Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q1 FY2022 Earnings Presentation
28 slides from Globus Spirits's earnings presentation, August 2021
Slide 1: Result Presentation | August 2021
Result Presentation | August 2021 Bulk Alcohol | Value Segment | Franchise Bottling | Premium Segment
Slide 2: Table of Content
TABLE OF CONTENT Q1FY22 Performance Performance Highlights 3 Segmental Performance 5 Financial Highlights 8 Annexure Company Overview 10 Financials 20 Shareholding Pattern 26 2
Slide 3: Q1FY22 Performance Highlights
Q1FY22 Q4 FY21| Performance | PerformanceHighlights Highlights Almost full quarter of operations despite second wave of COVID-19 in Q1FY22 Consolidated Q1FY22 (QoQ %) Q4FY21 Gross revenue growth backed by increase in share of RML in the Consumer Business segment with revenue of Gross Rs.1,555 Mn and
Slide 4: Business Updates
Q4 FY21 Key | Performance Business Updates Highlights Consumer Business: Expansion Update: ▪ The share of Consumer Business grew to 42% in Q1FY22 from ~35% in Q1FY21, on the back of both volume and value growth ▪ West Bengal: Expansion work of additional 140 KLPD is nearing completion; Likely to be
Slide 5: Consumer Segment - Value Added, High Margin
Consumer Segment- Value Added, High Margin Impact of second wave of COVID-19 in Q1FY22 Value Segment & Premium Segment – Revenue Trend during the past 1 year (Rs. Mn ) Loss of revenue in Q1FY22 – Rs.~27 Mn 16.26 9.6 14.48 17.19 9.25 1,565 1,545 1,374 1,390 807 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Valu
Slide 6: Manufacturing Business – Strong Backbone
Manufacturing Business – Strong Backbone Strong pick-up post lockdown; facilities ramped up to reach high utilisation levels Bulk Alcohol – Revenue trend during the past 1 year (Rs. Mn ) 1,497 1,539 1,541 1,355 1,107 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Despite 2nd wave of Covid-19, the Capacity Utili
Slide 7: Net Revenue Mix – Segment-wise
Net Revenue Mix – Segment-wise Moving towards a more favourable mix with higher share of Consumer Business Quarterly Revenue Mix Yearly Revenue Mix 42.0% 42.2% 44.3% 35.7% 35.5% 58.0% 64.3% 57.8% 64.5% 55.7% Q1FY21 Q4FY21 Q1FY22 FY20 FY21 Manufacturing Segment Consumer Segment • Share of Consumer bu
Slide 8: Profit & Loss Highlights | Q1FY22
Profit & Loss Highlights | Q1FY22 Consolidated financials Particulars (Rs Mn) Q1 FY22 Q1 FY21 YoY (%) Q4 FY21 QoQ (%) FY21 Gross Revenues 5,506.2 2,919.8 88.6% 4,909.1 12.2% 16,721.3 Less- Excise duty 1,801.0 618.9 191.0% 1,342.3 34.2% 4,413.6 Net Revenues from Operations 3,705.2 2,300.9 61.0% 3,566
Slide 9: Key Ratios | Q1FY22
Key Ratios | Q1FY22 Consolidated financials Key Ratios (% of Total Income) Q1 FY22 Q1 FY21 Q4 FY21 FY21 EBITDA Margin 26.7% 17.4% 24.9% 21.1% PAT 15.0% 8.1% 14.1% 11.4% Total Expenditure 73.3% 82.6% 75.1% 78.9% Raw material 49.5% 60.5% 48.7% 52.8% Employee Cost 3.9% 3.9% 2.5% 3.1% Other Expenditure
Slide 10: Company Overview
Company Overview
Slide 11: Presence Across the Value Chain
Presence Across the Value Chain Well integrated operations aid in ensuring quality and cost control Consumer Business - Owned Brands Premium Value Segment Segment (Country Liquor) (UNIBEV) Globus Spirits Limited Key Raw Material (Broken Rice) Distillation Premium Segment (Franchisee Botting) ENA & E
Slide 12: Business Segments
Business Segments Largely divided into Manufacturing and Consumer segments Manufacturing Business (~57% of Revenue) Consumer Business (~43% of Revenue) Strong Backbone… High Value… Bulk Spirits Franchisee Bottling By Products Value Segment Premium Segment • Recently, commenced Production of Sanitize
Slide 13: Manufacturing Business
Manufacturing Business
Slide 14: 1. Bulk Alcohol
1. Bulk Alcohol Backbone of the 360obusiness model; Generating robust cashflows • Globus is the largest grain based Extra Neutral Alcohol (ENA) manufacturer in India with a capacity of 160 Mn Litres • Reputed IMFL players are major customers for Bulk Alcohol • Presence in Rajasthan, Haryana, Bihar a
Slide 15: 2. Franchisee Bottling
2. Franchisee Bottling Strong relationships with pedigreed players ensures steady offtake Bottling volume (Mn cases) 20 year old relationships with ABD and USL / Diageo 5.0 4.5 63.6 80.00 4.0 46.0 50.0 60.00 3.5 3.0 40.7 43.5 40.00 Proxy play on growth in IMFL industry 2.5 2.0 20.00 1.5 3.3 3.4 4.5
Slide 16: 3. By-Products
3. By-Products Process efficiencies lead to zero discharge and incremental revenues ❑ Animal Feed Supplements (AFS) By-products (% of Total Operating Income) o Major by-product from distillation process is Animal Feed Supplements with Solubles & AFS o Used as food for the animal feed industry o High
Slide 17: Consumer Business
Consumer Business
Slide 18: Value Segment – GSL is One of the Largest IMIL Players
Value Segment – GSL is One of the Largest IMIL Players Product innovation and focus on brand building has enabled growth Existing Product Portfolio Focus on Innovation through Investment in R&D Nimboo Ghoomar Heer Ranjha Narangi Value Segment Sale Volumes (Mn Cases) 500.00 429 427 382 377 14.00 450.
Slide 19: Premium Segment – UNIBEV - Unique Value Proposition
Premium Segment – UNIBEV - Unique Value Proposition Asset-light | Focus on niche segments | Building blocks for a high margin brand play Unibev has come out with disruptive & exclusive USP with value proposition Crafted a range of premium and super premium whiskies blended with Upto12, 18 years old
Slide 20: Financials
Financials
Slide 21: Annual Profit & Loss Statement
Annual | Profit & Loss Statement Consolidated Financials Particulars (INR Mn) FY18 FY19 FY20 FY21 Gross Revenues 9,323.8 10,807.0 12,674.3 16,721.3 Less- Excise duty 771.4 947.9 986.1 4,413.6 Net Revenues from Operations 8,552.4 9,859.1 11,688.2 12,307.7 Other Income 53.2 70.9 37.4 65.6 Total Income
Slide 22: Annual Key Ratios
Annual | Key Ratios Consolidated Financials Key Ratios (% of Total Income) FY18 FY19 FY20 FY21 EBITDA 8.5% 9.6% 11.0% 21.1% PAT 0.7% 2.4% 4.2% 11.4% Total Expenditure 91.5% 90.4% 89.0% 78.9% Raw material 60.1% 60.3% 61.2% 52.8% Employee Cost 2.7% 2.8% 2.9% 3.1% Other Expenditure 28.7% 27.3% 24.9% 23
Slide 23: Annual Balance Sheet
Annual | Balance Sheet Consolidated Financials Liabilities (INR Mn) FY19 FY20 FY21 Assets (INR Mn) FY19 FY20 FY21 Networth 3978.8 4,473.0 5,853.2 Fixed assets (incl. CWIP) 5854.2 5,978.5 6,268.5 Minority Interest -7.2 -9.0 -9.2 Intangible assets under 6.1 6.1 - development LT borrowings 1695.4 1,328
Slide 24: Enhanced Net Cash Flow from Operations
Enhanced Net Cash Flow from Operations The business mix and focus on costs have led to strong operating cash flow generation Consolidated Net Cash Flow from Operations (Rs Mn)… …Driven by the Following Key Factors 1,484 1,354 ▪ Growth in business and improved profitability ▪ Lower Finance costs due
Slide 25: Key Financial Ratios
Key Financial Ratios Consistent focus on reducing debt from business cashflow; improving return ratios Gross Debt (Rs Mn) Net Debt/Equity (x) 2,515 2,299 0.67 1,777 1,760 0.57 0.35 0.20 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Finance Cost (Rs Mn) and Avg. Cost of Debt (%) Return Ratios (%) 10.5% 10.
Slide 26: Shareholding Pattern
Shareholding Pattern Total outstanding equity shares as on June 30, 2021, stands at 28.8 Mn shares Corporate Bodies, Individuals & Others 42% Promoter Group 56% Foreign Nationals 2% Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 2.08% 26
Slide 27: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Globus Spirits Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not f
Slide 28: Let's Connect
Let’s Connect Mr. Bhaskar Roy Ms. Pooja Sharma / Ms. Sheetal Keswani Globus Spirits Limited Stellar IR Advisors Phone: +91 11 6642 4600 Phone: +91 22 62398024 Email: broy@globusgroup.in Email: pooja.sharma@stellar-ir.com / sheetal@stellar-ir.com