Awl Agri Business Ltd · NSE:AWL
Awl Agri Business — Adani Wilmar — Q2 FY2023 Earnings Presentation
24 slides from Awl Agri Business's earnings presentation, Nov 3, 2022
Slide 1: Adani Wilmar Limited Investor Presentation – Q2FY23
Adani Wilmar Limited Investor Presentation – Q2FY23 November 3, 2022
Slide 2: Safe Harbour Statement
Safe Harbour Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar
Slide 3: Flow of Presentation
Flow of Presentation 1. Macro Context 2. Business Updates 3. Financial Results 4. Strategy Going Forward
Slide 4: 1. Macro Context
1. Macro Context adani wilmar
Slide 5: Macro Context: Inflation and Monsoon
Macro Context Inflation woes continued… Surplus, but “delayed” Monsoon 7.8 7.4 7.0 7.0 7.0 7.0 6.7 6.0 6.1 Inflationary Pressure Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sept 22 CPI ➢ While India saw 6% surplus in FY22, this year’s monsoon was characterized with erratic distribution a
Slide 6: Macro Context: Policy Rates and Rupee Depreciation
Macro Context Policy rates continue to rise Currency Pressure: Rupee Depreciation 82 5.90 80 78 4.00 3.30 76 74 0.55 72 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 22-Sep USA India May 22 Sept 22 USD-INR ➢ Global economies continue to curb inflation with higher policy rates ➢ Rupee plung
Slide 7: Industry Context
Industry Context Edible Oil Market Crash Edible Oil: ROCP Volumes down by 4.1% Correction of ~US$ 650 per tonne $1,900 Elevated Prices Market Crash $1,500 $1,100 $700 30-Jun-22 15-Jul-22 31-Jul-22 15-Aug-22 31-Aug-22 15-Sept-22 30-Sept-22 MAT Sept 21 MAT Sept 22 Palm Soya Sun All Refined Oil Sales (
Slide 8: Positive signs of demand recovery
Positive signs of demand recovery Record imports in Sept 2022 Strong festive sales post covid outbreak ➢ Record monthly imports of 1.59 million tonnes of ➢ Expectation of positive consumer sentiments & edible oil, against 1.37 million tonnes in August festive & wedding celebrations, after 2 years of
Slide 9: 2. Business Updates
” @ ew) i ao a. 2 ” ” i) = m7) 3 ao 2 Cx F BUNYIOS| adani wilmar
Slide 10: Strong performance in Food & FMCG
Strong performance in Food & FMCG All figures in Million Metric Tonnes (MMT) Segment Volumes (in MT) Q2FY23 Q2FY22 % H1FY23 H1FY22 % Edible Oils 0.82 0.83 -1% 1.52 1.49 2% Food & FMCG 0.22 0.16 41% 0.41 0.28 47% Industry Essentials 0.28 0.23 22% 0.58 0.47 22% Total 1.32 1.21 9% 2.51 2.24 12% Key Hig
Slide 11: Edible Oil showing signs of demand recovery on QoQ
Edible Oil showing signs of demand recovery on QoQ All figures in Million Metric Tonnes (MMT) Segment Volumes (in MT) Q2FY23 Q1FY23 % Change Edible Oil 0.82 0.70 17% Food & FMCG 0.22 0.19 17% Industry Essentials 0.28 0.30 -8% Total 1.32 1.19 11% Key Highlights ❑ Edible oil showing gradual pick up in
Slide 12: Market share gains continued in the Foods business
Market share gains continued in the Foods business Edible Oil Wheat Flour 19.5% 19.2% 4.9% 3.9% Q2FY22 Q2FY23 Q2FY22 Q2FY23 Basmati Rice 8.5% 5.1% Q2FY22 Q2FY23 ➢Additionally, Kohinoor brand had a MS% of ~1.5% in Q2FY23 Key Highlights ❑ Edible oil maintained leadership with market share of 19.5% (in
Slide 13: Customer Experience through Fortune Mart stores
Customer Experience through Fortune Mart stores Pan-India presence of Fortune Mart 37 No. of outlets Why Fortune Mart? Showcase of Fortune Products Brand Visibility Experience Zone & Consumer Engagement Fulfillment Center for Fortune Online New product trials Added 3 new outlets in Q2
Slide 14: D2C gradually picking up well
D2C gradually picking up well 1st Oct 2021 Social Assets Launch. 31st March 2022 31st Dec 2021 Orders – 29k in FY22 1st Jan 2021 Received 5k Started Operations Orders in Ahmedabad. in a Month Journey of Fortune Online 30th Sep 2022 Avg monthly 31st Aug 2021 orders~ 6k Scaled Operations 28 Feb 2022 a
Slide 15: International Business
International Business Focusing on international branded business Target Market: Product Portfolio: ➢ GCC, USA, Canada, Singapore, Malaysia Edible Oil, wheat flour & rice under ➢ Fortune launched in U.S.A. Fortune brand Wilmar distribution advantage: Expand existing international markets Africa, Eur
Slide 16: Targeted Ad Campaigns: Edible Oils
Targeted Ad Campaigns: Edible Oils Fortune Soyabean: East Fortune Rice bran health oil campaign Fortune Sunflower Oil: South Ganesh Chaturthi Campaign 2022 Building consumer connects with regional & national celebrities
Slide 17: Digital Campaigns
Digital Campaigns Fortune Sunflower Campaign: South Fortune Cottonseed Oil Campaign: Gujarat Fortune KGMO Pickle campaign 2022: North Fortune Rice bran health oil campaign Region specific campaigns across categories
Slide 18: New Flour Unit in Bundi, Rajasthan
New Flour Unit in Bundi, Rajasthan New wheat flour of 500 Tonnes per day to become operational by Q3FY23 Post expansion, own capacities* will reach 1,380 tonnes per day *additional capacity from third party units
Slide 19: 3. Financial Results
2) = 3 wn o [a 4 2 rr) c © = i 3. La W SUNO! SUNOS MA ht SUNOS! “auMJos adani wilmar
Slide 20: Financial Results
Financial Results INR in Cr. Q2FY23 Q1FY23 Q2FY22 QoQ YoY H1FY23 H1FY22 YoY Volumes 1.32 1.19 1.21 11% 9% 2.51 2.24 12% Revenue 14,209 14776 13,584 -4% 5% 28,986 24,949 16% Gross Margin 1,407 1,545 1,425 9% -1% 2,952 2,603 13% EBITDA 313 495 455 -37% -31% 808 890 -9% PBT 60 260 229 -77% -74% 320 454
Slide 21: Segment Results
Segment Results INR in Cr. Segment Q2FY23 Q2FY22 YoY H1FY23 H1FY22 YoY Edible Oil Revenue 11,221 11,478 -2% 22,733 20,859 9% Segment Result 66 304 -78% 180 460 -61% Food & FMCG Revenue 1,015 643 58% 1,875 1,161 61% Segment Result 19 -33 156% 30 -35 183% Industry Essentials Revenue 1,914 1,437 33% 4,
Slide 22: 4. Outlook for Q3FY23
adani wilmar 4. Outlook for Q3FY23
Slide 23: Outlook for Q3FY23
Outlook for Q3FY23 ❑Festivities and weddings expected to drive overall growth. ❑We expect Q3FY23 to see better demand in edible oils. ❑Food & FMCG to continue leading the growth story
Slide 24: Slide 24