Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q4 FY24 Earnings Presentation
38 slides from Adf Foods's earnings presentation, May 9, 2024
Slide 1: Cover letter to stock exchanges: Investor Presentation Q4 & FY24
9th May, 2024 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Department of Corporate Services, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers , Bandra (East), Dalal Street, Mumbai - 400 051. Mumbai - 400 001. Symbol: ADFFOODS Scrip Code: 519183 Dear Sir/Madam, Sub: Investor
Slide 2: ADF Foods Limited Investor Presentation Q4 FY24
ADF Foods Limited Investor Presentation Q4 FY24 May 2024 1
Slide 3: Contents
Contents 01 Company Overview 02 Business Overview 03 Industry trends & ADF Growth 04 Annual Performance March 2023 2
Slide 4: Company Overview
Company Overview 3
Slide 5: ADF Snapshot
ADF Snapshot ADF - At a Glance 2 1932 Leading Global 400+ Product Manufacturing manufacturer Network 8 Brands SKUs Facilities A leading Impressive footprint Distinctive, high-recall Wide range 9-decade Vintage Annual manufacturing spanning across the brands catering to of products with origins datin
Slide 6: Unlocking Growth
Unlocking Growth A Global Culinary Cutting-edge Manufacturing Diversified Product & Sustainable Performance & Powerhouse & Wide-reaching Brand Portfolio Key Growth Initiatives Distribution Network 29%+ 400+ Product Ashoka Manufacturing One of the biggest ethnic food processing companies globally 2
Slide 7: Investment Rationale
Investment Rationale ❑ Leveraging extensive experience, deep domain knowledge & multi- Vintage generational understanding along with seasoned food industry Leadership & professionals. Value Creation ❑ Stability ensured by a debt-free balance sheet and return ratios. ADF is one of the Leaders in the
Slide 8: Q4 FY24 Financial Performance
Q4 FY24 Financial Performance Standalone Performance Revenue from Operations (Rs. Cr.) EBITDA (Rs. Cr.) & EBITDA Margin (%) PAT (Rs. Cr.) & PAT Margin (%) 28.8% 25.6% 24.7% 20.7% 19.6% 19.6% 129.0 98.2 103.2 31.8 28.3 26.4 25.3 20.3 20.3 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY2
Slide 9: FY24 Financial Performance
FY24 Financial Performance Standalone Performance Revenue from Operations (Rs. Cr.) EBITDA (Rs. Cr.) & EBITDA Margin (%) PAT (Rs. Cr.) & PAT Margin (%) 21.7% 24.6% 17.0% 19.2% 414.1 102.0 79.6 353.3 60.0 76.8 FY23 FY24 FY23 FY24 FY23 FY24 Consolidated Performance Revenue from Operations (Rs. Cr.) EB
Slide 10: Segment Performance
Segment Performance Processed Foods Distribution Revenue from Operations (Rs. Cr.) Revenue from Operations (Rs. Cr.) 132.7 23.3 102.8 106.3 21.0 20.3 Q4 FY23 Q3 FY24 Q4 FY24 Q4 FY23 Q3 FY24 Q4 FY24 EBITDA (Rs. Cr.) & EBITDA Margin (%) EBITDA (Rs. Cr.) & EBITDA Margin (%) 8.5% 8.2% 8.2% 27.4% 27.1% 2
Slide 11: Business Overview
Business Overview 10
Slide 12: Business Divisions
Business Divisions Business comprises core manufacturing i.e., processed foods business and agency distribution business. 2 Core Revenue Segments (Divisions) 1. Processed Foods 2. Distribution One of the largest Indian exporters of processed foods Strong presence in US with a growing Europe market R
Slide 13: Geographical Presence
Geographical Presence Impressive footprint spanning North America, Europe, Australia, Middle East, & Asia Pacific. 2 Manufacturing locations NADIAD, NASIK 55+ Countries 180+ Global Distributors presence worldwide 2 2 Manufacturing 2 Warehouses (USA) Distribution locations NEW JERSEY ATLANTA warehous
Slide 14: Ashoka: ADF Foods' Flagship Brand
Ashoka: ADF Foods' Flagship Brand The Taste of Home for South Asian Diaspora Reinforcing Indian Heritage and Pioneering Growth Born in 1988, Ashoka quickly gained momentum as ADF Foods' flagship brand catering to Indian palates globally. Ashoka Brand Sales (Rs. Cr.) 254 Global Presence 211 Ashok
Slide 15: Ashoka: Bringing Authentic Indian Taste Abroad
Ashoka: Bringing Authentic Indian Taste Abroad A Journey through India's Culinary Landscape 14
Slide 16: SOUL: The Essence of Global Flavours in Indian Kitchens
SOUL: The Essence of Global Flavours in Indian Kitchens A D2C brand Embodying Authentic Global Flavours for Indian Consumers Target Audience: SKUs: Tailored for millennials and the urban Indian consumer. Offering a total of 20 – 25 SKUs including wide range of pickles, sauces, and pastes availab
Slide 17: Soul's Blueprint for Growth in India's Premium Market
Soul's Blueprint for Growth in India's Premium Market Initial Success-Driven Premium Pricing for Investment Higher Profitability Significant traction from initial Rs. 5 Offering a premium range that crore investment prompted additional ensures superior gross margins infusion to capitalize on the mom
Slide 18: Truly Indian: Unlocking Global Markets With Authentic Indian Flavours
Truly Indian: Unlocking Global Markets With Authentic Indian Flavours Bridging Cultures with Authentic Indian Taste Target Audience: Exclusively targeted at the global mainstream population, specifically non-Indian diaspora seeking traditional Indian flavours. Product Features: Delivers the REAL
Slide 19: Exploring Our Other Esteemed Brands
Exploring Our Other Esteemed Brands Positioning Products Geographies Retail Channel Premium brand targeted at Meal accompaniments, pastes, Middle East 95% from mainstream/ modern Arabic diaspora sauces trade stores Economy Brand Meal accompaniments, pastes, Middle East 65% from mainstream/modern sau
Slide 20: Product Portfolio
Product Portfolio Select Key Products Ready-to-eat & Food Frozen Products Spices & Others Ready-to-cook Accompaniments ▪ Snacks- Punjabi ▪ Ready to eat- Pav ▪ Pickles- Chilli, Lemon, ▪ Spices- Madras Curry Samosas, Batata Bhaji, Dal Makhani, Mango, Mixed Powder, Tamarind Vada, Kathi Rolls Matar Pane
Slide 21: Marketing Initiatives
Marketing Initiatives Increased shelf visibility and consumer loyalty, translating into outperformance 20
Slide 22: Marketing Initiatives: Product sampling
Marketing Initiatives Product sampling @ retail stores 21
Slide 23: Marketing Initiatives: Television sponsorships
Marketing Initiatives Television sponsorships Sponsorship of Live Telecast of Tata IPL GEC & News News Channel L Band & IPL Sponsor Tag 22
Slide 24: Marketing Initiatives: Social media
Marketing Initiatives YouTube, Instagram & LinkedIn presence – Engaging fans with product stories, event snapshots and interesting contests 23
Slide 25: Manufacturing Facilities
Manufacturing Facilities Plant 1 Nadiad, Gujarat Plant 2 Nasik, Maharashtra Total Built up area - ~26,000 Sqm* Total Built up area – ~12,000 Sqm* Frozen foods (Samosas, vegetables, snacks, Totally automated spice processing unit by Buhler, parathas, etc.) • Meal accompaniments (Pickles, Germ
Slide 26: Warehousing Facilities Available For Distribution Business
Warehousing Facilities Available For Distribution Business Warehousing and Distribution Facilities Atlanta, USA (34,000 sq.ft.) New Jersey, USA (66,000 sq.ft.) Cold storage facility in New Jersey, USA • Combined 100,000 sq. ft of area for warehousing and distributing operations shared among two ware
Slide 27: Distribution Business
Distribution Business Distribution Business ➢ Alongside the processed food business, ADF has undertaken the agency distribution for a select FMCG company products whose ROCE is in line with own brands, broadening the overall portfolio ➢ Serving as a distribution partner for a for renowned packaged t
Slide 28: Certifications & Accreditations
Certifications & Accreditations ISO 2200: 2018 SGS accreditation demonstrates certification by BVQI UKAS accreditation ensures high Kosher that our products, processes and for management standards for managing Dietary Regulations of services meet the highest system standards occupational health & sa
Slide 29: Board Of Directors
Board Of Directors Bimal Thakkar Ravinder Jain Viren Merchant Jay Mehta Chairman, Managing Director and CEO Independent Director Non-Executive Director Non-Executive Director ➢ 37+ years of experience in domestic and ➢ 45+ years of experience in business ➢ 30+ years of experience and expertise in ➢
Slide 30: New Product Launches In Q4 FY24
New Product Launches In Q4 FY24 Frozen Sweets Canned Sweets Dips & Sauces Frozen Snacks Frozen Breads Shelf Stable 29
Slide 31: Industry trends & ADF Growth Aspirations
Industry trends & ADF Growth Aspirations 30
Slide 32: Culinary Horizons: Key Drivers Shaping the Ethnic Food Landscape
Culinary Horizons: Key Drivers Shaping the Ethnic Food Landscape Ethnic Food Trends Demographic factors & Macro Economic Trends Surge in health-conscious ethnic options: plant-based, Increase in nuclear Rise in Immigration vegetarian, vegan. families Growing fascination with diverse culinary culture
Slide 33: ADF Foods – Our Aspirations
ADF Foods – Our Aspirations Brownfield and debottlenecking initiatives to boost revenue potential at Aspirational Revenue growth potential (Rs. Cr.) current capacities by Rs. 180 – 200 crores Upcoming Greenfield expansion to further boost revenue potential by 1,000 - 1,100 Rs. 250 – 275 crores + Sca
Slide 34: Annual Performance Highlights
Annual Performance Highlights 33
Slide 35: Consolidated 5-year Financial Highlights
Consolidated 5-year Financial Highlights Rs. Cr. unless stated FY20 FY21 FY22 FY23 FY24 Profit & Loss Highlights Revenue from Operations 285.2 369.8 421.2 450.3 520.3 Gross Profit 136.1 154.7 211.5 235.9 276.2 Gross Profit (%) 47.7% 41.8% 50.2% 52.4% 53.1% EBITDA 53.1 68.3 66.6 80.6 104.9 EBITDA Mar
Slide 36: Consistent Shareholder Returns
Consistent Shareholder Returns Value creation for Consistent shareholder value creation through dividend payouts and buyback of shares shareholders Rs. ~120 Cr. returned to our shareholders since FY 19 43.9 30.0 13.2* 8.8 11.0 6.0 6.0 FY19 FY20 FY21 FY22 FY23 FY24 Regular Dividend (Rs. Cr) Share Buy
Slide 37: Safe Harbor
| Safe Harbor Feeding thewward This presentation and the accompanying slides (the “Presentation”), which have been prepared by ADF FOODS LTD (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 38: Thank You
Thank You ADF Foods Limited Ernst & Young LLP CIN: L15400GJ1990PLC014265 Investor Relations Advisory Mr. Shardul Doshi, CFO Ravi Udeshi Sumedh Desai shardul@adf-foods.com ravi.udeshi@in.ey.com Sumedh.desai@in.ey.com 37