Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q2 FY2020 Earnings Presentation
33 slides from Prataap Snacks's earnings presentation, Nov 7, 2019
Slide 1: Exchange filing cover letter
Ref No.: PSL/2019-20/CS/SE/61 Date: 7 November, 2019 To, To, Listing Department Corporate Relationship Department National Stock Exchangeof India Limited BSELimited Exchange Plaza, 5" Floor P.J. Towers, Plot No. C/1, G Block Dalal Street Bandra Kurla Complex Mumbai- 400 001 Bandra ( E), Mumbai-400 0
Slide 2: Q2 & H1 FY20 - Results Presentation
Q2 & H1 FY20 - Results Presentation November 2019
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 4: Contents
Contents Company Overview 4 Industry Overview 17 Q2 & H1 FY’20 Results Performance 21 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Prataap Snacks at a Glance
Prataap Snacks at a Glance Over More than SKUs Manufacturing packets sold 5 year revenue Facilities* per day CAGR Over Reach of over Retail In Rings Super Stockists Distributors Touchpoints 5 *(5 Inhouse plants and 9 contract manufacturing units)
Slide 7: Diverse Product Portfolio
Diverse Product Portfolio YUM CAKE, RINGS, KURVES PELLET NAMKEEN & POTATO CHIPS CHULBULE NAMKEEN CUP CAKE, & PUFF SNACKS FRYUMS COOKIE CAKE Potato based Rice grit & Corn grit Gram based Wheat based Cake Namkeen snack Corn grit based snack SKUs: 22 SKUs: 4 variations and Fryums SK
Slide 8: Avadh Snacks
Avadh Snacks Product Portfolio Fastest growing and fourth Namkeen Fryums largest snacks player in Gujarat ~6% market share in Gujarat, one of the largest market 25.1% revenue CAGR over the past 3 years Key Products: Bhavnagri Gathiya, Sada Key Products: Tomato Cup, Salted reffil, Mamra, Papdi Gathiy
Slide 9: Avadh Snacks - Unique Business model & Expansion plans
Avadh Snacks - Unique Business model & Expansion plans Business Model Expansion plans Avadh has a Unique Business model •Super Value Player offering higher Expected to be value for Money to consumers. Increasing capacity of commissioned in Rajkot facility by 50%. Q3 FY‘20 Pan India Direct Distributi
Slide 10: Sweet Snacks Portfolio
Sweet Snacks Portfolio Center Filled Choco Vanilla Cookie-Cake Yum Cake Tiffin Cake Layer Cake Cup Cake Cake SKU's - 3 SKU's - 2 SKU's - 1 SKU's - 1 Chunk Cake Layer of Target Target Target Target with fruit Sponge group - group - group - group - cuts cake with Youth and Youth and Youth an
Slide 11: Track Record of Innovation
Track Record of Innovation Launched Nachos, and Launched Launched Kurves Cup Cake in Yum Cake, Introduction Launched chocolate Cookie of Seven Yum-Pie, a and vanilla Cake and variety of flavor in Wonders Choco sweet snacks, Q1FY20 range of Vanilla Introduction under Rich Cake healthier Feast of Yood
Slide 12: Key Milestones
Key Milestones Entered into 3P Contract Manufacturing Sequoia’s initial Doubled the Guwahati new plant in Karjat & investment of Rs. Installed capacity of Potato commissioned Kashipur Prakash Snacks 620 mn Chulbule Chips plant at incorporated. Prataap Snacks Introduction of plant at Indore from Conv
Slide 13: Pan India Presence
Pan India Presence Strategically located Manufacturing facilities to cater the regional demand No. of Facilities Products 1 Hissar 1 – Contract Facility Extruded Snacks, Pellets, Chulbule No. of Facilities Products Kashipur 1 - Contract Facility Chips, Namkeen, Pellet 10 1 5 Indore No. of Facilities
Slide 14: Guided by an Accomplished Board
Guided by an Accomplished Board Arvind Mehta Chairman & Executive Director Over 30 years of experience in real estate business along with over 16 years in the snacks Vineet Kumar Kapila food industry and in the financing business Independent Director Ex-COO (RPC North of United Spirits) & earlier Mr
Slide 15: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Arvind Mehta Over 30 years of experience in real estate business along with over 16 years in the Chairman & Executive snacks food industry and in the financing business Director Corporate functions Mr. Amit Kumat Managing Director and Chief Over 23 years
Slide 16: Helmed by a Professional Management Team
Helmed by a Professional Management Team He holds bachelor degree in Science (Economics). He has over 27 years of Mr. Subhashis Basu experience in the FMCG industry and worked with Parle, PepsiCo India and Mother Chief Operating Officer Dairy Corporate functions Mr. Subhash Bhatt He holds bachelor d
Slide 17: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Awadh B. Singh He holds bachelor degree in Science. He has over 31 years of experience in the General Manager Sales - FMCG industry and worked with Prakash Snacks and Hello Agro East Corporate functions Mr. Mahesh Purohit He holds bachelor degree in Comme
Slide 18: Industry Overview
Industry Overview 17
Slide 19: Favourable demographics supporting Industry growth
Favourable demographics supporting Industry growth POPULATION TREND (BILLIONS) INDIA’S ANNUAL CONSUMER 1.397 1.411 EXPENDITURE (RS. TRILLION) 1.352 1.366 1.380 101 110 1.324 1.338 80 84 90 1.293 1.310 71 75 1.263 1.278 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2
Slide 20: Salty Snacks – poised for strong growth
Salty Snacks – poised for strong growth ORGANISED MARKET TO GROW AT A CAGR OF 14.3% OVER 5 YEARS 43,000 ORGANISED SNACK MARKET BY TYPE 22,000 OF CATEGORIES 8,700 Others 2% 2010 2016 2021 Namkeen & Source: Systematix Research Report March 2019 Chips Traditional 30% 36% EXTRUDED SNACKS TO POST THE HIG
Slide 21: Sweet Snacks Industry – Size, Growth, Key Players
Sweet Snacks Industry – Size, Growth, Key Players Organized Sweet Snacks (Cakes & pies): West is Rs.2,200-2,500 crore growing fast 20% now N Limited Highly under vegetarian penetrated options in category Cake 15% W Market E 50% Very few S Growing at national fast pace players 15% 20
Slide 22: Q2 & H1 FY’20 Results Performance
Q2 & H1 FY’20 Results Performance 21
Slide 23: Operational Overview
Operational Overview In Q2 FY’20, PSL delivered a topline growth of 35.1% owing to focused marketing initiatives, new 3P manufacturing facilities, continued network expansion and Avadh portfolio Highly encouraging response to new product launch - Center Filled Cup Cake in Sweet Snacks segment
Slide 24: Financial Overview
Financial Overview In Q2 FY’20, PSL reported: Revenue of Rs. 3,880.0 million, delivered double digit growth of 35.1% yoy Operating EBITDA of Rs. 311.5 million, translating to a margin of 8.0% Adjusted EBITDA (after adjustment for stock based compensation, CSR cost & impact of Ind AS 116) of Rs
Slide 25: Financial Overview
Financial Overview In H1 FY’20, PSL reported: Total revenue of Rs. 7,190.0 million, higher by 29.4% yoy Operating EBITDA of Rs. 583.6 million, translating to a margin of 8.1% Adjusted EBITDA (after adjustment for share based compensation, CSR cost & impact of Ind AS 116) of Rs. 506.7 million ,
Slide 26: MD & CEO’s Message
MD & CEO’s Message Commenting on Q2 FY’20 performance, Mr. Amit Kumat - Managing Director & CEO, Prataap Snacks Limited said: “The Yellow Diamond portfolio has delivered healthy top line growth across all categories on the back of continued network expansion, new 3P manufacturing facilities and focu
Slide 27: Abridged P&L Statement
Abridged P&L Statement Y-o-Y Y-o-Y Particulars Q2 FY’20 Q2 FY’19 H1 FY’20 H1 FY’19 Change (%) Change (%) Income from Operations 3,880.0 2,872.2 35.1% 7,190.0 5,558.3 29.4% Raw Material Cost 2,718.5 1,968.2 38.1% 5,052.0 3,832.7 31.8% Gross Profit 1,161.6 904.0 28.5% 2,138.0 1,725.7 23.9% Gross Margi
Slide 28: Financials – Q2 & H1 FY’20 Performance
Financials – Q2 & H1 FY’20 Performance SALES / INCOME FROM Gross Margin (%) OPERATIONS 31.5% 31.0% 7,190.0 29.9% 5,558.3 29.7% 3,880.0 2,872.2 Q2FY19 Q2FY20 H1FY19 H1FY20 Q2FY19 Q2FY20 H1FY18 H1FY20 ▪ Income from operations in Q2 FY’20 grew by 35.1% yoy to Rs. 3,880 mn & in H1 FY’20 it was Rs. 7,190
Slide 29: Financials – Q2 & H1 FY’20 Performance
Financials – Q2 & H1 FY’20 Performance EBITDA Margin (%) PAT Margin (%) 8.1% 8.0% 3.9% 3.9% 3.1% 3.0% 7.2% 7.0% 207.6 311.5 388.6 583.6 112.6 119.9 216.5 216.4 Q2FY19 Q2FY20 H1FY19 H1FY20 Q2FY19 Q2FY20 H1FY19 H1FY20 ▪ EBITDA for Q2 FY’20 was higher by 50% yoy at Rs. 311.5 mn , whereas the EBITDA for
Slide 30: Financials – Q2 & H1 FY’20 Performance
Financials – Q2 & H1 FY’20 Performance Cash Profits Cash EPS 527.4 22.5 371.6 15.8 278.0 11.9 191.5 8.2 Q2FY19 Q2FY20 H1FY19 H1FY20 Q2FY19 Q2FY20 H1FY19 H1FY20 ▪ The Company follows a conservative accounting policy and is amortizing intangible assets of Avadh Snacks ▪ A lateral benefit has been cont
Slide 31: Impact on EBITDA and PAT from non-operational adjustments
Impact on EBITDA and PAT from non-operational adjustments 278.7 34.2% CSR Ind AS 116 ESAR Expenses Expenses Reported EBITDA Adjusted EBITDA 43.8% 161.9 ESAR CSR Ind AS 116 Expenses Expenses Avadh Acquisition – Amortization of Goodwill 30 Reported PAT Adjusted PAT CONSOLIDATED FINANCIALS, IN RS. MILL
Slide 32: About Prataap Snacks Ltd.
About Prataap Snacks Ltd. Prataap Snacks Ltd. (PSL) is a leading Indian Snack Foods Company. It offers multiple variants of products across categories of Potato Chips, Extruded Snacks, Namkeen (traditional Indian Sumit Sharma snacks) under the popular and vibrant Yellow Diamond brand. It has recentl
Slide 33: Thank You
Thank You 32