Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q3 FY18 Earnings Presentation
24 slides from Globus Spirits's earnings presentation, Feb 14, 2018
Slide 1: Q3 & 9M FY18 Earnings Presentation
GL O B U S S P IRI T S L IM I T E D Q3 & 9M FY18 Earnings Presentation 14 F e b r u a r y 2 0 1 8
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Globus Spirits’ future business developments and economic performance. W
Slide 3: Company Highlights
COMPANY HIGHLIGHTS 360° ALCOBEV PLAYER – Present across Distillery, IMIL, IMFL and Franchise Bottling LARGEST GRAIN BASED DISTILLERS IN INDIA with capacity of ~150 million bulk liters MANUFACTURING EXCELLENCE – State of the art manufacturing facilities with ‘zero discharge’ and ‘integrated evaporati
Slide 4: Agenda
AGENDA Q3 FY18 Performance Key Developments 5 Performance Highlights 7 Financials 8 Financial Performance 12 Annexure Company Overview 18 Shareholding Pattern 24 4
Slide 5: Q3 FY18 – Key Developments
Q3 FY18 – KEY DEVELOPMENTS • Launch of Laffaire brandy by Unibev, company’s wholly owned subsidiary in premium segment – Unibev, a wholly owned subsidiary, set-up to build a portfolio of premium brands in IMFL – Launched Laffaire premium brandy in Pondicherry in December 2017 – Appreciation from cus
Slide 6: Q3 FY18 – Key Developments (Bihar Distillery)
Q3 FY18 – KEY DEVELOPMENTS • Update on Bihar Distillery – Based on the decision of the High Court vide its order dated May 03, 2017, the Company has applied for renewal of license with Registration, Excise and Prohibition Department, Government of Bihar, Patna on May 05, 2017. The said application i
Slide 7: Q3 FY18 – Performance Highlights
Q3 FY18 – PERFORMANCE HIGHLIGHTS • Delivered healthy topline performance – growth of over 42% during the quarter driven by higher sales from the West Bengal facility – Gross Revenues (including other income) stood at Rs. 4,551.8 mn in Q3 FY18, higher by 42% Y-o-Y – Total Income (net of excise duty)
Slide 8: Q3 FY18: Profit & Loss Statement
Q3 FY18: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs MN) Q3 FY18 Q3 FY17 YoY (%) 9M FY18 9M FY17 YoY (%) Gross Revenues 4,544.4 3,188.1 43% 12,069.2 8,275.7 46% Less- Excise duty 1,961.4 1,025.8 91% 4,672.4 2,614.5 79% Net Revenues from Operations 2,583.0 2,162.2 19% 7,396.8 5,661.2 31% Ot
Slide 9: Q3 FY18: Key Ratios
Q3 FY18: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q3 FY18 Q3 FY17 Q2 FY18 9MFY18 9MFY17 EBITDA 7% 8% 9% 8% 9% PAT 0% 2% 1% 1% 2% Total Expenditure 93% 92% 91% 92% 91% Raw material 58% 60% 56% 59% 60% EmployeeCost 2% 2% 3% 2% 2% OtherExpenditure 33% 30% 33% 31% 29% Interest 3% 2% 3% 3
Slide 10: Q3 FY18: Balance Sheet
Q3 FY18: BALANCE SHEET Particulars (In Rs MN) 31st Dec 2017 31st Mar 2017 Particulars (In Rs MN) 31st Dec 2017 31st Mar 2017 Liabilities Assets Shareholders’ Fund 3,804.3 3,748.4 Net fixed assets 6,154.4 6,320.8 Non-Current Liabilities 1,855.3 2,021.2 Non-current investment 49.5 49.5 Long term borro
Slide 11: Q3 FY18 YoY – Performance Overview
Q3 FY18 YoY – PERFORMANCE OVERVIEW • Total Income (net of excise duty) stood at Q3 FY18 Q3 FY17 Rs. 2,590 mn in Q3 FY18, higher by 19% driven by bulk alcohol – Bulk alcohol volumes increased by 47% as a result of robust contribution from the new West Bengal facility Rs. 2,590 mn 19% Rs. 2,176 mn – I
Slide 12: Q3 FY18 YoY – Adjusted Financials
Q3 FY18 YOY – ADJUSTED FINANCIALS Particulars Q3 FY18 Q3 FY17 Growth (%) Net Revenue 2,590 2,176 19.04% Revenue of bottling customers in Rajasthan & West Bengal 335 268 25.03% Adjusted Revenue 2,255 1,908 18.20% EBITDA 177 177 -0.28% EBITDA Margin 6.82% 8.14% -132 bps Adjusted EBITDA 177 177 70.20%
Slide 13: Segmental Performance
SEGMENTAL PERFORMANCE Breakup of Revenue from Operations (Net) Bulk Alcohol, 33% IMFL, 0% • Revenues from manufacturing business stood at Rs. 1,559.4 mn in Q3 FY18, higher by 26% Y-o-Y Q3 Franchisee – This was driven due to healthy growth of 45% in Bulk Alcohol revenues FY18 IMFL 19% IMIL, 40% – Sha
Slide 14: IMIL – Strong Growth in Rajasthan
IMIL – STRONG GROWTH IN RAJASTHAN Rajasthan IMIL Haryana IMIL Delhi IMIL West Bengal IMIL – 2.47 Q3 FY18 2.09 0.80 0.16 0.11 0.57 Revenues 39.5 690 807 230 145 46 32 Volumes 0.12 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 Q3 FY17 Q3 FY18 • Aggregate IMIL revenues stood at Rs. 1,023.6 mn, up by 6% Y-o-Y Q3 FY18
Slide 15: Manufacturing: Backbone to Consumer Business
MANUFACTURING: BACKBONE TO CONSUMER BUSINESS Production & Capacity Utilization • Capacity utilization stood at 100% in Q3 FY18 20.0 104% 100% 150% – This includes production commenced at the new West Bengal 100% 10.0 facility 23 31 50% 0.0 0% Q3 FY17 Q3 FY18 • Bulk Alcohol revenues increased by 45%
Slide 16: Agenda
AGENDA Q3 FY18 Performance Key Developments 5 Performance Highlights 7 Financials 8 Financial Performance 12 Annexure Company Overview 18 Shareholding Pattern 24 16
Slide 17: Globus 360º Alcobev Player
GLOBUS 360º ALCOBEV PLAYER • No. 1 private player in Rajasthan IMIL with 32% market share – 2.47 mn cases sold in Q3 FY18, up 18% YoY • No. 2 private player in Haryana with 11% market share – 0.56 mn cases in sold in Q3 FY18, down 30% YoY • Commenced commercial production at the Greenfield Distiller
Slide 18: Leveraging a Strong 360º Business Model
LEVERAGING A STRONG 360º BUSINESS MODEL Large, efficient manufacturing operations • Amongst the largest and most efficient grain- based distillery operations in India with ~150 million bulk litres of distillery capacity • Present in DDGS – a high-potential co-product used as Animal Feed 360 o • Well
Slide 19: Globus Plans
GLOBUS PLANS PRESENT FUTURE • Established 360⁰ model in North • Large market share in IMIL by India (Haryana & Rajasthan) offering quality products to the • Largest grain based distilleries in consumer India • Establish sustainable premium • Strong IMIL brands that have brands in IMFL acceptance and
Slide 20: Expansion into East – Bihar & West Bengal
EXPANSION INTO EAST – BIHAR & WEST BENGAL • Locational advantages like lower raw material costs, higher realizations and other logistical benefits to drive Existing facilities at overall profitability Haryana & Rajasthan Severe Alcohol Deficit in West Bengal (mn ltrs) Commissioned Greenfield 98 faci
Slide 21: IMIL Brands Showcase
IMIL BRANDS SHOWCASE Nimboo Ghoomar 1st IMIL brand in India positioned Tribute to Rajasthani folk as awesome mix of natural lemon dance ; blend popular in the flavor with strong yet smooth harsh winter months of the blend profile desert region Heer Ranjha Narangi Tribute to the most popular Popular
Slide 22: Unique Competitive Strengths
UNIQUE COMPETITIVE STRENGTHS 360° Business Model Efficient Operations • Only company present across full alcobev value chain • State-of-the-art plants across three locations using latest distillation technology, zero • Helps capture IMFL growth via franchisee discharge and highest grain- recovery in
Slide 23: Shareholding Pattern
SHAREHOLDING PATTERN Corporate Bodies, Individuals & Others 27% Promoter Group 55% FII 18% As on December 31, 2017 Outstanding shares – 28.8 mn Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% 23
Slide 24: About Us
ABOUT US Established in 1992, Globus Sprits Limited (BSE code: 533104, NSE Id: GLOBUSSPR, ISIN Id:INE615I01010) is engaged in manufacturing, marketing and sale of Indian Made Indian Liquor(IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and contract bottling for established IMFL brands. The C