Parag Milk Foods Ltd. · NSE:PARAGMILK
Parag Milk Foods — Q4 FY23 Earnings Presentation
39 slides from Parag Milk Foods's earnings presentation, May 2, 2023
Slide 1: Cover letter to stock exchanges
May 2, 2023 Compliance Department, Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower, Exchange Plaza, Dalal Street, Fort, Plot No. C/1, G-Block, Mumbai - 400 001 Bandra Kurla Complex Bandra - (E), Mumbai - 400 051 Scrip Code:- 539889 Scrip Symbol :- P
Slide 2: Q4 FY23 & FY23 Investor Presentation
PARAG Ideas for a new day ..,,...ru.iC:J.,. 0f'-Of'C% �- ••'••• +.,�l�• D � _....M.IJIIIIW Q4 FY23 & FY23 INVESTOR PRESENTATION
Slide 3: Safe Harbor
SAFE HARBOR Ideas for a new day This presentation and the accompanying slides (the "Presentation"), which have been prepared by Parag Milk Foods Limited (the "Company''), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or s
Slide 4: Chairman's Message
CHAIRMAN'S MESSAGE ldeos for a new day
Slide 5: Table of Contents
TABLE OF CONTENTS Ideas for a new doy ,..,,,. ., ;:-... EXECUTIVE SUMMARY ,.. .... PARA G AT GLANCE ,... "II FINANCIAL HIGHLIGHTS ,.. .... OPPORTUNITY MARKET ,.. � OUR STRATEGIC PRIORITIES ,..,,,. � ADDITIO NAL INFORMATION
Slide 6: Executive Summary: Q4FY23
EXECUTIVE SUMMARY: Q4FY23 Ideas for a new day Consolidated � The core category Brand Awatar has Pride of Cows of Ghee and Cheese posted strong growth continues to witness Revenue grew by 42.4°/oYOY has grown by 126°/oYOY healthy traction. 42. Y Overall protein business Our impact We are now present
Slide 7: Executive Summary: FY23
EXECUTIVE SUMMARY: FY23 Ideas for a new day Consolidated� The core category of Ghee Brand Awatar has posted strong growth � Revenue grew by and Cheese has grown by 39.6°/oYOY 43.5°/oYOY 123o/oYOY Protein business has more than Doubled Our impact led marketing We have strengthened our infrastructure
Slide 8: Parag
PARAG Ideas far a new day
Slide 9: Parag Milk Foods: A Complete, Integrated Business Model
PARAG MILK FOODS: A COMPLETE, INTEGRATED BUS NESS MODEL Ideas for a new day Manufacturing Fadlities 3.4 million .6 lakh litres/day Milk Processing Capacity pan India Retail Touch Points 100% 10 Lakh Cow Milk from k ey milk belts 4,500+ litres/day Whey Processing Capacity Distributors Relationship wi
Slide 10: Parag
PARAG Ideas far a new day
Slide 11: Q4FY23: Robust Revenue Growth; Margin Expands
Q4FY23: ROBUST REVENUE GROWTH; MARGIN EXPANDS Ideas for o new day INR8,009.6 MN INR1,707.2 MN INR464.2 MN INR223.5 MN 42.4% 21.3% 5.8% 2.8% GrowthYOY Margin Margin Margin
Slide 12: FY23: Solid All-Round Performance in a Challenging Environment
FY23: SOLID ALL-ROUND PERFORMANCE IN A CHALLENGING ENVIRONMENT Ideas for o new day INR 28,926.2 MN INR 5,694.3 MN INR 1,634.9 MN INR 532.5 MN 39.6% 19.7% 5.7% 1.8% GrowthYOY Margin Margin Margin
Slide 13: Product Mix: Q4FY23
PRODUCT MIX: Q4FY23 Ideas for a new day Milk Value Added Milk Products ewAge SMP 9.9% 65A% 3.6% 21.1%
Slide 14: Product Mix: FY23
PRODUCT MIX: FY23 Ideas for a new day Milk Value Added Milk Products ewAge SMP 9.4% 69.3% 3.3% 18.0%
Slide 15: Inflation of Milk Prices
INFLATION OF MILK PRICES Ideas for a new day Milk Rate (INR/litre) 02-22 03-22 04-22 01-23 02-23 03-23 04-23 The milk price inflation continued its northward trajectory and the procurement prices have increased by 4 7% over the last six quarters.
Slide 16: Galloping Inflation and Supply Crunch: Parag Stood Resilient
GALLOPING INFLATION AND SUPPLY CRUNCH: PARAG STOO D RESILIENT Ideas for o new day Milk Inflation has been high at47% over the last 18 months and was led by- • Strong demand across categories and segments • Tight Global supply, demand met by exports • Elevated energy and logistics prices across the b
Slide 17: Strong Brand Pull with Enhanced Distribution Aided Growth with Margin Expansion
STRONG BRAND PULL WITH ENHANCED DISTRIBUTION AIDED GROWTH WITH MARGIN EXPANSION Ideas for a new day • Parag posted industry-leading revenue growth of -40% YoY in FY23; while volumes registered a double digit growth 21.3% • Our content led impact marketing and branding activities across 20.7% 21.1% m
Slide 18: Opportunity Market: High Potential Runway
OPPORTUNITY MARKET: HIGH POTENTIAL RUNWAY
Slide 19: The Future of the Industry
THE FUTURE OF THE NDUSTRY Ideas for a new day ® CHEESE �if-�! SPORTS M/TRITION Ghee Cheese Whey Current Industry 76000cr 5700cr 660cr • • • Market Size Next 3yrs Industry Market Size 1,23,000cr 20,000cr 2000cr Source: Industry est;mates
Slide 20: Our Strategic Priorities
OUR STRATEGIC PRIORITIES
Slide 21: Our Strategic Priorities
OUR STRATEGIC PRIORITIES Ideas for a new day To be one of the best performing, most trusted and respected dairy FMCG companies in India across stakeholders OUR STRATEGIC PRIORITIES
Slide 22: 1A. Strengthening & Accelerating Categories
1A. STRENGTHENING & ACCELERATING CATEGOR ES Ideas for a new day Dominat market share across categories & expanding GOWARDHAN GHEE GO CHEESE AVVATAR 2QO/ Leaders and pioneers of cow ghee Dominant player in cheese category in Our protein business is witnessing healthy growth category with India with 0
Slide 23: 1B. Strengthening & Accelerating Categories
1B. STRENGTHENING & ACCELERATING CATEGOR ES Ideas for a new day FY23: Core categories posted strong growth ® SPORTS NUTRITION Volume Growth Value Growth 190/o Volume Growth 8°/o Value Growth Volume Growth Value Growth
Slide 24: 2. Consistent Media Support
2. CONSISTENT MEDIA SUPPORT Ideas for a new day 2.SX Consistent media 80o/o Investing of media spends support to onAlR our brands X 2019 2020 2021 2022 2023 Building brands over new age influencers Media spends content strategy
Slide 25: Brand Campaign Highlights: Gowardhan
BRAND CAMPAIGN HIGHLIGHTS Ideas for Cl new day GOWARDHAN GARV SE VDAY IJIRV SE IJOWARDHIN I I • Participation in the popular shows like "Kaun Banega Crorepati" helped us gain wider reach in tier 1 and tier 2 towns and cities • Impact led marketing will be " Go to" strategy in future
Slide 26: Brand Campaign Highlights: Go Cheese
BRAND CAMPAIGN HIGHLIGHTS Ideas for a new day GO CHEESE Go ..... ,,u .. --,, * Sll•r"U• � ·""·1 .. Go • Employed content led impact marketing campaign by participating in the most popular fiction show'' Anupama" • The branding campaign enabled us to further strengthen our consumer connect
Slide 27: 3A. Built on the Backbone of a Robust Network
3A. BUILT ON THE BACKBONE OF A ROBUST NETWORK Ideas for a new day 29 Depot Depots Jammu Super Stockists Jalandhar 500 Delhi Siliguri Guwahati To reach Super Stockists Dehradun Jodhpur ,,,. a,pur Lucknow Patna Udaipur retail touch poi ts 500 Ahmedaba Indore Kolkata by2027E Distributors Mumbai Nagpur
Slide 28: 3B. Built on a Robust Network; and Growing Consistently
3B. BUILT ON THE BACKBONE OF A ROBUST NETWORK; AND GROWING CONSISTENTLY Ideas for a new day • Over the last two years, our distribution network has Retail Touch Points grown by2x • Currently we are present across 4.6 lakh retail 2X touchpoints across India • We target to expand our distribution foot
Slide 29: 3C. Evolving Route to Market
3C. EVOLVING ROUTE TO MARKET Ideas for a new day Our total billed outlets have For 23- , The HORECA business has grown by increased by our Modern trade business 350/0 YOY; has witnessed strong driven by 55°/o onYoY 42°/o growth YoY 120/ovolume dn basis in the General growth J lfU L LJ LJ Trade categ
Slide 30: 4A. India's First Whey Manufacturing Company
4A. INDIA'S FIRST WHEY MANUFACTURING COMPANY ldeos for o new d<ly Pa rag Milk Foods is the Total whey market size is INR 6.6 billion only lndian company o and is expected to reach INR 19.9 bi 11 ion ma ufact re W · ey by FY27, Growing at a of tei . Brand Awatar reaches its • over FY19-27 . consumer
Slide 31: Strong Thrust on Protein Business
STRONG THRUST ON PROTEIN BUSINESS Ideas for a new day Protein Business Contributes Around - 7% Of Sales of Awatar sales comes from e-commerce 01-FY22 02-FY22 03-FY22 04-FY22 01-FY23 02-FY23 03-FY23 Q4-FY23 Strong growth is witnessed; over the ast 8 quarters, the sa es have grown to 8x.
Slide 32: 4C. Strengthening New Business: Pride of Cows
4C. STRENGTHENING NEW BUSINESS: PRIDE OF COWS Ideas for a new day Growth st ategy: More point of sa e; More products ROUTE TO MARKET INCREAS NG PRODUCT PORTFOLIO Whole milk ---, , Fat free milk Direct to consumers Paneer ,, ' I ' '' \ '\ ___ _ Ecommerce \ Ghee Organized trade channels Curd Farm fres
Slide 33: 5. Optimizing Productivity to Drive Growth
5. OPTIMIZING PRODUCTIVITY TO DRIVE GROWTH Ideas for a new day PLANNING STAGE FOR SAP HANA IMPLEMENTATION DIGITIZATION/ IT: MORE THAN 700/o OF GT BUSINESS HAS BEEN COVERED IN SFA* LEVERAGING VENDORS, RE- NEGOTIATION, REVERSE AUCTIONS OVERHEADS: ---------------- OFFICE CONSOLIDATION DEPOT & COLO STOR
Slide 34: Additional Information
ADDITIONAL INFORMATION
Slide 35: Our ESG Initiatives
OUR ESG INIT ATIVES Ideas for a new day LAYING A SOLID FOUNDATION BY FOC US AREAS ADOPTING ESG POLICIES SOCIAL GOVERNANCE Best Practices of Adoption of practices focus centers around reducing focus on the well-being framework includes business Adoption of strong for food security & Adoption of socie
Slide 36: Green Initiatives
GREEN INITIATIVES Ideas for a new day @WATER @CLIMA E (f) ENERGY FOCUS ON REDUCING AIR l SOIL I NOISE POLLUTION EMISSION I ENERGY CONSERVATION I FOCUS ON RENEWABLES REDUCE I REUSE I RECYCLE • Installation of solid waste digester. • Power generation through solar • Water optimization. • Monitoring an
Slide 37: Parag Milk Foods Limited
1992 2010 2016 2021 2005 2014 2018 Investment by International Finance Corporation (IFC) and prominent Consumer fund Sixth Sense Venture Parag Milk Foods was Launched Palamaner plant Realizing the need Parag Milk Advisors LLP founded by Mr. Bhagyalakshmi Dairy was established of market & to add Food
Slide 38: Board of Directors
BOARD OF DIRECTORS Ideas for a new day Mr. Devendra Shah I Chairman PMFL has grown consistently under the leadership of Devendra Shah. He brings enthusiasm and innovation to business and has enhanced the company's revenue exponentially. Mr. Pritam Shah I Managing Director Dr. Dnyanesh V. Darshane I
Slide 39: Thank You
dd) PARAG Ideas for a new day THANK YOU