Pakka Ltd · NSE:PAKKA
Pakka — Q4 FY2023-24 Earnings Presentation
23 slides from Pakka's earnings presentation, Jun 1, 2024
Slide 1: Regulation 30 cover letter to exchanges
7/Govt/SE/2024-25/0008 1st June, 2024 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Department of Corporate Service Plot No. C/1, G Block, Bandra-Kurla Phiroze Jeejeebhoy Towers Complex, Bandra (East), 25th Floor, Dalal Street Mumbai 400 051 Mumbai - 400 001 Trading
Slide 2: Investor Call Q4 FY23-24
& PAKKA Packaging with a Soul Investor Call Q4 FY23-24
Slide 3: -/-
-/-
Slide 4: Food Packaging Market
FOOD PACKAGING MARKET Global Food Packaging Market Size, 2022-2030 (USD Billion) $362.9 Billion $606.3 Billion In 2022 by 2030 Global Food Packaging Market Share, By Application, 2022 Bakery & Confectionery 37.3% Fruits & Vegetables | Dairy Products | Meat, Poultry & Seafood Sauces, Dressings & Cond
Slide 5: Pakka Products
PAKKA PRODUCTS FOOD PACKAGING FOOD WRAP & CARRY FOOD SERVICE Compostable paper based flexible Agri-fiber based Compostable moulded pulp based materials materials
Slide 6: Growth Plan for Scale and Impact
GROWTH PLAN FOR SCALE AND IMPACT Expand Ayodhya Site North America Expansion (Guatemala) 250 TPD bagasse pulp 325 TPD flexible packaging 20 TPD moulded products Turnover Potential: $750m 180 TPD Bagasse pulp 110 TPD flexible packaging 120 TPD Paper for wrap & carry 20 TPD market pulp/moulded product
Slide 7: Key Updates: International Growth
KEY UPDATES INTERNATIONAL GROWTH Basic engineering enters final phase Plant layout completed and land payment initiated Ted DeHaan joins as US Business lead with strong flexible packaging experience Roadmap for product launch for food service, carry and flexibles initiated Pitch deck and teaser comp
Slide 8: India Business Performance
INDIA BUSINESS PERFORMANCE Packaging with a Sout
Slide 9: Key Highlights - Financial
KEY HIGHLIGHTS - FINANCIAL Highest Ever Profit Before Tax Moulded Product Turnaround A 72.64 Cr. in FY24 A PBT 1.80 Cr. in FY24 vs 72.31Cr. in FY23 vs -7.87 Cr. inFY23 ickaging with a Soul
Slide 10: Key Highlights - Productivity
KEY HIGHLIGHTS - PRODUCTIVITY Highest ever Wrap & Carry Highest ever Moulded Highest ever Pulp Paper Production Product Production Production A 41,304 MT in FY24 A 2,588 MT in FY24 A 10,537 MT in FY24 vs 39,769 MT in FY23 vs 2,017 MT in FY23 vs 10,134 MT in FY23 Highest ever Paper Export Commerciali
Slide 11: Key Highlights - Business Verticals Performance
KEY HIGHLIGHTS —- BUSINESS VERTICALS PERFORMANCE Wrap & Carry Paper Moulded Product Pulp Production Segment Segment Segment 97% Efficiency 55% Efficiency 99% Efficiency A 4% from FY23 A 28.3% from FY23 A 4% from FY23 ickaging with a Soul
Slide 12: Consolidated Financials FY23-24 (in Lakhs)
CONSOLIDATED FINANCIALS FY23-24 (IN LAKHS) | Top Line Bottom Line 41,989 7,264 7,231 A473 A 1% Growth YoY Despite cost embedded for impairment of compostable goodwill & stock option scheme Total of 7.18 Cr FY23 FY24 FY23 FY24 OPAKKA
Slide 13: PBT and EBITDA
PBT 1% FY23 18% FY24 A 1% Growth YoY EBIDTA 23% 23% At par from YoY FY23 FY24 OPAKKA
Slide 14: Low International Demand / Derailers
Low International Demand Increased Chinese business for Middle East post US conflicts | Middle East conflicts Red Sea challenges Ongoing Ukraine Russia conflict DERAILERS * Increased FG inventory impact of 4 cr. Even with incremental increase of Imported Pulp pricing, still market viability is low O
Slide 15: Moving Forward...
MOVING FORWARD... Go higher on Exports targeting 3-5 % additional growth on Wrap & Carry New Product addition in basket Outsourcing for Grease resistance paper Establish MEA market for Compostables Focused 50% volume from QSR’s New designs and product launch Flexible commercial launch Metalized & No
Slide 16: Paper Machine #3 Upgrade and Machine #4
Paper Machine #3 Upgrade 7OTPD > 80 TPD Food Wraps and Bag Paper Scheduled delivery by year end Paper Machine #4 > 100 TPD for Flexible Base Technological partner selected - Europe Y”) 7 <x a) O. ~ | Bagasse tie up done for extended quantity post expansion. E a Lo) <x ~? - O Lu = oO ax al | Process
Slide 17: Compostables Business Performance
COMPOSTABLES BUSINESS PERFORMANCE REVENUE (2 LAKHS) PBT (% LAKHS) 5463 588 FY24 FY24 A 3% A 1375 vs 5282 in FY23 vs -787 in FY23 ickaging with a Sout
Slide 18: Innovation Updates
INNOVATION UPDATES Compostable Flexible Packaging | Structures (non-metalized) - Technology Development | Trials for new food products | State of art infrastructure: Product functionality and Sustainability Patents process ongoing: Flexi - structure - Multiple IDFs. Rigids - design & recipe
Slide 19: Innovation Updates
INNOVATION UPDATES I al Cutlery Ml ( Beverage Cups | Cost optimisation ongoing , | Manufacturing ready | Launch shifted to Q2 FY25 J j | Launch planned for Q1FY25 Delivery Containers | Enhanced leak proof version | Development in progress
Slide 20: Key Ratios
KEY RATIOS Ratios FY 23-24 | FY 22-23 FY 21-22 Inventory Turnover Ratio 1.36 1.53) 1.42 Debtors turnover Ratio 12.56 17.38 15.34 Creditors turnover Ratio 19.85 20.50 14.32 RoE 18.39% 24.11% 23.18% RoCE 20.14% 31.59% 28.46% Current Ratio 21 1.35 119 Debt to Equity 0.69 0.48 0.63 a YP chaning wth a so
Slide 21: Plan for FY24-25
PLAN FOR FY24-25 Initiate significant growth through food services outsourcing, international forays and flexi solutions Commercialise and stabilise flexibles and delivery solutions Build Net Promoter Score >50% Move from Top 50 Great Places to Work to Top 20 Initiate complete life cycle and carbon
Slide 22: Thank You!
THANK YOU! OPAKKA Packaging with a Soul
Slide 23: Disclaimer
Disclaimer This presentation has been prepared by Pakka Limited (the *Company’) and is general background information about the Company's activities and financial resuit for quarter 3 of financial year 2023-24 at the date of this presentation. The information in this presentation is provided in summ