Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q2 FY2021 Earnings Presentation
28 slides from Adf Foods's earnings presentation, Sep 30, 2020
Slide 1: Investor Presentation Q2 & H1FY21
Investor Presentation Q2 & H1FY21 1
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by ADF Foods Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,
Slide 3: Agenda
Agenda 01 Q2 & H1FY21 Highlights 02 About the Company 03 Industry Drivers & Growth Strategy 04 Historical Financial Overview
Slide 4: Q2 & H1FY21 Highlights
Q2 & HiFY21 Highlights Nay indian
Slide 5: Q2 & H1FY21 result highlights
Q2 & H1FY21 result highlights Total Income EBITDA & EBITDA Margin PAT & PAT Margin 23% Quarter performance 19% 15% 13% 52% 19 13 97 15 9 64 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Total Income EBITDA & EBITDA Margin PAT & PAT Margin Half- year performance 27% 22% 19% 14% 12% 171 30 32 21 135 19 H1
Slide 6: Consolidated profit & loss statement
Consolidated profit & loss statement (Rs Cr) Q2FY21 Q2FY20 YoY H1FY21 H1FY20 YoY Revenue from operations 94.3 60.2 57% 168.2 129.1 30% Other income 2.5 3.5 3.1 5.5 Total Income 96.8 63.7 52% 171.3 134.6 27% Cost of material consumed 27.4 16.1 49.5 38.6 Purchase of stock-in-trade 23.6 12.2 46.4 33.0
Slide 7: Consolidated balance sheet
Consolidated balance sheet (Rs Cr) Sept’20 Mar’20 (Rs Cr) Sept’20 Mar’20 Share Capital 20.4 20.4 Fixed Assets incl. CWIP 57.2 58.2 Reserves 206.8 184.0 Intangible Assets 21.3 21.4 Shareholders' Funds 227.2 204.4 Income Tax Asset (Net) 4.7 4.6 Other liabilities 0.7 1.6 Other Non Current Assets 6.5 10
Slide 8: Recent development
Recent development Capacity expansion by taking new unit on lease • The Company has taken a manufacturing unit in Gujarat on lease • The facility, with a production capacity of 1,950 MTPA, will enable to increase the capacity for ready-to-eat and frozen food products to cater to the growing demand i
Slide 9: About the Company
About the Company “ At ADF we believe in maintaining high quality standards, introducing “ new and innovative products while remaining customer centric
Slide 10: Company highlights
Company highlights 7 55+ 180+ Brands Countries Distributors Operational strengths 2 400+ 26,000 State-of-the-art Facilities SKU MTPA Capacity Zero 21% 14% Long Term Debt EBITDA Margin PAT Margin Financial strengths 23% 29% Rs 51 cr Return on Equity Return on Capital Employed Returned to shareholders
Slide 11: Our businesses – presence across all categories
Our businesses – presence across all categories Export of wide range of Indian ethnic products - ready-to-cook, ready-to-eat, Contribution to Revenue frozen, pickles, condiments, etc. - to over 55 countries with significant H1FY21 Core business presence across US, UK and GCC markets 1% 25% Dealing i
Slide 12: Core business
Core business • Flagship brand primarily • Primarily targeted at the • Premium brand catering to • A leader in the economy targeted to the Indian diaspora mainstream (Non-Indian) customers in the Middle East category worldwide consumers market • Offers a range of pickles, • 300+ products in differen
Slide 13: US subsidiary
US subsidiary • Organic hand rolled burritos • Meatless meatballs: Made from protein-packed Non- • Made with USDA certified organic ingredients GMO soy, offer the same taste, texture and versatility • Available in a wide range of classic burritos and of traditional meatballs. All natural, vegan, veg
Slide 14: Agency distribution business
Agency distribution business • Distribution of some products of a global Fortune 500 FMCG in USA and UK markets • Products are complimentary to existing range of ADF products and offers wide range of products to the distributors • Focusing on adding more complimentary products of similar nature in p
Slide 15: India business
India business • Wide range of products - pickles, sauces, cooking paste, ready to cook instant masala mix, etc. • Sold and marketed in Mumbai, India • Available in Reliance Retail, Sahakari Bhandar & Haiko; Online Presence in Big Basket and Flipkart 15
Slide 16: State of the art manufacturing units
State of the art manufacturing units • Total Built up factory area - 15,000 Facility at Nadiad, Sqm The facility at Nasik is USDA Organic accredited, ensuring stringent production norms and sound • Frozen Foods (Samosas, Vegetables, Gujarat farming practises Snacks, Parathas, etc) • Meal Accompanime
Slide 17: Strong distribution network
Strong distribution network Bharat Sareen Masud Sethi Country manager (UK) Country manager (Canada) Upinder Thakur Country manager (UK) CANADA EUROPE Savita Patel Savio Almeida Head Operations & Country manager (GCC, Commercial (USA) ASIA Levant Countries, Asia Pacific NORTH & Africa) AMERICA MIDDLE
Slide 18: Experienced management
Experienced management Bimal Thakkar Chairman, Managing Director and CEO • 30+ years of experience in domestic and export management • Instrumental role in development of Brands and new products, tapping new markets, international acquisitions, setting up of subsidiary companies in U.K. and U.S.A. D
Slide 19: Board of Directors
Board of Directors Deepa Harris Viren Merchant Independent Director Independent Director • 30+ years of expertise in high-end luxury hospitality category • 30+ years of experience and expertise in business management and pharmaceutical • Currently Independent Director of PVR Limited, Jubilant Foodwo
Slide 20: Industry Drivers & Our Growth Strategy
Industry Drivers & Our Growth Strategy
Slide 21: Paradigm shift in preference over ethnic food
Paradigm shift in preference over ethnic food Global Ethnic Food Market 11.8% CAGR • The global ethnic food market was valued at $36.48 billion in 2018, and is projected 70.10 to grow at 11.8% (CAGR) , to reach $70.10 billion in 2024 • A paradigm shift in taste preference over ethnic food due to inc
Slide 22: Evolving consumer tastes and preferences driving demand
Evolving consumer tastes and preferences driving demand Evolving Industry Trends • Evolving consumer tastes and preferences offering opportunities for innovations: - Consumers demand healthy and authentic food alternatives with fewer artificial ingredients • Strong preference of convenience RTE food
Slide 23: ADF - Strongly positioned for next phase of growth
ADF - Strongly positioned for next phase of growth Journey So Far Journey Ahead 3 1 Established strong brands in various segments 2 Strengthening ‘Agency Distribution’ Business 2 Strong global distribution network 1 Broadening Distribution Network • Increasing product offerings in distribution busin
Slide 24: While generating value for shareholders
While generating value for shareholders Our continued focus lies on improving cash generation and maintaining a robust balance sheet, thereby enabling us to generate strong returns and reward shareholders FY17 FY18 FY19 FY20 Rs 51 crores Rs 9.6 crore Rs 5.5 crore Rs 30 crore Rs 6 crore Returned to B
Slide 25: Historical Financial Overview
Historical Financial Overview
Slide 26: Consolidated financial performance
Consolidated financial performance Total Income EBITDA PAT 12% 3 year CAGR 30% 3 year CAGR 43% 3 year CAGR 43 295 62 245 53 208 220 40 25 28 18 15 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Cash flow from operations EBIDTA Margins % PAT Margins % 26 14% 24 21% 21% 20 18% 10% 17 8% 1
Slide 27: Historical profit and loss statement
Historical profit and loss statement Standalone Consolidated (Rs Cr) FY18 FY19 FY20 FY18 FY19 FY20 Revenue from operations 163.8 187.5 182.1 201.0 231.4 272.8 Other income 18.6 14.1 21.8 18.6 14.1 21.8 Total Income 182.4 201.6 203.8 219.6 245.5 294.6 Cost of material consumed 78.2 89.33 81.81 78.2 8
Slide 28: Thank You
Thank You Shardul Doshi (CFO)/ Shalaka Ovalekar (CS) ADF Foods Limited shardul@adf-foods.com co_secretary@adf-foods.com Marathon Innova B2 – G01, G. K. Road Lower Parel, Mumbai 400 013 Pooja Dokania/ Rishav Das Pareto Capital (Investor Relations) pooja.dokania@paretocapital.in rishav.das@paretocapit