Nestle Pakistan Ltd. · PSX:NESTLE
Nestle Pakistan — Investor Presentation (April 2023)
16 slides from Nestle Pakistan's investor presentation, Apr 17, 2023
Slide 1: Corporate Briefing Session
Nestlé Pakistan Limited Corporate Briefing Session Lahore, 17th April 2023 Nestlé Pakistan Limited - Corporate Briefing Session 1
Slide 2: Our business
Our business Key Figures 2022 Where What North Dairy & 27% Beverages Others Nutrition Sales Center 30% 77.6% 22.4% 0.02% PKR 163 bio South 31% Direct Key accounts: 10% Exports : 2% * Others include Chocolate Employees Factories Top Brands 3,734 4 17th April 2023 Nestlé Pakistan Limited - Corporate B
Slide 3: Our Purpose and Strategy
Our Purpose and Strategy DELIVER SUSTAINABLE GROWTH Win in the Build Drive Develop Agile and Diverse Core Portfolio Future Pillars Efficiency Teams Lead sustainability agenda in the market to be recognized as a force for good 17th April 2023 Nestlé Pakistan Limited - Corporate Briefing Session 3
Slide 4: Investing for maximizing returns
Investing for maximizing returns Capex (PKR Bio) 4.5 3.8 3.2 3.4 2.6 2018 2019 2020 2021 2022 PKR 17.5bio 17th April 2023 Nestlé Pakistan Limited - Corporate Briefing Session 4
Slide 5: New launches 2022
New launches 2022 DAIRY Beverages and others Nutrition 17th April 2023 Nestlé Pakistan Limited - Corporate Briefing Session 5
Slide 6: Contribution to the rural economy
Contribution to the rural economy PKR 32.7bio milk 59,700 farmers Supporting ~ 3,256 PKR 4.9 bio purchase medium scale Procurement of Fruits, commercial farms Sugar and Wheat Flour Efficient water use Promoting best farm Driving for 100% For the Planet practices (Chaunsa Project) recyclable packagin
Slide 7: Our Sustainability Pillars and 2025 Commitments
Our Sustainability Pillars and 2025 Commitments Climate Action Sustainable Packaging Caring for Water Responsible Sourcing 20% reduction in carbon - 95%+ recyclable packaging with Have a net positive impact - 7% of Dairy volume emissions vs 2018 the commitment to reach 100% for our Waters business -
Slide 8: Net Zero
Our path to net zero carbon emissions: Regeneration for future generations 1.76 M Tons of GHG 20% Emissions Reduction by 2025 50% Reduction NET Moving Faster by 2030 ZERO by 2050 Scaling Up Delivering Our Promise 17th April 2023 Nestlé Pakistan Limited - Corporate Briefing Session 8
Slide 9: Our major initiatives in 2022
Our major initiatives in 2022 Climate Action Sustainable Packaging Caring for Water SAVEd 57,037 tco2e* Regenerated 58*% (As per 100% target) Fresh milk value chain Packaging transformation Wastage reduction Import of 2,300 high-yield 89% (as per target) packaging cows designed for recycling Drip ir
Slide 10: FY 2022 financial results
FY 2022 financial results Operating Profit EPS (PKR/share) Sales (in PKR) Sales growth Margin 162.5 bn +21.9% 16.5% of sales 331.9 +30 bps +17.9% 17th April 2023 Nestlé Pakistan Limited - Corporate Briefing Session 10
Slide 11: Sales growth – FY 2022
Sales growth – FY 2022 26.7% 21.9% 20.6% Total Dairy and Nutrition Beverages 17th April 2023 Nestlé Pakistan Limited - Corporate Briefing Session 11
Slide 12: Key highlights – Dairy and Nutrition
Key highlights – Dairy and Nutrition FY 2022 FY 2021 Sales (PKR Bio) 126.1 104.6 Sales Growth 20.6% 9.9% Operating profit margin 18.9% 18.3% ▪ Strong growth across the portfolio ▪ Excellent boost in Nutrition portfolio. 2x growth in e- commerce channel. ▪ Operating profit margin improved due to port
Slide 13: Key highlights – Beverages
Key highlights – Beverages FY 2022 FY 2021 Sales (PKR Bio) 36.4 28.7 Sales Growth 26.7% 21.9% Operating profit margin 8.2% 8.5% ▪ Strong double-digit growth led by Coffee and waters ▪ New launches in Fruita vitals and Nescafe RTD supported the growth ▪ Operating profit margin deteriorated in the Cof
Slide 14: Delivering growth and profit in a challenging year
Delivering growth and profit in a challenging year Sales Gross Profit 180.0 162.5 49.6 40.0% 25.0% 50.0 38.0% 160.0 133.3 21.9% 38.8 40.5 120.7 118.8 36.0% 116.0 140.0 34.8 20.0% 120.0 40.0 33.3 34.0% 15.0% 32.0% 12.2% 100.0 30.0 80.0 10.0% 32.2% 30.0% 30.4% 30.5% 28.0% 29.3% 20.0 60.0 5.0% 28.8% 26
Slide 15: Generating efficiencies across the value chain
Generating efficiencies across the value chain Asset Turnover ratio Inventory Turnover ratio 2.2 5.3 2.1 4.7 4.8 4.9 1.9 1.8 1.9 4.3 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 ROCE Cash Generated From Operations 129% 125% 101% 28.7 97% 26.0 88% 22.8 20.9 13.7 2018 2019 2020 2021 2022 2018 201
Slide 16: Q&A
Q&A 17th April 2023 Nestlé Pakistan Limited - Corporate Briefing Session 16