Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — Q3 FY2022 Earnings Presentation
21 slides from Sundrop Brands Limited Shs Dematerialised's earnings presentation, Jan 21, 2022
Slide 1: Regulation 30 disclosure cover letter to exchanges
21st January 2022 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233 / 22721234 Ph.No. 022- 26
Slide 2: Agro Tech Foods Limited FY'22 Quarter 3 Update
Agro Tech Foods Limited FY’22 Quarter 3 Update January 21st, 2022
Slide 3: Company Strategic Vision
Company Strategic Vision The Best Performing Most Respected Foods Company in India 2
Slide 4: Quarter 3 – Key Performance Highlights
Quarter 3 – Key Performance Highlights Strong Foods Growth – High Input Cost Inflation • Steady Foods Growth in Q3 of 10% with YTD Growth of 17%. • Commodity inflation in Q3 higher than expected at 15%. Raw Material inflation down but increased Packaging Material inflation. • YTD Edible Oils GM hold
Slide 5: Performance Highlights by Category
Performance Highlights by Category 1. Ready to Cook Snacks 2. Ready to Eat Snacks 3. Spreads (Rs. 10,000 crore) (Rs. 35,000 crore) (Rs. 2300 crore) 4. Breakfast Cereals 5. Chocolate Confectionery 6. Edible Oils (Rs. 2900 crore) (Rs.15,000 crore) (Rs. 194,000 crore) 4 * Category Sizes in Brackets
Slide 6: Ready to Cook Snacks
Ready to Cook Snacks YTD RTC Q1 Q2 Q3 FY’22 Volume +36% +11% +5% +15% Value +39% +12% +8% +18% • Some softening in RTC Popcorn growth rate in line with expectations. Introduction of Mini Meal Kits well timed to sustain strong growth in FY’23. • Price increases of up to 40% taken on Sweet Corn with s
Slide 7: Ready to Eat Snacks
Ready to Eat Snacks YTD RTE Q1 Q2 Q3 FY’22 Volume +1% +18% +18% +14% Value +9% +15% +32% +20% • Significant acceleration in growth rate driven by RTE Popcorn – clear leadership at national level in Category. • GM attrition in Category largely addressed through Price Increases, Grammage Reduction and
Slide 8: Spreads & Dips
Spreads & Dips YTD Spreads Q1 Q2 Q3 FY’22 Volume +12% +6% -3% +4% Value +15% +7% -7% +4% • Sluggish Volume performance in PB but Pricing actions yielding strong results where implemented. • Industry data for 2021 indicates 10% Category Growth (similar to 2020) with increase in ATFL Share (c40%): • H
Slide 9: Breakfast Cereals
Breakfast Cereals YTD Cereals Q1 Q2 Q3 FY’22 Volume +82% +55% +21% +45% Value +60% +36% +9% +28% • Continued strong Growth with improved market working. Increased focus on larger Packs - expanding from “Cereal Snacks” into “Breakfast Cereals”. • Margin improvement plans focused on Volume Growth and
Slide 10: Chocolates
Chocolates YTD Chocolates Q1 Q2 Q3 FY’22 Volume +105% +534% +153% +210% Value +149% +768% +208% +289% • Scaling up of business underway. Steady month on month Growth. • Testing of Peanut Duo commenced. • Removal of tray initiated in Rs. 10 Coconut Duo bar as part of Margin improvement. • Further Mar
Slide 11: Edible Oils
Edible Oils Premium Oils Q1 Q2 Q3 YTD FY’22 Volume -12% +4% +11% +1% Value +20% +36% +35% +30% YTD Mass Oils Q1 Q2 Q3 FY’22 Volume -71% -51% -67% -63% Value -50% -26% -54% -44% • Premium Oils (Sundrop Heart & Superlite) Volumes deliver a YTD 100+ Index reflecting impact of pricing realignment in FY’
Slide 12: Competitive Update
Competitive Update
Slide 13: Snacks: Competition Spends
Snacks: Competition Spends Rs. Million F-17 F-18 F-19 FY20 Q1-21 Q2-21 Q3-21 Q4-21 FY21 Q1-22 Q2-22 Oct-21 Nov-21 Dec-21 Q3-22 ACT II 110 74 38 45 13 32 20 30 95 18 31 0 0 11 11 Lays 148 374 252 491 28 83 79 145 335 238 202 55 4 68 127 Kurkure 196 260 396 321 0 61 111 64 237 98 65 53 17 69 Doritos 0
Slide 14: Spreads: Competition Spends
Spreads: Competition Spends Rs Million F-13 F-14 F-15 F-16 F-17 F18 F-19 FY-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Oct’21 Nov'21 Dec'21 Q3-22 Kissan Jam- 254 207 304 381 357 512 704 752 218 218 110 134 679 156 154 51 51 37 138 Kissan PB 101 95 196 109 129 54 65 5 125 Sundrop PB 0 0 42 64 56 30
Slide 15: Breakfast Cereals: Competition Spends
Breakfast Cereals: Competition Spends Rs Million FY-17 FY-18 FY-19 FY-20 Q1-21 Q2-20 Q3-21 Q4-21 FY-21 Q1-22 Q2- 22 Oct'21 Nov'21 Dec'21 Q3-22 Kellogg Cornflakes 202 265 390 230 7 118 88 142 355 124 124 30 40 39 108 Kellogg Chocos Fills 0 125 203 17 0 0 9 0 9 0 0 0 7 13 20 Kellogg Chocos 310 362 509
Slide 16: Chocolates: Competition Spends
Chocolates: Competition Spends Final Brand ( In FY- 18 FY- 19 FY-20 Q1 Q2 Q3 Q4 FY-21 Q1-22 Q2-22 Oct- 21 Nov-21 Dec-21 Q3- 22 Million) Cadbury 5 Star 744 482 727 102 192 385 281 960 150 276 216 87 74 377 Cadburys Celebration 138 212 277 0 79 320 0 399 56 230 140 0 370 Dairy Milk 2229 2166 2362 209
Slide 17: Edible Oils: Competition Spends
Edible Oils: Competition Spends Oct’ Nov’ Dec’ Rs Million F-12 F-13 F-14 F-15 F-16 F-17 F-18 F-19 FY-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Q3-22 21 21 21 Sundrop Heart 88 94 50 65 46 34 21 0 0 0 0 0 0 0 0 0 0 0 0 0 Saffola 121 212 356 291 338 320 588 544 527 114 145 61 81 400 116 86 30 38 0 6
Slide 18: Noodles: Competition Spends
Noodles: Competition Spends Tracked Brands (in Million) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1- 22 Q2-22 Oct’21 Nov’21 Dec’21 Q3-22 Chings Noodles 17 2 19 20 0 40 0 Wai Wai 0 0 0 1 17 19 6 Knorr Soupy Noodles 0 0 140 0 0 140 0 Sunfeast Yippee noodles 81 168 85 336 57 647 185 155 81 10 29 120 Sunfeas
Slide 19: Pasta: Competition Spends
Pasta: Competition Spends Tracked Brands (in Million) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1- 22 Q2-22 Oct-21 Nov-21 Dec-21 Q3-22 Bambino Pasta 0 0 0 0 0 1 0 0 1 1 Sunfeast Yippee pasta 0 0 90 1 1 93 0 1 2 1 1 4 Keya Italiano Pasta 2 0 0 0 0 0 0 13 0 13 Maggi Pazzta 0 0 0 24 26 50 1 Maggi Pazzta Che
Slide 20: Soups: Competition Spends
Soups: Competition Spends Tracked Brands (in Million) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Oct-21 Nov-21 Dec-21 Q3-22 Chings Instant Soups 3 0 37 29 1 66 0 5 25 5 1 31 Eastern Instant Rasam 1 1 8 0 0 9 0 0 0 Knorr Chicken Delite Soup 8 19 23 42 23 107 8 22 7 34 42 83 Knorr Chinese Manchur
Slide 21: Summary & Way Forward
Summary & Way Forward • Premium Edible Oils trending well to PY confirming impact of price reductions in FY’21. Business at a 100+ Index point in Volume. • Need to ensure that we make the right choices in balancing Growth with short term Profitability. Some A&P cuts done in Q3 but Growth clearly the