Heritage Foods Limited · NSE:HERITGFOOD
Heritage Foods — Q1 FY2021 Earnings Presentation
28 slides from Heritage Foods's earnings presentation, Jul 30, 2020
Slide 1: Submission letter to stock exchanges
Ref: SECT: STOC: 65-20 30th July, 2020 To To The Secretary, The Manager, The Stock Exchange, Mumbai Listing Department, Phiroze Jeejeebhoy Towers, National Stock Exchange of India Limited, Dalal Street, Exchange Plaza, C-1, G Block, Bandra - Kurla Mumbai - 400 001 Complex, IJandra (East), Mumlmi - 4
Slide 2: Corporate Presentation June 2020 (Q1FY21)
Corporate Presentation June – 2020 (Q1FY21)
Slide 3: Disclaimer Clause
Disclaimer Clause The Release contains forward looking statements identified by words like "plans", "expects", "will", "anticipates", "believes", "intends", "projects", "estimates", and so on. All statements that address expectations or projections about future, but not limited to Company's strategy
Slide 4: Index
INDEX 1. Vision & Mission 9. Focus Markets 17. Winning Farmers’ Trust 2. Company Overview 10. Consolidated Financial Highlights – Q1FY21 18. Achieving Operational Excellence 3. Impact of Covid-19 11. Standalone Financials – Q1FY21, Q1FY20 19. Innovations 4. Our Journey 12. Growth in VAP 20. UHT Plan
Slide 5: Vision & Mission
1. Vision & Mission Vision Delighting every home with fresh and healthy products and empowering the farmer Mission To be a nationally recognized brand for healthy and fresh products with a revenue of INR 6000 Crore by 2024 We anticipate, understand and respond to our customer’s needs by creating hig
Slide 6: Company Overview
2. Company Overview Core Business Key Strengths Financial Strength 28 Years rich experience in Strong relationships with over 3 High Return on Capital dairy business that includes, lakh dairy farmers. Employed (ROCE) procurement of milk from dairy farmers at village level, and Supplying milk and mil
Slide 7: Impact of Covid-19
3. Impact of Covid-19 •Procured milk from all our farmer • Ensured uninterrupted supplies to consumers • Taken all steps to contain spread of Virus • Maintenance of Social Distancing from Procurement areas to point of sale and at all work places • Sanitizing the premises and vehicles on regular basi
Slide 8: Our Journey
4. Our Journey MILK + VAP + VARIANTS MILK + VAP VALUE MILK 5 Yrs 15 Yrs 25 Yrs + YEARS
Slide 9: Activities Segmentation
5. Activities Segmentation FOCUS MARKET COSUMER CONNECTIVITY BRANDING BRANDING CONSUMER CONNECTIVITY FOCUS MARKETS • Bus & Bus Shelter Branding • Leaflet Distribution • Delhi • Dealer Board Branding • Poster & Banner • Mumbai • Dealer Board Signage- Lit/ Non Lit • Door to Door Activity • Chennai • W
Slide 10: Branding
™ 6. Branding Heritage MEALTH AND HAPPINES? LAKSHMINARASIMHA COOLPIN WNT iy | | = as, ws. = es ms a ws,
Slide 11: Consumer Connect
7. Consumer Connect & ru MEALTH AND HAPPINES? Introducing Rich & ( Cream: my. Delightfully Yunny Eom (Heritage — \iake every meal magical with Nourish Curd ) ~~ #NutritionToNation®
Slide 12: Digital Marketing
™ 8. Digital Marketing Heritage HEALTH AND HAPPINES® TACKLING — CORONAVIRUS RESPONSIBLY GET MILK & CURD ~ DELIVERED HOME sstayHomestaysate ee. comino soon ON'THE RPP! #WorldMilkDay erase rd Gorange # MyHenmtage Speci RELOADED IT’S BACK AGAIN PARTICIPATE Now
Slide 13: Focus Markets
9. Focus Markets DELHI NCR MUMBAI CHENNAI • Retailer Board and Flange • Opened new HDCs in • Road-show under HDC’s for 1 month to create installation Koparkhairane & Kharghar awareness, increase width & depth of distribution • In Shop promotion • Visi-cooler deployment & range selling • Community co
Slide 14: Consolidated Financial Highlights – Q1FY21
10. Consolidated Financial Highlights – Q1FY21 Percentage Rupees Revenue (11.43) % 638.81 Cr EBITDA 17.78 % 57.31 Cr PBT 247.41 % 106.17 Cr 106.17 Cr PAT 409.81 % 96.10 Cr
Slide 15: Standalone Financials – Q1FY21, Q1FY20
11. Standalone Financials – Q1FY21, Q1FY20 Financial Highlights Q1FYY21 Q1FY20 (Rs in crores) Net Turnover Dairy 619.55 710.49 RE 1.92 2.59 EBITDA Dairy 51.71 48.23 RE 1.32 2.25 PBT Dairy 35.98 32.47 RE 0.02 0.8O Dairy Margins EBITDA 8.35% 6.79% PBT 5.81% 4.57%
Slide 16: Growth in VAP
12. Growth in VAP 237.82 250 186.09 200 Rs in Crores 163.50 156.86 150 133.50 100 50 Q1FY17 Q1FY18 Q1FY19 Q1FY20 Q1FY21
Slide 17: Procurement & Sales Trend
13. Procurement & Sales Trend Milk Procurement (LLPD)* Milk Sales (LLPD) Curd Sales (MTPD)* 500 461.91 400 15 14.53 14.99 15 300 253.41 11.60 10 9.19 10 200 5 5 100 0 0 0 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 * LLPD: Lakh Liters Per Day * MTPD: Metric Tonnes Per Day
Slide 18: Heritage Nutrivet Limited
14. Heritage Nutrivet Limited (A Wholly Owned Subsidiary Company) (Rs in Cr) Particulars Q1FY21 Q1FY20 Turnover 34.55 27.17 EBITDA 5.26 (0.34) PBT 4.27 (1.28)
Slide 19: Financials - Yearly
15. Financials - Yearly Financial Highlights FY 20 FY 19 FY 18 FY 17 FY 16 (Rs in crores) Net Turnover 2681.11 2482.35 2344.01 2642.89 2380.58 Dairy 2679.44 2479.18 2343.68 1870.72 1768.8 RE 9.39 11.37 6.87 5.21 3.04 EBITDA 140.37 192.43 133.32 146.61 136.47 Dairy 132.61 182.56 127.32 144.82 137.2 R
Slide 20: Balance Sheet Figures
16. Balance Sheet Figures Particulars FY20 FY19 FY18 FY17 FY16 (Rs in crore) (As per Ind-As) Equity Share Capital 23.20 23.20 23.20 23.20 23.20 Other Equity (Reserves & Surplus) 439.13 781.76 754.81 570.02 216.80 Networth 462.33 804.96 778.01 593.22 240.00 Gross Fixed Assets 630.53 555.10 463.20 304
Slide 21: Winning Farmers' Trust
17. Winning Farmers’ Trust Providing Punctual nutritional feed Facilitating loans Accuracy in Deployed mobile Measurement payments at subsidised cattle insurance veterinary clinics to farmers rates
Slide 22: Achieving Operational Excellence
18. Achieving Operational Excellence Chilling plants Processing plants Bulk Coolers Vehicles 109 1930 70 16 No. of Milk Procurement Number Representatives of 12286 6132 Distributors
Slide 23: Innovations
19. Innovations Quality Accessibility
Slide 24: UHT Plant
20. UHT Plant Commissioned an UHT Plant with capacity of 1 Lakh Litres Per Day UHT processed milk shelf life 90 days. No refrigeration required No need to boil Variants: Double Toned Milk & Toned Milk. UHT Milk sales: 52,070 Litres Per Day (April’20 - June’20)
Slide 25: Parlour as branded outlets
21. Parlour as branded outlets Exclusive Product Outlets 944 Outlets managed by franchises Helps in recognition branding Flexibility of the product mix Products availability and Accessibility to customers
Slide 26: Heritage Distribution Centre (HDC)
22. Heritage Distribution Centre (HDC) Exclusive Product Distribution centre managed by franchises 39 HDC’s in Operation 16 at Bangalore, 19 at Chennai, 2 at Mumbai, 1 at Rajahmundry and 1 at Vijayawada. Each HDC Covering 100 retail and 100 households of the locality A big leap in strengthen
Slide 27: Way Forward
23. Way Forward NOW NEXT BEYOND Handles 14.53 LLPD of Milk Focus on Organic Growth To Handle Milk 28 LLPD Procuring Milk From 3 Lakh Dairy Farmers To Penetrate Into new markets To Procure Milk From 6 Lakh Dairy Farmers Supplying Milk To 15 Lakh Households To take initiatives in the Rural Belt To Sup
Slide 28: Thank You
Thank You Umakanta Barik | hfl@heritagefoods.in