Flair Writing Industries Limited · NSE:FLAIR
Flair Writing Industries — Q4 FY24 Earnings Presentation
41 slides from Flair Writing Industries's earnings presentation, 2024
Slide 1: Flair Writing Industries Investor Presentation Q4 & FY24
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Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Flair Writing Industries Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
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Slide 4: Flair - At a Glance
Flair - At a Glance (FY 24) Extensive Product Portfolio The Largest Player in pens segment in Deleveraged Balance Sheet Largest Distribution Network in Largest Exporter from India India India 770 ₹ 795 crs 0.08x 8,080 330K 95 countries # Of Products Segment Revenue in FY24 Debt to Equity# Distributo
Slide 5: Key Milestones
Key Milestones 1976 1998 2008 2009 2014 “Flair” brand was registered We commenced production at one of our Introduction of Flair Calculators Manufacturing plant was set up NPPI* acquired certain manufacturing units in Daman (UT of in Dehradun (Uttarakhand) trademarks of the “Hauser” brand Dadra & Na
Slide 6: Competitive Edge
Competitive Edge Global Footprint Ability to partner with international brands being the largest exporter of writing instruments from India and making inroads through quality creative products Quality Manufacturing Evolving Portfolio High-quality manufacturing at a large scale Expansive catalogue of
Slide 7: Roadmap for the Future – Key Pillars
Roadmap for the Future – Key Pillars (₹ in crs)) Steel Bottle & Houseware Creative Segment Pens Segment Achieving Growth Through Strategic Focus on Key Pillars Steel Bottle & Houseware Product Portfolio 15%-16% Meaningful Contribution From CAGR Upcoming Year 28-30% Premiumization 979 Enhance Capacit
Slide 8: Roadmap for the Future – Strategies
Roadmap for the Future – Strategies Product portfolio Premiumization Enhance capacity o Aim to strengthen and expand our o Emphasis on Mid-premium Segment and o Increase production capacity to drive existing product portfolio by Premium Segment to increase margins further volume growth growing acros
Slide 9: Key Updates
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Slide 10: BIS Certified Steel Bottles – Now Available in Domestic Market
BIS Certified Steel Bottles – Now Available in Domestic Market LAUNCH OF FLAIR STEEL BOTTLES • Flair Steel Bottles launched in the domestic market sooner than initially scheduled from its state-of-the-art plant in Valsad • Launched single wall and double vacuum insulated steel bottles • Made a break
Slide 11: Creative Range – Brand Licensing Agreement with Disney
Creative Range – Brand Licensing Agreement with Disney BRAND LICENSING AGREEMENT WITH DISNEY • Signed an Agreement with Disney for using its characters from multiple IPs* • Characters will be used in a plethora of stationery & art products as well as other stationeries such as kits • Disney enjoys a
Slide 12: Pens – Continuing Portfolio Expansion
Pens – Continuing Portfolio Expansion PORTFOLIO CONTINUES TO EXPAND • FY24 saw a large portfolio expansion ending the year at 770 products with a total of 138 new products launched across various categories • Amongst the new products introduced approx. 57% were in the pens category (79) • Of the new
Slide 13: Capex Timeline
Capex Timeline Total Capex of ~INR 230 Crs spread over FY24 to FY26 Installed Capacity (in billions) FY24 0.20 Total Capex Incurred – INR 110 Crs FY25 Increasing installed capacity 2.40 2.20 Estimated Total Capex – INR 95-100 Crs by 10% To be utilised in Tips manufacturing, New manufacturing buildin
Slide 14: Performance Highlights
PERFORMANCE HIGHLIGHTS
Slide 15: FY24 Key Performance Metrics
FY24 Key Performance Metrics ₹ in Crs Financial Performance (₹ in Crs) Operational Highlights Revenue from Operations Gross Profit & GP Margin (%) Sales & Marketing Headcount Product in Portfolio +3.8% 46.0% 50.4% +8% +10% 978.7 +13.6% 969 770 942.7 900 493.0 699 433.9 FY 23 FY 24 FY 23 FY 24 FY 23
Slide 16: Quarter 4 FY24 Key Performance Metrics
Quarter 4 FY24 Key Performance Metrics ₹ in Crs Revenue from Operations Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 45.6% 52.1% 49.9% 20.5% 15.4% 20.2% 12.7% 8.5% 13.7% 260.4 250.1 224.9 124.9 53.4 33.1 34.2 118.7 117.3 50.5 34.5 19.0 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23
Slide 17: Profitability Bridge
Profitability Bridge ₹ in Crs 118 (0.7) 117 • Writing Instruments involve FY23 profitability of Standalone entity and FWEPL, a Wholly Owned + 4.7% Subsidiary Writing Instruments Profit Steel Bottles Loss Consolidated Profit • Writing Instrument profit for 123 FY24 increased by 4.7% to Rs. + 1.2% 123
Slide 18: Branded Business Driving Growth (FY24)
Branded Business Driving Growth (FY24) ₹ & pcs in Crs Domestic Own Brand Sales Export Own Brand Sales Total Own Brand Sales Contribution of Own Brands* to Sales Rising +12% +8% +11% 979 943 735 105 841 98 OTHER 657 755 OTHER PIERRE CARDIN PIERRE CARDIN HAUSER HAUSER FY 23 FY 24 FY 23 FY 24 FY 23 FY
Slide 19: OEM Business to Recover Gradually – Reducing Dependency
OEM Business to Recover Gradually – Reducing Dependency ₹ in Crs Total OEM Sales Brand Mix • Achieved increase in realisation due -27% to rise in Average Selling Price 188 despite volume degrowth 14% 20% 138 • Sluggish demand of OEM products FY23 FY24 due to geopolitical issues/economic uncertaintie
Slide 20: FY24 Segmental Highlights - Pens
FY24 Segmental Highlights - Pens Pens Division Plan of Action for Segment Growth Chart depicts Segmental Revenue (INR Crs) +5% Management Commentary Constant Innovation 795 “Consolidated our position as the No. 1 Pen • Company has a history of introducing various types of pens with unique 754 Brand
Slide 21: FY24 Segmental Highlights – Creative Range
FY24 Segmental Highlights – Creative Range Creative Segment Plan of Action for Segment Growth Chart depicts Segmental Revenue (INR Crs) +28% Distribution Expansion 145 • Channel filling of products under creative portfolio through existing network 113 Management Commentary • Creative products are av
Slide 22: FY24 Segmental Highlights – Steel Bottles
FY24 Segmental Highlights – Steel Bottles Steel Bottles & Houseware Segment Plan of Action for Segment Growth Chart depicts Segmental Revenue (INR Crs) +134% Management Commentary “Steel bottles will present an exciting avenue Wider Catalogue 18 of growth for the company. In response of OEM partner
Slide 23: Consolidated Profit & Loss Statement – Quarter 4 & FY24
Consolidated Profit & Loss Statement – Quarter 4 & FY24 PROFIT & LOSS STAETMENT (₹ in crs) Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Revenue from Operations 250.1 260.4 (3.9%) 224.9 +11.2% 978.7 942.7 +3.8% Cost of Materials Consumed 125.2 141.7 107.7 485.7 508.8 Gross Profit 124.9 118.7 +
Slide 24: Consolidated Balance Sheet - FY24
Consolidated Balance Sheet - FY24 EQUITY & LIABILITIES (₹ in Crs) Mar-24 Mar-23 ASSETS (₹ in Crs) Mar-24 Mar-23 Total Equity 898.7 435.2 Non-Current Assets Non-Current Liabilities (a) Property, plant and equipment 301.1 240.1 (b) Capital Work-in-Progress 20.2 1.6 (a) Borrowings 30.7 41.8 (c) Right-o
Slide 25: Consolidated Cash Flow Statement - FY24
Consolidated Cash Flow Statement - FY24 PARTICULARS (₹ in Crs) Mar-24 Mar-23 Cash Generated from Operations 124.9 141.3 Less: Direct Taxes paid (47.2) (43.4) Net Cash from Operating Activities 77.6 97.9 Cash Flow from Investing Activities (266.5) (73.6) Cash Flow from Financing Activities 258.8 (23.
Slide 26: Product Launches – Quarter 4 FY24
Product Launches – Quarter 4 FY24 26
Slide 27: Product Launches – Quarter 4 FY24
Product Launches – Quarter 4 FY24 27
Slide 28: Product Launches – Quarter 4 FY24
Product Launches – Quarter 4 FY24 28
Slide 29: Product Launches – Quarter 4 FY24
Product Launches – Quarter 4 FY24 29
Slide 30: Product Launches – Quarter 4 FY24
Product Launches – Quarter 4 FY24 30
Slide 31: Investment Thesis
Investment Thesis Manufacturing Excellence Brand Value Largest manufacturing capacity of pens & further Portfolio of familiar, iconic brands across price capacity addition is underway. Continues to lead segments; crafted through leveraging celebrity as the only domestic pen brand to manufacture imag
Slide 32: Annexure
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Slide 33: Board of Directors
Board of Directors Mr. Khubilal Jugraj Rathod, Chairman • He has 48+ years of experience in the writing instruments industry • Received the Lifetime Achievement Award and the Udyog Rattan Award from the Institute of Economic Studies, the Lifetime Achievement Award from The Bombay Fountain Pen Manufa
Slide 34: Board of Directors & Senior Management Team
Board of Directors & Senior Management Team Mr. Punit Saxena, Independent Director Management Team • He holds a Bachelor of Science degree , an MBA degree from University of Rajasthan, Master of Valuation (Real Estate) degree. • He was previously associated with UTI Infrastructure, Technology and Se
Slide 35: Corporate Social Responsibility
Corporate Social Responsibility Our CSR Policy is aimed at demonstrating care for the community and our commitment to create social value. Our Company has undertaken various active CSR initiatives to contribute to the community where we have operations. We believe in empowerment through employment -
Slide 36: Top Awards and Accolades
Top Awards and Accolades 2022-23, 2021-22, 2020-21 2020-21 2019-20 2018-19 2017-18 2016-17 Award for Top Exporter to the Award for Top Exporter to the Award for Top Exporter to the Export Award to the Company from Award for Second Best Exporter to the Award for No. 1 Exporter to the Flair Company fr
Slide 37: Performance in Charts
Performance in Charts ₹ in Crs Revenues EBITDA & EBITDA % PAT & PAT % 7.7% 16.9% 19.5% 19.5% 0.3% 9.7% 12.4% 12.1% +49% 942.7 978.7 +103% +429% 183.5 191.2 577.5 117.0 118.5 97.9 298.0 55.9 23.0 0.8 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 RoCE (%)^ RoE (%)# *Debt to Equity (x) 30
Slide 38: Consolidated Cash Flow Statement - FY24
Consolidated Cash Flow Statement - FY24 PARTICULARS (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 Cash Generated from Operations 124.9 141.3 45.2 67.6 Less: Direct Taxes paid (47.2) (43.4) (10.8) (0.2) Net Cash from Operating Activities 77.6 97.9 34.4 67.3 Cash Flow from Investing Activities (285.2) (73.6)
Slide 39: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (₹ in crs) FY24 FY23 FY22 FY21 Revenue from Operations 978.7 942.7 577.5 298.0 Cost of Materials Consumed 485.7 508.8 308.2 166.4 Gross Profit 493.0 433.9 269.3 131.6 GP % 50.4% 46.0% 46.6% 44.2% Employee Benefits Expense 145.8 117.3 88.3 5
Slide 40: Consolidated Balance Sheet - FY24
Consolidated Balance Sheet - FY24 EQUITY & LIABILITIES (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 Total Equity 898.7 435.2 318.0 261.6 Non-Current Assets Non-Current Liabilities (a) Property, plant and equipment 301.1 240.1 190.1 176.4 (b) Capital Work-in-Pr
Slide 41: Thank You
COMPANY : Thank You Flair Writing Industries Limited CIN : L51100MH2016PLC284727 Mr. Mayur Gala (Chief Financial Officer) Email: mayur@flairpens.com www.flairpens.com INVESTOR RELATIONS ADVISORS : Orient Capital (a division of MUFG Pension & Market Services) Mr. Irfan Raeen Mr. Devansh Dedhia +91 97
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