Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — H1 FY2021 Earnings Presentation
32 slides from Prataap Snacks's earnings presentation, November 2020
Slide 1: Q2 & H1 FY21 - Results Presentation
Q2 & H1 FY21 - Results Presentation November 2020
Slide 2: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 3: Contents
Contents Q2 & H1 FY21 Results 4 COVID-19 Impact on the Business 12 Company Overview 15 Industry Overview 28 3
Slide 4: Q2 & H1 FY'21 Results
Q2 & H1 FY’21 Results 4
Slide 5: MD & CEO's Message
MD & CEO’s Message Commenting on Q2 & H1 FY’21 performance, Mr. Amit Kumat - Managing Director & CEO, Prataap Snacks Limited said: “With the resumption of activity across the country, we have witnessed a strong recovery in performance in Q2 compared to Q1. In Q2, we have smoothed out all production
Slide 6: Operational Overview
Operational Overview Improvement in demand witnessed in Q2 FY21 leading to encouraging revenue growth of 67% Q-o-Q o Witnessed a sharp rebound in sales as the lockdown restrictions were lifted o Distributors and 3P facilities gradually ramped up operations and have reached 85% of Pre-COVID levels
Slide 7: Financial Overview
Financial Overview In Q2 FY21 (QoQ basis), PSL reported: Revenue of Rs. 3,267.0 million, registering growth of 66.9% QoQ Operating EBITDA of Rs. 233.5 million, higher by 183.4% QoQ PAT stood at Rs. 84.4, higher by 241.6% QoQ In Q2 FY21 (YoY basis), PSL reported: Revenue of Rs. 3,267.0 millio
Slide 8: Abridged P&L Statement
Abridged P&L Statement Y-o-Y Q-o-Q Y-o-Y Particulars Q2 FY’21 Q2 FY’20 Q1 FY’21 H1 FY’21 H1 FY’20 Change (%) Change (%) Change (%) Income from Operations 3,267.0 3,880.0 -15.8 1,957.4 66.9% 5,224.3 7,190.0 -27.3% Raw Material Cost 2,289.9 2,718.5 -15.8 1,405.2 63.0% 3,695.1 5,052.0 -26.9% Gross Prof
Slide 9: Financials – Q2 & H1 FY'21 Performance
Financials – Q2 & H1 FY’21 Performance INCOME FROM OPERATIONS Gross Margin (%) 7,190.0 5,224.3 29.9% 29.9% 29.7% 29.3% 3,880.0 3,267.0 28.2% 1,957.4 Q2 FY20 Q1 FY21 Q2 FY21 H1 FY20 H1 FY21 Q2 FY20 Q1 FY21 Q2 FY21 H1 FY20 H1 FY21 ▪ Income from operations in Q2 FY’21 stood at Rs.3,267 mn, rebounding s
Slide 10: Financials – Q2 & H1 FY'21 Performance
Financials – Q2 & H1 FY’21 Performance EBITDA Margin (%) PAT Margin (%) 8.0% 8.0% 3.1% 3.0% 7.1% 2.6% 6.0% 0.5% 4.2% 119.9 84.4 216.4 311.5 24.8 233.5 -59.6 82.4 583.6 315.9 -3.0% Q2 FY20 Q1 FY21 Q2 FY21 H1 FY20 H1 FY21 Q2 FY20 Q1 FY21 Q2 FY21 H1 FY20 H1 FY21 ▪ EBITDA for Q2 FY’21 stood at Rs. 233.5
Slide 11: Financials – Q2 & H1 FY'21 Performance
Financials – Q2 & H1 FY’21 Performance Cash Profit Cash EPS 514.9 22.0 303.1 12.9 273.4 11.7 220.4 9.4 82.7 3.5 Q2 FY20 Q1 FY21 Q2 FY21 H1 FY20 H1 FY21 Q2 FY20 Q1 FY21 Q2 FY21 H1 FY20 H1 FY21 ▪ The Company follows a conservative accounting policy and is amortizing intangible assets of Avadh Snacks ▪
Slide 12: Impact of COVID-19 and Initiatives taken
Impact of COVID-19 and Initiatives taken 12
Slide 13: Q2 FY'21 – Strong Rebound post Unlocking
Q2 FY’21 – Strong Rebound post Unlocking Revival in growth after nationwide reopening begins Witnessed a revival in demand and an uptick in sales versus Q1FY21 Augmented go to market strategy to enhance distribution efficiency Average utilization levels increased to 85% in Q2FY21 from an avera
Slide 14: Focus continues to be on enhancing Profitability
Focus continues to be on enhancing Profitability Various initiatives have been taken to restore production at owned and 3P facilities o The operational difficulties that occurred at the beginning of the lockdown have now been mitigated o Undertook cost optimization and process re-engineering initi
Slide 15: Company Overview
Company Overview 15
Slide 16: Prataap Snacks at a Glance
Prataap Snacks at a Glance Over More than SKUs Manufacturing packets sold 5 year revenue Facilities* per day CAGR Over Reach of over Retail In Rings Super Stockists Distributors Touchpoints 16 *[5 Inhouse plants and 9 contract manufacturing units (3P)]
Slide 17: Diverse Product Portfolio
Diverse Product Portfolio CUP CAKE, RINGS, KURVES & NAMKEEN & POTATO CHIPS CHULBULE NAMKEEN PELLET SNACKS TIFFIN CAKE & PUFF FRYUMS SANDWICH CAKE Potato based Rice grit & Corn grit Gram based Wheat based Cake Namkeen snack Corn grit based snack SKUs: 22 SKUs: 5 variations and Fryum
Slide 18: Avadh Snacks
Avadh Snacks Product Portfolio Fastest growing and fourth Namkeen Fryums largest snacks player in Gujarat ~6% market share in Gujarat, one of the largest market 22% revenue CAGR over the past 3 years Key Products: Bhavnagri Gathiya, Sada Key Products: Tomato Cup, Salted reffil, Mamra, Papdi Gathiya,
Slide 19: Avadh Snacks - Unique Business model & Expansion plans
Avadh Snacks - Unique Business model & Expansion plans Business Model Expansion plans Avadh has a Unique Business model •Super Value Player offering higher Increased capacity of value for Money to consumers. Rajkot facility by 50% in Q1FY21 Pan India Direct Distribution model expansion To expand Ava
Slide 20: Sweet Snacks Portfolio
Sweet Snacks Portfolio Center Filled Choco Vanilla Sandwich Cookie-Cake Yum Cake Tiffin Cake Cup Cake Cake Cake SKU's - 3 SKU's - 2 SKU's - 1 SKU's - 1 SKU's - 1 SKU's - 3 Target Target Target Target Target Target group - group - group - group - group - group - Youth and Youth and Youth
Slide 21: Track Record of Innovation
Track Record of Innovation Launched Launched Nachos, and Launched Launched Plain Cut Kurves Yum Cake, Cup Cake, Chips Introduction Launched Cookie Tiffin Cake of Seven Yum-Pie, a Cake and and Wonders variety of Choco Sandwich range of sweet snacks, Vanilla Cake Introduction under Rich Cake healthier
Slide 22: Key Milestones
Key Milestones Guwahati new plant Entered into 3P Sequoia’s initial Contract Doubled the commissioned investment of Rs. Manufacturing Installed capacity of Potato Prakash Snacks 620 mn in Karjat & Chulbule Chips plant at Conversion of Launched Plain incorporated. Prataap Snacks Introduction of Kashi
Slide 23: Pan India Presence
Pan India Presence Strategically located Manufacturing facilities to cater the regional demand No. of Facilities Products 1 Hissar 1 – Contract Facility Extruded Snacks, Pellets, Chulbule No. of Facilities Products Kashipur 1 - Contract Facility Chips, Namkeen, Pellet 10 1 5 Indore No. of Facilities
Slide 24: Guided by an Accomplished Board
Guided by an Accomplished Board Arvind Mehta Chairman & Executive Director Over 31 years of experience in real estate business along with over 17 years in the snacks Vineet Kumar Kapila food industry and in the financing business Independent Director Ex-COO (RPC North of United Spirits) & earlier Mr
Slide 25: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Arvind Mehta Over 31 years of experience in real estate business along with over 17 years in the Chairman & Executive snacks food industry and in the financing business Director Corporate functions Mr. Amit Kumat Managing Director and Chief Over 24 years
Slide 26: Helmed by a Professional Management Team
Helmed by a Professional Management Team He holds bachelor degree in Science (Economics). He has over 28 years of Mr. Subhashis Basu experience in the FMCG industry and worked with Parle, PepsiCo India and Mother Chief Operating Officer Dairy Corporate functions Mr. Subhash Bhatt He holds bachelor d
Slide 27: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Awadh B. Singh He holds bachelor degree in Science. He has over 32 years of experience in the General Manager Sales - FMCG industry and worked with Prakash Snacks and Hello Agro East Corporate functions Mr. Mahesh Purohit He holds bachelor degree in Comme
Slide 28: Industry Overview
Industry Overview 28
Slide 29: Favourable Demographics Supporting Industry Growth
Favourable Demographics Supporting Industry Growth POPULATION TREND (BILLIONS) INDIA’S ANNUAL CONSUMER 1.411 EXPENDITURE (RS. TRILLION) 1.397 22 1.366 1.380 1.338 1.352 21 1.324 21 1.310 20 1.278 1.293 20 20 1.263 19 19 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 MAR-18 JUL-18 OCT-18 JAN-
Slide 30: Sweet Snacks Industry – Characteristics
Sweet Snacks Industry – Characteristics Organized Sweet Snacks (Cakes & pies): West is Rs.2,200-2,500 crore growing fast 20% now N Limited Highly under vegetarian penetrated options in category Cake 15% W Market E 50% Very few S Growing at national fast pace players 15% 30
Slide 31: About Prataap Snacks Ltd.
About Prataap Snacks Ltd. Prataap Snacks Ltd. (PSL) is a leading Indian Snack Foods Company. It offers multiple variants of products across categories of Potato Chips, Extruded Snacks, Namkeen (traditional Indian Sumit Sharma snacks) under the popular and vibrant Yellow Diamond brand. It has recentl
Slide 32: Thank You
Thank You 32