Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Q4 & FY23 Earnings Presentation
38 slides from Dodla Dairy's earnings presentation, May 20, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
Date: 20 May 2023 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited National Stock Exchanges of India Limited Phiroze Jeejeebhoy Towers "Exchange Plaza", 5th Floor, Dalai Street, Fort Plot No.C/1, G Block Mumbai-400 001 Bandra-Kurla Complex Bandra (East)
Slide 2: Dodla Dairy Investor Presentation Q4 & FY23
DODLA DAIRY I N V E S T O R P R E S E N TAT I O N MAY 2023| Q4 & FY23
Slide 3: Table of Content
Table of Content 3 Q4 & FY23 Highlights 12 Full Year Financials 16 About Us 23 Company Canvas 27 Strategic Advantages
Slide 4: Q4 & FY23 Highlights
Q4 & FY23 Highlights
Slide 5: Management Commentary
Management Commentary “I am happy to share that Dodla Dairy reported its highest ever revenues at INR 28,120 Mn, registering a strong growth of 25.3% YoY in FY23. The Company successfully navigated multiple sectoral challenges and delivered growth in both domestic and international operations with 2
Slide 6: Quarterly Operational Highlights
Quarterly Operational Highlights A B ~13.5 LLPD 10.8 LLPD Average milk procurement during Q4FY23 as Average milk sales during Q4FY23 as compared to compared to 12.3 LLPD in Q4FY22 9.7 LLPD in Q4FY22 9.3% YoY 12.2% YoY C D 317.6 MTPD 26.1% Curd sales during Q4FY23 as compared to 288.2 Revenue from va
Slide 7: Yearly Operational Highlights
Yearly Operational Highlights A B ~13.8 LLPD 10.7 LLPD Average milk procurement during FY23 as Average milk sales during FY23 as compared to compared to 12.5 LLPD in FY22 9.3 LLPD in FY22 11.1% YoY 14.5% YoY C D 323.8 MTPD 26.8% Curd sales during FY23 as compared to 269.8 Revenue from value added pr
Slide 8: Quarter-wise Historical Operational Highlights
Quarter-wise Historical Operational Highlights AVERAGE MILK PROCUREMENT (in LLPD) AVERAGE MILK SALES (in LLPD) 9.3% YoY 12.2% YoY 16. 0 12. 0 • 14. 0 11. 0 12. 0 10. 0 Average milk procurement during 10. 0 9.0 Q2FY23 increased by 11.2% YoY to 14.3 8.0 8.0 LLPD 6.0 7.0 4.0 6.0 • Average milk sales du
Slide 9: Year-wise Historical Operational Highlights
Year-wise Historical Operational Highlights AVERAGE MILK PROCUREMENT (in LLPD) AVERAGE MILK SALES (in LLPD) 16. 0 12. 0 • 14. 0 12. 0 10. 0 Average milk procurement during 10. 0 8.0 Q2FY23 increased by 11.2% YoY to 14.3 8.0 6.0 LLPD 6.0 4.0 4.0 2.0 • Average milk sales during the quarter 2.0 11.0 12
Slide 10: Key Financial Metrics (Quarterly)
Key Financial Metrics (Quarterly) OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) 8,0 00 2,1 00 25.5 25.3 21.4 28. 0 Strong Y-o-Y increase in quarterly revenue numbers 7,0 00 1,9 00 18. 0 6,0 00 powered by increase in milk volumes and healthy Value- 1,7 00 5,0 00 1,5 00 8.0
Slide 11: Key Financial Metrics (Yearly results)
Key Financial Metrics (Yearly results) OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) 28,120 8,0 00 27.5 23.9 35 22,434 25 Revenues grew by 25.3% YoY to INR 28,120 Mn in FY23 7,0 00 15 6,0 00 5,0 00 5 navigating multiple sectoral headwinds like lumpy skin 4,0 00 -5 disease
Slide 12: Consolidated Profit & Loss Results
Consolidated Profit & Loss Results Particulars (INR in millions) Q4FY23 Q4FY22 YoY FY23 FY22 YoY Revenues 7,243 5,897 22.8% 28,120 22,434 25.3% Cost of Goods Sold 5,694 4,391 29.7% 21,409 16,262 31.7% Gross Profit 1,549 1,507 2.8% 6,711 6,172 8.7% Gross Profit margin 21.4% 25.5% (416 bps) 23.9% 27.5
Slide 13: Full Year Financials
Full Year Financials
Slide 14: Financial Highlights
Financial Highlights OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) Saw a healthy 15% Y-o-Y growth in revenue, despite a 28,120 8,0 00 30.5 33 25.7 27.5 23.9 tumultuous year due to multiple COVID waves. 22,434 7,0 00 21,394 23.3 28 19,400 6,0 00 23 16,888 5,0 00 18 4,0 00
Slide 15: Key Ratios – Full Year
Key Ratios – Full Year NETWORTH & ROCE CASH & CASH EQUIVALENT & ROE (in ₹ Mn) ROCE (in %) (in ₹ Mn) (ROE in %) 12, 000 24.7 23.1 19.3 26. 0 3,0 00 17.7 15.6 14.9 21. 0 23. 0 17.6 10, 000 2,5 00 16.9 13.5 Healthy growth leading to high capital efficiency and low 16. 0 18. 0 8,0 00 11. 0 2,0 00 11.9 d
Slide 16: Balance Sheet Summary (Full Year)
Balance Sheet Summary (Full Year) Particulars FY19 FY20 FY21 FY22 FY23 Particulars FY19 FY20 FY21 FY22 FY23 Equity 4,068 4,335 6,580 8,432 9,722 ASSETS Non-current Liabilities 1,459 1,426 1,197 576 636 Non-current Assets 5,374 5,697 5,703 6,869 7,775 Current Liabilities 1,908 2,165 1,946 1,877 2,157
Slide 17: About Us
About Us
Slide 18: Dodla Dairy Snapshot
Dodla Dairy Snapshot Founded in 1995, Dodla Dairy is an integrated dairy company based in South India. Processes and sells milk and produces dairy-based value-added products (“VAPs”) 40+ 22+ 118 Sales Office LLPD aggregate Chilling Centers / installed capacity Plants 1,750+ 7,600+ 580 Milk & Milk pr
Slide 19: Our Journey So Far
Our Journey So Far: 25+ years of dairy operations in partnership with marquee investors 1995 1997 2007 2009 2012 Incorporation of Parent Badvel and Milk powder and Investment by Dodla Dairy processing plant Sattenapally SMP plant at Black River* at Nellore plants Nellore 2014 2017 2019 2021 2022 & 2
Slide 20: Presence Across Dairy Value Chain
Presence Across Dairy Value Chain DAIRY FARM PROCESSING PLANTS Procurement of raw milk from 1.2+ lakh Total 15 milk processing plants in India farmers across 7,900+ villages through & Uganda 7,600+ VLCCs Company regularly incurs capex to Raw milk directly procured from farmers upgrade technology, au
Slide 21: Few of Our Products
Few of Our Products SOLD IN INDIA PASTEURIZED POUCH MILK UHT MILK CURD GHEE ICE CREAM Full cream, Standardized Milk, Toned, Double Toned Sachet Curd, Bucket Cow ghee, White ghee (buffalo Vanilla, Elaichi, Pista, Badam, Toned Curd, Cup Curd ghee) and Premium ghee (full Chocolate, Strawberry, Pineappl
Slide 22: Few of Our Products - Shri Krishna Milks
Few of Our Products - Shri Krishna Milks TONED MILK CURD NATURAL GOLD MILK RICH MILK DODLA DAIRY LIMITED 21
Slide 23: Orgafeed Private Limited: Built On A Strong Foundation
Orgafeed Private Limited: Built On A Strong Foundation Orgafeed primarily engaged in farming, breeding, agriculture, horticulture and allied activities such as poultry, dairy and livestock ₹569 farming. Additionally, it is also in the business of seed crushers, manufacturing and dealing of groundnut
Slide 24: Company Canvas
Company Canvas
Slide 25: Our strength to deliver competitive advantage
Our strength to deliver competitive advantage 14.1 PROCESSING CAPACITY FY23 13.8 22.3 Best practices to maximize capacity utilization, FY18 operating metrics and profitability Flexible and agile with continuous 12.2 improvement mindset FY22 12.5 20 FY19 10.9 MILK PROCUREMENT FY21 10.8 All dair
Slide 26: Value-added Products (VAP) Trajectory
Value-added Products (VAP) Trajectory VAP Sales (in ₹ Mn) The company already has a strong distribution network in southern states for milk as FY23 6,957 well as value added products through which it can roll out existing and upcoming products FY22 5,254 FY21 4,324 STRONG VAP PORTFOLIO Dodla Dairy i
Slide 27: Our Overseas Presence
Our Overseas Presence Dodla operates in Kenya and Uganda in Africa through its subsidiaries Lakeside Dairy Limited & Dodla Dairy Kenya Limited. Our African product portfolio is marketed under the “Dairy Top” and “Dodla +” brands and includes Milk, yogurt with different flavors, ghee, paneer, cheese
Slide 28: Strategic Advantages
Strategic Advantages
Slide 29: Key Strengths
Key Strengths End to end integrated dairy company in South India Global Presence: Uganda & Kenya Higher B2C Sales through Strong Branding 09 states engaged in our strong distribution network An Extensive Product Portfolio (Milk Based Value-Added Products) 15 Processing Plants 1 Feed Plant NOTES: *Da
Slide 30: Stringent Quality Control Procedures
Stringent Quality Control Procedures Well Defined Quality and Food Safety Procedures at Various Stages from Procurement to Distribution PROCUREMENT STAGE VLCCs equipped with GPRS enabled electronic milk analyzers which test for the fat and solid not fat (SNF) content of the raw milk Tests conduc
Slide 31: Focused Engagement and Long-Term Relationship with Dairy Farmers
Focused Engagement and Long-Term Relationship with Dairy Farmers REGULAR DIRECT PAYMENT Money paid directly to farmers in their bank accounts once every 10 to 15 days ~86% of total farmers payment covered as of FY23 TRANSPARENCY IN PROCUREMENT Company has VLCCs equipped with GPRS enabled Elect
Slide 32: Investment Rationale
Investment Rationale INTEGRATED AUTOMATED BACKWARD PROVEN ROBUST BALANCE SUPPLY CHAIN PLANTS INTEGRATED TRACK RECORD SHEET Strong Direct Fully automated plants Presence in cattle feed Proven track record of Strong cashflows led to procurement model, leading to improved business through its successfu
Slide 33: Dodla's ESG Commitment
Dodla’s ESG Commitment ENVIRONMENT We are dedicated to producing dairy products in a manner that is humane toward people, animals, and the environment, as well as beneficial to our societies We believe that preserving and rebuilding the environment is crucial in providing opportunities for futur
Slide 34: Capital Market Information
Capital Market Information Few of our Key Investors as on 31st Mar 2023 (% of Total Equity) SBI MF 9.24 37,000+ Total Shareholders International Finance Corporation Bharat Biotech International Ltd. DSP Small Cap Fund Ashoka India Opportunities Fund 4.46 3.41 2.73 2.70 Steinberg India Emerging Oppor
Slide 35: Contact Us
Contact Us • Company Secretary Surya Prakash Mungelkar investorqueries@dodladairy.com T: +91 40 4546 7777 • IR Contact: Vikash Verma T: +91 9664009029 • Hiral Keniya T: +91 9029662801 • CORPORATE OFFICE 8-2-293/82/A, 270/Q, Road No 10-C, Jubilee Hills, Hyderabad – 500 033. Telangana, India. T: +91 4
Slide 36: Appendix
Appendix
Slide 37: Glossary
Glossary LLPD: Lakhs Liter per day LPA: Liters Per Annum MTPD: Metric Tonnage Per day MT: Metric Ton UHT milk: Ultrahigh Temperature Processed Milk VAP: Value-added Product VLCC: Village Level Collection Center FII: Foreign Institutional Investor DRP: Dodla Retail Parlours DODLA DAIRY LIMITED 36
Slide 38: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dodla Dairy Ltd (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,