Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q4 FY20 Earnings Presentation
30 slides from Adf Foods's earnings presentation, Mar 31, 2020
Slide 1: Investor Presentation Q4FY20 and FY20
Investor Presentation Q4FY20 and FY20
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: At ADF we believe in maintaining high quality standards
“ At ADF we believe in maintaining high quality standards, introducing new and innovative products “ while remaining customer centric
Slide 4: Q4 & FY20 highlights, About the Company, Strengths & drivers
1 Q4 & FY20 highlights 2 About the Company 3 Strengths & drivers 4 Growth strategies 5 Historical financial overview
Slide 5: Q4 & FY20 highlights
Q4 & FY20 highlights
Slide 6: Consolidated financial highlights Q4FY20 & FY20
Consolidated financial highlights Q4FY20 & FY20 Total income (Rs Cr) EBITDA (Rs Cr) and Margin PAT (Rs Cr) and Margin 25.4% 22.8% 4.6% 15.5% 23.9% 85.8 69.3 13.3 19.5 17.6 3.2 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Total income (Rs Cr) EBITDA (Rs Cr) and Margin PAT (Rs Cr) and Margin 21.2% 21.5%
Slide 7: Consolidated profit and loss statement
Consolidated profit and loss statement (Rs Cr) Q4FY20 Q4FY19 YoY FY20 FY19 YoY ▪ Total income for FY20 grew by Revenue from operations 79.7 64.1 272.8 231.4 20% YoY Other income 6.1 5.2 21.8 14.1 ▪ EBITDA for FY20 grew by 18.5% Total Income 85.8 69.3 23.9% 294.6 245.5 20.0% YoY and EBIDTA margin Cos
Slide 8: Consolidated balance sheet
Consolidated balance sheet LIABILITIES (Rs in Crs) FY20 FY19 ASSETS (Rs in Crs) FY20 FY19 Share Capital 20.4 20.4 Fixed Assets incl. CWIP 58.2 48.8 Reserves 184.0 151.4 Intangible Assets 21.4 21.7 Shareholders' Funds 204.4 171.8 Income Tax Asset (Net) 4.6 3.2 Deferred tax liability 7.1 8.9 Other Fin
Slide 9: New product launches in FY20
New product launches in FY20 Naan & Paratha Use of Natural Flavors, No Artificial Colors and Essence Focus on Baked changing Snacks trends 100% Vegetarian, Just Heat & Eat, Microwaveable in 90 seconds Frozen Chutney’s & Dipping Sauce No Trans Fat, No Cholesterol, Vegan, Ready-to-eat
Slide 10: Started operations with COVID-19 precautionary norms
Started operations with COVID-19 precautionary norms Nasik Plant Nadiad Plant • Strict adherence to Social Distancing norms at the manufacturing plants and in transport vehicles • Regular cleaning and disinfection of factory premises and machines • Personal Protection Equipment (masks, gloves, headg
Slide 11: About the company
About the company
Slide 12: Wide range of products with established brands & strong distribution
Wide range of products with established brands & strong distribution Presence in 50+ countries Wide reach across allowing wide range and markets with 180+ coverage distributors • Ashoka • Truly Indian Two state-of-art manufacturing • Aeroplane • PJ’s Organic facilities at Nashik and Nadiad • Camel •
Slide 13: Evolution of the Company and brands
Evolution of the Company and brands The Flagship brand offers 1985 wide range of ready-to- cook, ready-to-eat Indian food Acquired this USDA certified organic food Launched a range of Acquired this brand brand from a US based organic products under Entered a new and launched a company offering a wid
Slide 14: 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 15: Board of directors
Board of directors Jay Mehta Viren Merchant Non-Executive Director Independent Director • 35+ years of rich industrial experience • 30+ years of experience and expertise in business management and • Executive Vice Chairman of Gujarat Sidhee Cement Ltd and Saurashtra pharmaceutical and healthcare ind
Slide 16: Giving back to stakeholders
Giving back to stakeholders Consistently FY17 FY18 FY19 FY20 rewarding Investors Buyback of Dividend of Buyback of Dividend of shareholders through Rs 9.6 crore 25% Rs 30 crore 30% dividends and buybacks ▪ 525 kw Solar power project already implemented at the manufacturing Environment plant at Nasik
Slide 17: Strengths & drivers
Strengths & drivers
Slide 18: Strong industry fundamentals to drive growth
Strong industry fundamentals to drive growth Ethnic Indian UK US food market is ~£650 Mn ~$350 Mn growing Growth Growth consistently(1) 6-7% 7-8% Indians staying abroad (in millions) (2) Indian diaspora 3.3 driving demand 2.3 2.3 1990 for ethnic RTE 0.5 0.5 0.9 1.2 1.2 0.8 0.7 0.6 2017 0.2 0.4 0.4 0
Slide 19: The only company with a presence across all categories
The only company with a presence across all categories Ready-to-eat & Cooking sauces Flavored Ready-to-cook & pastes drinks Meal Condiment Frozen food accompaniments powders With a view to evolve with consumer preference, the company has been continuously expanding its product basket with new launch
Slide 20: Strong distribution network
Strong distribution network Masud Sethi Country manager (Canada) Savio Almeida Country manager (GCC, CANADA Levant Countries, Asia Pacific & Africa) EUROPE NORTH Bharat Sareen Country manager (UK) AMERICA ASIA Apurva Patel Upinder Thakur Country manager (USA) Country manager (UK) HO Michael Ryan MID
Slide 21: Manufacturing units
Manufacturing units Nadiad Facility ❑ 2 state of the art manufacturing plants located at Nasik spread across 10,100 sq. meters of area and Nadiad with a built- up area of 15,000 sq. meters ❑ Both the facilities are HACCP (Hazard Analysis and Critical Control Point) and BRC (British Retail Consortium
Slide 22: Awards & recognition
Awards & recognition ‘Truly Indian’ organic product category won two silver awards in 2017 the SOFI awards of 2017, held by Awarded ‘Best FMCG Company’ in Specialty Foods Association, USA. Agri-business sector (SME Sector) at 2009 the DHL- CNBC International Awards for 2008-09 Awarded ‘Best Overall
Slide 23: Growth strategies
Growth strategies
Slide 24: Serve changing consumer needs with focus on profitability
Serve changing consumer needs with focus on profitability ▪ Identify latest consumer trends and preferences and develop ▪ Continue to focus export products to tap those markets of North America, opportunities Continuous Europe, Australia, Middle East ▪ In-house team of food ▪ Deepen presence in spec
Slide 25: Historical financial overview
Historical financial overview
Slide 26: Consolidated financial performance
Consolidated financial performance Rs Cr Total Income EBIDTA PAT 9.5% 3year CAGR 30% 3year CAGR 57% 3year CAGR 43 295 62 245 53 208 220 40 25 28 18 11 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Cash flow from EBIDTA Margins PAT Margins operations % % 26 24 14% 21% 21% 20 18% 17 10%
Slide 27: Robust returns ratios
Robust returns ratios Return on Equity Return on Capital Employed Net Worth % % Rs in Cr 23% 29% 204 174 172 23% 163 15% 19% 11% 11% 7% FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Consolidated Financials 27
Slide 28: 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 29: Historical balance sheet - Standalone
Historical balance sheet - Standalone LIABILITIES (Rs in Cr) FY20 FY19 ASSETS (Rs in Cr) FY20 FY19 Share Capital 20.4 20.4 Fixed Assets incl. CWIP 58.2 48.7 Reserves 210.9 190.0 Intangible Assets 21.4 21.4 Shareholders' Funds 231.3 210.4 Income Tax Asset (Net) 4.6 3.2 Deferred tax liability 6.8 8.7
Slide 30: Thank You
Anish Jhaveri (CFO)/ Shalaka Ovalekar (CS) ADF Foods Limited anish@adf-foods.com/ co_secretary@adf-foods.com Marathon Innova B2 – G01, G. K. Road Thank You Lower Parel, Mumbai 400 013 Pooja Dokania Pareto Capital (Investor Relations) pooja.dokania@paretocapital.in 210, B Wing, Kanakia Wall Street An