Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q3 FY21 Earnings Presentation
30 slides from Adf Foods's earnings presentation, Dec 31, 2020
Slide 1: Investor Presentation Q3 & 9MFY21
Investor Presentation Q3 & 9MFY21 1
Slide 2: 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 3: Agenda
Agenda 01 Q3 & 9MFY21 Highlights 02 About the Company 03 Industry Drivers & Growth Strategy 04 Historical Financial Overview
Slide 4: Q3 & 9MFY21 Highlights
Q3 & 9MFY21 Highlights indian
Slide 5: Q3 & 9MFY21 consolidated result highlights
Q3 & 9MFY21 consolidated result highlights Financials in Rs. Cr Total Income EBITDA PAT Quarter performance 34% 54% 26% 13.9 99.5 20.0 11.0 74.2 13.0 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Total Income EBITDA PAT Nine-Months performance 30% 20% 19% 270.8 51.6 35.1 43.0 29.5 208.8 9MFY20 9MFY21 9M
Slide 6: Consolidated profit & loss statement
Consolidated profit & loss statement (Rs Cr) Q3FY21 Q3FY20 YoY 9MFY21 9MFY20 YoY Revenue from operations 98.6 73.9 33% 266.7 203.0 31% Other income 0.9 0.3 4.0 5.8 Total Income 99.5 74.2 34% 270.8 208.8 30% Cost of material consumed 27.6 19.0 77.1 57.7 Purchase of stock-in-trade 41.2 17.8 87.6 50.8
Slide 7: Update on new manufacturing unit
Update on new manufacturing unit Capacity expansion by taking new unit on lease • The Company has taken a manufacturing unit in Surat (Gujarat) on lease • The facility, with a production capacity of 1,950 MTPA, will enable to increase the capacity for frozen food products to cater to the growing dem
Slide 8: About the Company
About the Company “ At ADF we believe in maintaining high quality standards, introducing “ new and innovative products while remaining customer centric
Slide 9: Company highlights
Company highlights 7 55+ 180+ Brands Countries Distributors Operational strengths 2 400+ 26,000 State-of-the-art Facilities SKU MTPA Capacity Zero 21% 14% Long Term Debt EBITDA Margin PAT Margin Financial strengths 23% 29% Rs 51 cr Return on Equity Return on Capital Employed Returned to shareholders
Slide 10: Our businesses – presence across all categories
Our businesses – presence across all categories Export of wide range of Indian ethnic products - ready-to-cook, ready-to- Contribution to Revenue eat, frozen, pickles, condiments, etc. - to over 55 countries with significant 9MFY21 Core business presence across US, UK and GCC markets 1% 22% Dealing
Slide 11: Core business
Core business Positioning • Flagship brand primarily targeted at Indian diaspora worldwide • Frozen snacks, frozen breads, frozen vegetables, RTE, meal Products accompaniments, pastes, sauces, spices, milk drinks • 300+ products across categories Geographies • USA, Canada, UK and APAC • 70-90% from
Slide 12: Core business
Core business Positioning • Primarily targeted at Non-Indian consumers • Premium brand targeted at Arabic diaspora • Economy brand Products • RTE, meal accompaniments, pastes, sauces • Meal accompaniments, pastes, sauces • Meal accompaniments, pastes, sauces Geographies • Germany and USA • Middle Ea
Slide 13: US subsidiary
US subsidiary Positioning • Organic, made with USDA certified organic ingredients • Non-GMO, all natural, vegan, vegetarian Products • Hand rolled burritos • Meatless meatballs Geographies • USA • USA Retail channel • 100% from mainstream/ modern trade stores • 100% from mainstream/ modern trade sto
Slide 14: Agency distribution business
Agency distribution business • Distribution of some products of a global Fortune 500 FMCG in USA and UK markets • Products are complimentary to existing range of ADF products and offers wide range of products to the distributors • Focusing on adding more complimentary products of similar nature in p
Slide 15: India business
India business Positioning • Primarily targeting urban Indian customers Products • Wide range of products - pickles, sauces, cooking paste, ready to cook instant masala mix, etc. Geographies • Sold and marketed primarily in Mumbai, India Retail channel • Available in Reliance Retail, Sahakari Bhanda
Slide 16: State of the art manufacturing units
State of the art manufacturing units • Total Built up factory area - 15,000 Facility at Nadiad, Sqm The facility at Nasik is USDA Organic accredited, ensuring stringent production norms and sound • Frozen Foods (Samosas, Vegetables, Gujarat farming practises Snacks, Parathas, etc) • Meal Accompanime
Slide 17: Strong distribution network
Strong distribution network Bharat Sareen Masud Sethi Country manager (UK) Country manager (Canada) Upinder Thakur Country manager (UK) CANADA EUROPE Savita Patel Savio Almeida Head Operations & Country manager (GCC, Commercial (USA) ASIA Levant Countries, Asia Pacific NORTH & Africa) AMERICA MIDDLE
Slide 18: Branding and advertising engagements in overseas markets
Branding and advertising engagements in overseas markets Ashoka was the Associate Sponsor of IPL 2020 for the Sponsorship of Tarak Mehta Ka Ulta Chashma US and Canada markets on Willow TV BIG BOSS Sponsorship on Colors TV on Sony SAB Sponsorship on Aajtak News Channel 18
Slide 19: 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. D
Slide 20: Board of Directors
Board of Directors Deepa Harris Viren Merchant Independent Director Independent Director • 30+ years of expertise in high-end luxury hospitality category • 30+ years of experience and expertise in business management and pharmaceutical • Currently Independent Director of PVR Limited, Jubilant Foodwo
Slide 21: Industry Drivers & Our Growth Strategy
Industry Drivers & Our Growth Strategy
Slide 22: Paradigm shift in preference over ethnic food
Paradigm shift in preference over ethnic food Global Ethnic Food Market 11.8% CAGR • The global ethnic food market was valued at $36.48 billion in 2018, and is projected 70.10 to grow at 11.8% (CAGR) , to reach $70.10 billion in 2024 • A paradigm shift in taste preference over ethnic food due to inc
Slide 23: Evolving consumer tastes and preferences driving demand
Evolving consumer tastes and preferences driving demand Evolving Industry Trends • Evolving consumer tastes and preferences offering opportunities for innovations: - Consumers demand healthy and authentic food alternatives with fewer artificial ingredients • Strong preference of convenience RTE food
Slide 24: ADF - Strongly positioned for next phase of growth
ADF - Strongly positioned for next phase of growth Journey So Far Journey Ahead 3 1 Established strong brands in various segments 2 Strengthening ‘Agency Distribution’ Business 2 Strong global distribution network 1 Broadening Distribution Network • Increasing product offerings in distribution busin
Slide 25: While generating value for shareholders
While generating value for shareholders Our continued focus lies on improving cash generation and maintaining a robust balance sheet, thereby enabling us to generate strong returns and reward shareholders FY17 FY18 FY19 FY20 Rs 51 crores Rs 9.6 crore Rs 5.5 crore Rs 30 crore Rs 6 crore Returned to B
Slide 26: Historical Financial Overview
Historical Financial Overview
Slide 27: Consolidated financial performance
Consolidated financial performance Financials in Rs. Cr Total Income EBITDA PAT 12% 3 year CAGR 30% 3 year CAGR 43% 3 year CAGR 43 295 62 245 53 208 220 40 25 28 18 15 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Cash flow from operations EBIDTA Margins % PAT Margins % 26 14% 24 21% 2
Slide 28: 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 29: Consolidated balance sheet
Consolidated balance sheet (Rs Cr) Sept’20 Mar’20 (Rs Cr) Sept’20 Mar’20 Share Capital 20.4 20.4 Fixed Assets incl. CWIP 57.2 58.2 Reserves 206.8 184.0 Intangible Assets 21.3 21.4 Shareholders' Funds 227.2 204.4 Income Tax Asset (Net) 4.7 4.6 Other liabilities 0.7 1.6 Other Non Current Assets 6.5 10
Slide 30: Thank You
Thank You Shardul Doshi (CFO)/ Shalaka Ovalekar (CS) ADF Foods Limited shardul@adf-foods.com co_secretary@adf-foods.com Marathon Innova B2 – G01, G. K. Road Lower Parel, Mumbai 400 013 Pooja Dokania/ Rishav Das Pareto Capital (Investor Relations) pooja.dokania@paretocapital.in rishav.das@paretocapit