Faran Sugar Mills Ltd · PSX:FRSM
Faran Sugar Mills — Investor Presentation (2020)
26 slides from Faran Sugar Mills's investor presentation, 2020
Slide 1: Corporate Briefing Session 2020
CORPORATE BRIEFING SESSION 2020
Slide 2: Sugar Industry Overview
Sugar Industry Overview •About 110 countries produce sugar from either cane or beet, and 8 countries produce sugar from both cane and beet. •World Sugar Production is around 166 million tons, whereas Production Pakistan's sugar production is around 5 million tons. •largest sugar producer by far is B
Slide 3: Key Attributes: Dynamics of Sugar Industry 2019-20
KEY ATTRIBUTES DYNAMICS OF SUGAR INDUSTRY 2019-20 Province Mills Operated Number of Mills: 90 Listed Sugar Punjab 46 41 Operated: 79 Companies: 23 Sindh 38 32 KPK 6 6 Sugar Cane Area Sugar Cane Sugar Cane (In Hectares Avg.): Production: Crushing: 1,060,000 66.334 million tons 48.717 million tons Sug
Slide 4: Sugarcane Area and Production by Province
SUGARCANE AREA AND PRODUCTION BY PROVINCE Area (‘000' Hectares) Production (‘000' Tons) Province 2017-2018 2018-2019 2019-2020 2017-2018 2018-2019 2018-2019 Punjab 860 735 643 55,070 43,896 43,347 Sindh 332 334 286 20,610 17,670 17,234 KPK 148 111 109 7,610 5,394 5,754 Baluchistan - - - - - - Total
Slide 5: Cane Crushing, Production and Recovery & Molasses Production in Pakistan
CANE CRUSHING, PRODUCTION AND RECOVERY & MOLASSES PRODUCTION IN PAKISTAN: Sugar Molasses Period Cane Crushing Production Production Recovery (%) (M.T) (M.T) (M.T) 2019-20 48,717,544 4,819,793 9.89 2,191,920 2018-19 49,768,113 5,210,744 10.47 2,239,565 2017-18 65,615,550 6,576,534 10.16 2,954,622 201
Slide 6: Sugar Cane Indicative Price in Comparison with Season's Avg. Retail Price
SUGAR CANE INDICATIVE PRICE PER 40 KG IN COMPARISON WITH SEASON’S AVG. RETAIL PRICE PER KG: Sugar price (Rs.) Season Avg. Period retail / kg Sindh Punjab KPK (Rs.) 2020-2021 202 200 200 N/A 2019-2020 192 190 190 79.70 2018-2019 182 180 180 64.27 2017-2018 182 180 180 53.57 2016-2017 182 180 180 61.4
Slide 7: Production Share of Top Players
PRODUCTION SHARE OF TOP PLAYERS Production Production Sr. Sugar Mill Region in 2020 Ranking in 2019 Ranking No. (M.T.) (M.T.) Punjab & 1 JDW 548,220 1 640,278 1 Sindh 2 Tandlianwala Punjab 265,420 2 255,375 2 3 Hamza Punjab 189,479 3 231,006 3 4 Etihad Punjab 185,211 4 183,332 4 5 Sheikoo Punjab 153
Slide 8: Largest Sugar Producers & Consumers in the World 2019-20
10 Largest Sugar Producers & Consumers in the World based on 2019-20 10 LARGEST SUGAR PRODUCERS 10 LARGEST SUGAR CONSUMERS Sr. No. Production (in Consumption Name Million M.T) Name (in Million M.T) 1 India 29.66 India 25.51 2 Brazil 29.17 European Union 18.11 3 European Union 16.65 China 16.20 4 Tha
Slide 9: Sugar Industry – Outlook for Season 2020-21
SUGAR INDUSTRY – OUTLOOK FOR SEASON 2020-21 World largest sugar producer Global Sugar Production for Brazil's is expected to increase Marketing Year (MY) 2020/21 is by over 40% to more than 42 estimated is estimated up 16 million tons and India, 2nd million metric tons raw value largest producer in
Slide 10: Supply Chain
SUPPLY CHAIN Distributor / End Farmer Sugar Mill Industrial Retail Stores Consumers Consumers
Slide 11: Major Sugar Mills Comparison – Sindh Zone
MAJOR SUGAR MILLS COMPARISON – SINDH ZONE
Slide 12: Sindh Zone Mills Production and Profitability Comparison
DESCRIPTION UOM FARAN MIRPURKHAS MEHRAN SHAHMURAD AL-ABBAS HABIB PRODUCTION ANALYSIS Cane Crushing MT 601,936 525,201 654,339 444,430 396,965 620,425 Sugar Recovery % 10.90% 11.25% 11.44% 11.08% 10.88% 10.87% Sugar Production MT 65,739 57,286 72,821 48,786 42,959 61,488 Duration of Season Days 105 1
Slide 13: Sugar & Molasses Production / Recovery; Cane Crushing and Season Duration
Sugar & Molasses Production / Recovery Sugar Cane Crushing and Duration of Season Sugar Production Molasses Production Sugar Recovery Molasses Recovery Cane Crushing Duration of Season 80 14% 700 120 107 105 105 70 73 101 12% 600 96 100 11.44% 66 10.90% 11.25% 11.08% 10.88% 10.87% 60 87 61 10% 500 5
Slide 14: Profitability Analysis
Profitability Analysis Gross Profit Profit / (Loss) Before Tax Profit / (Loss) After Tax Earnings / (Loss) per Share (Group) 1,600 80.00 71.67 1,400 1,370 70.00 1,244 1,200 60.00 1,000 932 50.00 Thousands 804 800 760 40.00 694 36.00 600 30.00 465 400 20.00 305 282 269 200 163 171 10.00 1.01 (152) (4
Slide 15: Faran Sugar Mills Limited
FARAN SUGAR MILLS LIMITED
Slide 16: Financial Performance
FINANCIAL PERFORMANCE 2020 2019 Rs. '000 Rs. '000 Local Sales 5,940,734 4,653,414 Export Sales 622,065 492,288 Gross sales 6,562,799 5,145,702 Profit before taxation (192,959) 293,650 Share in profit from equity accounted 41,160 227,579 investments-Net (151,799) 521,229 Less: Taxation Current (124,7
Slide 17: Commentary on Sales, Finance Cost and Subsidiaries
Finance cost was very high Increase in Sales is due to massive short-term Huge financing mainly due higher selling borrowing as well as obtained during the year price as compared to increase in financing rate, due to sluggish sales and previous year but remained almost at stuck up export subsidy. sa
Slide 18: Operational Performance Season 2020-21
OPERATIONAL PERFORMANCE SEASON 2020-21 For ongoing season 2020-21, the support prices were fixed at Rs. 200 for per 40 kg for Punjab and Khyber Pakhtunkhwa and Rs. 202 for per 40 kg for Sindh. Majority of sugar mills started its crushing in November 2021 to overcome shortage of sugar in the country.
Slide 19: Certifications During the Year
CERTIFICATIONS DURING THE YEAR • FSML has renewed ‘HALAL CERTIFICATION’ by SANHA Halal Associates Pakistan Pvt Limited. • It ensures the features and quality of our product is according HALAL to the rules established by the Islamic Council CERTIFICATION • VIS Credit Rating Company Limited performed
Slide 20: Long Term Investment and Future Projects
LONG TERM INVESTMENT AND FUTURE PROJECTS •DISTILLERY PROJECT in colaboration with two other sugar mills. •It is one of Pakistan largest ENA Ethanol producer and leading food grade CO2 UNICOL supplier and is ranked amongst the top 100 exporters of Pakistan for 2018. •It has designed production capaci
Slide 21: Shariah Compliant Financing
FSML manage its financial requirements only through SHARIAH COMPLIANT PRODUCTS from prominent Islamic banks, and is a RIBA / INTEREST FREE COPORATE ENTITY, providing HALAL earnings to its stakeholders
Slide 22: Performance Analysis
PERFORMANCE ANALYSIS Description Unit 2015 2016 2017 2018 2019 2020 (OPERATIONAL (Cane Crushing M.tons 764,025 789,657 993,389 959,378 670,581 670,581 Processing-Raw Sugar M.tons = = = = 2 4 Sugar Production M.tons 85,052 86,785 106,318 105,633 73,696 73,696 Molasses Production M.tons 38,235 35,825
Slide 23: 250.07 2,070.06 2,320.13 1,874.59 (192.65) 242.88 3.72 0.82 2.46 15.21 74.05 92.78 4.87 1.00
250.07 2,070.06 2,320.13 1,874.59 (192.65) 242.88 3.72 0.82 2.46 15.21 74.05 92.78 4.87 1.00 0% 7% 1.4% 15.21 0.93 0.20 2.68 9.48%
Slide 24: Cane Crushing and Sugar & Molasses Production and Recovery
CANE CRUSHING AND SUGAR & MOLASSES SUGAR & MOLASSES RECOVERY PRODUCTION Crushing Sugar Produced Molasses Produced Sugar Recovery Molasses Recovery 1200 120 12% 11.13% 11.01% 11.00% 11.01% 10.90% 105.63 10.70% 1000 106.32 100 11% 800 85.05 86.79 80 9% Metric Tons (in Thousands) Percentage 73.70 600 6
Slide 25: Profitability Analysis; Dividend per Share, Payout & Yield
PROFITABILITY ANALYSIS DIVIDEND PER SHARE, PAYOUT & YIELD Dividend Per Share Dividend payout Gross Profit Ratio Net Profit / Ratio 14% 8 60% 54% 12% 11.00% 10.53% 7 50% 10% 10.54% 6 8% 8.71% 7.73% 8.24% 6.13% 40% 5 Percentage 6% 7.03% 4.67% 4% 4 30% 25% 2% 3 21% 20% 0% 2015 2016 2017 2018 2019 2020
Slide 26: Market Value & Breakup Value per Share; Profitability Ratios
MARKET VALUE & BREAKUP VALUE PER PROFITABILITY RATIOS SHARE Current Ratio Quick Ratio EPS Market value per share Break-Up Value 25 160 1 144 140 1.19 20 1 120 1.06 17.69 15 100 1 0.94 0.93 0.86 92.78 0.80 80 79.07 75 84.95 80 1 10 81.47 Ratios RUPEES 76.15 60 61.8 63.79 5 50.00 1 40 36.5 12.39 19.3