ITV

Category: Brands

  • Q1-2016: Reliance Retail y-o-y revenue up 17.5%

    Q1-2016: Reliance Retail y-o-y revenue up 17.5%

    BENGALURU: Reliance Industries Limited’s (RIL) organized retail segment – Reliance Retail is a tiny fraction of the revenue that India’s largest private corporate reports. However, this segment has been growing consistently, quarter on quarter.

     

    In Q1-2016 (quarter ended 30 June, 2015), though RIL has reported a 23 per cent y-o-y consolidated revenue drop, Reliance Retail posted a 17.5 per cent revenue growth in the same period at Rs 4968 crore as compared to the Rs 3999 crore in Q1-2015. Reliance Retail’s Q1-2016 revenue however was 1.9 per cent lower than the Rs 4788 crore in the immediate trailing quarter.

     

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

     

    The retail segment reported a profit before tax (PBIT) of Rs 111 crore (2.4 per cent EBIT margin) in the current quarter, 37 per cent more than the Rs 81 crore (2 per cent EBIT margin) and 6.7 per cent more than the Rs 104 crore (2.2 per cent EBIT margin) in Q4-2015.

     

    Though RIL reported a drop in revenue to Rs 83,064 crore in Q1-2016 as compared to the Rs 1,07,905 crore in Q1-2015, it was 17.2 per cent more than the Rs 70,863 crore in Q4-2015. RIL also posted a record consolidated PBDIT of Rs 12,095 crore, up 9.8 per cent as compared Rs 11,016 crore to Q1-2015. Net Profit at Rs 6222 crore was 4.4 per cent more than the Rs 5957 crore in the corresponding year ago quarter, but declined 2.5 per cent as compared to the Rs 6381 crore in the immediate trailing quarter.

     

    Company speak on organized retail segment

     

    The company says that its Value Formats consolidated its leadership position further of being the largest grocery retailer in the country. The business expanded its network further with new store openings to strengthen its leadership position and optimise its operations. The formats launched several own brands products under various categories in the quarter.

     

    Reliance Market continued additions to its store network, reaching out to more and more kiranas, traders and institutions as partners across the country. Contribution of Private Label Sales to overall sales increased to 10 per cent from eight per cent in the same period last year. Reliance Market now serves over 17 lakh registered members across 35 cities.

     

    The digital sector maintained its growth momentum and operates 1,298 stores across the country.

     

    Reliance Digital with its superior in-store experience and extensive product assortments continued to improve its proposition and delight customers. Digital Express Mini rapidly scaled up its operations during the quarter and surpassed the milestone of operating over 1,000 stores across the country in a short time since launch, a feat achieved by any retailer first time in the country.

     

    The Fashion and Lifestyle sector delivered strong performance in the quarter by offering fashionable, high quality merchandise at great value. Reliance Trends operates a strong own brand portfolio comprising over 20 brands that contribute over 70 per cent of overall sales. During the period, the format has partnered with a globally renowned fashion house to augment its in-house product design capabilities. The association would help in bringing global fashion trends to the Indian market thereby bridging the gaps in the merchandise offerings.

     

    Reliance Brands strengthened its presence through its partnerships during this period. During the period, Reliance Brands announced an exclusive partnership with Japanese retailer Muji, which sells a wide verity of household and consumer goods and 130 year old Dutch lingerie brand Hunkemöller.

     

    The first BCBG MAX Azria store was launched in Delhi, marking the launch of international womenswear brand known for its contemporary fashion sensibilities in India.

     

    As on 30 June, 2015, Reliance Retail operated 2,747 stores across 210 cities in India. 

  • Can India become a sports merchandising haven?

    Can India become a sports merchandising haven?

    MUMBAI: The entire business fraternity in India gets buoyed by 500 plus cumulative reach of a sporting event or a movie grossing over Rs 300 crore, but hardly puts any effort in translating this success into other formats. One of the most reached sporting event in India, the Indian Premier League (IPL) over eight years of operation, faltered to develop the merchandising business in India. The story is quite similar in movies too. Star Wars holds the record of largest selling merchandises in movies as it has garnered $12 billion over the years and is still evolving. Indian super hero movies like Krrish and Ra:One hardly managed to scratch the surface of the huge merchandising industry.

    Since last year, PUMA has been pumping some much needed energy into the dormant merchandising industry in India. The sports apparel giant signed a five year deal for approximately $51 million per year with London based English Premier League (EPL) football club Arsenal FC in 2014. Arsenal is ranked seventh in the list of top Soccer team valuations, which is lead by Spanish giants Real Madrid FC.

    This year, PUMA flew all time Arsenal legends Ray Parlour and Sol Campbell to India and made them launch the Home and Away kit. A screening of historical Invincibles documentary was organised alongside road shows. Mehboob Studios in Mumbai turned into a battalion of gunners wearing red and white, welcoming the legends wholeheartedly by cheering out loud and clear.

    Parlour and Campbell were mesmerised, and the eagerness in fans’ eyes to see the new kit unveiled was an encouraging sight for PUMA India managing director Abhishek Ganguly. “India holds 10 per cent of Arsenal’s social media fan base and we feel, we are stronger together. This year’s campaign is named ‘Powered By Fans,’ to make fans feel special to celebrate with them. The new kit is an elevated version of last year, more comfortable, more stylish” he said.

    Speaking to Indiantelevision.com about the merchandising market in India, PUMA India executive director product and merchandising Atul Bajaj says, “The market is still at a nascent stage. However, the growth potential is huge and as long as the brands involved have synergies it is a win-win situation. Though the size of licensed merchandise globally is much bigger, the growth rate for this segment is in the range of 80-90 per cent.”

    To add to PUMA’s delight, the team broke its trophy jinx by winning the FA Cup in 2014 and wearing PUMA apparel they defended it by winning again in 2015. The fans are more excited now as they believe the league title is inching closer. Sharing PUMA’s aspirations in the second year into the deal Bajaj asserts, “We expect a huge growth in this second year of our association, exceeding 200 per cent. Arsenal has a huge and loyal fanbase, the performances are great with much more to follow and to top it all we have a great merchandise range for the fans. It also helps that Indian fans comprise close to 10 per cent of overall Arsenal fans on social media.” 

    As can be seen below in the graph, the sports merchandising market globally grew to $20.07 billion in 2015 compared to $19.57 billion in 2014.

    The other factor that predominantly hampers the merchandising industry is piracy. Substantial number of football fans are often spotted all over the country wearing club jerseys but seldom are they original. Though for PUMA the target audience is totally different, Bajaj feels knockouts do damage a brand.

    He says, “While knockouts damage a brand, however in terms of business, the target group is completely different. The Arsenal fan and PUMA consumer would never want to buy or wear a cheap fake knockoff. We also have a legal cell in place, which proactively ensures that this menace is minimised.”

    Merchandising is not only limited to jerseys, which is the most expensive one but other exclusive products like training kits, wrist bands and stockings used by the players also attract fans. However, brands do not pay enough attention to those, feels Arsenal’s officially recognised Delhi fan club admin Nishant Singhal.

    Speaking to Indiantelevision.com, Singhal says, “Powered By Fans delight every fan and the ones that I interact with wear the official jersey of the team. The problem with merchandising is the range of products. Apart for home jerseys, it is very difficult to find anything available and I would request PUMA to change that. Special thanks to them for getting Ray Parlour and Sol Campbell in India. Pricing is not an issue as it is identical globally and people can buy online to avail many discounts.”

    Speaking on the range of products, Bajaj claims, “PUMA has a complete range of Arsenal products including Replicas, fanwear, footwear, accessories and more. An Arsenal fan will have the complete range of products available to choose from and enough options to showcase his love for the club.”

    Bangalore Arsenal FC official fan club admin Vinay CP is also buoyed by the fact that this year the campaign is named Powered By Fans. He oversaw the proceedings of the 2014 jersey launch. Vinay feels that PUMA is giving adequate visibility to Arsenal products. “In every PUMA store that you enter, you will see Arsenal merchandise everywhere and that’s something I like as a fan. The reason why the merchandising business is not picking up in India is because of the pricing and piracy. Still the number of original jerseys is going up substantially.”

    PUMA has also tied up with Amazon India to enhance its reach. The home jerseys, which are priced at Rs 4299, can be purchased from PUMA outlets, in.Puma.com and Amazon India. “Amazon helps us reach to a far wider group of consumers and markets, which were earlier inaccessible. The ease of purchase encourages people – who either do not have access or do not want to travel, but be able to get the latest products sitting in their homes. Above all, it provides us a great platform to engage with the fans. Our event related posts on Amazon’s social media for example drove top tier engagement rates,” adds Bajaj.

    Baseline co-founder and director R Ramakrishnan feels that in India, merchandising and licensing has huge growth potential. “India is a lucrative market and that’s why PUMA is aggressively promoting Arsenal merchandises by getting in legends in the country. Football merchandising is always a style quotient, the jerseys are always elegantly designed with one title sponsor on it, which one can wear and flaunt unlike those in IPL where it becomes more billboard and less apparel because of the number of sponsors. Given the youth population in the country, I think elegant merchandising will pick up in India,” he says.

    A merchandising expert on condition of anonymity opines, “The merchandising partners never really ran an interactive on ground campaign be it WWE, football or cricket and hence the merchandising industry never picked up. It’s so ironical that a country like India, where cricket is considered as less sport and more religion, hardly has a substantial merchandising base. On one side, you have Sachin Tendulkar and on the other side Michael Jordan or Kobe Bryant. India never took merchandising seriously. PUMA is bringing in what was missing in merchandising industry, they got in Arsenal legends, organised a road show, screened Invincibles for the first time in Asia and that’s the way ahead. They have already started putting hoardings on prime locations. As a well wisher of the merchandising industry I feel all the licensed partners should put in more efforts and rejuvenate the industry.”

    IPL chairman Rajiv Shukla in the recent past had said that the BCCI will sell IPL merchandise centrally to boost up the sector. Seven out of the eight teams agreed to that, whereas Kolkata Knight Riders (KKR) decided to sell their merchandise separately as they already invested a lot in developing the business. Overall, it remains to be seen if other big names will also join in and contribute to what PUMA has started for the merchandising industry in India to pick pace and reach its potential.

  • Q2-2015: Record box office boosts Imax y-o-y revenue 30%, income per share 79%

    Q2-2015: Record box office boosts Imax y-o-y revenue 30%, income per share 79%

    BENGALURU: Joint-venture revenue sharing arrangements played a leading role in the 79 per cent increase in income per share to $0.34 from $0.19 for the Toronto, Canada based, New York Stock Exchange traded entertainment, technology and distribution company Imax Corp for the quarter (Q2-2015) ended 30 June, 2015. For the six month (YTD, 6M-2015) period of the current year, joint-venture revenue arrangement sharing also played a lead in the 70 per cent increase in income per share to $0.34 from $0.20 in 6M-2014.

     

    The company’s y-o-y revenue in the current quarter increased 29.8 per cent to $107.16 million as compared to the $79.145 million in Q2-2014. YTD, Imax revenue increased 33 per cent to $169.371 million from $127.342 million in 6M-2014.

     

    Company speak

     

    Revenue from sales and sales type leases was $18.7 million in the second quarter of 2015, compared to $14.5 million in the second quarter of 2014, primarily reflecting the installation of 15 full theatre systems (14 new, one used) under sales and sales type lease arrangements in the most recent second quarter, compared to the 11 sales type theatres the company installed in the prior year period. In addition, there were no upgrades in existing locations in the second quarter of 2015, compared to 4 xenon upgrades in the second quarter of 2014.

    Revenue from joint revenue sharing arrangements was $31.6 million in the quarter, compared to $19.4 million in the prior year period. During the quarter, the company installed 20 new theatres under joint revenue sharing arrangements, compared to 19 in the same period in 2014. The company had 477 theatres operating under joint revenue sharing arrangements as of June 30, 2015, as compared to 408 joint venture theatres one year prior.

     

    Production and Imax DMR (Digital ReMastering) revenues were $36.6 million in the second quarter of 2015, compared to $24 million in the second quarter of 2014. Gross box office from DMR titles was $343 million in the second quarter of 2014, compared to $216 million in the prior year period. The average global DMR box office per screen in the second quarter of 2014 was $414,600 compared to $299,800 in the prior year period.

    ”The second quarter of 2015 was one of the strongest in Imax’s history, delivering our highest revenue ever, growing adjusted EPS by 60per cent compared to the same period last year, record box office and quarterly per screen averages that we have not seen since Avatar in 2010,” said Imax CEO Richard L. Gelfond. ”We believe the strength of this quarter clearly demonstrates the impact that a strong slate of blockbuster films can have on Imax and the operating leverage that results.”

     

    ”Momentum also continued to build on the network side of our business with higher than expected installations and strong signings activity in the quarter,” continued Gelfond, who was in Vienna for the world premiere of Mission Impossible: Rogue Nation at the historic Vienna Opera House, which has been transformed into an Imax theatre for this event. ”Tonight’s M:I5 event is the continuation of the transformation of Imax’s brand from the smaller successes onto center stage. More agreements to use Imax cameras as well as Imax premieres such asFurious 7 and Jurassic World are a powerful marketer for our brand and also signal the increasingly important role Imax plays in the entertainment ecosystem.”

     

    Let us look at the other numbers reported by Imax

     

    Imax net income in Q2-2015 almost doubled (up 1.92 times) to $24.35 million as compared to the $13.307 million in the corresponding year ago quarter. Similarly, 6M-2015 net income almost doubled (went up 1.94 times) to $278.65 million as compared to the $143.58 million in 6M-2014.

     

    Note: (1) The primary revenue sources for the Company can be categorized into two main groups: theatre systems and films. On the theatre systems side, the Company derives revenues from theatre exhibitors primarily through either a sale or sales-type lease arrangement or a joint revenue sharing arrangement. Theatre exhibitors also pay for associated maintenance and extended warranty services. Film revenue is derived primarily from film studios for the provision of film production and digital re-mastering services for exhibition on Imax theatre systems around the world. The Company derives other film revenues from the distribution of certain films and the provision of post-production services. The Company also derives a small portion of other revenues from the operation of its own theatres, the provision of aftermarket parts for its system components, and camera rentals

     

    (2)The Company has seven reportable segments identified by category of product sold or service provided: Imax systems; theater system maintenance; joint revenue sharing arrangements; film production and Imax DMR; film distribution; film postproduction; and other. The Imax systems segment includes the design, manufacture, sale or lease of Imax theater projection system equipment. 

     

    The theater system maintenance segment includes the maintenance of Imax theater projection system equipment in the Imax theater network. The joint revenue sharing arrangements segment includes the provision of Imax theater projection system equipment to an exhibitor in exchange for a share of the boxoffice and concession revenues. The film production and Imax DMR segment includes the production of films and the performance of film remastering services. The film distribution segment includes the distribution of films for which the Company has distribution rights.

     

    The film postproduction segment provides film postproduction and film print services. The other segment includes certain Imax theaters that the Company owns and operates, camera rentals and other miscellaneous items.

     

    Imax Theater Systems

     

    Imax Theater Systems revenue in Q2-2015 increased 37.1 per cent to $63.117 million as compared to the $46.032 million in Q2-2014. YTD, revenue increased 37.2 per cent to $99.949 million from $72.843 million in 6M-2014.

     

    Gross margin from Imax Theater System increased 46.7 per cent in Q2-2015 to $40.695 million from $27.748 million in the corresponding year ago quarter. YTD, gross margin during the current six month period also increased by 46.7 per cent to $62.778 million as compared to the 42.805 million in 6M-2014.

     

    Joint venture revenue sharing arrangement numbers

     

    The Imax Theater System growth (as well as growth in Imax overall numbers) was led by a 63.2 per cent growth in the revenue from joint revenue sharing arrangements at $31.594 million in the current quarter, as compared to the $19.363 million in the corresponding year ago quarter.

     

    Gross Margin reported by Imax joint revenue sharing arrangements increased 79.9 per cent in Q2-2015 to $24.069 million from $13.378 million in the corresponding year ago quarter. YTD, gross margin during the current six month period increased by 67.9 per cent to $34.686 million as compared to the 20.661 million in 6M-2014.

     

    Imax systems numbers

     

    Imax systems revenue in Q2-2015 increased 24.3 per cent to $22.365 million as compared to the $17.996 million in Q2-2014. YTD, revenue increased 33.9 per cent to $34.479 million from $25.8756 million in 6M-2014.

     

    Gross margin from Imax systems increased 16.8 per cent in Q2-2015 to $13.537 million from $11.589 million in the corresponding year ago quarter. YTD, gross margin during 6M-2015 increased by 32.8 per cent to $21.722 million as compared to the 16.362 million in 6M-2014.

     

    Theater system maintenance numbers

     

    Theater system maintenance revenue in Q2-2015 increased 5.6 per cent to $9.158 million as compared to the $8.673 million in Q2-2014. YTD, revenue increased 6.8 per cent to $18.008 million from $16.868 million in 6M-2014.

     

    Gross margin from Theater system maintenance increased 11.1 per cent in Q2-2015 to $3.089 million from $2.781 million in the corresponding year ago quarter. YTD, gross margin during 6M-2015 increased by 10.2 per cent to $6.370 million as compared to the 5.782 million in 6M-2014.

     

    Films

     

    Films revenue increased 34 per cent in the current quarter to $36.369 million as compared to the $29.383 million in Q2-2014. For 6M-2015, revenue improved 24.5 per cent to $61.323 million as compared to the $49.257 million in the corresponding year ago six month period.

     

    Gross margin from Films improved 46.2 per cent in Q2-2015 to $28.454 million from $19.592 million in Q2-2014. For the six month period ended 30 June, 2015, Films gross margin increased 35.1 per cent to $42.392 million as compared to the $31.381 million in 6M-2014.

     

    Production and Imax DMR numbers

     

    Production and Imax DMR was the only segment in ‘Films’ to attain revenue and gross margin q-o-q  and YTD growth. Revenue in Q2-2015 grew 52.2 per cent to $36.603 million as compared to the $24.050 million in the corresponding year ago quarter. During 6M-2015, revenue grew 38.3 per cent to $54.279 million from $39.235 million in 6M-2014.

     

    Production and Imax DMR gross margin in the current quarter grew 52.9 per cent in Q2-2015 to $28.488 million as compared to the $18.634 million in Q2-2014. YTD, gross margin grew 40.4 per cent to $41.713 million from $29.708 million in 6M-2014.

     

    Distribution numbers

     

    Distribution revenue in Q2-2015 declined 60.6 per cent to $1.158 million as compared to the $2,942 million in Q2-2014. For 6M-2015, distribution revenue declined 42.2 per cent to $2.546 million in 6M-2015 as compared to the $4.405 million in 6M-2014.

     

    Distribution reported negative gross margin Q2-2015 at $0.351 million as compared to the $0.594 million in Q2-2014. For the six month period ended 30 June, 2015, Distribution gross margin was negative $0.216 million (loss) as compared to the $0.784 million in 6M-2014.

     

    Post Production numbers

     

    Post Production revenue in Q2-2015 declined 32.7 per cent to $1.608 million as compared to the $2.391 million in Q2-2014. For 6M-2015, revenue declined 19.9 per cent to $4.498 million as compared to the $5.617 million in 6M-2014.

     

    Post Production gross margin in the current quarter declined 12.9 per cent in Q2-2015 to $3.17 million as compared to the $364 million in Q2-2014. YTD, gross margin grew 0.7 per cent to $0.895 million from $0.889 million in 6M-2014.

     

    ‘Other’ numbers

     

    Revenue from ‘Other’ in Q2-2015 grew 25.3 per cent to $4.674 million as compared to the $3.73 million in Q2-2014. 6M-2015 revenue grew 54.5 per cent to $8.099 million as compared to the $5.242 million in 6M-2014.

     

    The ‘Other’ segment reported a negative gross margin in Q2-2015 of $0.114. For 6M-2015, gross margin was negative $0.154 million as compared to the $0.016 million in 6M-2014.

  • Café Coffee Day celebrates birthday with offers & deals for customers

    Café Coffee Day celebrates birthday with offers & deals for customers

    MUMBAI: As Café Coffee Day (CCD) marks a key milestone this month by completing 19 years, the brand is organising a unique activity to excite customers.

     

    As part of the celebration, CCD has organised a surprise for its patrons wherein consumers stand a chance to win freebies and discounts along with a mega bumper prize for one lucky winner.

     

    For a fortnight following the birthday which is 11 July, 2015, CCD will gift back an offer to each customer who bills at CCD, which will be redeemable with their next visit to CCD. Customers will receive their offer via SMS, the number which they will share with the café staff on request while placing their order. Once customers punch their bills they will receive a mCoupon of the offer. The offer will include exciting treats like ‘19  per cent off on a bill’, ‘a free Devils Own’, ‘a free Cappuccino’, ‘any beverage @ Rs 19’ and much more. One lucky customer also stands a chance to win the grand prize – an all expense paid vacation to Coffee Day’s luxury resort in Karnataka, The Serai!

     

    Coffee Day group president marketing Bidisha Nagaraj said, “This month CCD completes 19 years of providing consumers all over the country a preferred place to hangout over a range of food & beverage offerings and we are very excited about it. Over the years, CCD has become synonymous with the coffee drinking experience in India and today has a significant following amongst the youth in the country. We wish to celebrate this milestone with our CCD fans with a special offer where we will be giving away a range of exciting treats including a free stay at one of our resorts. A warm and heartfelt thanks to all our CCD patrons for their continuous love and support.”

     

    CCD’s special birthday celebration will run across 700 cafés in the top seven cities of India namely Delhi, Mumbai, Bangalore, Kolkata, Chennai, Hyderabad, Pune, Chandigarh and Ahmedabad.

  • FY-2015: UFO Moviez revenue up 13%, EBIDTA up 21%

    FY-2015: UFO Moviez revenue up 13%, EBIDTA up 21%

    BENGALURU: Indian digital cinema distribution network and in-cinema advertising platform, UFO Moviez Limited (UFO) reported a 12.78 per cent growth in consolidated revenue to Rs 479.34 crore for the year ended 31 March, 2015 (FY-2015), as compared to the Rs 425.03 crore in the previous year, by increase in advertising clients and higher Virtual Print Fees (VPF) revenues.  The company reported 20.75 higher operating profit or EBIDTA, for FY-2015 at Rs 160.83 crore (33.55 per cent margin) as compared to the Rs 133.12 crore (31.34 per cent margin) in the previous fiscal.

     

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

     

    The company’s PAT in FY-2015 increased 2.42 per cent to Rs 48.81 crore (10.18 per cent margin) as compared to the Rs 47.66 crore (11.21 per cent margin in the previous year).  The company says that the increase in PAT has come about despite a FY-2014 tax expense having a deferred tax credit of Rs 10.946 crore, which is Rs 4.98 crore higher than FY-2015 deferred tax credit of Rs 5.966 crore.

     

    Further, despite lower expense towards purchase of digital cinema equipment and lamps, higher expenses towards advertisement revenue share, VPF share and depreciation eroded the profits of the company in FY-2015.

     

    UFO joint managing director Kapil Agarwal said, “Both Advertising and VPF delivered healthy growth during the fiscal. This can be attributed to improved utilisation of advertisement inventory coupled with higher number of movie releases. Our focus on delivering uninterrupted service on our technology platform to distributors and advertisers, with whom we have healthy relationship, has helped us maintain market leadership. We will continue to leverage our existing platform to drive growth. Overall, we will continue to strive to deliver strong operating performance in the Fiscal Year 2015-16.”

     

    Let us look at the other expense reported by the company:

     

    Total Expenses in FY-2015 at Rs 395.45 crore (83.11 per cent of TIO) was 10.66 per cent more than the Rs 357.35 crore (84.24 per cent of TIO) in FY-2014. The company’s expense towards purchase of digital cinema equipment and lamps in the current year dropped 16.46 per cent to Rs 40.59 crore (8.53 per cent of TIO) as compared to the Rs 48.59 crore (11.45 per cent of TIO) in the previous fiscal.

     

    The company paid a 27.23 higher amount towards advertisement revenue share in FY-2015 at Rs 39.39 crore (8.28 per cent of TIO) as compared to the Rs 30.96 crore (7.3 per cent of TIO) in FY-2014.

     

    Further, the company paid 22.91 per cent more towards VPF share at Rs 63.31 crore (13.31 per cent of TIO) in FY-2015 as compared to the Rs 51.51 crore (12.14 per cent of TIO) in the previous year.

     

    The company reported higher depreciation in FY-2015 at Rs 79.64 crore (16.17 per cent of TIO) as compared to the Rs 65.52 crore (15.45 per cent of TIO) in Fy-2014.

     

    Advertisement and VPF revenues playout during the year

     

    UFO says that its in-cinema advertising platform comprised 3,784 screens with an average weekly seating capacity of approximately 5.2 crore as on 31 March, 2015, which engaged with about 1724 advertisers during the year and delivered advertisements across 1,951 locations. Its annual advertisement revenue per screen (average) stood at Rs 316,346 in FY-2015 compared to Rs 299,711 in FY-2014. The number of minutes sold per show per advertisement screen (average) stood at 3.36 in the current year compared to 3.25 in FY-2014, while the number of in-cinema advertising clients increased to 1724 in FY-2015 from 1056 in FY-2014.

     

    The company says that its digital cinema network in India comprised 5,032 screens with a seating capacity of approximately 22.2 lakh per show as on 31 March, 2015. (Note: Nepal forms a part of the Indian Film Territory, hence the number of digital screens includes Nepal screens). The company delivered approximately 1636 movies for 1830 distributors across 1,970 locations during the year.

     

    In India, annual gross VPF revenue / screen (average) on E-Cinema stood at Rs 259,171 in FY-2015 as compared to Rs 251,308 in FY-2014, while annual gross VPF revenue / screen (average) on D-Cinema stood at Rs 586,961 in FY-2015 as compared to the Rs 603,304 in FY-2014.

     

    Internationally, annual gross VPF revenue / Screen (average) on D-Cinema stood at Rs 750,764 in FY-2015 compared to Rs 812,102 in FY-2014.

     

    UFO managing director Sanjay Gaikwad said, “We are pleased to announce a healthy operating and financial performance during the fiscal year 2014-15. The growth prospects for UFO remain robust. We believe that there is a lot of headroom for growth in advertisement revenue, given that the number of minutes sold per show per screen on our network is significantly lower than multiplex chains. We expect this to improve gradually as advertiser engagements further deepen and as we attract new advertisers. We will continue to leverage our current base by also focusing on our synergetic business initiative Caravan Talkies – cinema on wheels, to drive incremental revenues. Our technology platform, differentiated service offering, clear strategic focus and experienced execution and management teams, give us a firm foundation to capture growth in the years to come.”

  • Q1-2016: Pressman Advertising revenue up 67.8%

    Q1-2016: Pressman Advertising revenue up 67.8%

    BENGALURU: Pressman Advertising Limited (Pressman) reported 67.8 per cent growth in revenue for the quarter ended 30 June, 2015 (Q1-2016) at Rs 14.72 crore as compared to Rs 8.77 crore in Q1-2015 and a 31.4 per cent growth as compared to Rs 11.21 crore in Q4-2015.

     

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

     

    The company’s profit after tax (PAT) in the current quarter increased 7.7 per cent to Rs 1.34 crore (9.1 per cent of TIO) in Q1-2016 as compared to the Rs 1.25 crore (14.2 per cent of TIO) in Q1-2015. Pressman had reported a loss of Rs 0.11 crore in the immediate trailing quarter.

     

    Pressman’s simple EBIDTA excluding other income in Q1-2016 was more than double (2.6 times more) at Rs 1.934 crore (13.1 per cent of TIO) as compared to the Rs 0.745 crore (8.5 per cent of TIO) in the corresponding year ago quarter and was 50.4 per cent more than the Rs 1.3 crore (11.5 per cent of TIO) in the immediate trailing quarter.

     

    Total Expenses (TE) in Q1-2016 increased 58.9 per cent to Rs 12.80 crore (87 per cent of TIO) as compared to the Rs 8.06 crore (91.8 per cent of TIO) in Q1-2015 and was 28.8 per cent more than the Rs 9.94 crore (88.7 per cent of TIO) in Q4-2015.

     

    Cost of services (COS) is a major expense head in TE declared by the company in its results filed at the bourses. COS in Q1-2016 at Rs 11.73 crore (79.7 per cent of TIO) was 71.3 per cent more than the Rs 6.85 crore (78 per cent of TIO) in Q1-2015 and was 32.6 per cent more than the Rs 8.84 crore (78.9 per cent of TIO) in Q4-2015.

     

    Employee benefit expense in Q1-2015 at Rs 0.55 lakh was 13.4 per cent lower than the Rs 0.63 crore in Q1-2015 but was almost flat (0.3 per cent higher) than the Rs 0.548 crore in Q4-2015.

  • Q1-2016: PVR PAT improves more than sevenfold; to raise Rs 500 crore

    Q1-2016: PVR PAT improves more than sevenfold; to raise Rs 500 crore

    BENGALURU: Indian motion picture exhibition, production and distribution house PVR Limited (PVR) reported more than sevenfold increase in profit after tax (PAT) in the quarter ended 30 June, 2015 (Q1-2016) as compared to the corresponding year ago quarter. 

     

    PVR’s PAT for Q1-2015 was Rs 58.45 crore (12 per cent of Total Income from Operations or TIO), while in Q1-2015, it was Rs 7.66 crore (2.1 per cent of TIO). The company had reported a loss of Rs 35.66 crore in the immediate trailing quarter (Q4-2015) citing impact by poor movie content and World Cup Cricket towards the end of FY-2015. 

     

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

    All numbers are consolidated unless stated otherwise.

     

    Additionally, PVR’s board of directors has also approved to raise a sum of Rs 500 crore by issuing Non Convertible Debentures (NCD) subject to approval by the members of the company in the forthcoming Annual General Meeting.

     

    The board also approved the scheme of merger of PVR Leisure Limited and Lettuce Entertain You Limited with the Company.

     

    Approval was also given for the allotment of 50,00,000 equity shares priced at Rs 700 per share of face value Rs 10 each equity share at a premium of Rs 690 per share aggregating to Rs 350 crore on preferential basis to Plenty Cl Fund I Limited, Multiples Private Equity Fund II LLP and Plenty Private Equity Fund I Limited.

     

    Box Office performance

     

    This quarter has seen the release of some hits and super hits like Tanu Weds Manu Returns (Gross Box Office or GBO Rs 46.9 crore, 25 lakh admits, Average Ticket Price or ATP Rs 185); Piku (GBO Rs 27.7 crore, 15 lakh admits, ATP Rs 186); Fast and Furious 7 (GBO Rs 26.6 crore, 15 lakh admits, ATP Rs 174); ABCD2 (GBO Rs 23.4 crore, 13 lakh admits, ATP Rs 183); and Avengers-Age of Ultron (GBO Rs 24.4 crore, 13 lakh admits, ATP Rs 182) that have driven the resurgence in revenue as well as PAT.

     

    Net Box Office (NBO) collections in the current quarter increased 34.96 per cent to Rs 274.19 crore from Rs 203.16 crore in Q1-2015. Q1-2016 saw admits increasing by 25 per cent to 1.9 crore with an occupancy of 38 per cent as compared to 1.52 crore with an occupancy of 32 per cent in Q1-2015. ATP in the current quarter also improved to Rs 183 from Rs 176 in Q1-2015.

     

    While the share of NBO as percentage of TIO has gone up fractionally in Q1-2016 to 59.3 per cent (Rs 249.12 crore) from 59.2 per cent (Rs 197.61 crore) in Q1-2015, Food and Beverage (F&B) share has gone up to 28 per cent (Rs 117.87 crore) from 25.9 per cent (87.04 crore) in Q1-2015, advertising share has dropped in percentage terms but increased in value terms to Rs 41.62 crore (9.9 per cent) in the current quarter from Rs 35.2 crore (10.2 per cent) and others contribution has dropped to 2.8 per cent (Rs 12 crore) from Rs 14.95 crore (4.5 per cent).

     

    Let us look at the other numbers reported by PVR

     

    The company has reported positive results in Q1-2015 from all its revenue generating segments, which include movie exhibition, movie production and distribution as well as ‘Others,’ which includes bowling, gaming and restaurant services, etc. As a matter of fact, the ‘Others’ segment has returned an operating profit of Rs 0.82 crore in Q1-2016 as compared to operating losses of Rs 2.46 crore and Rs 1.46 crore in Q1-2015 and Q4-2015 respectively.

     

    TIO in Q1-2016 at Rs 486.02 crore was 34.2 per cent more than the Rs 362.26 crore in the corresponding year ago quarter and was 62.3 per cent more than the Rs 299.55 crore in Q4-2015.

     

    Net F&B revenue increased by 45.9 per cent in Q1-2016 to Rs 129.79 crore from Rs 88.97 crore in the corresponding year ago quarter. Spend per head has increased 16 per cent to Rs 74 in Q1-2016 from Rs 63 in Q1-2015. The company says that it has managed to lower the cost of goods and sold (COGS) by 4.1 per cent in Q1-2016 to 24.9 per cent from 29 per cent in Q1-2015.

     

    PVR’s sponsorship revenue has gone up 27.5 per cent to Rs 45.69 crore in Q1-2016 from Rs 35.84 crore in Q1-2015. The company says that eight blockbusters in the quarter helped maximizing revenues namely Tanu Weds Manu Returns, Fast & Furious 7, Piku, Avengers, ABCD2, Jurassic World, Dil Dhadakne Do and Gabbar is Back.

     

    Total expense in Q1-2016 at Rs 402.77 crore (82.9 per cent of TIO) was 19.6 per cent more than the Rs 336.68 crore (92.9 per cent of TIO) in Q1-2015 and was 28.2 per cent more than the Rs 314.12 crore (104.9 per cent of TIO) in the immediate trailing quarter.

     

    The company’s film exhibition cost increased 30 per cent to Rs 113.69 crore (23.4 per cent of TIO) in Q1-2016 as compared to the Rs 87.48 crore (24.1 per cent of TIO) in Q1-2015 and increased a massive 80.6 per cent as compared to the Rs 62.96 crore (21 per cent of TIO) in Q4-2015.

     

    F&B and other cost in Q1-2016 increased 25.2 per cent to Rs 34.59 crore (7.1 per cent of TIO) as compared to the Rs 27.63 crore (7.2 per cent of TIO) in Q4-2015. 

     

    Other expense in Q1-2016 increased 33.8 per cent to Rs 37.72 crore (7.8 per cent of TIO) as compared to the Rs 28.20 crore (7.8 per cent of TIO) in Q1-2015, but was 16.9 per cent lower than the Rs 45.38 crore (15.1 per cent of TIO) in the immediate trailing quarter.

  • Q1-2016: Bajaj Corp marketing spends up 33%

    Q1-2016: Bajaj Corp marketing spends up 33%

    BENGALURU: Bajaj Corp Limited spent Rs 40.60 crore (18.5 per cent of Operating Revenue or Total Income from Operations or TIO) in the quarter ended 30 June, 2015 (Q1-2016), which was 33 per cent more than the Rs 30.53 crore (16 per cent of TIO) in the corresponding quarter of the previous year and almost flat (less by 0.8 per cent) as compared to the Rs 40.92 crore (17.3 per cent of TIO) in Q4-2015. Please refer to Fig A below.

    Note:

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

    (2) Bajaj Corp Limited is a subsidiary of Bajaj Resources Limited (BRL) and is an exclusive licensee of the brands owned by BRL for a period of 99 years starting 2008.

    (3) 100,00,000 = 100 lakh = 10 million = 1 crore

    Marketing Expenses

    The company’s Ad spends in the current quarter at Rs 15.28 crore (seven per cent of TIO) was 16 per cent more than the Rs 13.17 crore (6.9 per cent of TIO) in Q1-2015 and 0.9 per cent more than the Rs 15.15 crore (6.4 per cent of TIO) in Q4-2015. 

    Bajaj Corp’s Sales Promotion spends in Q1-2016 at Rs 25.32 crore (11.6 per cent of TIO) was 45.8 per cent more than the Rs 17.36 crore (9.1 per cent of TIO) in Q1-2015 and was 1.75 per cent lower than the Rs 25.77 crore (10.9 per cent of TIO) in the immediate trailing quarter.

    During the fourteen quarter period starting Q4-2012 until Q1-2016 (current quarter), Bajaj Corp’s ASP has been the highest in terms of absolute rupees in the previous quarter (Q4-2015) at Rs 40.92 crore (17.6 per cent of TIO).  The company’s highest ASP during the period under consideration in terms of percentage of TIO was in Q3-2015 at 19.6 per cent of TIO (Rs 40.24 crore). The lowest ASP during the period under consideration in terms of absolute rupees as well as percentage of TIO was in Q1-2013 at Rs 17.36 crore and 12.6 per cent of TIO.

    Bajaj Corp’s highest Ad spends in absolute rupees during the period under consideration was in Q3-2015 at Rs 17.56 crore (8.5 per cent of TIO), while the highest Ad spends in terms of percentage of TIO was in Q1-2014 at 8.8 per cent (Rs 14.98 crore).

    The company’s highest Sales Promotion spends in terms of absolute rupees during the period under consideration was Rs 25.77 crore(10.9 per cent of TIO) in the previous quarter, while the highest Sales Promotion spends in terms of percentage of TIO was in Q3-2014 at 12.4 per cent (Rs 19.70 crore).

    During the fourteen quarter period under consideration, both ASP and Sales Promotion spends show a linear increasing trend in terms of percentage of TIO, while Ad spends in terms of percentage of TIO shows a slight declining trend.

    Revenue, profits

    Bajaj Corp TIO in Q1-2016 at Rs 219.1 crore was 14.5 per cent more than the Rs 191.32 crore in Q1-2015, but was 7.2 per cent lower than the TIO in Q4-2015 at Rs 236.17.

    Profit after Tax (PAT) in Q1-2016 at Rs 47.51 crore (21.7 per cent of TIO) was 19.9 per cent more than the Rs 39.62 crore (20.7 per cent of TIO) in Q1-2015 but was 12.7 per cent lower than the PAT in Q4-2015 at Rs 54.42 crore (23 per cent of TIO). PAT in the previous quarter was the highest in absolute rupees during the period under consideration. PAT in terms of percentage of TIO was highest at 28.5 per cent (Rs 42.20 crore) in Q3-2013.

    During the fourteen quarter period under consideration, both TIO and PAT in absolute rupees show a linear increasing trend, while PAT in terms of percentage of TIO shows a linearly declining trend.

    Brands

    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.

    Market Share of Hair Oils

    The company is a market leader in the light hair oil and the almond drop hair oil categories in India as per its investor presentation. Bajaj Corp claims a market share in the country of 58.9 per cent in terms of volume Q1-2016, same as the market share in FY-2015 in the light hair oil category. In value terms the company claims a 60.9 per cent, up 20 basis points as compared to the 60.7 per cent during fiscal 2015. On an all India basis, Bajaj Corp reports proportion of 62.8 per cent urban market share and a 37.8 per cent rural market share for light hair oil in terms of volume.

    In the previous fiscal, the company’s market share had improved by 100 basis points in terms of volume from the 57.9 per cent in FY-2014. In value terms, the company’s market share had increased 120 basis points as compared to the 59.5 per cent in FY-2014.

    Light hair oil category in India has grown by 6.9 per cent in volume and has grown by 10.2 per cent in value Q1-2016 as compared to the corresponding year ago quarter.

    In the Almond drop hair oil category, the company claims an urban market volume share of 59 per cent in the country with an urban/rural market share of 56.5 per cent and 63.1 per cent respectively. Growth rates for the current period for almond drop hair oil have not been mentioned by the company in its investor presentation for Q1-2016.

    Click here to read unaudited financial results

    Click here to read investor presentation 

  • Pantene appoints Anushka Sharma as brand ambassador

    Pantene appoints Anushka Sharma as brand ambassador

    NEW DELHI: Bollywood actress Anushka Sharma is the face of the “new and best ever” Pantene (#AnushkaforPantene).

     

    Sharma said, “I love experimenting with my hair! Whether it’s my current wob, or a fringe cut or colouring my hair, but with my busy schedule and hectic lifestyle, my hair is exposed to a lot of chemicals, styling treatments and worst of all pollution, dust and heat.”

     

    “When Pantene approached me with what they claimed to be the new and best ever Pantene, I had my doubts – is this new Pantene really the best ever? Will it give me my desired hair? Well I had to put it to test and I was definitely surprised! After using Pantene, I have to admit I saw a change in my hair. My hair looked visibly healthy and felt so soft! And what’s more? I saw these results almost immediately. From the first wash itself I felt it works from within. My hair just soaks it all up and over time I’ve noticed how my hair has gotten stronger, shinier and more manageable. The new best ever Pantene has given me my best ever hair – which is stronger inside and shinier outside,” she added.

     

    Sharma has been known for her natural beauty and style of experimenting.

  • Q1-2016: HUL y-o-y marketing spends up 22%

    Q1-2016: HUL y-o-y marketing spends up 22%

    BENGALURU:  Indian FMCG giant Hindustan Unilever Limited’s (HUL) Advertisement and Promotions expense (marketing spends, ASP) in Q1-2016 (quarter ended 30 June, 2015) was 22.1 per cent more at Rs 1153.39 crore (14.2 per cent of Total Income from operations or TIO, approximately $181.4 million) than the Rs 944.88 crore (12.2 per cent of TIO) in Q1-2015 and was 12.2 per cent more than the Rs 1027.89 crore (13.4 per cent of TIO) in Q4-2015.

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

    (2) All figures in this report are standalone figures filed by the company. The trends are based on the numbers submitted by the company or picked up from the company’s website. For performance of HUL’s various product lines please refer to the attached earnings release for Q1-2016.

    (3) The US dollar figures are approximately based on a conversion rate of 1US$ = Rs 63.57.The converted numbers have been rounded off.

    HUL chairman Harish Manwani said, “In a subdued market environment, the business delivered another quarter of healthy volume led growth and strong improvement in operating margin. We are particularly pleased with the stepped up momentum in personal products and the sustained double digit performance in packaged foods. With the near term outlook largely dependent on pickup in rural markets and commodity costs expected to remain benign with little or no price growth across select categories, our focus will be to drive market development and simultaneously deliver cost efficiencies to sustain profitable volume led growth.”

    Advertising and Sales Promotion trends

    As a matter of fact, HUL’s ASP in Q1-2016 is the highest during a 13 quarter period starting Q1-2013 until Q1-2016, both in terms of percentage of TIO and in absolute rupees. During the period under consideration in this report, ASP in absolute rupee spends shows a marked linear increasing trend, while ASP in percentage of TIO terms shows a slight linear increasing trend, though more marked than until the previous quarter. The company’s lowest ASP was in Q2-2013 at Rs 768.98 crore  (12.2 per cent of TIO) in absolute rupee spends during the period under consideration, while the lowest in terms of percentage of TIO was in Q4-2014 at 11.8 per cent of TIO (Rs 840.34 crore). Please refer to Fig A below.

    If the company follows the trends of the past three fiscals, at least one or more quarter in FY-2016 will see higher ASP in terms of absolute rupees than Q1-2016.

    HUL Revenue and PAT

    HUL reported five per cent growth in TIO in Q1-2016 at Rs 8105.13 crore as compared to the Rs 7716.34 crore in Q1-2015 and reported 5.6 per cent growth as compared to the Rs 7094.01 crore in the immediate trailing quarter. The company’s TIO shows a linear increasing trend as indicated by the broken blue trend line in Fig B below. TIO in Q1-2016 is the highest reported by the company during the 13 quarter period under consideration in this report.

    HUL’s PAT in Q1-2016 was almost flat (higher by 0.2 per cent) at Rs 1059.14 crore (13.1 per cent of TIO) as compared to the Rs 1056.85 crore (13.7 per cent of TIO) in the corresponding quarter of last year and was four per cent more than the Rs 1018.08 crore (13.3 per cent of TIO) in Q4-2015. During the period under consideration, HUL’s highest PAT was in Q1-2013 at Rs 1331.19 crore (20.9 per cent of TIO), both in terms of absolute rupees and in percentage of TIO. While PAT in absolute rupees shows a linear increasing trend as indicated by the broken pink trend line in Fig B below, while in terms of percentage of TIO, the linear trend is declining as indicated by the broken yellow line below.

    HUL Speak: Category and brand growth 

    HUL says that during Q1-2016, its domestic consumer business grew at five per cent, with six per cent underlying volume growth. The growth in the quarter was impacted by the phasing out of excise duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers.

    Soaps and Detergents

    In Skin Cleansing, the performance was driven by the premium segment, with Dove and Lifebuoy Handwash delivering strong growth.

    In Laundry, Surf maintained its strong volume led growth momentum with broad based double digit growth. Rin did well on the bars portfolio, while Comfort Fabric Conditioners delivered another quarter of high growth on sustained market development.

    In Household Care, Vim delivered double digit volume growth, driven by the tubs and liquids formats.

    The quarter witnessed further price deflation across these categories given benign input costs.

    Personal Products

    Skin Care delivered broad based volume led growth across Fair and Lovely, Pond’s, Lakme and Vaseline. Fair and Lovely saw an encouraging response to the newly launched BB cream. Pond’s performance was led by premium skin lightening and facewash while Lakme’s growth was buoyed by CC Cream, Perfect Radiance and new innovations.

    Hair Care maintained its strong volume led growth momentum. Dove growth accelerated further, while Clinic Plus, Sunsilk and TRESemmé continued to deliver robust growth.

    In Oral Care, Close Up grew in double digit, supported by impactful market activation. In Pepsodent, the Gum Care and Clove & Salt variants continued to do well, with the latter been extended nationally during the quarter.

    In Colour Cosmetics, Lakme sustained its strong innovation led performance across the core, Absolute and 9 to 5 ranges.

    Beverages

    Tea delivered double digit growth with healthy volumes, led by Red Label and another strong quarter on Lipton Green Tea. In Coffee, Bru Gold sustained its robust growth momentum.

    Packaged Foods

    Market development continues to be the key driver of growth in this segment says HUL. Kissan delivered one of its strongest quarters as growth accelerated across both ketchups and jams. Knorr grew despite a sharp market slowdown in the quarter, led by instant soups. Ice creams registered double digit growth, driven by sharper in-market execution on Kwality Walls and the extension of Magnum to new cities.

    Water

    Pureit sustained its growth ahead of a slowing durables market, with premium devices delivering another quarter of double digit growth. The category performance continued to be led by modern trade, ecommerce and Perfect Stores

    Click here to read the unaudited financial statement