Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — H1 FY2023 Earnings Presentation
24 slides from Apex Frozen Foods's earnings presentation, Oct 30, 2022
Slide 1: Exchange filing cover letter for Investor Presentation
Date: 30th October, 2022. To To The General Manager, The General Manager, Department of Corporate Services, Listing Department, Bombay Stock Exchange Limited, National Stock Exchange of India Limited PhirozeJeejeebhoy Towers, Exchange Plaza, Plot No C/1, G Block, Dalal Street, BandraKurla Complex, M
Slide 2: Apex Frozen Foods Result Presentation Q2/H1FY23
Apex Frozen Foods Result Presentation Q2/H1FY23
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apex Frozen Foods Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not f
Slide 4: Key Business Updates Q2/H1FY23
1 Key Business Updates Q2/H1FY23 3
Slide 5: Financial Highlights – Q2 & H1FY23
Financial Highlights – Q2 & H1FY23 H1 ↑ Net Revenue at Rs 5,986 Mn, up 24% YoY, backed by volume growth of 8% YoY to 7,326 MT and realization growth of 15% YoY to Rs 817* per kg ↑ EBITDA at Rs 632 Mn, up 19% YoY, despite higher raw material costs, as share of Ready-To-Eat (RTE) products increased to
Slide 6: Sales Volume Break-up
Sales Volume Break-up Shrimp Sales (MT) Shrimp Sales – Q2FY23 Geographical Mix (%) China RTE RTC 3% 7,326 Europe 6,788 21% 3,542 3,565 5,395 5,363 2,811 2,591 USA 76% 1,425 1,931 731 974 Q2FY22 Q2FY23 H1FY22 H1FY23 In Q2FY23, Shrimp sales growth remained muted, largely on account of lack of raw shri
Slide 7: Income Statement Highlights
Income Statement Highlights Particulars (Rs Mn) Q2FY23 Q2FY22 YoY % Q1FY23 QoQ % H1FY23 H1FY22 YoY % Net revenue 2,928 2,636 11% 3,058 -4% 5,986 4,839 24% Other income* 163 88 85% 192 -15% 355 173 105% Total Income 3,091 2,724 13% 3,250 -5% 6,341 5,012 27% Raw material costs 2,143 1,697 26% 2,072 3%
Slide 8: Key Operational and Financial Ratios
Key Operational and Financial Ratios Key Operational Data Q2FY23 Q2FY22 Q1FY23 H1FY23 H1FY22 Volumes sold (MT) 3,565 3,542 3,761 7,326 6,788 Average realisation (Rs/Kg)* 821 744 813 817 713 Key Ratios (% of Total Income) Q2FY23 Q2FY22 Q1FY23 H1FY23 H1FY22 Other income (% of Net Revenue)^ 5.6% 3.3% 6
Slide 9: Key Balance Sheet Ratios
Key Balance Sheet Ratios Net-worth (Rs Mn) Gross Debt and Net Debt (Rs Mn) Gross debt Net Debt 1,661 1,652 1,599 1,562 1,578 4,934 4,754 1,440 4,398 FY21 FY22 H1FY23 FY21 FY22 H1FY23 Working Capital (Days) Net Cashflow from Operations (Rs Mn) 284 272 126 125 218 115 129 FY21 FY22 H1FY23 FY21 FY22 H1
Slide 10: Key Growth Drivers
Key Growth Drivers 1 Improving Product Mix with 2 Current Capacity Offers Growing Share of RTE sales Headroom for Growth Enhancing RTE capacity from 5,000 MT to Sales (MT) to Capacity ratio at ~50% 10,000 MT at marginal capex Advantage India Long Standing Customer Relationships 4 India is world’s la
Slide 11: Company At a Glance
2 Company At a Glance 10
Slide 12: The Growth Journey So Far…
The Growth Journey So Far… Leased Capacity Owned Capacity RTE capacity expansion of ~1,200 MT 29,240 MT 5,000 MT, likely by end of FY23 ▪ IPO and Listing on BSE & NSE in Sep’17 ▪ Backward Integration: Three owned Hatcheries in AP over 2016-19 ▪ Focus on VAP: Pre-processing unit in Well placed to ▪ O
Slide 13: …To Having Built a Well Integrated Operations
…To Having Built a Well Integrated Operations One Of The Leading Exporters Of Processed Shrimp In India Key Export Markets – FY22 18% 2% Catering to wide array of customers such as Food USA Companies, Retail Chains, Restaurants, Club Stores and Europe Distributors spread across multiple geographies
Slide 14: Strategically Located Facilities
Strategically Located Facilities E n a b l i n g s m o o t h t ra n s i t i o n o f p ro d u c t s t o t h e n e x t s ta g e Three Hatcheries with a total capacity of 1.2-1.4 billion SPF seed Two Processing plants with a total capacity of 29,240 MTPA, along with Cold Storage capacity of ~3,500 MT L
Slide 15: Processing Capacity Offers Headroom for Growth
Processing Capacity Offers Headroom for Growth Total Capacity – 29,240 MTPA Process: Washing, Weighing, Beheading, Grading, Peeling, De- veining, Cooking and Freezing Unit 2 - G. Ragampeta, AP Unit 1 - Kakinada, AP Ready-to-Cook: 15,000 MTPA Ready-to-Cook: 9,240 MTPA Ready-to-Eat: 5000 MTPA* Cold St
Slide 16: Product Offering – Moving up the Value Chain
Product Offering – Moving up the Value Chain READY-TO-EAT (RTE) SPECIALTY PRODUCT Cooked Peeled & De-veined Tail–on PEELED PRODUCT Butterfly shrimp Cooked in Shell Skewered shrimp Shrimp Rings BASE PRODUCT Peeled, Deveined, Tail-on Seasoned shrimp Dusted and Breaded Peeled, Un-deveined, Tail-on Head
Slide 17: Annexures
3 Annexures 16
Slide 18: Key Operational Highlights
Key Operational Highlights Total Shrimp Sales (MT) Average Realisation (Rs per kg) Sales (MT) RTE (%) 26% 817 12,243 11,702 12,067 743 633 682 20% 15% 7326 0% FY20 FY21 FY22 H1FY23 FY20 FY21 FY22 H1FY23 Working Capital (Days) Total Debt To Equity (Times) 126 126 0.38 115 94 0.36 0.35 0.32 FY20 FY21
Slide 19: Income Statement Highlights
Income Statement Highlights Profit & Loss (Rs Mn) FY20 FY21 FY22* H1FY23* Net revenue 8,271 8,185 8,970 5,986 Other income 190 75 349 355 Total income 8,461 8,260 9,319 6,341 Raw material costs 5,735 5,531 6,150 4,214 Employee expenses 437 398 430 245 Other expenses 1,228 1,346 1,818 1,250 EBITDA 1,
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Liabilities (Rs Mn) Mar-21 Mar-22 Sep-22 Assets (Rs Mn) Mar-21 Mar-22 Sep-22 Shareholder’s Funds 4,398 4,754 4,934 Non-current assets 2,708 2,619 2,581 Share capital 313 313 313 Net block 2,504 2,360 2,293 Reserves & surplus 4,086 4,442 4,621 Capital work-in-progress 154 219
Slide 21: India's Seafood Exports Driven by Surging Shrimp Exports
India’s Seafood Exports Driven by Surging Shrimp Exports Frozen Shrimp Other Seafood Total Seafood 1,377 1,393 1,369 1,290 1,135 1,149 1,051 928 984 946 813 862 678 603 614 652 728 566 590 358 374 434 189 229 301 126 131 151 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 India
Slide 22: Key Considerations for the Sector
Key Considerations for the Sector Demand Slowdown Disease Related Volatile Pricing Being an export-oriented sector, Global imbalances in demand- Highly susceptible to outbreak of any slowdown in consumption in supply can impact pricing. diseases, which can have a key markets like the USA, EU and Exc
Slide 23: Share Capital Information
Share Capital Information Share Price Movement – 1 Year 360 320 280 240 200 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 NSE / BSE code APEX / 540692 20.04% Shareholding CMP (Rs/share) (as on 28-Oct-22) 317.3 Pattern as on Market Cap (Rs Mn) 9,915 7.34%
Slide 24: Thank You
Thank You Apex Frozen Foods Stellar Investor Relations Mr Chowdary Karuturi, Executive Director Ms Pooja Sharma / Ms Amritha Poojari ir@apexfrozenfoods.com pooja.sharma@stellar-ir.com / amritha@stellar-ir.com CIN: L15490AP2012PLC080067 23