Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q4 FY21 Earnings Presentation
35 slides from Prataap Snacks's earnings presentation, May 29, 2021
Slide 1: Corporate presentation cover letter to stock exchanges
II (l5rafaøP ) LU I ACKS Ref No.: PSL/202 1-22/CS/SE/I 5 Date: 291h May, 2021 To, To, Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5 1 Floor P.J. Towers, Plot No. C/I, G Block Dalai Street, Bandra Kuria Complex Mumbai - 400
Slide 2: Q4 & FY21 - Results Presentation
Q4 & FY21 - Results Presentation May 2021
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 4: Contents
Contents Q4 & FY21 Results 4 Company Overview 13 Industry Overview 26 3
Slide 5: Q4 & FY'21 Results
Q4 & FY’21 Results 4
Slide 6: Financial Overview
Financial Overview In Q4 FY21 (YoY basis) Revenue of Rs. 3,095.4 million, registering degrowth of 1.5% Operating EBITDA of Rs. 139.2 million, translating to a margin of 4.5% PAT stood at Rs. 71.3 million with margins at 2.3% EPS (Diluted) stood at Rs. 3.04 per share In FY21 (YoY basis) Rev
Slide 7: FY21 Highlights – Healthy recovery in H2
FY21 Highlights – Healthy recovery in H2 Capitalised on market recovery to deliver a healthy rebound in H2 Total Income PBT 11,710.9 110.7 76.7 6,486.6 5,224.3 34.0 H1 FY21 H2 FY21 FY21 H1 FY21 H2 FY21 FY21 EPS in INR PAT 141.6 6.0 116.8 5.0 1.1 24.8 H1 FY21 H2 FY21 FY21 H1 FY21 H2 FY21 FY21 PAT % 0
Slide 8: Operational Overview
Operational Overview Reported an encouraging performance in Q4FY21 o Q4 revenues recovers to last years base despite facing COVID19 challenges Avadh products in markets outside Gujarat have received positive response o Additionally, expanding into categories like Rusk to aid growth Company adop
Slide 9: Operational Overview
Operational Overview Continue to face high volatility in key raw materials such as palm oil which are adversely affecting margins o Partially mitigated this through continuous operational and manufacturing process re-engineering and cost optimization initiatives and owned and 3P facilities o Direc
Slide 10: Top – Line Growth Levers
Top – Line Growth Levers Unlocking of Improved Restrictions Distribution Reach Key sales points like railway stations, bus stations, Focusing on tele-calling and leveraging on startups to markets and highways witnessing subdued activity improve distribution and faster replenishments Re-opening
Slide 11: Measures To Enhance Profitability
Measures To Enhance Profitability Compressing of Distribution Structure PSL is implementing direct distribution from its various plants across regions This results in savings through lower trade margins and freight optimization Expanding 3P tie-ups PSL has set up 5 3P facilities in last 3 year
Slide 12: CSR Initiatives Undertaken in FY2021
CSR Initiatives Undertaken in FY2021 PSL focused on giving back to the society in these unprecedented times PSL delivered around 1,500 meals on a daily basis during lockdown o Organized free meals for front-line workers including Policemen, medical personnel and Government staff on duty o Distri
Slide 13: MD & CEO's Message
MD & CEO’s Message Commenting on Q4 & FY’21 performance, Mr. Amit Kumat - Managing Director & CEO, Prataap Snacks Limited said: “I am pleased to share that Q4 Revenues have recovered to last year’s base despite several challenges due to the pandemic. Our performance in FY21 has been impacted by two
Slide 14: Abridged P&L Statement
Abridged P&L Statement Y-o-Y Y-o-Y Particulars Q4 FY’21 Q4 FY’20 FY’21 FY’20 Change (%) Change (%) Income from Operations 3,095.4 3,141.7 -1% 11,710.9 13,937.9 -16% Raw Material Cost 2,287.4 2,306.2 -1% 8,430.9 9,947.1 -15% Gross Margins 808.0 835.5 -3% 3,280.0 3,990.8 -18% Gross Margins % 26.1% 26.
Slide 15: Financials – Q4 & FY'21 Performance
Financials – Q4 & FY’21 Performance INCOME FROM OPERATIONS Gross Margin (%) 13,937.9 26.6% 28.6% 26.1% 28.0% 11,710.9 3,141.7 3,095.4 Q4 FY20 Q4 FY21 FY20 FY21 Q4 FY20 Q4 FY21 FY20 FY21 ▪ Income from operations in Q4 FY’21 stood at Rs.3,141.7 mn, revenues recovers to last years base despite facing C
Slide 16: Financials – Q4 & FY'21 Performance
Financials – Q4 & FY’21 Performance EBITDA Margin (%) PAT Margin (%) 4.5% 6.7% 6.3% 3.4% 4.4% 936.8 197.6 469.2 139.2 5.4% 137.1 630.7 2.3% 1.2% 71.3 141.6 Q4 FY20 Q4 FY21 FY20 FY21 Q4 FY20 Q4 FY21 FY20 FY21 ▪ EBITDA for Q4 FY’21 stood at Rs. 139.2 mn, marginal improvement despite pressure in Gross
Slide 17: Financials – Q4 & FY'21 Performance
Financials – Q4 & FY’21 Performance Cash Profit Cash EPS 36.8 863.5 144.5 6.2 26.2 615.5 134.4 5.7 Q4 FY20 Q4 FY21 FY20 FY21 Q4 FY20 Q4 FY21 FY20 FY21 ▪ The Company follows a conservative accounting policy and is amortizing intangible assets of Avadh Snacks CONSOLIDATED FINANCIALS, IN RS. MILLION 16
Slide 18: Company Overview
Company Overview 17
Slide 19: Prataap Snacks at a Glance
Prataap Snacks at a Glance Over Approx SKUs Manufacturing packets sold 7 year revenue Facilities* per day CAGR Over Reach of over Retail In Rings Super Stockists Distributors Touchpoints 18 *[6 Inhouse plants and 8 contract manufacturing units (3P)]
Slide 20: Diverse Product Portfolio
Diverse Product Portfolio CUP CAKE, RINGS, KURVES & NAMKEEN & POTATO CHIPS CHULBULE NAMKEEN PELLET SNACKS TIFFIN CAKE & PUFF FRYUMS SANDWICH CAKE Potato based Rice grit & Corn grit Gram and Wheat based Cake Namkeen snack Corn grit based snack other lentils SKUs: 5 variations and Fryu
Slide 21: Avadh Snacks
Avadh Snacks Product Portfolio Fastest growing and fourth Namkeen Fryums largest snacks player in Gujarat ~6% market share in Gujarat, one of the largest market 25% revenue CAGR over the past 5 years Key Products: Bhavnagri Gathiya, Sada Key Products: Tomato Cup, Salted reffil, Mamra, Papdi Gathiya,
Slide 22: Avadh Snacks - Unique Business model & Expansion plans
Avadh Snacks - Unique Business model & Expansion plans Business Model Expansion plans Avadh has a Unique Business model •Super Value Player offering higher Increased capacity of value for Money to consumers. Rajkot facility by 50% in Q1FY21 Pan India Direct Distribution model expansion To expand Ava
Slide 23: Sweet Snacks Portfolio
Sweet Snacks Portfolio Center Filled Choco Vanilla Sandwich Cookie-Cake Yum Cake Tiffin Cake Cup Cake Cake Cake SKU's - 3 SKU's - 2 SKU's - 1 SKU's - 1 SKU's - 1 SKU's - 3 Target Target Target Target Target Target group - group - group - group - group - group - Youth and Youth and Youth
Slide 24: Track Record of Innovation
Track Record of Innovation Launched Launched Nachos, and Launched Launched Plain Cut Kurves Yum Cake, Cup Cake, Chips, Introduction Launched Cookie Rusk, Tiffin Cake of Seven Yum-Pie, a Cake and and Puchka Wonders variety of Choco Sandwich range of sweet snacks, Vanilla Cake Introduction under Rich
Slide 25: Key Milestones
Key Milestones Launched Plain Guwahati new plant Entered into 3P Cut Chips Sequoia’s initial Contract Doubled the commissioned investment of Rs. Manufacturing Rusk Installed capacity of Potato Prakash Snacks 620 mn in Karjat & Chulbule Chips plant at Conversion of incorporated. Prataap Snacks Introd
Slide 26: Pan India Presence
Pan India Presence Strategically located Manufacturing facilities to cater the regional demand No. of Facilities Products 1 Hissar 1 – Contract Facility Extruded Snacks, Pellets, Chulbule No. of Facilities Products Kashipur 1 - Contract Facility Chips, Namkeen, Pellet 10 1 5 Indore No. of Facilities
Slide 27: Guided by an Accomplished Board
Guided by an Accomplished Board Arvind Mehta Chairman & Executive Director Over 32 years of experience in real estate business along with over 17 years in the snacks Vineet Kumar Kapila food industry and in the financing business Independent Director Ex-COO (RPC North of United Spirits) & earlier Mr
Slide 28: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Arvind Mehta Over 32 years of experience in real estate business along with over 17 years in the Chairman & Executive snacks food industry and in the financing business Director Corporate functions Mr. Amit Kumat Managing Director and Chief Over 25 years
Slide 29: Helmed by a Professional Management Team
Helmed by a Professional Management Team He holds bachelor degree in Science (Economics). He has over 29 years of Mr. Subhashis Basu experience in the FMCG industry and worked with Parle, PepsiCo India and Mother Chief Operating Officer Dairy Corporate functions Mr. Subhash Bhatt He holds bachelor d
Slide 30: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Mahesh Purohit He holds bachelor degree in Commerce. He has over 24 years of experience in the General Manager Sales - FMCG industry and worked with Parke-Davis, BPL Synergy and Candico Corporate functions West Mr. D.V. Praveen Kumar He holds bachelor deg
Slide 31: Industry Overview
Industry Overview 30
Slide 32: Favourable Demographics Supporting Industry Growth
Favourable Demographics Supporting Industry Growth POPULATION TREND (BILLIONS) INDIA’S ANNUAL CONSUMER 1.411 EXPENDITURE (RS. TRILLION) 1.397 1.366 1.380 22 1.338 1.352 21 1.324 21 1.310 20 1.278 1.293 20 20 1.263 19 19 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 MAR-18 JUL-18 OCT-18 JAN-
Slide 33: Sweet Snacks Industry – Characteristics
Sweet Snacks Industry – Characteristics Organized Sweet Snacks (Cakes & pies): West is Rs.2,200-2,500 crore growing fast 20% now N Limited Highly under vegetarian penetrated options in category Cake 15% W Market E 50% Very few S Growing at national fast pace players 15% 32
Slide 34: About Prataap Snacks Ltd.
About Prataap Snacks Ltd. Prataap Snacks Ltd. (PSL) is a leading Indian Snack Foods Company. It offers multiple variants of products across categories of Potato Chips, Extruded Snacks, Namkeen (traditional Indian Sumit Sharma snacks) under the popular and vibrant Yellow Diamond brand. It has recentl
Slide 35: Thank You
Thank You 34