Flair Writing Industries Limited · NSE:FLAIR
Flair Writing Industries — Q2 FY25 Earnings Presentation
33 slides from Flair Writing Industries's earnings presentation, 2024
Slide 1: Investor Presentation Q2 & H1 FY25
4 Flair FLAIR WRITING INDUSTRIES LIMITED Investor Presentation P (a) ‘ Q2 & HI FY25 4 Flair | pierrecardin | HAUSER’ May, =OOX
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Flair Writing Industries Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 3: Brand portfolio
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Slide 4: Flair - At a Glance
Flair- At a Glance Market Leadership Strong Financial Position with over 5 decades of excellence and a healthy Balance Sheet • Biggest pen brand • Top 3 player in Writing Instrument Industry* • Best-in class EBITDA & PAT margins in the industry • Higher share of premium products in pen segment versu
Slide 5: Key Milestones
Key Milestones 1976 1998 2008 2009 2012 Acquired “Pierre Cardin” brand “Flair” brand was registered We commenced production at one of our Introduction of Flair Calculators Manufacturing plant was set up manufacturing units in Daman (UT of in Dehradun (Uttarakhand) Dadra & Nagar Haveli and Daman & Di
Slide 6: Manufacturing Facilities and Capex Timeline
Manufacturing Facilities and Capex Timeline 11 Strategically Located Manufacturing Only Brand with Captive In-House Tips Total Capex of ~INR 230 Crs spread over FY24 to FY26 Plants Manufacturing Capabilities FY24 Total Capex Incurred – INR 110 Crs Dehradun (Uttarakhand) 2 units, 435mn p.a capacity F
Slide 7: Competitive Edge
Competitive Edge Global Footprint Ability to partner with international brands being the largest exporter of writing instruments from India and making inroads through quality creative products Quality Manufacturing Evolving Portfolio High-quality manufacturing at a large scale Expansive catalogue of
Slide 8: Strategies & Roadmap
STRATEGIES & ROADMAP
Slide 9: Focussed on Own Brands Business to Drive Growth
Focussed on Own Brands Business to Drive Growth Multi-Brand Portfolio catering across all price points Levers for Growth Extensive SKU Portfolio Catering Across All Price Points Pens Celebrity Endorsements for Better Focus on Quality Manufacturing Brand-Recall Capitalising on Wide Distribution Innov
Slide 10: Premiumisation Strategy Playing Out
Premiumisation Strategy Playing Out Rising Realisation per Piece Overall Average Selling Price (INR) Amongst the Highest Margins in the Industry 6.0 5.8 Gross Profit EBITDA PAT 5.7 +3.6% 5.4 5.5 5.2 5.50 5.70 50% 5.0 5.30 47% 44% 46% 5.0 4.6 4.5 4.3 4.1 3.9 3.9 4.0 20% 20% 3.5 Domestic 17% 3.0 Overa
Slide 11: Roadmap for the Future – Strategies
Roadmap for the Future – Strategies Product portfolio Premiumization Enhance capacity o Aim to strengthen and expand our o Emphasis on Mid-premium Segment and o Increase production capacity to drive existing product portfolio by Premium Segment to increase margins further volume growth growing acros
Slide 12: Key Updates
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Slide 13: Segment Updates
Segment Updates STEEL BOTTLES • Delivering consistently rising monthly run rate in the segment – on track to achieve stated guidance for the financial year • Introduced a variety of multi-product combination involving steel bottles and creative products in modern trade channels for the festive seaso
Slide 14: Strategic Actions For Sustainable Growth
Strategic Actions For Sustainable Growth De-risking Dependence on OEM for Steel Bottles Steel bottle lines were originally set up for an International OEM partner with whom company had long standing relations Management swiftly pivoted and preponed the introduction steel bottles in the domestic mark
Slide 15: Performance Highlights
PERFORMANCE HIGHLIGHTS
Slide 16: Q2 & H1FY25: Key Performance Metrics
Q2 & H1FY25: Key Performance Metrics ₹ in Crs Revenue from Operations Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 49.1% 49.7% 52.8% 20.9% 17.0% 18.7% 12.9% 10.6% 12.1% 5% 257.0 270.1 13% -6% -1% 247.1 9% 142.7 53.8 50.6 33.2 32.8 126.3 122.9 16% 42.0 21% 26.2 25% Q2
Slide 17: Business Performance (Q2 FY25)
Business Performance (Q2 FY25) ₹ in Crs Domestic Own Brand Sales Total Own Brand Sales Contribution of Brands to Overall Branded Sales 15% 9% 220 242 191 222 PC PC CREATIVE CREATIVE HAUSER HAUSER Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 OEM Revenue by Geography Own Brand v/s OEM Sales 13% 10% FLAIR FLAIR 45%
Slide 18: Q2 & H1FY25 Segmental Highlights – Pens and Creative
Q2 & H1FY25 Segmental Highlights – Pens and Creative Pens Division Plan of Action for Segment Growth Sustained Contribution in Tepid Macro Environment 410 409 Increase Manufacturing Constant Innovation Premiumisation Capacity H1 FY24 H1 FY25 Creative Segment Plan of Action for Segment Growth Steady
Slide 19: Q2 & H1FY25 Segmental Highlights – Steel Bottles
Q2 & H1FY25 Segmental Highlights – Steel Bottles Steel Bottles & Houseware Segment Plan of Action for Segment Growth Consistently Rising Monthly Run-Rate, Crossed Full Year FY24 in H1 FY25 Wider Catalogue 248% 168% 12 18 20 Leverage Inherent Partner with Modern 8 Strengths Retailers 3 7 Capitalise o
Slide 20: Consolidated Profit & Loss Statement – Q2 & H1FY25
Consolidated Profit & Loss Statement – Q2 & H1FY25 PROFIT & LOSS STAETMENT (₹ in crs) Q2 FY25 Q2 FY24 Y-o-Y Q1 FY25 Q-o-Q H1 FY25 H1 FY24 Y-o-Y FY24 Revenue from Operations 270.1 257.0 5.1% 247.1 9.3% 517.3 503.7 2.7% 978.7 Cost of Materials Consumed 127.4 130.7 124.2 251.6 252.8 485.7 Gross Profit
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY & LIABILITIES (₹ in Crs) Sept-24 Mar-24 ASSETS (₹ in Crs) Sept-24 Mar-24 Total Equity 957.6 898.7 Non-Current Assets Non-Current Liabilities (a) Property, plant and equipment 314.8 301.1 (b) Capital Work-in-Progress 32.5 20.2 (a) Borrowings & Lease Liabilities 35.3
Slide 22: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement PARTICULARS (₹ in Crs) Sept-24 Sep-23 Cash Generated from Operations 23.8 59.3 Less: Direct Taxes paid -16.1 -22.1 Net Cash from Operating Activities 7.7 37.2 Cash Flow from Investing Activities 131.2 -48.2 Cash Flow from Financing Activities -26.7 10.4 Net increase/
Slide 23: Investment Thesis
Investment Thesis Manufacturing Excellence Brand Value Largest pens manufacturing capacity & further Portfolio of familiar, iconic brands across price capacity addition is underway. Continues to lead segments; crafted through leveraging celebrity as the only domestic pen brand to manufacture image a
Slide 24: Annexure
4 Flair FLAIR WRITING INDUSTRIES LIMITED Creative e pierre cardin PARIS ANNEXURE 7 Fir a
Slide 25: Board of Directors
Board of Directors Mr. Khubilal Jugraj Rathod, Chairman • He has 48+ years of experience in the writing instruments industry • Received the Lifetime Achievement Award and the Udyog Rattan Award from the Institute of Economic Studies, the Lifetime Achievement Award from The Bombay Fountain Pen Manufa
Slide 26: Board of Directors & Senior Management Team
Board of Directors & Senior Management Team Mr. Punit Saxena, Independent Director Management Team • He holds a Bachelor of Science degree , an MBA degree from University of Rajasthan, Master of Valuation (Real Estate) degree. • He was previously associated with UTI Infrastructure, Technology and Se
Slide 27: Corporate Social Responsibility
Corporate Social Responsibility Our CSR Policy is aimed at demonstrating care for the community and our commitment to create social value. Our Company has undertaken various active CSR initiatives to contribute to the community where we have operations. We believe in empowerment through employment -
Slide 28: Top Awards and Accolades
Top Awards and Accolades 2022-23, 2021-22, 2020-21 2020-21 2019-20 2018-19 2017-18 2016-17 Award for Top Exporter to the Award for Top Exporter to the Award for Top Exporter to the Export Award to the Company from Award for Second Best Exporter to the Award for No. 1 Exporter to the Flair Company fr
Slide 29: Performance in Charts
Performance in Charts ₹ in Crs Revenues EBITDA & EBITDA % PAT & PAT % 7.7% 16.9% 19.5% 19.5% 0.3% 9.7% 12.4% 12.1% +49% 942.7 978.7 +103% +429% 183.5 191.2 577.5 117.0 118.5 97.9 298.0 55.9 23.0 0.8 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 RoCE (%)^ RoE (%)# *Debt to Equity (x) 30
Slide 30: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (₹ in crs) FY24 FY23 FY22 FY21 Revenue from Operations 978.7 942.7 577.5 298.0 Cost of Materials Consumed 485.7 508.8 308.2 166.4 Gross Profit 493.0 433.9 269.3 131.6 GP % 50.4% 46.0% 46.6% 44.2% Employee Benefits Expense 145.8 117.3 88.3 5
Slide 31: Consolidated Balance Sheet - FY24
Consolidated Balance Sheet - FY24 EQUITY & LIABILITIES (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 Total Equity 898.7 435.2 318.0 261.6 Non-Current Assets Non-Current Liabilities (a) Property, plant and equipment 301.1 240.1 190.1 176.4 (b) Capital Work-in-Pr
Slide 32: Consolidated Cash Flow Statement - FY24
Consolidated Cash Flow Statement - FY24 PARTICULARS (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 Cash Generated from Operations 124.9 141.3 45.2 67.6 Less: Direct Taxes paid (47.2) (43.4) (10.8) (0.2) Net Cash from Operating Activities 77.6 97.9 34.4 67.3 Cash Flow from Investing Activities (285.2) (73.6)
Slide 33: Thank You
COMPANY : Flair Writing Industries Limited CIN : L51100MH2016PLC284727 Mr. Alpesh Porwal (Chief Financial Officer) Email: alpesh@flairpens.com www.flairpens.com INVESTOR RELATIONS ADVISORS : Thank You Orient Capital (a division of MUFG Pension & Market Services) Mr. Irfan Raeen Mr. Devansh Dedhia +9
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