 5 per cent in volume terms during Q4FY14 over Q4-2013. Nihar Shanti Amla continues to gain market share and achieved a volume market share of about 30 per cent for the 12 months ended March 2014 in the Amla hair oils category (MAT FY13: 25 per cent). Niha Shanti Amla is now a Rs 250 crore ($ 40 million) brand.

    Due to the challenging environment, the body lotion category growth rate has fallen to single digit. Parachure Advansed Body Lotion has maintained its no three position with a market share of six per cent. The company expects the brand to be back on track next year.

    The Company says that it launched India’s first unique multi-dimensional ‘spray-on’ body lotion during the quarter. The variant has been launched in a 100ml SKU with an introductory price ofRs. 99.

    The acquired portfolio of youth brands grew by 16 per cent during the year over FY13. Due to inflationary trend and restricted spends on discretionary products, the category growth rates of Post Wash Serums, Hair Gels/Creams and Deodorants have come off considerably. This coupled with a high base in Q4FY13 (due to re-launch of Zatak) has led to a flat performance of the portfolio in Q4-2014.

    Set Wet and Zatak increased its market share marginally in the deodorants segment to five per cent for the 12 months ended March 2014, in this crowded category. In February, Set Wet launched a new variant Set Wet Infinity, a non-aerosol perfume spray with ‘no-gas’ formulation. The launch will be supported by an extensive media campaign during IPL7. Set Wet (Deodorants and Gels) is now a Rs 100 crore ($ 17 million) brand with a strong equity and growing consumer franchise.

    This youth portfolio will also witness a much higher interaction with overseas portfolio thereby leveraging scale and innovation synergies.

    Sales in Modern Trade (nine per cent of the domestic turnover) continued its good run and grew by 16 per cent in

    Q4-2014 led by Saffola and coconut oil.

    Marico’s rural sales continue to clock a faster pace of growth than its urban sales. The continued focus on distribution expansion in rural markets has pushed FY-2014 rural sales to more than 30 per cent of total Indian FMCG sales.

  • Dabur ad spends in FY-2014 up 19.4 per cent, PAT up 19.7 per cent

    Dabur ad spends in FY-2014 up 19.4 per cent, PAT up 19.7 per cent

    BENGALURU:  Dabur India Limited (Dabur) spent 19.44 per cent more towards Advertisement and Publicity (Ad & Pub) in FY-2014 at Rs 999.67 crore (14.09 per cent of Income from Operations or Inc from Ops) as compared to the Rs 836.98 crore (13.55 per cent of Inc from Ops) in FY-2013. The company’s PAT at Rs 913.92 crore in FY-2014 was 12.88 per cent more than the Rs 763.42 crore in FY-2013.

    Notes: 100,00,000=100 lakhs = 1 crore

    Dabur Ad & Pub spend was Rs 228.38 crore (12.87 per cent of Inc from Ops) in Q4-2014 which was (-21-14) per cent lower than the Rs 289.62 crore (15.87 per cent of Inc from ops) in Q3-2014, but 19 per cent more y-o-y as compared to the Rs 191.92 crore (12.43 per cent of Income from Ops) in Q4-2013.

    Though the company’s Inc from Ops in Q4-2014 at Rs 1774.41 crore was (-7.06) per cent lower than the Rs 1909.29 crore during the immediate trailing quarter, y-o-y, Op inc was 14.95 per cent more than the Rs 1543.65 crore in Q4-2013. Dabur’s Inc from Ops for FY-2014 at Rs 7049.43 crore was 14.87 per cent more than the Rs 6176.12 crore in FY-2013. Please refer to Fig 1 & 1A below. Across 9 quarters starting Q4-2012 to Q4-2014, the company’s Ad & Pub Exp shows an upward trend, both in terms of absolute value as a well as percentage of Op Inc.

    Q-o-q, Dabur’s PAT in Q4-2014 at Rs 235.29 crore was (-3.13) per cent lower than the Rs 242.88 crore in the immediate trailing quarter, but was 17.32 per cent more than the year ago PAT of Rs 200.55 crore in Q4-2013. Please refer to Fig 2

    Category Growths

    The company says that the digestives category posted a 23.3 per cent growth during the fourth quarter of 2013-14, while the foods business riding on strong demand for its packaged juices ended the period with a 20.6 per cent growth. The toothpaste business for Dabur led by Dabur Red Paste reported a 20.7 per cent growth, while the shampoo business grew by 19 per cent. The health supplements business saw a 17.6 per cent growth during the quarter, while the home care category grew by 13 per cent.

    “The business has performed well on all operating parameters. Our strong performance reflects the robustness of our business model and our ability to efficiently manage the emerging challenges. Dabur has been reporting strong and consistent performance despite intensifying competitive pressures and the challenging market environment being witnessed for some quarters now. Going forward too, our focus will be on pursuing an aggressive and profitable growth strategy,” Dabur chief executive officer Sunil Duggal said.