Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — Q1 FY2023 Earnings Presentation
21 slides from Sundrop Brands Limited Shs Dematerialised's earnings presentation, Jul 21, 2022
Slide 1: Regulation 30 disclosure letter to stock exchanges
21st July, 2022 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233 / 22721234 Ph. No. 022- 265
Slide 2: ATFL Results Update Q1, FY'23
ATFL Results Update Q1, FY’23 July 21*, 2022
Slide 3: Company Strategic Vision
Company Strategic Vision The Best Performing Most Respected Foods Company in India 2
Slide 4: Quarter 1 – Key Performance Highlights
Quarter 1 – Key Performance Highlights Steady Foods Growth – High Input Cost Inflation • Steady Foods Growth in Q1 of 11% - Non RTC business grows by 41%, RTC impacted by Second Wave in Base. • Q1 Foods GM lower by Rs. 3 crore reflecting: • Input Cost Inflation (-) Rs. 4 crore. • Softness in RTC Pop
Slide 5: Performance Highlights by Category
Performance Highlights by Category 1. Ready to Cook 2. Ready to Eat -Western 3. Spreads (Rs. 18,000 crore) (Rs. 28,500 crore) (Rs. 3400 crore) 4. Breakfast Cereals 5. Chocolate Confectionery 6. Edible Oils (Rs. 3500 crore) (Rs.13,600 crore) (Rs. 169,600 crore) 4 * Category Sizes in Brackets
Slide 6: Ready to Cook Snacks
Ready to Cook Snacks RTC Q1, FY’23 YTD, FY’23 Volume -5% -5% Value -4% -4% • RTC Popcorn lower than PY by 6% - base includes Covid19 2nd Wave in May-June 2021. • Non RTC Popcorn business led by Pasta helps deliver 200 bps of growth. • Estimated share of Instant Pasta market of between 3% and 5% take
Slide 7: Ready to Eat Snacks
Ready to Eat Snacks RTE Q1 FY’23 YTD FY’23 Volume +65% +65% Value +79% +79% • Growth driven by impact of Covid19 in base. Additionally, continued strengthening of Popcorn Business. • Clear improvement in GM% driven by Price Increases, Grammage Reduction and Packaging Footprint changes. • Potato Chip
Slide 8: Spreads & Dips
Spreads & Dips Spreads Q1 FY’23 YTD FY’23 Volume +28% +28% Value +10% +10% • Return to strong growth with pricing realignment in FY’22. • New High Protein Variant development underway. Launch pushed back to Q2, FY’23. • Single serve cups initiated for all Spreads (Rs. 10) - Drive Trial – Launch by Q
Slide 9: Breakfast Cereals
Breakfast Cereals Cereals Q1 FY’23 YTD FY’23 Volume +54% +54% Value +58% +58% • Continued strong Growth helped by impact of Covid19 in base – significant share of consumption as a Cereal Snack as opposed to Breakfast Cereal. • Inroads into the mainline Breakfast Cereals Category underway as per Plan
Slide 10: Chocolates
Chocolates Chocolates Q1 FY’23 YTD FY’23 Volume +218% +218% Value +252% +252% • Continued strong growth in the Business. • Significant improvement in Margin as we gain scale. • Installation of 2nd Line delayed by approx. 6 weeks. Likely commencement in August 2022. • Continue seeking aggressive grow
Slide 11: Staples
Staples Premium Staples Q1 FY’23 YTD FY’23 Volume -12% -12% Value -8% -8% Mass Staples Q1 FY’23 YTD FY’23 Volume -74% -74% Value -71% -71% • Premium Staples reflects softness in offtake with sharply increasing consumer price. Focus on protecting Margin. • Roll out of Oats to commence in Q2 to make P
Slide 12: Competitive Update
Competitive Update
Slide 13: Snacks: Competition Spends
Snacks: Competition Spends Rs. Million F-17 F-18 F-19 FY20 FY21 Q1-22 Q2-22 Q3-22 Q4-22 FY22 Apr-22 May-22 Jun-22 Q1-23 ACT II 110 74 38 45 95 18 31 11 20 80 0 4.4 11 15 Lays 148 374 252 491 335 238 202 127 175 742 197 87 49 333 Kurkure 196 260 396 321 237 98 65 70 101 333 0 0 78 78 Doritos 0 128 15
Slide 14: Spreads: Competition Spends
Spreads: Competition Spends Apr- May- Jun- Rs Million F-13 F-14 F-15 F-16 F-17 F18 F-19 FY-20 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 22 22 22 Kissan Jam- 254 207 304 381 357 512 704 752 679 156 154 138 124 572 38 42 52 133 Kissan PB 196 109 129 125 146 508 32 43 31 106 Sundrop PB 0 0 42 64 56 30
Slide 15: Breakfast Cereals: Competition Spends
Breakfast Cereals: Competition Spends Apr- May- Jun- Rs Million FY-17 FY-18 FY-19 FY-20 FY-21 Q1-22 Q2- 22 Q3-22 Q4-22 FY-22 Q1-23 22 22 22 Kellogg Cornflakes 202 265 390 230 355 124 124 108 171 526 58 41 38 136 Kellogg Chocos Fills 0 125 203 17 9 0 0 20 29 49 8 10 2 20 Kellogg Chocos 310 362 509 32
Slide 16: Chocolates: Competition Spends
Chocolates: Competition Spends FY- FY- Q1- Q2- Apr- Final Brand ( In Mn) FY- 19 Q1 Q2 Q3 Q4 FY-21 Q3- 22 Q4-22 FY-22 May-22 Jun-22 Q1-23 18 20 22 22 22 Cadbury 5 Star 744 482 727 102 192 385 281 960 150 276 377 256 1058 52 52 49 153 Cadburys Celebration 138 212 277 0 79 320 0 399 56 370 11 437 7 0 7
Slide 17: Edible Oils: Competition Spends
Edible Oils: Competition Spends Apr- May- Jun- Q1- Rs Million F-12 F-13 F-14 F-15 F-16 F-17 F-18 F-19 FY-20 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 22 22 22 23 Sundrop Heart 88 94 50 65 46 34 21 0 0 0 0 0 0 0 0 0 0 0 0 Saffola 121 212 356 291 338 320 588 544 527 400 116 86 68 106 375 41 21 0 62 Fortune
Slide 18: Noodles: Competition Spends
Noodles: Competition Spends Tracked Brands (in Mn) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1- 22 Q2-22 Q3-22 Q4-22 FY-22 Apr-22 May-22 Jun-22 Q1-23 Chings Noodles 17 2 19 20 0 40 0 8 8 Wai Wai 0 0 0 1 17 19 6 0.2 6 6.7 8.1 5 20 Knorr Soupy Noodles 0 0 140 0 0 140 0 Sunfeast Yippee noodles 81 168 85 336
Slide 19: Pasta: Competition Spends
Pasta: Competition Spends Q4- Q1- Q2- Q3- Q4- FY- Q1- Q2- May- Tracked Brands (in Mn) Q3-22 Q4-22 FY-22 Apr-22 Jun-22 Q1-23 20 21 21 21 21 21 22 22 22 Bambino Pasta 0 0 0 0 0 1 0 1 0.6 1 Sunfeast Yippee pasta 0 0 90 1 1 93 0 1 4 0.2 5 0.6 0.6 Keya Italiano Pasta 2 0 0 0 0 0 0 13 13 Maggi Pazzta 0 0
Slide 20: Soups: Competition Spends
Soups: Competition Spends Q4- Q1- Q2- Q3- Q4- FY- Q1- Q2- May- Tracked Brands (in Mn) Q3-22 Q4-22 FY-22 Apr-22 Jun-22 Q1-23 20 21 21 21 21 21 22 22 22 Chings Instant Soups 3 0 37 29 1 66 0 5 31 0 36 Eastern Instant Rasam 1 1 8 0 0 9 0 0 0 0 Knorr Chicken Delite Soup 8 19 23 42 23 107 8 22 83 84 198
Slide 21: Q1 Summary
Q1 Summary • Steady growth in Foods driven by non RTC Growth of 41%. • Oils GM at Rs. 15 crore + for the Quarter below PY running rate though still within striking range. • Power of diversified portfolio visible with OOH items performing well as the economy normalizes. • In good shape to deliver a s