DFM Foods — Q4 FY2022 Earnings Presentation
16 slides from DFM Foods's earnings presentation, May 25, 2022
Slide 1: Cover letter to stock exchanges: Quarterly update
DEM Corporate Office: 1401-1411, 14" Floor, Logix City Center, Sector-32, Noida-201301 (U.P.) Tel.: 0120- 6013232 25" May, 2022 BSELimited National Stock Exchange of India Ltd. (NSE) Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai — 400 001 Mum
Slide 2: DFM Foods Quarterly Update – Q4FY22
DFM Foods Quarterly Update – Q4FY22 25th May 2022
Slide 3: DFM: At a Glance
DFM: At a Glance Large Market with Strong Leading Brand in Extruded Best in Class Reach Growth Snacks #1 in Weighted Reach Pan India INR ~60 B1 #1 for Extruded Snacks2 ~25% CAGR in Extruded Snacks2 1.4M Retailers2 Negative Working Capital Professional Management Attractive Material Margin Cycle Team
Slide 4: Product Portfolio Evolution
Product Portfolio Evolution Launched in 1984 Launched in 2017 Launched in 2018 Launched in 2019 Rings Natkhat Curls Cheese Balls Fritts Pasta Crunch ‒ Extruded ‒ Extruded ‒ Extruded ‒ Extruded ‒ Extruded ‒ Pellets ‒ Corn-based rings; loop ‒ Crunchy wheat ‒ Corn-based soft ‒ Light and crispy ‒ Light
Slide 5: New Launches – Last 12 months
New Launches – Last 12 months New Segment New Festive Pack Potato Chips : Launched in Uttar Pradesh, Haryana, and Uttarakhand Festive Gift Packs : Launched at price points of Rs. 65, 100, and 200 New Price Points Rs. 10 Rs. 25 4
Slide 6: Management Team
Management Team Lagan Shastri, Managing Director & CEO Nikhil Mathur, CFO • Ex-ED Operations, Hindustan Coca Cola Beverages • Ex-Sales Controller, Nokia; stints at Microsoft & Asian • 24 years of experience in FMCG Industry Paints • MBA, IIM Bangalore • 29 years of experience in Finance, Strategy an
Slide 7: Board of Directors
Board of Directors Hemant Nerurkar, Independent Non-Executive Director, Anil Chanana, Independent Non-Executive Director Chairman of the Board Chairman of the Audit Committee • Ex-MD, Tata Steel India • Ex-CFO, HCL Technologies • 35+ years of experience in Steel Industry • 30+ years of experience in
Slide 8: Strategic Roadmap
Strategic Roadmap Stakeholder Value Creation Brand Portfolio Go To Market Operational Technology People Excellence Excellence Excellence Excellence Excellence Excellence Integrity, Transparency, Empathy Personal Leadership & Courage Execution Excellence 7
Slide 9: Q4'22: Key Highlights
Q4’22: Key Highlights 1 6.8% YoY revenue growth, while recovering from Covid wave 3; over 200 bps YoY share gain in the extruded category in our focus geographies 2 Material margin (excluding portfolio expansion) at 39.1%, up 100 bps sequentially, despite sustained commodity inflation 3 Invested 18.
Slide 10: Commentary for the quarter
Commentary for the quarter DFM grew 6.8% YoY, while the extruded snacks market grew 3.0% over the same period. Over 200 bps of YoY extruded share gain in focus geographies supported by significant investments in brand building, Go-to-Market initiatives, talent augmentation and technology investments
Slide 11: Financial Update – Quarterly P&L
Q4’22: Financial Update – Quarterly P&L Abridged Quarterly Financials Key Highlights INR M Mar-21 Mar-22 YoY Gr. Dec-21 • With our sales and marketing efforts, Net Net Sales 1,324.8 1,415.5 6.8% 1,553.3 Sales grew 6.8% YoY. Net sales impacted by Less: COGS 780.9 893.0 14.4% 988.4 3rd wave of Covid M
Slide 12: Financial Update – Annual P&L
Q4’22: Financial Update – Annual P&L Abridged Quarterly Financials Key Highlights INR M FY21 FY22 YoY Gr. FY21 • Despite 2nd and 3rd wave of Covid and ensuing Net Sales 5,240.6 5,544.5 5.8% 5,240.6 lockdowns substantially impacting the category Less: COGS 3,118.8 3,489.0 11.9% 3,118.8 and the compan
Slide 13: Financial Update – Balance Sheet
Q4’22: Financial Update – Balance Sheet Balance Sheet Key Highlights BS Summary INR M Mar-21 Dec-21 Mar-22 • Negative working capital* continues Bank balances and investments 1,090 1,072 890 Inventory 265 337 325 • Company’s cash position continues to Receivables 40 25 65 remain healthy Other curren
Slide 14: Financial Update – Cash Flow
Q4’22: Financial Update – Cash Flow Cash Flow Key Highlights QUARTER YTD • Company’s cash position continues to INR M Mar-21 Mar-22 Mar-21 Mar-22 remain healthy Reported EBITDA 65 (156) 556 (171) Change in WC (55) (66) (107) 160 • Capex of INR 35M in Q4FY22 for investment Income tax paid (12) (3) (1
Slide 15: Financial Update – Key Ratios
Q4’22: Financial Update – Key Ratios Material Margin1 Adjusted EBITDA Margin2 Adjusted PAT Margin3 70.0% 25.0% 12.0% 60.0% 7.0% 50.0% 41.1% 15.0% 36.4% 36.9% 2.0% 40.0% 5.9% 2.0% 30.0% 5.0% -0.5% -3.0% Mar-21 Dec-21 Mar-22 20.0% -5.0% Mar-21 Dec-21 Mar-22 -2.4% 10.0% -8.0% 0.0% -15.0% -9.9% -13.0% -
Slide 16: Thank you
Thank you 15