Flair Writing Industries Limited · NSE:FLAIR
Flair Writing Industries — Q1 FY25 Earnings Presentation
32 slides from Flair Writing Industries's earnings presentation, 2024
Slide 1: Investor Presentation
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Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Flair Writing Industries Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 3: Flair brands
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Slide 4: Flair - At a Glance
Flair - At a Glance (FY 24) The Largest Player in pens segment in Largest Distribution Network in Extensive Product Portfolio Deleveraged Balance Sheet Largest Exporter from India India India (as on June 2024) 787 ₹ 795 crs 0.08x 8,080 330K 95 countries # Of Products as on June, 2024 Segment Revenue
Slide 5: Key Milestones
Key Milestones 1976 1998 2008 2009 2012 Acquired “Pierre Cardin” brand “Flair” brand was registered We commenced production at one of our Introduction of Flair Calculators Manufacturing plant was set up manufacturing units in Daman (UT of in Dehradun (Uttarakhand) Dadra & Nagar Haveli and Daman & Di
Slide 6: Competitive Edge
Competitive Edge Global Footprint Ability to partner with international brands being the largest exporter of writing instruments from India and making inroads through quality creative products Quality Manufacturing Evolving Portfolio High-quality manufacturing at a large scale Expansive catalogue of
Slide 7: Capex Timeline
Capex Timeline Total Capex of ~INR 230 Crs spread over FY24 to FY26 Installed Capacity (in billions) FY24 Total Capex Incurred – INR 110 Crs 0.20 FY25 Estimated Total Capex – INR 95-100 Crs To be utilised in Tips manufacturing, New manufacturing building in Valsad, Increasing installed capacity 2.40
Slide 8: Premiumisation Strategy Playing Out
Premiumisation Strategy Playing Out Rising Realisation per Piece Overall Average Selling Price (INR) Amongst the Highest Margins in the Industry 6.0 5.8 Gross Profit EBITDA PAT 5.7 5.4 5.5 5.2 5.27 5.17 5.29 50% 5.0 47% 46% 5.0 44% 4.6 4.5 4.3 4.1 3.9 3.9 4.0 20% 20% 3.5 Domestic 17% 3.0 Overall 12%
Slide 9: Roadmap for the Future – Key Pillars
Roadmap for the Future – Key Pillars (₹ in crs)) Steel Bottle & Houseware Creatives Segment Pens Segment Achieving Growth Through Strategic Focus on Key Pillars Steel Bottle & Houseware Product Portfolio 15%-16% Meaningful Contribution From CAGR Upcoming Year 28-30% Premiumization 979 Enhance Capaci
Slide 10: Roadmap for the Future – Strategies
Roadmap for the Future – Strategies Product portfolio Premiumization Enhance capacity o Aim to strengthen and expand our o Emphasis on Mid-premium Segment and o Increase production capacity to drive existing product portfolio by Premium Segment to increase margins further volume growth growing acros
Slide 11: Key Updates
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Slide 12: New Products Launched
New Products Launched EXPANDED PRODUCT PORTFOLIO ACROSS CATEGORIES • Launched a combined 34 products during the quarter across all segments • Significantly expanded offerings in steel bottles by launching 7 new attractive models • With a continuing focus on premiumisation, 7 out of 9 new pens were t
Slide 13: Positives, Challenges and Outlook
Positives, Challenges and Outlook POSITIVES ACHIEVED CHALLENGES FACED CONTINUING OPTIMISM • Revenues from own brand continue • Activities leading up to the elections • Demand for pens recovered in the to drive overall growth – “Hauser” affected the sale of pens in the first second half of the quarte
Slide 14: Performance Highlights
PERFORMANCE HIGHLIGHTS
Slide 15: Quarter 1 FY25: Key Performance Metrics
Quarter 1 FY25: Key Performance Metrics ₹ in Crs Revenue from Operations Gross Profit & GP Margin (%) EBITDA & EBITDA Margin (%) PAT & PAT Margin (%) 50.5% 49.9% 49.7% 21.2% 20.2% 17.0% 13.0% 13.7% 10.6% 246.7 250.1 247.1 124.6 124.9 122.9 52.3 50.5 34.2 32.1 42.0 26.2 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY2
Slide 16: Branded Business Performance (Q1 FY25)
Branded Business Performance (Q1 FY25) ₹ & pcs in Crs Domestic Own Brand Sales Export Own Brand Sales Total Own Brand Sales Contribution of Various Brands to Overall Branded Sales +5% 215 194 23 215 182 205 205 PIERRE CARDIN 21 PIERRE CARDIN CREATIVE CREATIVE HAUSER HAUSER Q1 FY24 Q1 FY25 Q1 FY24 Q1
Slide 17: OEM Business Performance (Q1 FY25)
OEM Business Performance (Q1 FY25) ₹ in Crs Brand Mix in Consolidated Revenue Export OEM Recovering • Achieved increase in realisation due to rise in Average Selling Price 42 18 [17%] 17 • Persistent Geopolitical Issues have raised freight costs, constrained Q1 FY24 supply chain and have increased l
Slide 18: Q1 FY25 Segmental Highlights - Pens
Q1 FY25 Segmental Highlights - Pens Pens Division Plan of Action for Segment Growth Chart depicts Segmental Revenue (INR Crs) Management Commentary “We maintained sales despite activities surrounding elections affecting demand in Constant Innovation 198 196 the first half of the quarter. Growth rebo
Slide 19: Q1 FY25 Segmental Highlights – Creative Range
Q1 FY25 Segmental Highlights – Creative Range Creative Segment Plan of Action for Segment Growth Chart depicts Segmental Revenue (INR Crs) +21.4% Management Commentary Distribution Expansion “Creative segment continues to deliver 37 strong performance. Company introduced 7 • Increased channel fillin
Slide 20: Q1 FY25 Segmental Highlights – Steel Bottles
Q1 FY25 Segmental Highlights – Steel Bottles Steel Bottles & Houseware Segment Plan of Action for Segment Growth Chart depicts Segmental Revenue (INR Crs) 115.7% Wider Catalogue Management Commentary 8 “Steel bottles have been experiencing strong traction in the market with robust enquiries and a co
Slide 21: Consolidated Profit & Loss Statement – Quarter 1 FY25
Consolidated Profit & Loss Statement – Quarter 1 FY25 PROFIT & LOSS STAETMENT (₹ in crs) Q1 FY25 Q1 FY24 Y-o-Y Q4 FY24 Q-o-Q FY24 Revenue from Operations 247.1 246.7 0.2% 250.1 -1.2% 978.7 Cost of Materials Consumed 124.2 122.1 125.2 485.7 Gross Profit 122.9 124.6 -1.3% 124.9 -1.6% 493.0 Gross Profi
Slide 22: Investment Thesis
Investment Thesis Manufacturing Excellence Brand Value Largest pens manufacturing capacity & further Portfolio of familiar, iconic brands across price capacity addition is underway. Continues to lead segments; crafted through leveraging celebrity as the only domestic pen brand to manufacture image a
Slide 23: Annexure
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Slide 24: Board of Directors
Board of Directors Mr. Khubilal Jugraj Rathod, Chairman • He has 48+ years of experience in the writing instruments industry • Received the Lifetime Achievement Award and the Udyog Rattan Award from the Institute of Economic Studies, the Lifetime Achievement Award from The Bombay Fountain Pen Manufa
Slide 25: Board of Directors & Senior Management Team
Board of Directors & Senior Management Team Mr. Punit Saxena, Independent Director Management Team • He holds a Bachelor of Science degree , an MBA degree from University of Rajasthan, Master of Valuation (Real Estate) degree. • He was previously associated with UTI Infrastructure, Technology and Se
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility Our CSR Policy is aimed at demonstrating care for the community and our commitment to create social value. Our Company has undertaken various active CSR initiatives to contribute to the community where we have operations. We believe in empowerment through employment -
Slide 27: Top Awards and Accolades
Top Awards and Accolades 2022-23, 2021-22, 2020-21 2020-21 2019-20 2018-19 2017-18 2016-17 Award for Top Exporter to the Award for Top Exporter to the Award for Top Exporter to the Export Award to the Company from Award for Second Best Exporter to the Award for No. 1 Exporter to the Flair Company fr
Slide 28: Performance in Charts
Performance in Charts ₹ in Crs Revenues EBITDA & EBITDA % PAT & PAT % 7.7% 16.9% 19.5% 19.5% 0.3% 9.7% 12.4% 12.1% +49% 942.7 978.7 +103% +429% 183.5 191.2 577.5 117.0 118.5 97.9 298.0 55.9 23.0 0.8 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 RoCE (%)^ RoE (%)# *Debt to Equity (x) 30
Slide 29: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (₹ in crs) FY24 FY23 FY22 FY21 Revenue from Operations 978.7 942.7 577.5 298.0 Cost of Materials Consumed 485.7 508.8 308.2 166.4 Gross Profit 493.0 433.9 269.3 131.6 GP % 50.4% 46.0% 46.6% 44.2% Employee Benefits Expense 145.8 117.3 88.3 5
Slide 30: Consolidated Balance Sheet - FY24
Consolidated Balance Sheet - FY24 EQUITY & LIABILITIES (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 Total Equity 898.7 435.2 318.0 261.6 Non-Current Assets Non-Current Liabilities (a) Property, plant and equipment 301.1 240.1 190.1 176.4 (b) Capital Work-in-Pr
Slide 31: Consolidated Cash Flow Statement - FY24
Consolidated Cash Flow Statement - FY24 PARTICULARS (₹ in Crs) Mar-24 Mar-23 Mar-22 Mar-21 Cash Generated from Operations 124.9 141.3 45.2 67.6 Less: Direct Taxes paid (47.2) (43.4) (10.8) (0.2) Net Cash from Operating Activities 77.6 97.9 34.4 67.3 Cash Flow from Investing Activities (285.2) (73.6)
Slide 32: Thank You
COMPANY : Flair Writing Industries Limited CIN : L51100MH2016PLC284727 Mr. Alpesh Porwal (Chief Financial Officer) Email: alpesh@flairpens.com www.flairpens.com INVESTOR RELATIONS ADVISORS : Thank You Orient Capital (a division of MUFG Pension & Market Services) Mr. Irfan Raeen Mr. Devansh Dedhia +9
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