Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — Q2 FY2024 Earnings Presentation
20 slides from Sundrop Brands Limited Shs Dematerialised's earnings presentation, Oct 20, 2023
Slide 1: Regulation 30 disclosure letter to stock exchanges
20th October 2023 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233 / 22721234 Ph.No. 022- 26
Slide 2: Agro Tech Foods Limited Quarter 2 Update
Agro Tech Foods Limited Quarter 2 Update October 20th , 2023
Slide 3: Company Strategic Vision
Company Strategic Vision The Best Performing Most Respected Foods Company in India 2
Slide 4: Quarter 2 FY'24 – Key Performance Highlights
Quarter 2 FY’24 – Key Performance Highlights No Foods Growth – Strong Margins in Staples • Soft Quarter with no Foods Growth – most likely due to unusual phasing by Quarter in PY (Q2 > Q3 by 7%, different from Prior Years) • YTD Foods Volume Growth of 6% (4% in Value) more representative of current
Slide 5: Performance Highlights by Category
Performance Highlights by Category 1. Ready to Cook 2. Ready to Eat -Western 3. Spreads (Rs. 18,000 crore) (Rs. 28,500 crore) (Rs. 3400 crore) 4. Breakfast Cereals 5. Chocolate Confectionery 6. Staples (Rs. 3500 crore) (Rs.13,600 crore) (N.A.) 4 * Category Sizes in Brackets – At Retail Price
Slide 6: Ready to Cook
Ready to Cook RTC Q1, FY’24 Q2, FY’24 YTD, FY’24 Volume +4% +1% +2% Value +4% -4% -0% • Low single digit Revenue Growth in RTC Popcorn driven by a mid single digit Volume Growth in Instant Popcorn & Pricing in Microwave Popcorn. • Steady levels of Media continue to help drive Instant Popcorn Growth
Slide 7: Ready to Eat
Ready to Eat RTE Q1, FY’24 Q2, FY’24 YTD, FY’24 Volume +35% +15% +24% Value +32% +15% +23% • Steady Volume growth in Popcorn drives Category Growth. • Sweet Snacks continue to make progress - YTD Sweet share of RTE at 8% compared to 4% in PY. • Roll out of Gift Packs leveraging Sweet Portfolio comme
Slide 8: Spreads & Dips
Spreads & Dips Spreads Q1, FY’24 Q2, FY’24 YTD, FY’24 Volume +0% -4% -2% Value -2% -7% -5% • Media shift towards 300 gm Pack commenced along with Sweet PB. ATFL already dominates large pack. • Above action should address likely loss of Share in mid sized packs. • Roll out of new Rs 10 blister pack u
Slide 9: Breakfast Cereals
Breakfast Cereals Cereals Q1, FY’24 Q2, FY’24 YTD, FY’24 Volume +40% +43% +41% Value +49% +45% +47% • Popz Center Filled Cereals power growth for ATFL – clearly benefiting from RTE Snacks Supply Chain. • Rewired architecture for Popz Shells well accepted & Total Cereals distribution reflects steady
Slide 10: Chocolates
Chocolates Chocolates Q1, FY’24 Q2, FY’24 YTD, FY’24 Volume +38% +9% +20% Value +37% -1% +14% • Duo continues to steadily gain distribution. • Media investment started in August 2023 to support the task of consumer acquisition. • Roll out of the Rs. 5 pack underway to further expand distribution. •
Slide 11: New Business Revenue Trajectory
New Business Revenue Trajectory 50 Peanut Butter RTE Popcorn Cr 50 Cr 15 15 cr Cr 15 Breakfast Cereals 15 Chocolates Cr Cr Historically Rs. 50 crore in 11-12 Years & Rs. 15 crore in 7-8 Years. Current Trends are Rs. 15 crore in 4-5 Years. 10
Slide 12: Staples
Staples Q1, Q2, YTD, Volume FY’24 FY’24 FY’24 Premium +5% -10% -3% Mass +49% -10% +11% Total +9% -10% -1% Q1 Q2, YTD Value FY’24 FY’24 FY’24 Premium -13% -31% -23% Mass +38% -24% -1% Total -8% -30% -20% • Total Staples Volumes flat to PY – supported by Mass Staples and Adjacencies. • Roll out of Oat
Slide 13: Competitive Update
Competitive Update
Slide 14: Snacks: Competition Spends
Snacks: Competition Spends Rs. Million F-17 F-18 F-19 FY20 FY21 Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Q2-23 Q3-23 Q4-23 FY23 Apr-23 May-23 Jun-23 Q1-24 Jul-23 Aug-23 ACT II 110 74 38 45 104 18 49 11 20 99 15 21 25 30 91 0 5 10 15 10 10 Lays 148 374 252 491 335 238 202 127 175 742 333 409 406 287 1435 2
Slide 15: Spreads: Competition Spends
Spreads: Competition Spends Aug- Rs Million F-13 F-14 F-15 F-16 F-17 F18 F-19 FY-20 FY-21 FY-22 FY-23 Apr-23 May-23 Jun-23 Q1-24 Jul-23 23 Sundrop Spreads 0 0 42 64 56 30 16 20 58 49 54 0 3 6 10 6 6 Kissan Jam- 254 207 304 381 357 512 704 752 679 572 578 63 56 138 257 68 62 Kissan PB 196 508 458 27
Slide 16: Breakfast Cereals: Competition Spends
Breakfast Cereals: Competition Spends FY- FY- FY- FY- FY- Q1- Q2- Q3- Q4- FY- Q1- Q2- Q3- Q4- FY- Apr- May- Jun- Q1- Jul- Aug- Rs Million 17 18 19 20 21 22 22 22 22 22 23 23 23 23 23 23 23 23 24 23 23 Sundrop Popz 5 5 5 5 Kellogg Cornflakes 202 265 390 230 355 124 124 108 171 526 136 152 141 211 639
Slide 17: Chocolates: Competition Spends
Chocolates: Competition Spends Apr- May- Jun- Jul- Aug- Rs Million FY- 18 FY- 19 FY-20 FY-21 Q1-22 Q2-22 Q3- 22 Q4-22 FY-22 Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Q1-24 23 23 23 23 23 Sundrop Duo 5 5 0 0 0 0 0 0 5 Cadbury 5 Star 744 482 727 960 150 276 377 256 1059 153 461 209 245 1067 55 64 62 181 63 59 Cad
Slide 18: Edible Oils: Competition Spends
Edible Oils: Competition Spends Rs FY- FY- FY- FY- FY- FY- FY- FY- FY- FY- Q1- Q2- Q3- Q4- FY- Q1- Q2- Q3- Q4- FY- Apr- May- Jun- Q1- Jul- Aug- Mn 12 13 14 15 16 17 18 19 20 21 22 22 22 22 22 23 23 23 23 22 23 23 23 24 23 23 Sundrop 88 94 50 65 46 34 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Heart Sa
Slide 19: Q2 FY'24 Summary
Q2 FY’24 Summary • YTD Foods Volume growth reduces to 6% due to a soft Quarter 2 (Value at 4%). • Gross Contribution starts to reach 40% levels for Total Company - Foods at historical level of 46% . • Impact of lower Edible Oils prices partly offset through growth in Foods, adjacencies in Premium St
Slide 20: On our Way…..
On our Way….. The Best Performing Most Respected Foods Company in India 19