BUILDING SCALE- LEVERAGING GROWTH OPPORTUNITIES, Jyothy Labs Q1FY23 Results.
Mumbai, July 25, 2022: Jyothy Labs Limited, one of the leading Indian FMCG companies announced today its financial results for the quarter ended June 30, 2022. The Company delivered sales of Rs 597 crores, increase of 13.7% growth against the same period last year.
The Company continues to strengthen its core business with focus on distribution which has resulted in double digit growth for the quarter and as well as on a 2 year CAGR basis.
The quarter has witnessed household budget of the consumer being impacted by high inflationary pressure leading to an overall dip in the consumption of FMCG products.
We have leveraged on our expanded distribution platform which has helped us to mitigate the slowing consumption environment by focussing on sales of our existing product portfolio in newer geographies
Given the hot summers with record temperatures this year, the demand for main wash, post wash and soap segment products have seen a good increase while the extreme weather adversely impacted the household insecticide sales specially in our core market of North and East of India.
Our profitability has been impacted due to significant input costs inflation persisting across our product categories.
We will continue to focus on technology led distribution, increase our brands visibility and improve productivity in all spheres of business to maintain healthy balance between higher volume growth, market share and margins.
FINANCIAL HIGHLIGHTS (Q1FY2023 Consolidated results over same period last year)
· Net Sales at Rs. 597 Crores, up by 13.7%. Volume Growth 5% (Ex-HI 21.8%)
· EBITDA margin at 10% at Rs. 59.8 Crores
· Net Profit at Rs 47.7 Crores, up by 18.7%
SEGMENT PERFORMANCE:
FABRIC CARE - Fabric Whitener, Fabric Enhancer, Bar Soap, Detergent Powder and Liquid Detergent.
Fabric Care sales increased by 38.6% for Q1FY23 over same period last year. The segment has seen improvement in sales across all brands. Our expanded distribution has helped us to accelerate sales of select detergent powder brands on a Pan India Basis.
DISHWASHING - Dish Wash Bar, Liquid, Gel, Powder and Scrubbers.
Dishwashing sales increased by 9.6% for Q1FY23. The growth is supported leveraging on our two brands portfolio wherein both Exo and Pril has been able to establish itself as the clear brand of choice among consumers. Further, we are leveraging on the rural category penetration of the bars and use of digital mediums to reach out to consumers.
HOUSEHOLD INSECTICIDES - Mosquito Repellent Coil, Incense Sticks and Liquid Vaporizer.
Household Insecticides sales decreased by 37.5% for Q1FY23. The decline is partly due to extreme weather conditions which impacted the demand in our strong areas of North & East of India and high base in Q1FY22. On a 3 year CAGR basis, the portfolio grew by 20.9%. Inspite of seasonality, growth outlook is positive.
PERSONAL CARE - Body Soap, Face Wash, Hand Wash, Sanitizer and Toothpaste.
Personal Care Sales increased by 2.1% for Q1FY23 over same period last year. Our Neem based Margo portfolio of Soaps continues to be consumer preference for its authenticity.
Commenting on the financial performance of Q1FY2023, Ms. M R Jyothy, Managing Director, Jyothy Labs Limited said “Our operating performance has been stable inspite of several short term challenges on demand side and high input prices.
We have leveraged our expanded distribution and targeted market development initiatives in focusing on several growth opportunities which have helped us in reducing the impact of slowing consumption environment.
We have delivered double digit revenue growth for the last few quarters and will focus on relentless execution and are determined to continue to win market shares by building scale in our operations”
About Jyothy Labs Limited:
Jyothy Labs Limited (JLL), one of the leading Indian FMCG Companies was founded in 1983 with a single brand ‘Ujala’ which has evolved into a multi brand, BSE & NSE listed Company involved in the manufacturing and marketing of products in fabric care, dishwash, mosquito repellent and personal care.
The Company has leading brands like Ujala, Maxo, Exo, Henko, Pril, Margo, Mr. White, T-Shine, Neem, Maya and MoreLight that are well-known and established brands in their respective categories. The Company also runs an organized laundry chain which provides ‘World class laundry at affordable price at your doorstep’ through its subsidiary ‘Jyothy Fabricare Services Limited’.
