Parag Milk Foods Ltd. · NSE:PARAGMILK
Parag Milk Foods — Q3 FY2023 Earnings Presentation
33 slides from Parag Milk Foods's earnings presentation, Jan 25, 2023
Slide 1: Exchange covering letter for Q3 FY23 investor presentation
January 25, 2023 Compliance Department, Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower, Exchange Plaza, Plot No. C/1, G-Block, Dalal Street, Fort, Bandra Kurla Complex Mumbai – 400 001 Bandra - (E), Mumbai – 400 051 Scrip Code:- 539889 Scrip Symbol
Slide 2: Q3 FY23 Investor Presentation
PARAG Ideas for a new day ..,,...ru.iC:J.,. 0f'-Of'C% �- ••'••• +.,�l�• D � _....M.IJIIIIW Q3 FY23 INVESTOR PRESENTATION
Slide 3: Safe Harbor
SAFE HARBOR Ideas for a new day This presentation and the accompanying slides (the "Presentation"), which have been prepared by Parag Milk Foods Limited (the "Company''), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or s
Slide 4: Chairman's Message
CHAIRMAN'S MESSAGE ldeos for a new day
Slide 5: Table of Contents
TABLE OF CONTENTS Ideas for a new doy ,..,,,. ., ;:-... EXECUTIVE SUMMARY ,.. .... PARA G AT GLANCE ,... "II FINANCIAL HIGHLIGHTS ,.. .... OPPORTUNITY MARKET ,.. � OUR STRATEGIC PRIORITIES ,..,,,. � ADDITIO NAL INFORMATION
Slide 6: Executive Summary: Q3 FY23
EXECUTIVE SUMMARY: Q3 FY 23 Ideas for a new day Consolidated � The core category Brand Awatar has Pride of Cows is posted strong growth � Revenue grew by like Ghee & Cneese withnessing strong 36.6°/oYOY has grown at 81 °/oYOY growth momentum with Pride of Cows 4 . >/oYOY products clocking over growt
Slide 7: Parag at a Glance
PARAG Ideas far a new day
Slide 8: Parag Milk Foods: A Complete, Integrated Business Model
PARAG MILK FOODS: A COMPLETE, INTEGRATED BUS NESS MODEL Ideas for a new day Manufacturing Fadlities 3.4 million .5 lakh litres/day Milk Processing Capacity pan India Retail Touch Points 100% 10 Lakh Cow Milk from k ey milk belts 3,000+ litres/day Whey Processing Capacity Distributors Relationship wi
Slide 9: Financial Highlights
PARAG Ideas far a new day
Slide 10: Q3 FY23 Financial Performance
Q3 FY23 FINANCIAL PERFORMANCE ldetis for o new day Revenue.• (Rs, MnJ Gross Profit (Rs. Mn) EBIDTA (Rs. Mn) PAT(Rs. Mn) 1556.1 490.7 190.2 1507.5 92.64 335.1 03FY22 03FY23 03FY22 03FY23 03FY22 03FY23 03FY22 03FY23 • Revenue from Operations grew at 36.6% YoY at INR 7358.9 million • Price of milk and
Slide 11: Product Mix of Q3FY23
PRODUCT MIX OF Q3FY23 Ideas for a new day Milk Value Added Milk Products ewAge SMP 8.1% 74.8% 3.8% 12.5%
Slide 12: Inflation of Milk Prices
INFLATION OF MILK PRICES Ideas for a new day Milk Rate (INR/litre) 01-22 02-22 03-22 04-22 01-23 02-23 03-23 The milk prices have seen a tremendous inflation; The prices have increased by -45% over last 6 Quarters
Slide 13: Industry Continues to Reel Under Inflation; Parag Stood Strong in Procurement
INDUSTRY CONTINUES TO REEL UNDER INFLATION; PARAG STOOD STRONG IN PROCUREMENT Ideas for o new day Milk price inflation of 45% over the last 18 months led by- • Increase in green Fodder price by 28.7% YOY (source-M;nist,yofCommerce&lndustryJ • Elevated Energy and logistics cost- Double digit increase
Slide 14: Brand Equity Strength Coupled with Cost Efficiencies Results in Margin Expansion
BRAND EQUITY STRENGTH COUPLED WITH COST EFFICIENCIES RESULTS IN CONSISTENT MARGIN EXPANSION Ideas for a new day As an example • Despite inflationary pressure on milk prices; Parag posted healthy volume growth of 18.6% YoY • As a market leader, the company has actioned a series of price rise ahead of
Slide 15: Opportunity Market: High Potential Runway
OPPORTUNITY MARKET: HIGH POTENTIAL RUNWAY
Slide 16: Our Core Categories Has an Exciting Future
OUR CORE CATEGORIES HAS AN EXCITING FUTURE Ideas for a new day Cheese Market size {Rs. bn) Cow Ghee Market size {Rs. bn) 572.8 FY 19 FY22 FY24E FY27E FY 19 FY22 FY 24E FY 27E The cow ghee market size is ~INR 700 Total market size of Cheese is INR 56.7 billion, and is expected to reach INR 1,238 Whey
Slide 17: Our Strategic Priorities
OUR STRATEGIC PRIORITIES
Slide 18: Our Strategic Priorities
OUR STRATEGIC PRIORITIES Ideas for a new day To be one of the best performing, most trusted and respected dairy FMCG companies across stakeholders OUR STRATEGIC PRIORITIES
Slide 19: 1. Strengthening & Accelerating Categories
1. STRENGTHENING & ACCELERATING CATEGOR ES Ideas for a new day Ghee, Cheese and Protein grew by 43.4% YOY & 14.6% QOQ GOWARDHAN GHEE GO CHEESE AVVATAR 2QO/ Leaders and pioneers of cow ghee Dominant player in cheese category in Our protein business is witnessing healthy growth category with 0 India w
Slide 20: 2. Consistent Media Support
2.CONSISTENT MEDIA SUPPORT Ideas for a new day 2X Consistent media 80o/o Investing of media spends support to onAlR our brands X 2019 2020 2021 2022 9M-2023 Building brands over new age influencers Media spends for last 4 years* content strategy
Slide 21: https:// www.instagram.com/tv/CkNl0oILEr k /?igshid=OGQ2MjdiOTE= https://www.adgully.com/pride-of-cows-follows-
https://www.instagram.com/tv/CkNl0oILEr k/?igshid=OGQ2MjdiOTE= https://www.adgully.com/pride-of-cows-follows- unique-approach-to-provide-curated-buying- experience-126816.html https://www.instagram.com/reel/CnBj0 VoBR41/?igshid=ZmMyNmFmZTc%3D
Slide 22: 3. Built on the Backbone of a Robust Network
3. BUILT ON THE BACKBONE OF A ROBUST NETWORK Ideas for a new day 29 Depot Depots Jammu Super Stockists Jalandhar 300 Delhi Siliguri Guwahati To reach Super Stockists Jodhpur ft ,,,. T Ja,pur Kanpur n Udaipur Tr retail touch poi ts 3000 Ahmedaba!i.- Sura:� Indore by2025E Distributors Mumbai Manchar N
Slide 23: Evolving a Route to Market
EVOLVING A ROUTE TO MARKET Ideas for a new day Our PAN India general trade distribution reach Modern trade has witnessed strong growth T� _ Al' 22.4°/oYoY The HORECA segment has grown has grown by ° 54°/oYoY 38 /oYoY � We have added Ecommerce continues to grow manifold and has grown 16 super stockis
Slide 24: 4. Protein - The Global Opportunity
4. PROTEIN - THE GLOBAL OPPORTUNITY Ideas for a new day Parag Milk Foods is the only Total whey market size is INR 6.6 billion Indian company to and is expected to reach INR 19.9 billion manufacture Whey Protein. by FY27, Growing at a ""'Mr-.ll'--�•"- of Brand Awatar reaches its consumer in the fres
Slide 25: Strong Thrust on Protein Business
STRONG THRUST ON PROTEIN BUSINESS Ideas for a new day Protein Business Contributes Around -8% Of Sales of Awatar sales comes from e-commerce 01-22 02-22 03-22 04-22 01-FY23 02-23 03-23 Sales growth over the last six quarters has grown by 6.7x
Slide 26: Strengthening New Business: Pride of Cows
STRENGTHENING NEW BUSINESS: PRIDE OF COWS Ideas for a new day Growth strategy: More point of sale; More products ROUTE TO MARKET INCREASING PRODUCT PORTFOLIO Whole milk ----, Fat free milk Direct to consumers \ Paneer \ \ I \ \ \ \ \ \ Ecommerce \ \ '- - - - - Ghee Organized trade channels Curd -- F
Slide 27: 5. Optimizing Productivity to Drive Growth
5. OPTIMIZING PRODUCTIVITY TO DRIVE GROWTH Ideas for a new day PLANNING STAGE FOR SAP HANA IMPLEMENTATION DIGITIZATION/ IT: ------------------ MORE THAN 70% OF GT BUSINESS HAS BEEN COVERED IN SFA* LEVERAGING VENDORS, RE- NEGOTIATION, REVERSE AUCTIONS OVERHEADS: --------------- OFFICE CONSOLIDATION
Slide 28: Additional Information
ADDITIONAL INFORMATION
Slide 29: Our ESG Initiatives
OUR ESG INIT ATIVES Ideas for a new day LAYING A SOLID FOUNDATION BY FOC US AREAS ADOPTING ESG POLICIES SOCIAL GOVERNANCE Best Practices of Adoption of practices focus centers around reducing focus on the well-being framework includes business Adoption of strong for food security & Adoption of socie
Slide 30: Green Initiatives
GREEN INITIATIVES Ideas for a new day @WATER @CLIMA E (f) ENERGY FOCUS ON REDUCING AIR l SOIL I NOISE POLLUTION EMISSION I ENERGY CONSERVATION I FOCUS ON RENEWABLES REDUCE I REUSE I RECYCLE • Installation of solid waste digester. • Power generation through solar • Water optimization. • Monitoring an
Slide 31: Parag Milk Foods Limited milestones
1992 2010 2016 2021 2005 2014 2018 Investment by International Finance Corporation (IFC) and prominent Consumer fund Sixth Sense Venture Parag Milk Foods was Launched Palamaner plant Realizing the need Parag Milk Advisors LLP founded by Mr. Bhagyalakshmi Dairy was established of market & to add Food
Slide 32: Board of Directors
BOARD OF DIRECTORS Ideas for a new day Mr. Devendra Shah I Chairman PMFL has grown consistently under the leadership of Devendra Shah. He brings enthusiasm and innovation to business and has enhanced the company's revenue exponentially. Mr. Pritam Shah I Managing Director Dr. Dnyanesh V. Darshane I
Slide 33: Thank You
dd) PARAG Ideas for a new day THANK YOU