Vadilal Industries Limited · NSE:VADILALIND
Vadilal Industries — FY19 & Q1FY20 Earnings Presentation
29 slides from Vadilal Industries's earnings presentation, Sep 13, 2019
Slide 1: Exchange filing cover letter for earnings presentation
“pimp Date: 13'" September, 2019 To, To The National Stock Exchange of India Ltd. Department of Corporate Services, Exchange Plaza, BSE Limited, Plot no. C/A, G Block, Phiroze Jeejeebhoy Towers Bandra-Kurla Complex Dalal Street, Fort, Bandra (E), Mumbai - 400 051. Mumbai - 400 001. Scrip Code No. VA
Slide 2: Vadilal Industries FY19 & Q1FY20 Results Presentation
VADILAL INDUSTRIES FY19 & Q1FY20 Results Presentation
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward- looking statements are subject to certain risks and uncertainties, like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ m
Slide 4: Table of Contents
Table of Contents Vadilal Financial 1 Performance 3 Industries Overview Financial 2 Performance 4 Outlook Trends 3
Slide 5: FY19 & Q1FY20 Financial Performance
FY19 & Q1FY20 Financial Performance
Slide 6: Management's Message
Management’s Message Commenting on the performance, Mr. Rajesh Gandhi, Director, Vadilal Industries Limited “During FY19, we have delivered 3% growth in reported revenues. However, adjusted for changes in billing methodology in domestic sales, consolidated revenue growth is 13%. Domestic revenues de
Slide 7: Abridged Profit and Loss Statement
Abridged Profit and Loss Statement Consolidated Q1FY20 Q1FY19 Q4FY19 Q4FY18 FY19 FY18 Revenue 260.9 231.1 13% 114.7 127.1 -10% 577.9 558.6 3% Gross Profit 127.5 111.3 15% 53.1 58.8 -10% 282.9 246.0 15% EBITDA 67.8 57.6 18% -0.02 9.5 -100.2% 82.8 59.3 39.8% EBITDA Margins 26.0% 24.9% +105 BPS -0.01%
Slide 8: Financials – FY19 & Q1FY20 Performance
Financials – FY19 & Q1FY20 Performance Revenue In FY19 VIL revenues grew by 3% y-o-y and in Q1FY20 it grew by 13% y-o-y 558.6 577.9 In FY19 Domestic business declined by 7% y-o-y owing due to severe weather conditions/extended winter towards the end of the year; Domestic business increased by 3%
Slide 9: Financials – FY19 & Q1FY20 Performance
Financials – FY19 & Q1FY20 Performance EBITDA 67.8 EBITDA margin in FY19 increased by ~400 basis and in 65.9 57.6 54.4 Q1FY20 it increased by ~105 bps on account of tight control on operating expenses and focus on efficiency Continue to focus on rationalization of debt: o Reconstituted outstandi
Slide 10: Financials Performance Trends
Financials Performance Trends
Slide 11: Financials Performance Trends
Financials Performance Trends Revenue (Rs. cr) 558.6 577.9 449.7 482.2 406.3 FY15 FY16 FY17 FY18 FY19 Domestic International 462.1 148.7 413.5 428.0 429.2 361.8 96.5 44.5 54.2 36.2 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Consolidated financials in Rs. Crore 10
Slide 12: Financials Performance Trends
Financials Performance Trends EBITDA 65.9 Longer term, consumer behavior is transitioning with 59.4 60.2 54.4 increasing acceptance for western desserts. 42.6 o Domestic business growth, temporarily impacted by recent changes in operating environment and consumption spending, is now reverting to h
Slide 13: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Debt Other Non-Current Liabilities 180.2 Liabilities 207.0 154.3 161.8 160.1 148.3 29.4 31.1 160.8 175.3 26.6 113.5 127.1 20.6 16.5 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Net Fixed Assets Other Non-Current Net
Slide 14: Financials Performance Trends – Cash Flows
Financials Performance Trends – Cash Flows Operating Cash Flow Free Cash Flows 51.8 62.2 51.7 53.4 41.3 30 24.7 28.5 7.1 1.4 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Estimated capex for FY 20 at ~ Rs. 30 crore Consolidated financials in Rs. Crore 13
Slide 15: Vadilal Industries Overview
Vadilal Industries Overview
Slide 16: Overview
Overview Second Largest range Strong 111-year old, largest ice Expanding of ice creams distribution established cream global of any network in ice cream manufacturer business company in North, West brand in India by presence India and East India volume Currently Top 3 ice-cream Leadership in key 16
Slide 17: Vadilal: Growth Strategies
Vadilal: Growth Strategies Geographical Expansion Retail Investments New Product Development Expanding footprint in North and East 10,000 new sales outlets planned in Constantly innovating to roll out new regions of India FY20 products in domestic and global New production facility expected
Slide 18: Ice Creams - Brands Portfolio
Ice Creams - Brands Portfolio Largest range of ice creams of any company in India 300 SKU’s of cones, candies, bars, ice lollies, cups, family packs, economy packs Constantly innovating to roll out new products in ice cream segment 17
Slide 19: Indian Ice Cream Market
Indian Ice Cream Market Evolving perceptions Innovative product development Ice cream is transitioning from periphery Shift from limited portfolios of to mainstream, from occasional traditional products to innovative, indulgence to snacking option global-standard offerings Changing demand patterns E
Slide 20: Growing International Presence
Growing International Presence Exporting ice-creams, frozen desserts and processed food products Key markets – US, Canada, UK, Kuwait, Qatar, Bahrain, UAE, Singapore, Australia, New Zealand Focused on Indian diaspora globally and adhering to international food standards Two decades of experi
Slide 21: Robust Expansion in U.S. market
Robust Expansion in U.S. market Latent demand for quality Indian products driving strong volume growth in US ice cream sales 50-member team reaching 40 plus US states and ~70% of local Indian diaspora Deriving significant benefit from the existing processed foods distribution network in the US
Slide 22: International Product Portfolio
International Product Portfolio 21
Slide 23: Production Facilities
Production Facilities Capacity expanded from 270,000 liters per day to 380,000 liters per day over the past few years Current production on automated processes “untouched by hand”, manual intervention only at packaging stage Focused production lines for international standard manufacturing for
Slide 24: Deep Domestic Distribution Presence
Deep Domestic Distribution Presence 12 14 8 States Distributor Distribution network comprises 16 13 9 1 Uttar Pradesh 252 of over 55,000 retailers, over 10 Bareilly 2 Gujarat 169 1,240 large distributors, 63 3 Rajasthan 163 CNFs, 290 distribution vehicles 15 1 and almost 300 SKUs. 3 5 4 Madhya Prade
Slide 25: Awards and Accreditations
Awards and Accreditations 24
Slide 26: Outlook
Outlook
Slide 27: Planned Initiatives
Planned Initiatives Deep penetration in US market, targeting Accelerating new expanded presence product in other Aggressive development both geographies that expansion of sales for domestic and are home to large generating international Indian populations assets/cold supply markets and improving cha
Slide 28: Contact Us
Contact Us Kalpit Gandhi Vadilal Industries Ltd Tel: +79-30921200 Email: kalpit@vadilalgroup.com Shiv Muttoo / Karl Kolah CDR India Tel: 98335 57572 / +91 22 6645 1220 Email: shiv@cdr-india.com karl@cdr-india.com
Slide 29: Thank You
Thank You
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