Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q1 FY2020 Earnings Presentation
32 slides from Prataap Snacks's earnings presentation, Aug 13, 2019
Slide 1: Cover letter to stock exchanges on corporate presentation
Ref No.: PSL/2019-20/CS/SE/38 Date: 13th August, 2019 To, To, Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor P.J. Towers, Plot No. C/1, G Block Dalai Street Bandra Kuria Complex Mumbai- 400 001 Bandra ( E), Mumbai -
Slide 2: Prataap Snacks Limited Q1FY20 Results Presentation
PRATAAP SNACKS LIMITED Q1FY20 - Results Presentation August 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 12 Avadh Snacks - Maintains growth momentum 15 Q1FY20 Results Performance 19 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Company Snapshot
Company Snapshot 5 year revenue SKU’s Manufacturing Market Leader in CAGR facilities Rings States Super Stockists Distributors Packets sold per day Diverse Product Portfolio Focus On Product Innovation Pan India Distribution Network Core Management With Deep Domain Expertise Strategically Located Ma
Slide 7: Diverse Product Portfolio
Diverse Product Portfolio YUM CAKE, POTATO CHIPS CHULBULE* RINGS, KURVES NAMKEEN* PELLET SNACKS NAMKEEN & CUP CAKE, & PUFF* FRYUMS COOKIE CAKE Potato Rice grit & Corn grit Gram Wheat Cake Namkeen based Corn grit based based# based variations and Fryums snack based snack with catering t
Slide 8: Focus On Product Innovation
Focus On Product Innovation Namkeen • Banana Wafer Black Pepper • Banana Wafer Namkeen • Garlic Sev Salted Mamra • Cornflake Mixture Potato Chips • Masala • Cream & Potato Chips • Mitha Falahar Matar • Tasty Punch • Bhel Ring Onion • Gatiya • Mango Kurves • Nimbu Chulbule • Sev Murmura Masala • Chee
Slide 9: Pan India Presence
Pan India Presence Strategically located Manufacturing facilities to cater the regional demand Hissar Kashipur No. of Facilities Products 1 No. of Facilities Products 1 – Contract Facility Pellets, Chulbule 1 - Contract Facility Chips, Namkeen, Pellet Indore 10 No. of Facilities Products 1 5 Chips,
Slide 10: Guided By An Accomplished Board Of Directors
Guided By An Accomplished Board Of Directors Arvind Mehta Amit Kumat Apoorva Kumat G.V. Ravishankar Chairman & Executive Director Managing Director & CEO Executive Director (Operations) Nominee Director (Sequoia) Over 29 years of experience in Over 22 years in the snacks food Over 22 years in the sn
Slide 11: Core Management With Deep Domain Expertise
Core Management With Deep Domain Expertise Corporate functions Arvind Mehta Amit Kumat Apoorva Kumat Subhashis Basu Sumit Sharma Chairman & Executive Director Managing Director & CEO Executive Director (Operations) COO CFO Over 29 years of experience in Over 22 years in Snacks Over 22 years in Snack
Slide 12: Prataap Snacks' Evolution
Prataap Snacks’ Evolution Guwahati new plant commissioned ISO Certification for Sequoia’s initial Indore chips investment of Rs. manufacturing plant 620 mn Doubled the Installed in Prataap Snacks capacity of Potato Conversion of Prakash Snacks Chulbule Chips plant at company from Entered into 3P inc
Slide 13: Industry Overview
Industry Overview fn hE
Slide 14: Trends In The Indian Organised Snacks Market
Trends In The Indian Organised Snacks Market Organized snack market valued at Rs.220 Bn represents only ~40% of Rs.550 Bn total snack market Region* Sales channels Organised snacks market to grow at CAGR of 14% Independent 13.5% small grocers 19% 3.4% 18% Supermarkets 7.5% Hypermarkets 10% 5.3% Conv
Slide 15: Backed By Strong Demographic Tailwinds in India
Backed By Strong Demographic Tailwinds in India Large and Growing Population Sizeable Population of Youth and 1,383 Children¹ 1,354 Total Population 1,274 1,289 611 1,256 602 Population (million) (million) 580 583 584 2020E 2014 2015 2016 2018 2020E 2014 2015 2016 2018 2014-2020 CAGR: 1.9% 2014-2020
Slide 16: Avadh Snacks: Maintains growth momentum
Avadh Snacks Maintains growth momentum 15
Slide 17: Avadh Snacks Update
Avadh Snacks Update Avadh Snacks delivered a robust topline performance for the quarter under review Continue to expand presence in Gujarat, the biggest salty snacks market in the country and a crucial market for Prataap’s growth story – Traditional portfolio to use Avadh’s distribution synergie
Slide 18: Avadh Product Portfolio – Namkeen
Avadh Product Portfolio – Namkeen Key Products: Bhavnagri Gathiya, Sada Mamra, Papdi Gathiya, Chavanu, Lasaniya Mamra Price Point: Rs. 5, 10, 30, 50 SKUs: 34 varieties Target group: All 17
Slide 19: Avadh Product Portfolio – Fryums
Avadh Product Portfolio – Fryums Key Products: Tomato Cup, Salted reffil, Masala cup, Chiji Noodles, Salli, White crunchy papd Price Point: Rs. 5, 10, SKUs: 21 varieties Target group: Children 18
Slide 20: Q1FY20 Results Performance
Q1FY20 Results Performance 19
Slide 21: Operational Overview
Operational Overview In Q1FY20 despite facing a subdued overall consumption demand, PSL delivered a topline growth of 23.2% yoy owing to a healthy traction in salty snacks portfolio and robust growth in Avadh portfolio Growth in PAT was led by broad recovery in the Rings segment and better utili
Slide 22: Financial Overview
Financial Overview In Q1 FY20, PSL reported: Revenue of Rs. 3,309.9 million, delivered double digit growth of 23.2% YOY Operating EBITDA* was up by 50.3% YOY to Rs. 272.1 million, with a margin of 8.2% PAT** for the quarter stood at Rs. 96.5 million EPS (Diluted) was at Rs. 4.12 per share in
Slide 23: MD & CEO's Message
MD & CEO’s Message Commenting on Q1FY20 performance, Mr. Amit Kumat - Managing Director & CEO, Prataap Snacks Limited said: “I am glad to share that we have begun FY20 on a positive note with Topline growth of 23.2% on a y-o-y basis despite the subdued overall consumption demand. This was due to hea
Slide 24: Abridged P&L Statement
Abridged P&L Statement Y-o-Y Particulars Q1FY20 Q1FY19 Change (%) Income from Operations 3,309.9 2,686.1 23.2% Raw Material Cost 2,333.5 1,864.5 25.2% Gross Profit 976.4 821.6 18.9% Gross Margins 29.5% 30.6% -109 Bps Operating EBITDA* 272.1 181.0 50.3% Operating EBITDA Margins 8.2% 6.7% +148 Bps Dep
Slide 25: Financials – Q1FY20 Performance
Financials – Q1FY20 Performance Sales / Income from Gross Margin (%) Operations 30.6% 3,309.9 29.5% 2,686.1 Q1FY19 Q1FY20 Q1FY19 Q1FY20 ▪ Income from operations in Q1FY20 grew by 23.2% yoy to Rs. 3,309.9 mn on account of improved volumes in Salty snacks business and robust growth in Avadh portfolio
Slide 26: Financials – Q1FY20 Performance
Financials – Q1FY20 Performance EBITDA Margin (%) PAT Margin (%) 8.2% 3.9% 6.7% 2.9% 181.0 272.1 103.9 96.5 Q1FY19 Q1FY20 Q1FY19 Q1FY20 ▪ EBITDA* grew by 50.3% yoy to Rs. 272.1 mn ▪ PAT** stood at Rs. 96.5 mn for Q1FY20 ▪ Depreciation was enhanced on account of intangible assets created upon acquisi
Slide 27: Financials – Q1FY20 Performance
Financials – Q1FY20 Performance Cash Profit Cash profit (%) 7.5% Cash EPS 10.6 6.7% 7.7 180.1 249.4 Q1FY19 Q1FY20 Q1FY19 Q1FY20 ▪ The Company follows a conservative accounting policy and is amortizing intangible assets of Avadh Snacks ▪ A lateral benefit has been contained tax outflow CONSOLIDATED F
Slide 28: Impact of AS 116 on the Q1FY20 results
Impact of AS 116 on the Q1FY20 results The Company has adopted Ind AS 116 Leases using modified retrospective approach under which the cumulative effect of initial application is recognized as at 1 April 2019 and does not require restatement of comparative information – Consequently, operating lea
Slide 29: Synergies from merger of Pure N Sure with Company
Synergies from merger of Pure N Sure with Company During the quarter, PSL successfully concluded the merger of Pure N Sure Foods with the Company There are several synergies which the Company will enjoy from the merger – Simpler corporate structure will aid in efficient management – Facilitate bette
Slide 30: Avadh Snacks - Accounting
Avadh Snacks - Accounting The company completed the acquisition of Avadh Snacks Private Limited in Q3FY19 The Company has accounted for the business combination as at the acquisition date in accordance with para 45 of Ind AS 103 ‘Business Combinations’ in Q3FY19 As per IndAS38, the Intangible
Slide 31: 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, Sumit Sharma Namkeen (traditional Indian snacks) under the popular and vibrant Yellow Diamond brand. It has recentl
Slide 32: Thank You
Thank You 31