Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — Q2 FY2023 Earnings Presentation
21 slides from Sundrop Brands Limited Shs Dematerialised's earnings presentation, Oct 20, 2022
Slide 1: Regulation 30 disclosure letter to stock exchanges
20th October 2022 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233 / 22721234 Ph.No. 022- 26
Slide 2: FY'23 Quarter 2 Update
Agro Tech Foods Limited FY’23 Quarter 2 Update October 20th, 2022
Slide 3: Company Strategic Vision
Company Strategic Vision The Best Performing Most Respected Foods Company in India 2
Slide 4: Quarter 2 – Key Performance Highlights
Quarter 2 – Key Performance Highlights Steady Foods Growth – Improving Margins • Foods Revenues of Rs. 124 crore - growth of 13% vs PY. First time ever to track close to annualized sales of Rs. 500 crore. • Non RTC businesses drive Total Foods with a 33% revenue growth. • Foods Gross Margin improves
Slide 5: Performance Highlights by Category
Performance Highlights by Category 1. Ready to Cook 2. Ready to Eat -Western 3. Spreads (Rs. 18,000 crore) (Rs. 28,500 crore) (Rs. 3400 crore) 4. Breakfast Cereals 5. Chocolate Confectionery 6. Staples (Rs. 3500 crore) (Rs.13,600 crore) (N.A.) 4 * Category Sizes in Brackets – At Retail Price
Slide 6: Ready to Cook Snacks
Ready to Cook Snacks RTC Q1, FY’23 Q2 FY’23 YTD, FY’23 Volume -5% -4% -4% Value -4% +1% -1% • Impact of price increases in Popcorn/Sweet Corn visible in Value vs Volume – Value moves into positive space. • Non RTC Popcorn business led by Pasta shows steady progression. • Volume gap vs PY due to Covi
Slide 7: Ready to Eat Snacks
Ready to Eat Snacks RTE Q1 FY’23 Q2 FY’23 YTD FY’23 Volume +65% +32% +44% Value +79% +50% +61% • Strong growth continues with steady strengthening of the RTE Popcorn Business. • Clear improvement in Margin driven by Price Increases, Grammage Reduction and Packaging Footprint changes. • Sweet Snacks
Slide 8: Spreads & Dips
Spreads & Dips Spreads Q1 FY’23 Q2 FY’23 YTD FY’23 Volume +28% +30% +29% Value +10% +14% +12% • Return to strong growth with price realignment in FY’22. Capacity increase work underway. • Competition forced to replace stock in trade. Impact of ATFL strategy visible in terms of freshness of stock. •
Slide 9: Breakfast Cereals
Breakfast Cereals Cereals Q1 FY’23 Q2 FY’23 YTD FY’23 Volume +54% +40% +45% Value +58% +46% +51% • Steady growth driven by Distribution – Category now nudging the 100,000 store mark. • Company in a very strong position in “Cereal Snacks” – likely highest distribution of center filled cereals. • Intr
Slide 10: Chocolates
Chocolates Chocolates Q1 FY’23 Q2 FY’23 YTD FY’23 Volume +218% +94% +129% Value +252% +105% +144% • Continued strong growth in the Business driven by Distribution – nudging the 100,000 mark. • Increase in price realization visible in Value vs Volume growth. Consequent improvement in Margin as well.
Slide 11: Staples
Staples Premium Staples Q1 FY’23 Q2 FY’23 YTD FY’23 Volume -12% -9% -11% Value -8% -0% -4% Mass Staples Q1 FY’23 Q2 FY’23 YTD FY’23 Volume -74% -70% -72% Value -71% -65% -67% • Premium Staples reflects softness in offtake with significantly higher consumer prices relative to PY. Focus on protecting
Slide 12: Competitive Update
Competitive Update
Slide 13: Snacks: Competition Spends
Snacks: Competition Spends Rs. Million F-17 F-18 F-19 FY20 FY21 Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 ACT II 110 74 38 45 95 18 31 11 20 80 15 10 11 0 21 Lays 148 374 252 491 335 238 202 127 175 742 333 6 0 299 305 Kurkure 196 260 396 321 237 98 65 70 101 333 78 73 8 0 81 Dor
Slide 14: Spreads: Competition Spends
Spreads: Competition Spends Rs Million F-13 F-14 F-15 F-16 F-17 F18 F-19 FY-20 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 Kissan Jam 254 207 304 381 357 512 704 752 679 156 154 138 124 572 133 50 61 60 172 Kissan PB 196 109 129 125 146 508 106 31 50 31 112 Sundrop PB 0 0 42
Slide 15: Breakfast Cereals: Competition Spends
Breakfast Cereals: Competition Spends Rs Million FY-17 FY-18 FY-19 FY-20 FY-21 Q1-22 Q2- 22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 Kellogg Cornflakes 202 265 390 230 355 124 124 108 171 526 136 61 48 44 152 Kellogg Chocos Fills 0 125 203 17 9 0 0 20 29 49 20 0 11 13 23 Kellogg Chocos 310
Slide 16: Chocolates: Competition Spends
Chocolates: Competition Spends Rs Million FY- 18 FY- 19 FY-20 FY-21 Q1-22 Q2-22 Q3- 22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 Cadbury 5 Star 744 482 727 960 150 276 377 256 1058 153 88 313 60 461 Cadburys Celebration 138 212 277 399 56 370 11 437 7 40 66 0 106 Dairy Milk 2229 2166 2362 2978 86
Slide 17: Edible Oils: Competition Spends
Edible Oils: Competition Spends Rs Million F-12 F-13 F-14 F-15 F-16 F-17 F-18 F-19 FY-20 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 Sundrop Heart 88 94 50 65 46 34 21 0 0 0 0 0 0 0 0 0 0 0 0 0 Saffola 121 212 356 291 338 320 588 544 527 400 116 86 68 106 375 62 37 34 0 72 F
Slide 18: Noodles: Competition Spends
Noodles: Competition Spends Rs. Million Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 Chings Noodles 17 2 19 20 0 40 0 0 0 0 0 8 0 0 0 0 Wai Wai 0 0 0 1 17 19 6 0 0 0.2 6 20 0 1 0 1 Knorr Soupy Noodles 0 0 140 0 0 140 0 0 0 0 0 0 0 0 0 0 Sunfeast
Slide 19: Pasta: Competition Spends
Pasta: Competition Spends Rs.Million Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY- 21 Q1-22 Q2-22 Q3-22 Q4-22 FY- 22 Q1- 23 Jul-22 Aug-22 Sept-22 Q2-23 Bambino Pasta 0 0 0 0 0 1 0 0 1 1 2 0 0 0 0 0 Sunfeast Yippee pasta 0 0 90 1 1 93 0 1 4 0 5 1 0 0 1 1 Keya Italiano Pasta 2 0 0 0 0 0 0 0 13 0 13 0 0 0 0 0 Magg
Slide 20: Soups: Competition Spends
Soups: Competition Spends Rs. Million Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 Chings Instant Soups 3 0 37 29 1 66 0 5 31 0 36 0 0 0 0 0 Eastern Instant Rasam 1 1 8 0 0 9 0 0 0 0 0 0 0 0 0 0 Knorr Chicken Delite 8 19 23 42 23 107 8 22 83 84 1
Slide 21: Q2 Summary
Q2 Summary • At c Rs. 124 crore of Foods Net Sales, this Quarter is the closest we have ever come to annualized revenues of Rs. 500 crore. • Margins improve from Q1 Low. Work underway to drive further improvement through Operating Leverage, Portfolio Management & Pricing as appropriate by Category.