Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q2 FY25 Earnings Presentation
42 slides from Adf Foods's earnings presentation, Oct 28, 2024
Slide 1: Cover letter to stock exchanges
28th October, 2024 AtJr F O ODS LT D. 'Jeedi_,Uf dw wodd.. National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Department of Corporate Services, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers , Bandra (East), Dalal Street, Mumbai - 400 051. Mumbai - 400 001. Symbol: ADFFOODS Scri
Slide 2: Investor Presentation Q2 FY25
ABf FOODS LTD. ADF Foods Ltd 9eedin<p t/w, w.0-dd.. Investor Presentation Q2 FY25 October 2024 1
Slide 3: Safe Harbor
Safe Harbor ~ I FOODS LTD. Ml119 th,wodd. . This presentation and th,e accompanying slid,es (the "Pres,entatwon"), which have be,en preparied by ADF FOODS LTD (tihe "Company'),. have been prepared solely £or information purposes and do not constitute any offer~recommendation or invitation to purchas
Slide 4: Contents
~I'- Contents o T ~ TASTE THE REAL INDIA ,-8 CJe<'dimJ I w waiU .. 01 Company Overview 02 Q2 FY25 Performance ----=--~ ~ '-"'-"-' HO 03 Business Overview ~ '-"'-"-' ~ Environmental, Social and 04 Governance (ESG) 05 Industry trends & ADF Growth ADF S®)UL March 2023 06 Annual Performance Highlights 3
Slide 5: Company Overview
FOODS LTD. Ml119 th,wodd. . Company Overview 4
Slide 6: ADF Snapshot
IADF Snapshot ~ - - - - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. t..Jl119th,wodd. . ADF - At a Glance 2 1932 Leading Global 400+ Product Manufacturing 5 Strong manufacturer Network SKUs Facilities Brands A leading Impressive footprint Distinctive, high-recall Wide range 9-decade Vintage Annua
Slide 7: Unlocking Growth
IUnlocking Growth ~ - - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. t..Jl119th,wodd. . A Global Culinary Cutting-edge Manufacturing Diversified Product & Sustainable Performance & Powerhouse & Wide-reaching Brand Portfolio Key Growth Initiatives Distribution Network 29%+ Ashoka 400+ Product Manu
Slide 8: Investment Rationale
Investment Rationale FOODS LTD. Ml119 th,wodd. . ❑ Leveraging extensive experience, deep domain knowledge & multi- Vintage generational understanding along with seasoned food industry Leadership & professionals. Value Creation ❑ Stability ensured by a debt-free balance sheet and return ratios. ADF i
Slide 9: Q2 FY25 Performance
FOODS LTD. Ml119 th,wodd. . Q2 FY25 Performance 8
Slide 10: Q2 & H1 FY25 Business Update (Standalone)
IQ2 & H1 FY25 Business Update (Standalone) ~ - - - - - - - - - - - - - - - - - Q2 FY25 Delivers stellar Performance ~ ~ OS LTD. t..Jl119th,wodd. . INR 125.6 Crores INR 27.7 Crores INR 21.4 Crores Q2 Revenue from Operations EBITDA PAT FY25 29.1% YoY 22.3% YoY 20.6% YoY Revenue from operations at IN
Slide 11: Q2 FY25 Financial Performance
Q2 FY25 Financial Performance Standalone Performance Revenue from Operations (Rs. Cr.) EBITDA (Rs. Cr.) & EBITDA Margin (%) PAT (Rs. Cr.) & PAT Margin (%) 23.3% 23.4% 22.0% 18.2% 17.7% 17.0% 125.6 27.7 21.4 97.3 97.0 22.7 22.8 17.7 17.1 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25
Slide 12: H1 FY25 Financial Performance
H1 FY25 Financial Performance Standalone Performance Revenue from Operations (Rs. Cr.) EBITDA (Rs. Cr.) & EBITDA Margin (%) PAT (Rs. Cr.) & PAT Margin (%) 14.7% 24.1% 22.7% 13.2% 18.7% 17.3% 222.7 181.9 50.5 38.5 34.1 155.3 43.8 20.5 22.8 H1 FY23 H1 FY24 H1 FY25 H1 FY23 H1 FY24 H1 FY25 H1 FY23 H1 FY
Slide 13: Segment Performance
Segment Performance I Processed Foods Distribution Revenue from Operations (Rs. Cr.) Revenue from Operations (Rs. Cr.) 130.2 31.2 106.5 103.3 18.2 18.4 Q2 FY24 Q1 FY25 Q2 FY25 Q2 FY24 Q1 FY25 Q2 FY25 ----------------------------------------------------------------------------.-----------------------
Slide 14: Business Overview
FOODS LTD. Ml119 th,wodd. . Business Overview 13
Slide 15: Business Divisions
Business Divisions I Business comprises core manufacturing i.e., processed foods business and agency distribution business. FOODS LTD. Ml119 th,wodd. . 2 Core Revenue Segments (Divisions) 1. Processed Foods 2. Distribution One of the largest Indian exporters of processed foods Strong presence in US
Slide 16: Geographical Presence
Geographical Presence I Impressive footprint spanning North America, Europe, Australia, Middle East, & Asia Pacific. • 2 Manufacturing locations NADIAD, NASIK .& .& 55+ I I Global I Countries I I I I I I I I Global I I I I Distribution presence I I I I network I - -1- - - ______ ,. I I I I I I I I I
Slide 17: Ashoka: ADF Foods' Flagship Brand
Ashoka: ADF Foods' Flagship Brand I The Taste of Home for South Asian Diaspora I ~I Reinforcing Indian Heritage and Pioneering Growth Born in 1988, Ashoka quickly gained momentum as ADF Foods' flagship brand catering 1.~ WWW I to Indian palates globally. Ashoka Brand Sales (Rs. Cr.) Global Presenc
Slide 18: Ashoka: Bringing Authentic Indian Taste Abroad
Ashoka: Bringing Authentic Indian Taste Abroad ~ I A Journey through India's Culinary Landscape FOODS LTD. Ml119 th,wodd. . JL4C . . . . Chatpata Aloo K.9thi Roll -····:k·· ·······-··················· ..........i ~ -- 1f'Pfll ,: ~~ tlO/f. 1 ALOO INACH PARATHA 4 KORA ~ 2139 (10021 17
Slide 19: Ashoka: Marketing Initiatives
Ashoka: Marketing Initiatives Product sampling of flagship brand Ashoka 18
Slide 20: Ashoka: Marketing Initiatives
Ashoka: Marketing Initiatives ~ I Sponsorship in Key shows KBC and other YouTube & News Channel L Band Social Media presence FOODS LTD. Ml119 th,wodd. . shows on Sony TV. D - a I < ---- -- ,..--~ I ___ ....,. - -..... i. I m:J - ..... - -, 1 """--- Sponsorship on Live Telecast of Major League Cricke
Slide 21: ADF Soul: Delicious, better-for-you packaged food products
ADF Soul: Delicious, “better-for-you” packaged food products ~ I m'Fi"Fi' FOODS LTD. Ml119 th,wodd. . Target Audience: om Pi fFlFEB SKUs: Urban audience, residing in metropolitan cities, aged 30-55 years Offering a total of 22 SKUs including wide range of pickles (in Olive Oil Health conscious
Slide 22: ADF Soul: Building the foundation towards growth
ADF Soul: Building the foundation towards growth ~ I FOODS LTD. t..Jl119 th,wodd. . ADF Initial Success-Driven Premium Investment Products Significant traction from initial Rs. 5 Offering a premium range of crore investment prompted additional “better-for-you” products. infusion to capitalize on the
Slide 23: ADF Soul: Marketing Initiatives
ADF Soul: Marketing Initiatives ~ I Building customer base through digital Visibility on E-Commerce platforms for FOODS LTD. Ml119 th,wodd. . Online community building through marketing social media, using engaging content on-site conversions n < SOUL ADF SOYI Foods adfsoul 286 posts 22.4K fO,lowers
Slide 24: Truly Indian: Unlocking Global Markets With Authentic Indian Flavours
Truly Indian: Unlocking Global Markets With Authentic Indian Flavours ~ I Bridging Cultures with Authentic Indian Taste FOODS LTD. t..Jl119 th,wodd.. Presence: Target Audience: Strong presence across Germany, now launched in USA Exclusively targeted at the global mainstream population, specifica
Slide 25: Truly Indian: Marketing Initiatives
Truly Indian: Marketing Initiatives FOODS LTD. Ml119 th,wodd. . Introduction of Truly Indian in Whole Foods & Increased shelf visibility 24
Slide 26: Camel & Aeroplane: Our Other Esteemed Brands
Camel & Aeroplane: Our Other Esteemed Brands ~ I F OO DS LTD. Ml119 th,wodd. . Delighting Arabic Consumers for over 5 decades For the Value seeking Middle East Consumers Premium brand targeted at Arabic diaspora Value for money brand targeted at Target Audience quality - conscious expat audiences
Slide 27: Product Portfolio
Product Portfolio ~ I Select Key Products FOODS LTD. Ml119 th,wodd. . Ready-to-eat & Ready- Frozen Products Food Accompaniments Spices & Others to-cook Frozen snacks, Baked snacks Ready to eat vegetables & curries Pickles Spices- madras curry powder, Frozen Parathas & samosas Ready to ea
Slide 28: Manufacturing Facilities
Manufacturing Facilities I FOODS LTD. Ml119 th,wodd. . Plant 1 Nadiad, Gujarat Plant 2 Nasik, Maharashtra Total Built up area - ~26,000 Sqm* Total Built up area – ~12,000 Sqm* Frozen foods (Samosas, vegetables, snacks, parathas, Totally automated spice processing unit by Buhler, etc.); Meal
Slide 29: Quality Control & Certifications
Quality Control & Certifications ~ I Quality control certifications and processes ensure high standards and excellence in our industry FOODS LTD. Ml119 th,wodd. . Sede~ ssat SMETA~• 0 UKAS PRODUCT Food Safety CERTIFICATION CERTIFICATED ODDS 28
Slide 30: Warehousing Facilities Available For Distribution Business
Warehousing Facilities Available For Distribution Business Warehousing and Distribution Facilities Atlanta, USA (34,000 sq.ft.) New Jersey, USA (66,000 sq.ft.) Cold storage facility in New Jersey, USA • Combined 100,000 sq. ft of area for warehousing and distributing operations shared among two ware
Slide 31: Distribution Business
Distribution Business I FOODS LTD. Ml119 th,wodd. . Distribution Business ➢ Alongside the processed food business, ADF has undertaken the agency distribution for a select FMCG company products whose ROCE is in line with own brands, broadening the overall portfolio ➢ Serving as a distribution partner
Slide 32: Environmental, Social & Governance (ESG)
FOODS LTD. Ml119 th,wodd. . Environmental, Social & Governance (ESG) 31
Slide 33: ESG Initiatives in FY24
ESG Initiatives in FY24 FOODS LTD. Responsible sourcing Technology for good Business with a heart We source the best ingredients and ensure the We utilize technology smartly to create products Taste and convenience are at the heart of what people who supply them get a fair price. that are good for y
Slide 34: Governed by experienced Board Of Directors
Governed by experienced Board Of Directors ~ I FOODS LTD. Ml119 th,wodd. . Bimal Thakkar Viren Merchant Jay Mehta Arjuun Guuha Chairman, Managing Director and CEO Non-Executive Director Whole Time Director Non-Executive Director ➢ 37+ years of experience in domestic and export ➢ 35+ years of rich in
Slide 35: Organisation Chart
Organisation Chart I CMD Sales and Manufacturing India Support Marketing operations Business Functions Senior Vice 9 President USA Business Country Managers Director Operations President CFO l GM – Business & Strategy Vice President Marketing Head Manufacturing CS, VP - Legal & HR VP Sales Head Intl
Slide 36: Industry trends & ADF Growth Aspirations
FOODS LTD. t..Jl119 th,wodd. . Industry trends & ADF Growth Aspirations 35
Slide 37: Culinary Horizons: Key Drivers Shaping the Ethnic Food Landscape
I Culinary Horizons: Key Drivers Shaping the Ethnic Food Landscape " - - - - - - - - - - - - - - - - - - - - - - - - - ~ FOODS LTD. Ml119th,wodd. . Ethnic Food Trends Demographic factors & Macro Economic Trends Surge in health-conscious ethnic options: plant-based, Rise in Immigration Increase in nu
Slide 38: ADF Foods – Our Aspirations
ADF Foods – Our Aspirations ~ I Aspirational Revenue growth potential (Rs. Cr.) . -------• Brownfield FOODS LTD. Ml119 th,wodd. . and debottlenecking initiatives to boost revenue potential at current capacities by Rs. 180 – 200 crores I I I r---------------- ~I ------- ♦ Upcoming Greenfield expansio
Slide 39: Annual Performance Highlights
FOODS LTD. Ml119 th,wodd. . Annual Performance Highlights 38
Slide 40: Consolidated 3-year Financial Highlights
IConsolidated 3-year Financial Highlights ~ - - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. t..Jl119th,wodd. . Particulars (INR crores unless stated) FY22 FY23 FY24 Profit & Loss Highlights Revenue from Operations 421.2 450.3 520.3 Gross Profit 211.5 235.9 276.2 Gross Profit (%) 50.2% 52.4% 53.1
Slide 41: Consistent Shareholder Returns
IConsistent Shareholder Returns ~ - - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. Ml119th,wodd. . Value creation for Consistent shareholder value creation through dividend payouts and buyback of shares shareholders Rs. ~125 Cr. returned to our shareholders since FY 19 43.9 30.0 13.2 8.8 11.0 6.6
Slide 42: ADF Foods Limited
f ADF Foods Limited Ernst & Young LLP CIN: L15400GJ1990PLC014265 Investor Relations Advisory Mr. Shardul Doshi, CFO Ravi Udeshi Sumedh Desai shardul@adf-foods.com ravi.udeshi@in.ey.com Sumedh.desai@in.ey.com I 41