Whirlpool of India Limited has informed the Exchange about Investor Presentation
February 07, 2025
The Manager Listing Department BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai, Maharashtra - 400001
The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra – 400051
Scrip Code: 500238
Symbol: WHIRLPOOL
Dear Sir/Madam,
Subject: Presentation - Earnings Conference Call
Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in continuation of our intimation letters dated 29th January, 2025 and 05th February, 2025 wherein we had informed the schedule of the Earnings Conference Call for Q3 FY 2024-25, please find enclosed herewith the presentation to be made at the earnings conference call scheduled today i.e, on 07th February, 2025.
The same will also be uploaded on the Company’s website at www.whirlpoolindia.com.
Yours faithfully,
For Whirlpool of India Limited
Roopali Singh VP-Legal and Company Secretary
Plot No. 40, Sector 44, Gurugram, Haryana
Encl: as above
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Welcome to Earnings Conference Call of Whirlpool of India Limited
The Call will begin at 04:00 PM
Whirlpool of India Limited Corporate Presentation February 07, 2025
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Cautionary Statement
This Presentation/Communication, except for the historical information, may contain statements, including the words or phrases such as 'expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should' and similar expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or otherwise are forward looking statements. These forward looking statements are based on certain expectations, assumptions, anticipated developments and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth, intense competition and the pricing environment in India, ability to maintain and manage key customer relationships and supply chain sources and those factors which may affect our ability to implement business strategies successfully, namely changes in regulatory environments including tax laws and other statutes, change in input costs and new or changed priorities of the trade. Whirlpool of India Ltd (“Company/WOIL”), therefore, cannot guarantee that the forward-looking statements made herein shall be realized. The Company, based on changes as stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward looking statements as may be required from time to time on the basis of subsequent developments and events. The reader should review the risk factors set out in the most recent annual report for a list of risks that could cause actual results to differ materially from the forward looking statements.
This presentation and its contents must not be distributed, published or reproduced. This presentation does not constitute a recommendation regarding the securities of the Company. The analysts/investors are therefore requested to use their independent judgements & experience when making investments and other business decisions. The Company does not undertake any obligation or responsibility to update, modify or revise forward looking statements that may be made from time to time by or on behalf of the Company to reflect the events or circumstances after the date hereof.
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Cautionary Statement
Certain statements may be made on this call relating to the anticipated sell-down by Whirlpool Corporation (“WHR Corp”), its rationale, views on its expected impact on Company’s continued business and related matters, which constitute “forward-looking statements” within the meaning of the applicable laws. There can be no guarantee that any proposals/ anticipated transactions discussed here will be consummated in the manner currently expected, or that WHR Corp’s expectations regarding ownership status, rationale, expected impact or outcomes will be maintained. While any forward-looking statements made here are based upon what are believed to be reasonable assumptions, it cannot be assured that actual results will be consistent with these forward-looking statements or will not be materially different. The statements made on anticipate sell-down are solely being made by WHR Corp and should not be attributed to WOIL or its management team in any manner.
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Agenda
1 Business Overview
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3
Strategic Imperatives
Financial Performance
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1
Business Overview
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India Standalone: Sustaining the Momentum Thru Apr-Dec
● Revenue growth of 17% vs LY
● Robust P4G (Cost takeout) program leading to gross margin improvement of 220 bps
● PBT growth of +100% vs LY … PBT% improvement of 210 bps
● Strong share gain in triple digits bps vs LY in both Ref and Washers
● Positive results from ROI based investments
● Working capital turned negative in Sep’24 … -3% in Sep 24 vs +5% in Sep 23
● Consistent healthy cash generation
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Clear Turnaround of Business in 24-25 With Strong Profit Growth
Standalone Revenue from Operations Growth %
Standalone Profit Before Tax* Abs Growth % vs LY
Impacted by Covid, Cost Competition
Tale of two halves
Sustained MS growth with strong execution
FY 1.9%
FY 1.2%
*Profit before tax is before exceptional item
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Improving T2 (Refrigerator & Washers) Market Share Trend
Jan 23 - Mar 23
Apr 23 - Sep 23
Oct 23 - Mar 24
Apr 24 - Jun 24
Jul 24 - Sep 24
Oct 24 - Dec 24
*Market:
Mid Single Digit Growth
Flattish Growth
Mid Single Digit Growth
Low Double Digit Growth
Flattish Growth
Mid Single Digit Growth
Whirlpool of India:
Impacted by price index challenges … Price correction + New direct cool ranges (Mar’23)
Execution step-up + Frost-Free range upgrades
Deployed addnl.REs# and mix drive
New products, stronger executional focus, washer extended warranty
Addnl REs & Washers promotion
Strong festival execution + New AirCon range
Volume Market Share*: (YOY)
- - -
- -
++
+++
+++
+++
*Volume Market Share is Combined for Ref & Washer from Multi Brand Outlets # Retail executive
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Market Share Trends at Category Axis
DC
NF
SA
VA
HA
Jan23 - Mar23
Apr 23 - Sep 23
Oct 23 - Mar 24
Apr 24 - Jun 24
Jul 24 - Sep 24
Oct 24 - Dec 24
- - - - - - - - - - - -
++
+++
+++
+++
+++
- - - - -
- - - -
++
- -
++
++
+++
++
flat
+++
+++
+++
+++
+++
+++
+++
++
++
+++
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Cost Productivity Programs Driving GM Improvement
Gross Margin% Improvement vs Last Year
Note: Gross Margin is calculated as Revenue from sale of products less cost of raw materials, components, purchase of traded goods and change in inventories.
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Efficient Inventory Management Drives Negative Working Capital
Note: Working capital is sum of trade receivables and inventory less trade payables (inc. non current trade payables). WC % to Net Revenue is calculated on Net revenue from sale of goods.
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Strategic Imperatives
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Our Strategic Imperatives…
INSPIRE GENERATIONS WITH OUR BRANDS
WIN WITH PRODUCT LEADERSHIP
EXCELLENCE IN EXECUTION
BUILD A COMPETITIVE AND RESILIENT SUPPLY CHAIN
GROW OUR CONSUMER DIRECT BUSINESS
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Inspire with Brands: Frost Free TV Campaign
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Inspire With Brands: Collaboration With Unilever
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Penetration Driving - Washing Machine and Liquid Detergents and Joint Marketing Campaign live on 15th June
TV Campaign Co-branded dirt removal campaign
Sampling, OnPack endorsement Sampling, On pack, on product Sticker
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Inspire with Brands: Extended Warranty on Washers
5 Years Comprehensive Warranty on Front Load Fully Automatic Washers
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4 Y e a r s C o m p r e h e n s i v e W a r r a n t y o n S e m i A u t o m a t i c W a s h i n g M a c h i n e Product Leadership: New Product Launches Product Leadership: New Product Launches
New DC Glass Door Range
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Product Leadership: Dynamix Detergent Dispenser
DYNAMIX TECHNOLOGY Hydrodynamic fins vigorously mix the detergent with water, ensuring no detergent coagulation and, hence, offering a supreme wash zero resulting experience detergent patches.
in
`
l
s e d o m
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i
Zero Detergent patches*
Scrub Zone for collars
Hydrodynamic Fins for efficient mixing
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Excellence in Execution and Creating a Consumer - Centric Service Organization
Aim: Win Every Day in Every Store with Every Consumer
Strong NPS Improvement
Invested in front end capability and capacity
Stronger sales & service execution, driving premiumization
100
50
0
Stronger visibility of premium lines and new ranges
Right pricing strategy specially on premium lines
Leverage great customer relationships
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Differentiated call centre with dedicated premium, top 20 city and escalation desks
Differential Operational Service Transformation leveraging technology
Consistent improvement in service KPIs and profitable growth through in-house service centres set up in 2022
Source: NPS: Net Promoter Score is a consumer responses rating to Company’s service requests
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Robust P4G Program Driving Improvement in Margins
Achieved Silver in Pune and Bronze
Significant step up in the material cost
in other two manufacturing sites
productivity actions
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3
Financial Performance
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Oct-Dec’24 (Q3) Standalone (Whirlpool Of India)
TOPLINE GROWTH
Revenue
1,565 Cr
YoY change
+12%
EBITDA* MOVEMENT
EBITDA* (% revenue)
44.3 Cr (2.8%)
YoY change
+13.4% (+0 bps)
PBT
PBT (% revenue)
36.5 Cr (2.3%)
YoY change
+64.6% (+75 bps)
●
Double digit revenue growth driven by
○
○
○
Strong triple digit market share improvement in Ref
and Washer vs last year
Festival driven industry growths in refrigerators and washer Segment premiumization
● Operational EBITDA grew by 51.7% before the impact of provision for an additional price upcharge vs last year on account of new E-Waste regulations
●
●
PBT improvement driven by strong volume growth, cost productivity actions, better pricing and improved mix of premium and high margin portfolio
PBT grew by 132.2% before the addnl. impact of E-Waste
* EBITDA is PBT before exceptional items, depreciation & amortization, other income and finance cost
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Oct-Dec’24 (Q3) Consolidated (Whirlpool + Elica)
TOPLINE GROWTH
Revenue
YoY change
1,705 Cr
+11.0%
EBITDA MOVEMENT
EBITDA* (% revenue)
YoY change
69.3 Cr (4.1%)
+10.6% (0 bps)
PBT
PBT (% revenue)
YoY change
59.2 Cr (3.5%)
+40.1% (+70 bps)
* EBITDA is PBT before exceptional items, depreciation & amortization, other income and finance cost
●
Revenue from operations up by ~11% driven by
○
○ ○
Strong triple digit market share improvement in Ref and
Washer vs last year
Festival driven industry growths in refrigerators and washer Segment premiumization
● Operational EBITDA grew by 35.3% before the impact of
provision for an additional price upcharge vs last year on account of new E-Waste regulations
●
●
●
PBT improvement driven by strong volume growth, cost productivity actions, better pricing and improved mix of premium and high margin portfolio. EBITDA grew despite higher E-waste
PBT grew by 76.8% before the addnl. impact of E-Waste
Elica continues to deliver double digit margins
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Apr-Dec 2024-25 Standalone (Whirlpool Of India)
TOPLINE GROWTH
Revenue
5,531 Cr
YoY change
+17.2%
EBITDA* MOVEMENT
EBITDA* (% revenue)
306 Cr (5.5%)
PBT
PBT (% revenue)
275 Cr (5.0%)
YoY change
+59.8% (+140 bps)
YoY change
+101.2% (+210 bps)
●
Apr-Dec’24 Revenue up by ~17.2% driven by
○
○
○
Strong triple digit market share gain in
refrigerators and washers vs last year
Summers and festival driven industry growth
Segment premiumization
●
EBITDA & PBT improvement driven by strong volume growth, cost productivity actions and improved mix of premium and high margin portfolio
* EBITDA is PBT before exceptional items, depreciation & amortization, other income and finance cost
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Apr-Dec 2024-25 Consolidation (Whirlpool Of India)
TOPLINE GROWTH
Revenue
5,915 Cr
YoY change
+16.1%
EBITDA* MOVEMENT
EBITDA* (% revenue)
367 Cr (6.2%)
PBT
PBT (% revenue)
329 Cr (5.6%)
YoY change
+41.6% (+110 bps)
YoY change
+70.1% (180 bps)
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●
Apr-Dec’24 Revenue up by ~16.1% Revenue growth driven by strong triple digit market share improvement in Ref and Washer vs last year and strong summer and festival led industry growth
EBITDA & PBT improvement driven by strong volume growth, cost productivity actions and improved mix of premium and high margin portfolio
* EBITDA is PBT before exceptional items, depreciation & amortization, other income and finance cost
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Q&A
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Thank you!
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