Performance Summary The Company managed to record sales of Rp 2.08 tn or grew by 8.8% compared to same period in the preceding year. Domestic grew by 11.1% while export grew by 2.1%. Sluggish growth on export due to unstable economic & political condition in some destination countries. The Company just launched GATSBY Styling Pomade Urban Dry and Perfect Rise. Those products expected could strengthen Hair Care category which as of September 2017 recorded 16.6% growth y-o-y. Cost of goods sold increased by 9.3% y-o-y and 12.4% q-o-q due to alcohol price increase as of July 2017. Nonetheless, Gross profit still growing by 6.7%. Operating expenses increased by 7.0 % y-o-y. Selling expenses maintained at Rp 582 bn or only increased by 6.2% y-o-y, while G&A Expenses increased by 9.1% y-o-y The company will take an effort to do several efficiencies on operating expenses. As of 9M2017 operating income grew by 10.6% while net income grew by 12.0%.
Business Result Statements of Income Rp Billion 9M2017 9M2016 Balance %Growth Net Sales 2,076,502 1,908,960 167,542 8.8% COGs 1,298,734 1,187,888* 110,846 9.3% Gross Profit 777,768 721,073* 56,695 7.9% Operating Expenses 581,735 543,789 37,946 7.0% Operating Income 196,034 177,284* 18,750 10.6% Net Income 161,636 144,274 17,362 12.0% Comprehensive Income 139,941 114,615 25,326 22.1% Basic Earnings per Share (in Rp) 804 718 86 12.0% Statements of Financial Position Rp Billion Dec 31, 2016 Dec 31, 2015 Balance %Growth Current Assets 1,282,545 1,174,482 108,063 9.2% Non-Current Assets 1,066,818 1,010,619 56,199 5.6% Total Assets 2,349,363 2,185,101 164,262 7.5% Current Liabilities 274,101 223,305 50,796 22.7% Non-Current Liability 234,600 178,637 55,963 31.3% Equity 1,840,662 1,783,158 57,505 3.2% Total Liabilities & Equity 2,349,363 2,185,101 164,264 7.5% Net Working Capital 1,008,444 951,177 57,267 6.0% Issued Shares (in number of shares) 201,066,667 201,066,667 201,066,667 Statements of Cash Flows Rp Billion 9M2017 9M2016 Balance %Growth Capital Expenditure 76,524 82,686-6,162-7.5% * Change due to reclassification account
Net Sales Net Sales by Geographical Segment Rp Billion 9M2017 9M2016 Balance %Growth Domestic 1,578,188 1,420,864 157,324 11.1% Export 498,314 488,096 10,218 2.1% Net Sales by Category 2,076,502 1,908,960 Rp Billion 9M2017 9M2016 Balance %Growth Men's 1,104,263 1,003,646 100,617 10.0% Women's 946,764 880,119 66,645 7.6% Others 25,475 25,195 280 1.1% Net Sales By Segment 2,076,502 1,908,960 Rp Billion 9M2017 9M2016 Balance %Growth Skin Care & Make Up 708,421 623,220 85,201 14% Hair Care 936,371 803,097 133,274 16.6% Fragrance 410,012 459,908-49,896-10.8% Others 21,698 22,735-1,037-4.6%
Sales by Region and Segments 459,908-10.8% 410,012 24.0% 623,220 13.7% 708,421 76.0% 16.6% 803,098 936,371 9M2016 9M2017 Domestic Export Hair Care Skin Care & Makeup Fragrance
Management Plan MID-5 Challenge, Change, Innovation (Continuously Performing) The year 2017 is the first year of the Stage 5 of the 3-Year Middle Range Management Planning (MID-5) which will end in 2019. The theme which will be used in MID-5 is Challenge, Change, Innovation (Continuously Performing). For that purpose, the Company will make effort to achieve this target by strengthening sales, domestic and international, through development of new products, expansion of distribution area, productivity improvement, and identification of new business categories which can support the Company s expansion.
Hairstyling Hair Care Hairstyling and Hair Color grew double digit As of 9M17 Hairstyling and Hair Color grew double digit both in domestic and export market. GATSBY Styling Pomade remains the darling of this category by recording significant growth during the period. Export of these products had shown a positive result as the products could be well accepted by the market. Besides GATSBY Styling Pomade, Hair Color also recorded double digit growth under TANCHO brand. To strengthen this category, the Company just launched new variants of GATSBY Styling Pomade namely Urban Dry and Perfect Rise. We will continuously innovating to strengthen our position as the leader of this category. Activities in 9M2017 GATSBY Sobi Sabi Show on Facebook Free Hair Cut at several events such as JakCloth, Markas (Kaskus), etc. GATSBY Hairstyles Guide on Instagram
Skin Care & Makeup PIXY Lip Cream introducing nude series Competition is getting tighter and we must maintain our efforts to grow in the market. Amidst stiffer competition in decorative makeup, on last August PIXY had launched new shades of PIXY Lip Cream. Those new colors expected to boost performance of decorative makeup. As of 9M17 decorative makeup has become the darling of this category by recording double digit growth. This result is in line with market condition whereas decorative makeup could record higher growth than base makeup and skin care categories. Activities in 9M2017 Blogger Gathering and Introducing New Shades of PIXY Lip Cream PIXY Tokyo Beauty Trip PIXY X GoGirl Magazine Event
Fragrance Sluggish growth due to low consumer purchasing power Fragrance category recorded sluggish growth during the period. As of 9M17 this category decline by 11% y-o-y. Men s fragrance quite stable while female fragrance slightly decreased due to stiffer competition. If we see generally, fragrance market showing stagnant growth this year. It s probably caused by low consumer purchasing power for this kind of products. Intensity of usage decrease from 1 bottle per month to 1 bottle for 1.5 month. However, fragrance with small package still showing a pleasant performance as small packaging is more affordable. Nevertheless, amidst this situation the Company will keep an effort to support this category by increasing brand awareness through several digital activity such as social media campaign. Activities in 9M2017 Love Me, Pink is a mini series from Pucelle. Available on Youtube. SocMed Campaign #SobiSabiShow SocMed Campaign #PucelleNgabuburit
Financial Ratios Return On Equity Return On Assets EBITDA Margin 27.8% 23.1% 32.2% 12.0% 8.3% 8.8% 8.7% 6.6% 6.9% 15.0% 14.7% 14.7% Earning Per Share BVPS Dividend Yield 753 2,264 718 804 IDR 6,269 IDR 8,135 IDR 8,687 Rp9,153 3.5% 2.1% 2.2% 2.1% *stock price : Sep 30
CORPORATE SECRETARY/ PR-INVESTOR RELATIONS Alia Dewi/Reza Azianur P: 62-21-2980 9500 F: 62-21-2980 9501 E: corporatesecretary@mandom.co.id W: www.mandom.co.id DISCLAIMER This report contains certain statements of future expectations and other forward-looking statements, including those relating to our general business plan and strategy, our future financial condition, and growth prospect. Forward-looking statements involve risk and uncertainty which could cause actual results and development to differ materially from those expressed or implied in these statements. All opinions and estimations included in this report constitute our judgement as of the said period and are subject to changhave been taken in reliance on this report will bring specific result as expectede without prior notice. Mandom Indonesia does not guarantee that any actions, which should