Awl Agri Business Ltd · NSE:AWL
Awl Agri Business — Adani Wilmar — Q4 FY2023 Earnings Presentation
48 slides from Awl Agri Business's earnings presentation, May 3, 2023
Slide 1: Exchange filing cover letter
adani wilmar Ref No: AWL/SECT/2023-2024/12 May 3, 2023 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 543458 Scrip Code: AWL Dear Sir/ Madam, Sub: Investor Presen
Slide 2: Adani Wilmar Limited: Investor Presentation – Q4FY23
ad1ani1 1 wilmar edtble otls and foods For a healthy growing nation Adani Wilmar Limited: Investor Presentation – Q4FY23 May 3, 2023 ----------------------- -------------------- ------- ------ ------- ------- -- -- --- --- ---- ---- --- --- --- --- --- --- ------ ------------------------------------
Slide 3: 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 4: Macro Context
Macro Context ad an r wilrnar Earnings Presentation – Q4FY23
Slide 5: Raw material prices have softened
Raw material prices have softened Edible oil Prices Wheat Prices Palm Soya Sun In USD per Ton In INR per KG $2,200 2100 29 29 28 1850 27 $1,900 1800 26 1770 $1,600 1500 24 1360 1335 1280 1292 23 23 $1,300 1224 23 1370 1115 1153 $1,000 1050 1030 1014 1021 970 1004 $700 830 Mar 22 Jun 22 Sept 22 Oct 2
Slide 6: Result Highlights
Result Highlights cu a da nr wilrnar fOftunefoods.com Earnings Presentation – Q4FY23
Slide 7: Result Highlights – Q4 FY23
Result Highlights – Q4 FY23 rtu edible oils and foods Consolidated Revenue Volume (MMT) Gross Profit EBITDA PBT PAT -1% 14,917 -16% 13,873 1,461 1,439 1.5 1.3 426 359 298 234 129 94 T T T T Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Standalone Revenue Volume (MMT) Gross
Slide 8: Result Highlights - FY23
Result Highlights - FY23 rtune edible oils and foods Consolidated Revenue Volume (MMT) Gross Profit EBITDA PBT PAT 7% 11% 58,185 ·25% ·28% 54,155 6.0 5.5 6,002 4.8 5,383 1,736 804 5.0 1,661 1,059 789 582 4.0 3.0 2.0 r 1.0 r FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 Standalone Reven
Slide 9: Company Performance - by Business
Company Performance - by Business Q4FY23 Volumes (in MMT) Revenues (INR in Crores) YoY Growth % Mix % - Q4FY23 Segment Q4’23 Q4’22 Q4’23 Q4’22 Volume Value Volume Value Edible Oils 0.9 0.9 10,790 12,372 0% -13% 59% 78% Food & FMCG 0.3 0.2 1,159 757 38% 53% 17% 8% Industry Essentials 0.4 0.2 1,924 1,
Slide 10: Key Highlights of FY '23
Key Highlights of FY ‘23 ▪ In FY ’23, Company recorded 14% growth in volume ▪ Recorded consolidated revenue of INR 58,185 crores in FY ‘23 ▪ Company crossed 5mn Metric Tonnes of sales during FY’23 ▪ Food segment doubled its revenue in 2 years to close the year at ~INR 4,000 cr. ▪ Both Wheat flour an
Slide 11: Q4 Update: Company
Q4 Update: Company ar ka khana tastes best when cooked with f; rune edible oils and foods ▪ Macro context for Q4: In Q4’23, edible prices continue to decline reaching lower levels, leading to uptick in consumer demand. Food prices also cooled off towards the later part of the year. ▪ Alternate Chann
Slide 12: Reasons impacting Q4 profitability
Reasons impacting Q4 profitability o khana tastes best when cooked with '1 rtu edible oils and foods ▪ TRQ disparity led to pressure on our Soyabean oil margins ▪ Decline in edible oil prices continued in the quarter as well leading to high-cost inventory, along with the MTM impact in P&L. The impac
Slide 13: Q4 Update: Edible Oil & Food (1/2)
Q4 Update: Edible Oil & Food (1/2) ▪ The segment’s branded sales volume grew by 4% during the quarter, on the back of good consumer demand due to softened edible oil prices. However, overall oil sales volume was dragged down due to lower demand from the bakery and frying industry. ▪ Both Wheat Flour
Slide 14: Q4 Update: Edible Oil & Food (2/2)
Q4 Update: Edible Oil & Food (2/2) ▪ In pulses, the Company launched 9 different varieties of natural dal (legumes), under ‘Fortune’ brand, which are sortex-cleaned and unpolished. ▪ In the personal care category, Soaps & handwash was launched in FY ‘20 under the brand Alife as a forward integration
Slide 15: Q4 Update: Industry Essentials
Q4 Update: Industry Essentials ▪ Our B2B business of selling industrial products for various industry applications has been gaining market share and made progress in the journey of adding value-added products ▪ Oleochemicals category: ▪ The Oleochemicals business has been growing well on the back of
Slide 16: Business Updates
Business Updates poha (thick} ......,,_ f0<tvnefoods..com ·- """'·"' Net Weight 500 9 ad an r wilrnar Earnings Presentation – Q4FY23
Slide 17: Dominant leadership in Edible Oils
Dominant leadership in Edible Oils Putting our leadership in Edible Oils into perspective Leading in most of the markets Leadership across oils Dominant Leader MAT 2023 #1 #1 Soyabean adani 19.5% wilmar #2 Palm Oil 13.2% 51% #1 Mustard Oil 6.4% 5.9% 4.5% #3 Sunflower Oil ◼ Market share ~1.5x of the
Slide 18: Gaining market share in wheat flour & basmati rice
Gaining market share in wheat flour & basmati rice Wheat Flour Rice #2 #3 5.0% 7.2% 4.7% 6.5% T T Mar 22 Mar 23 Mar 22 Mar 23 Note: Additionally, Kohinoor had a MS% of 0.7% in MAT Mar 23 I adani wilmar fi rtune edible oils 011d foods Source: Nielsen, MAT March 2023 Earnings Presentation – Q4FY23 For
Slide 19: Branding Activities
Branding Activities was a key sponsor on Season 7 of is sponsor of edble oils and food! Masterchef India Women’s Premier League X rtu e x ~ WPL adani wilmar fi rtune edible oils cr,d foods Earnings Presentation – Q4FY23 For ahealthy growing nation
Slide 20: Marketing: A glimpse at Social Media Campaigns in FY23
Marketing: A glimpse at Social Media Campaigns in FY23 Marketing & Branding fo rtune· edlbkt oils ond foods HAPPINESS IS ~ Winning free movie tickets tor you and your sibling! #Fortunate ToHove You "L ast dat e fo r en tries is 15 th August 2022 fortune ....... fortune --. ;!L_otltkJn 'lb KoTiffin B
Slide 21: Marketing: Campaigns in FY23
Marketing: Campaigns in FY23 Marketing & Branding TV Campaigns Other Campaigns al1fe· From the 1'1'1-.erS of fo rtune· SOAP Chandan ke tatwon se mile aapko unmatchable kudrati nikhaar adani wilmar fi rtune edible oils cr,d foods Earnings Presentation – Q4FY23 For ahealthy growing nation
Slide 22: Company Overview
Company Overview cu a da nr wilrnar fOftunefoods.com Earnings Presentation – Q4FY23
Slide 23: Adani Wilmar Limited at glance
Adani Wilmar Limited at glance One of the largest Food FMCG company in India No. #1 Edible Oil brand Over 2 decades of trust INR 58,185 Crores ~ rtune Food & FMCG player offering edible oi~ and foods Consolidated Operating Revenue No. #2 wheat flour brand kitchen essentials across India in FY23 No.
Slide 24: Business Segments
Business Segments Edible Oil Food & FMCG Industry Essentials Products: Products: Major Products: Sunflower Soyabean Mustard Atta, Suji, Rawa & Maida Soap Noodles Glycerine Stearic Acid Distilled Fatty Acid Ricebran Cottonseed Groundnut Castor Oil Deoiled Cakes Rice Besan & Pulses Key applications Fo
Slide 25: Business Mix & Customer Segments
Business Mix & Customer Segments Q4 FY23 FY23 - Edible Oil Value Food & FMCG Industry Essentials Value Business Mix Customer Segments Households HoReCa Institutional Exports ---------------------------------- __ j ________________________________________________ ~------------- ----------------------
Slide 26: Presence across the price spectrum
Presence across the price spectrum Super Premium n rt® Premium edible oils and foods ___- KING'S- w ilm;u S OYABEAN OIL Popular 11 IJ 1. 1. 1~'1 1 ' <ID REnNEO PALMOLEIN First Choice Wht'al Flour (Alla) Avsar CHAR MINAR. A healthy mix of premium and popular brands I adani wilmar fi rtune edible oils
Slide 27: Portfolio of scaled up brands
Portfolio of scaled up brands Strong brands built on basis of trust and quality over last 2 decades Value Brands Segment INR 20,000 Cr + rtune edible oils and foods Edible Oil & fats + Food & FMCG ------- ------- w ilma, INR 4,000 Cr + --- KING'S" SOYABEAN O IL Edible Oil & fats * ~INR 1,000 Cr + Ed
Slide 28: Leadership Position in our Key Products
Leadership Position in our Key Products Edible Oil Food & FMCG Industry Essentials #1 Player in Stearic Acid, - [ ---= ====~]. = = ~]. = = ~] #1 Edible oil brand in India ' [ = #2 in Wheat Flour (atta) ' [ = Glycerine & Soap Noodles #1 Soyabean oil, Mustard & ' [ ----= = = ~] [ ] [ Ricebran oil ] #3
Slide 29: Successful brand extension of Fortune
Successful brand extension of Fortune Over 2 decades of trust and quality Fortune: A household name in India Fortune rtu edible oils and foods ‘Edible Oil’ brand ‘Packaged Foods’ brand ‘Fortune’ brand size is INR 20,000+ Crores adani wilmar fi rtune edible oils cr,d foods Earnings Presentation – Q4F
Slide 30: Large Opportunity in Foods Products
Large Opportunity in Foods Products Opportunity to replicate the Edible Oil playbook in other staple food categories AWL’s Share (as % of total volume consumed in India) AWL’s Competencies ~14% ✓ Edible Oil Fortune Brand Equity ✓ Distribution & Retail Reach Wheat < 1% ✓ Efficient Supply Chain Rice <
Slide 31: Enhancing GTM capabilities to capture demand
Enhancing GTM capabilities to capture demand Everyday great execution Rural Activation & Coverage Expansion • Improving daily visit calls • Rural town expansion • Improving productivity of calls • Improved quality of Town Coverage in Rural • Increase DSM effective coverage • Improved penetration in
Slide 32: Efficient supply chain to lower cost and capture demand
Efficient supply chain to lower cost and capture demand If Least Cost Digitization .r+l 1111 1111 Optimization Most of the supply chain workflow Plan the dispatch to optimize on has been digitized, resulting in paper- various parameters like raw-material less processes, availability of data, prices,
Slide 33: Supply Chain – Reduction of carbon footprint in logistics
Supply Chain – Reduction of carbon footprint in logistics Clean fuel in Logistics Low emission mode of transport 3.8% Volume Dispatch in multi-modal way Dispatch* by CNG vehicle in FY 23 22% 23% ➢ Initiated use of CNG vehicles in FY’23. Vendors are incentivized to used CNG vehicle ➢ Earned 22,574 Ra
Slide 34: NPD: Increasing focus on value added products
NPD Increasing focus on value added products Poha Ready to Cook Khichdi Fortune Xpert Soap Kohinoor Biryani Kit • Almost all value-add products are forward-integration of our existing products and leverages our existing distribution network adani wilmar fi rtune edible oils cr,d foods Earnings Prese
Slide 35: AWL's advantage
AWL’s advantage Proven Track record Fast-paced growth at scale (leadership position or amongst Top-3 in Large addressable market multiple categories) Potential for margin Leverage existing setup to Large distribution network improvement scale up new categories Support of 2 strong Few competitors Str
Slide 36: ESG
ESG ad an r wilrnar Earnings Presentation – Q4FY23
Slide 37: Fortune SuPoshan: A Mission Against Malnutrition & Anemia
Fortune SuPoshan: A Mission Against Malnutrition & Anemia A CSR Initiative by Adani Wilmar Ltd . Fortune SuPoshan touches life of three Target Groups 0-5 yrs age children Adolescent Girls Women in Reproductive Age Fortune SuPoshan touches four core areas Health Education Women Sustainable Empowermen
Slide 38: Cumulative Coverage till March 2023
Cumulative Coverage till March 2023 =----,--------------r------- i Sr No Particulars Coverage I I 1 Total sites 30 I I 2 Total Households 3,82,655 I I 3 Total population 19,10,530 I I 4 Total under five children 1,45,392 I I 5 Total adolescent girls 1,28,334 I I I 6 Total women in reproductive age 3
Slide 39: Current Footprint (April 2022 – March 2023)
Current Footprint (April 2022 – March 2023) I I 5 GENDER EQUALITY 14 13 20 129 1200 I I Cf I Sit es States Districts Slums Villages I I I I 550 1,08,132 3,06,409 I I I Sanginis children Women & girls I I I Alwar ~ I Ci) f I t Touched more than 3 lakh The prevalence of Wasting and SAM have found The
Slide 40: Progress (April 2022 – March 2023)
Progress (April 2022 – March 2023) Achievement Sr Particulars No FY 2022- 23 1 Total under five children screened 1,00,000+ Family Counselling 87662 Total complicated SAM children 2 referred to NRC 1204 Community Events Focus Group Discussion 3578 94999 Total children shifted from SAM to 3 MAM 12245
Slide 41: Poshan Shivir
Poshan Shivir Poshan Shivir Beetroot paratha with sprouted moong & chana Earnings Presentation – Q4FY23
Slide 42: Earnings Presentation – Q4FY23
41 Earnings Presentation – Q4FY23
Slide 43: Environment, Social & Governance
Environment, Social & Governance Green Energy Water Conservation - Successful solar power implementation at 7 plants - Zero Liquid Discharge out of 23 own units. installed at 9 major plants (2900 KL per day) - Plan to continue such installation across all plants over the years - ZLD ensures recovery
Slide 44: Annexure
5. Annexure ad an r wilrnar Earnings Presentation – Q4FY23
Slide 45: Consolidated Results: Q4FY23 & FY23
Consolidated Results: Q4FY23 & FY23 INR in Crores Q4FY23 Q3FY23 Q4FY22 QoQ % YoY % FY23 FY22 FY21 YoY % Volume (in LMT) 14.9 14.7 12.9 1% 16% 54.7 48.0 44.8 14% Revenue 13,873 15,438 14,917 -10% -7% 58,185 54,155 37,090 7% COGS 12,433 13,716 13,457 -9% -8% 52,183 48,771 32,490 7% Gross Profit 1,439
Slide 46: Standalone Results: Q4FY23 & FY23
Standalone Results: Q4FY23 & FY23 I I I I I I I I INR in Crores Q4FY23 Q3FY23 Q4FY22 I I QoQ % I I YoY % FY23 FY22 FY21 YoY % I I 0% 16% 13% Volume (in LMT) 14.2 14.2 12.2 52.3 46.1 44.6 -11% -8% 6% Revenue 13,122 14,714 14,230 55,262 52,302 37,090 -10% -8% 5% COGS 11,767 13,031 12,835 49,543 47,091
Slide 47: fi rtune
I adani wilmar fi rtune edible oils 011d foods Earnings Presentation – Q4FY23 For a healthy growing nation
Slide 48: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Wilmar Limited (together with its subsidiaries, the “Company” or “AWL”) to you solely for your Legal Disclaimer reference and for information purposes only. This presentation is highly confidential and is being give