Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q4 FY20 and FY20 Earnings Presentation
31 slides from Adf Foods's earnings presentation, May 13, 2020
Slide 1: Intimation letter to stock exchanges
F O ODS LTD. 7eedi119 lite wodd .. May 13, 2020 DCS-CRD DCS-CRD BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Bandra-Kurla Complex Mumbai - 400 001 Bandra (E), Mumbai - 400 051 Scrip Code: 519183 Symbol: ADFFOODS Sub: Investor Presentation En
Slide 2: Investor Presentation Q4FY20 and FY20
Investor Presentation Q4FY20 and FY20
Slide 3: 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 4: The Original Indian Taste
LT D. :le dinfj l 1e w<nU... “ At ADF we believe in maintaining high quality standards, introducing new and innovative products “ while remaining customer centric THE ORIGINAL INDIAN TASTE SVUL
Slide 5: 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 6: Q4 & FY20 highlights
0 I ( Q4 & FY20 highlights
Slide 7: Consolidated financial highlights Q4FY20 & FY20
Consolidated financial highlights Q4FY20 & FY20 Total income (Rs Cr) EBITDA (Rs Cr) and Margin PAT (Rs Cr) and Margin ·-------------] .---------- 1 '' 15.5% '' ! 25.4% ! 22.8% 4.6% !' ' 23.9% .... .... .......:~ : ' I .......... ...... 85.8 69.3 13.3 19.5 17.6 3.2 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Q4FY19
Slide 8: 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 l 79.7 64.1 l 272.8 I 231.4 I - 20% YoY Other income l 6.1 5.2 l 21.8 14.1 - ▪ EBITDA for FY20 grew by 18.5% Total Income I 85.8 69.3 23.9% l 294.6 245.5 20.0% - YoY
Slide 9: 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 10: New product launches in FY20
New product launches in FY20 t ------------------------------------------------------------------------- 1 Naan & Paratha I Use of Natural Flavors, No Artificial Colors and Essence I t -------------------------------------------------------------------------------- 1 Focus on Baked changing Snacks t
Slide 11: Started operations with COVID-19 precautionary norms
Started operations with COVID-19 precautionary norms Nasik Plant Nadiad Plant 1-- 1 --- --------: I I I I I I I I - - - ------ --------- ------ ------ - - - ------ --- ------ ------ -- - ------ ---------.'' I ------ ------ 'I • Strict adherence to Social Distancing norms at the manufacturing plants
Slide 12: About the company
0 I ( About the company
Slide 13: 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 14: 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 15: 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. '
Slide 16: 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 17: 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 18: Strengths & drivers
0 I ( Strengths & drivers
Slide 19: Strong industry fundamentals to drive growth
Strong industry fundamentals to drive growth ... -"' IOODS liD Ethnic Indian UK US food market is >> growing consistently(1) ~£650 Mn Growth 6-7% ~$350 Mn Growth 7-8% Indians staying abroad (in millions) (2) Indian diaspora 3.3 driving demand >> 2.3 2.3 1990 for ethnic RTE • .I .I -• -• -• • _. : 1.
Slide 20: 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 21: 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 22: 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 23: 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 24: Growth strategies
0 I ( Growth strategies
Slide 25: 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 26: Historical financial overview
0 I ( Historical financial overview
Slide 27: Consolidated financial performance
Consolidated financial performance ... -"' IOODS liD 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 I 11 FY17 FY18 FY19 FY20 I FY17 FY18 FY19 FY20 I FY17 FY18 FY19 FY20 Cash flow from EBIDTA Margins PAT Margins operations % % 26 24 14
Slide 28: 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 29: 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 30: 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 31: 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 frJJr r 1., tJ 1:; 1 r n Thank You Lower Parel, Mumbai 400 013 Pooja Dokania Pareto Capital (Investor Relations) pooja.dokania@paretocapital.in 210, B Win