Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — 9MFY18 Earnings Presentation
27 slides from Apex Frozen Foods's earnings presentation, February 2018
Slide 1: Apex Frozen Foods Limited Investor Presentation 9MFY18
Investor Presentation Apex Frozen Foods Limited 9MFY18
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apex Frozen Foods Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not f
Slide 3: Business Updates – 9MFY18
01 Business Updates – 9MFY18 Investor Presentation 9MFY18 Apex Frozen Foods Limited 3
Slide 4: Completion Status of the New Project
Completion Status of the New Project ▪ New shrimp processing facility at Ragampeta, East Godavari, Andhra Pradesh ▪ Total capacity of 20,000 MTPA: Ready-To-Cook - 15,000 MTPA and Ready-To-Eat - 5,000 MTPA ▪ Total planned capex: Rs 902 mn, of which, Rs 184 mn has been incurred as of end of Dec’17 Cur
Slide 5: Key Operational Metrics
Key Operational Metrics Higher capacity (MTPA) with better utilisation led to… …Increase in total sales (MTPA) in the current fiscal 11,169 9,898 15,240 15,240 12,240 7,598 FY17 H1FY18 9MFY18 FY17 H1FY18 9MFY18 Average realisation* (Rs/kg) improving on a YTD basis Well diversified geographical mix *
Slide 6: Profit & Loss Highlights
Profit & Loss Highlights Standalone UFR (Rs mn) Q3 FY18 Q2 FY18 Q-o-Q % 9MFY18 9MFY17 Net sales 2,628 2,851 -7.8 7,955 5,351 Other income (forex fluctuations) 43 71 -38.4 169 61 Total Income 2,672 2,922 -8.6 8,125 5,412 Raw material 1,843 2,244 -17.9 6,032 4,216 Change in inventories 13 -232 105.5 -
Slide 7: Key Growth Drivers & Expansion
02 Key Growth Drivers & Expansion Investor Presentation 9MFY18 Apex Frozen Foods Limited 7
Slide 8: Global Seafood Industry – Overview
Global Seafood Industry – Overview Increased seafood intake globally, reflected in higher per capita consumption of seafood (kg) ✓ Rising income level ✓ Variety in product offering 20 ✓ Richer protein content 15 1995 2015 ✓ Favourable State policies like FTAs Source: FAO, CRISIL Research Seafood ind
Slide 9: Global Demand-Supply Scenario, Favourable for India
Global Demand-Supply Scenario, Favourable for India Demand: Top 5 importing countries, forming ~50% Supply: Asia forms ~92% of total aquaculture production 69.6% 15.0% 2015 67.7% 2015 14.7% 20-22% 2020P 2020P 18.0% 9.9% 7.8% 11.0% 6.8%6.7% 9-11% 8-10% 9.0% 5.2% 7.0% 4.8% 5-7% 5-7% 5.0% 3.0%3.0% USA
Slide 10: India’s Growth in Aquaculture Exports and Farming
India’s Growth in Aquaculture Exports and Farming India’s exports on a rise – FY17 (lakh tonnes) Frozen shrimp exports by India 3.7 3.7 11.34 CAGR – 18% Total Seafood 3.2 3.1 (20% yoy) 4.34 (16% yoy) Frozen Shrimp 1.8 1.7 189 229 301 358 374 434 3.29 L. Vannamei (28% yoy) FY12 FY13 FY14 FY15 FY16 FY
Slide 11: Planned Expansion, to Cater the Growing Demand
Planned Expansion, to Cater the Growing Demand • New processing plant in Ragampeta, East Godavari, with a total capacity of 20,000 MTPA, of which; • 5,000 MTPA will be towards Ready-To-Eat (Value Added Products) • The plant will have a cold storage capacity of 5,000 pallets • The plant is expected t
Slide 12: Backward Integration, to Ensure Quality and Cost Control
Backward Integration, to Ensure Quality and Cost Control Hatchery Operations Adding a new Hatchery, which will increase the total breeding capacity to Farming Initiatives ~ 1.4 bn seeds from ~1 bn seeds currently In-housing farming, currently on ~1,800 acres (owned + leased) Focusing on enhancing fa
Slide 13: Our Core Strengths
03 Our Core Strengths Investor Presentation 9MFY18 Apex Frozen Foods Limited 13
Slide 14: Integrated Operations Enable Economies of Scale
Integrated Operations Enable Economies of Scale Packaging Farming • 3 Hatcheries with • Cold storage unit a total breeding • Total capacity of • Packaging of finished – 1,500 MT • ~1,800 acres of land 15,240 MTPA product, as per capacity of over 1 • Transportation • Owned – 110 acres • Owned - 9,240
Slide 15: Investor Presentation 9MFY18 Apex Frozen Foods Limited
Investor Presentation 9MFY18 Apex Frozen Foods Limited 15
Slide 16: Strategically Located – Close to Farms as Well as Ports
Strategically Located – Close to Farms as well as Ports Andhra Pradesh accounts for ~70% of the total shrimp farming in India Our facilities are in proximity to one another, enabling smooth transition of products to the next stage ▪ 10 - 200 kms from the farms ▪ ~20 kms from Kakinada port ▪ ~150 kms
Slide 17: Long Standing Relationships with Reputed Brands
Long Standing Relationships with Reputed Brands Our key distributors… …The end customers (Retail/Food Service Companies) Chicken of the Sea Walmart WinCo frozen foods FOODS OCEAN WORLD Kroger VENTURES Sysco US. Pacific Seafood FOODS Long-standing relationship directly with customers - one of the sig
Slide 18: Quality Control Certifications act as Entry Barrier
Quality Control Certifications act as Entry Barrier Investor Presentation 9MFY18 Apex Frozen Foods Limited 18
Slide 19: Founded by Promoters with Extensive Experience
Founded by Promoters with Extensive Experience … Industry knowledge, relationships and experience of the founders has enabled sustained growth Karuturi Satyanarayana Murthy, Chairman and Managing Director ▪ Founding Promoter of the company and has an experience of over 20 years in aquaculture indust
Slide 20: Supplemented by a Strong First Line of Management
… Supplemented by a Strong First Line of Management Deep knowledge and operational experience makes the first line of management strong Ch Vijaya Kumar, G. V. Raghava Raju, H. Rajashekhar, DR. T. Rambabu Chief Financial Officer Purchase Manager Operations Manager Farms In-charge • Aged 41 years, is
Slide 21: Annual Financial Highlights
06 Annual Financial Highlights Investor Presentation 9MFY18 Apex Frozen Foods Limited 21
Slide 22: Robust Growth in Revenue and Profits
Robust Growth in Revenue and Profits… Total Income (Rs mn) EBITDA (Rs mn) & Margin (%) PAT (Rs mn) & Margin (%) FY13 2,553 FY13 8.7% 222 FY13 3.7% 94 FY14 5,143 FY14 6.3% 325 FY14 2.6% 134 FY15 6,040 FY15 6.3% 378 FY15 3.1% 186 FY16 6,082 FY16 7.5% 454 FY16 3.2% 197 FY17 7,095 FY17 7.8% 557 FY17 3.5
Slide 23: Led by Strong Financial Discipline
…Led by Strong Financial Discipline, Leading to… Net Debt to Equity (x) Working Capital (Days) Book value (Rs/share) FY13 2.36 FY13 75 FY13 16 FY14 1.95 FY14 48 FY14 19 FY15 1.53 FY15 54 FY15 23 FY16 0.99 FY16 51 FY16 31 FY17 1.04 FY17 60 FY17 40 Improved D/E led by… …largely stable working capital…
Slide 24: Enhanced Profitability for Stakeholders
…Enhanced Profitability for Stakeholders Return on Net Worth (%) Return on Capital Employed (%) FY13 38.6% FY13 13.7% FY14 43.1% FY14 15.7% FY15 39.6% FY15 16.2% FY16 30.0% FY16 15.4% FY17 29.0% FY17 14.7% Consistently generating high Return Ratios Note: The above data is as per Restated Financials
Slide 25: Profit & Loss Highlights
Profit & Loss Highlights Profilt & Loss (Rs mn) FY13 FY14 FY15 FY16 FY17 Total Income 2,553 5,143 6,040 6,082 7,095 Raw Material 1,895 4,013 4,890 4,675 5,492 Manufacturing cost 151 225 270 406 513 Employee Expenses 104 226 258 233 249 SG&A Expenses 180 353 244 314 284 EBITDA 222 325 378 454 557 EBI
Slide 26: Balance Sheet Highlights
Balance Sheet Highlights Standalone (Rs mn) FY15 FY16 FY17 Standalone (Rs mn) FY15 FY16 FY17 Shareholder’s Funds 560 753 968 Non-current assets 523 632 857 Share capital 240 240 240 Gross block 599 756 1,023 Reserves & Surplus 320 513 728 Less: acc. Depreciation 76 124 187 Non-current liabilities 10
Slide 27: For further information, contact
For further information, contact: Mr. Subhramanya Choudary Ms. Pooja Sharma Executive Director pooja.sharma@stellar-ir.com ir@apexfrozenfoods.com Investor Presentation 9MFY18 Apex Frozen Foods Limited 27