Heritage Foods Limited · NSE:HERITGFOOD
Heritage Foods — Investor Presentation (2016)
28 slides from Heritage Foods's investor presentation, 2016
Slide 1: Investor Presentation FY2016
Investor Presentation FY2016 1
Slide 2: Disclaimer
Disclaimer The release contains forward-looking statements, identified by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates ’ and so on. All statements that address expectations or projections about the future, but not limited to the Company’s strate
Slide 3: Vision
Vision Vision for Heritage Foods Limited Heritage Foods Ltd. has engaged KPMG and finalized its Vision and Mission statement-2020. The Board of Directors have approved on 30 January, 2015. Delighting Every Home with Fresh and Healthy Products And Empowering The Farmer © 2014 KPMG Advisory Services P
Slide 4: Mission
Mission Mission for Heritage Foods Limited To be a nationally recognized brand for healthy and fresh products with a revenue of INR 6000 Crore by 2020 We anticipate, understand and respond to our customers’ needs by creating high quality products and making them available through innovative and conv
Slide 5: Core Values
Core Values Core Values of Heritage Foods Values for S.U.C.C.E.S.S. S Speed and Agility U Uphold Integrity C Customer Delight Collaboration with Leadership C Excellence E Empowering Society & Employees S Supremacy Through Innovation S Sustainability 5
Slide 6: FY16 Highlights
FY16 Highlights Crossed Rs 1,700 crore mark in dairy vertical in FY16. Value Added Products, which enjoy 2X EBITDA margins as against Liquid Milk, notched 21% of Dairy revenue. Achieved EBITDA profit in Q4FY16 in Retail Business Vertical at Rs 3.91 crores. Crossed 100 store mark in Hyderabad,
Slide 7: Overview of Business Verticals
Overview of Business Verticals Heritage Foods Limited (“Heritage”) is a leading corporate based out of Hyderabad and operates in the high-growth Food and Retail business segments. Five reporting divisions - Dairy, Retail, Agri, Bakery and Renewable Energy. Dairy (Rs Mn) - FY16 Retail (Rs Mn) - F
Slide 8: Awards
Awards The Company’s Dairy Division has won four awards at the “The Great Indian Ice Cream Contest 2016 - Season 5” conducted by Indian Dairy Association and DuPont Nutrition & Health. Heritage Foods Limited’s two dairy packing stations won the Prestigious National Energy Conservation Awards in
Slide 9: Consolidated Financial Overview
Consolidated Financial Overview Net Sales (Rs. in Mn.) & Growth % 25000 23806 80.00 69.79% 20730 70.00 20000 17220 60.00 16018 13934 50.00 15000 10961 40.00 10000 34.78% 9004 7925 27.12% 30.00 5880 21.73% 20.38% 20.00 5000 14.96% 14.84% 13.62% 10.00 7.51% 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 FY
Slide 10: Dairy Business Vertical
Dairy Business Vertical Net Sales (Rs. in Mn.) & Growth % 20000 17688 45.00 42.76% 18000 40.00 15559 16000 35.00 12686 13282 14000 30.00 12000 10940 22.18% 8606 25.00 10000 25.03% 27.12% 17.14% 20.00 8000 6883 5927 15.96% 6000 4851 16.13% 15.00 13.69% 10.00 4000 2000 4.70% 5.00 0 0.00 FY2008 FY2009
Slide 11: Dairy : Liquid Milk
Dairy : Liquid Milk In 1993 - 20,000 liters per day was milk collection. In 2016 – 11.36 lakh liters per day is milk collection. Average procurement cost is at Rs. 30.90 per liter Average selling price is at Rs. 36.55 per liter. States Ave. Milk Procurement LPD Milk Sales LPD Ice Cream LPD C
Slide 12: Dairy : Branded/Value Added Products
Dairy : Branded/Value Added Products Forayed into value added products in 2007. Turnover (Rs. in Mn.) 4000.00 3716.00 3042.00 Turnover for FY14-Rs. 2280.10 mn, FY15-Rs. 3000.00 2280.10 3042.00 mn, FY16-Rs. 3716.00 mn. 2000.00 1000.00 0.00 FY14 FY15 FY16 Products portfolio: Curd (around 77%), r
Slide 13: Dairy : Winning Trust
Dairy : Winning Trust • Facilitating loans for the purchase of cattle through commercial banks; • Facilitating cattle insurance; • Conducting health camps for animals through mobile veterinary clinics at frequent intervals; • Supply of high quality cattle feed and fodder seeds; • Helping to source g
Slide 14: Parlours as Brand Outlets
Parlours as Brand Outlets • Heritage Parlor is a Modern “Kirana” incubated and pioneered by Heritage. • Currently there are 1455 parlors with an average shop area of 100 sq.ft. • Vision is to nurture entrepreneurship and to enhance inclusive growth opportunities-Owned and managed by franchisees. • S
Slide 15: Dairy : Moving up Value Chain
Dairy : Moving up Value Chain • Focus on own brand value added products - Curd Butter milk Frozen Dessert/Ice cream • Consolidation in existing markets. • Expansion to new markets - o Maharashtra ( Milk Procurement : 88,368 LPD; Milk Sales : 57,487 LPD ) o Haryana/Delhi ( Milk Sales : 13,941 L
Slide 16: Retail Business Vertical
Retail Business Vertical Net Sales (Rs. in Mn.) & Growth % 7000 100.00 92.44% 5829 90.00 6000 4940 80.00 5000 70.00 3779 60.00 4000 3266 2990 50.00 3000 2135 2390 40.00 2063 2000 25.10% 30.70% 30.00 1072 20.00 1000 18.00% 3.49% 11.94% 15.73% 10.00 9.22% 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 FY20
Slide 17: Retail : Highlights
Retail : Highlights • Same Store Growth (considering 68 comparable stores) stood at 1.01% in FY2016. • Number of Bills grew by 18% and Average Bill Value decreased by 2%. • Productivity de-grew in FY2016 from Rs 1160/sq ft to Rs 1158/sq ft by (0.19%). • Store gross margin increased by 5 bps to 21.29
Slide 18: Retail : Operational & Financial Metrics
Retail : Operational & Financial Metrics Particulars FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 No. of stores 75 75 75 73 67 74 92 110 Total carpet area('000 sqft) 159 158 166 217 212 256 338 390 Effective carpet area('000 sqft) 158 158 160 200 205 223 304 354 Avg stores sales (Rs/sq ft
Slide 19: Retail : Business Integration
Retail : Business Integration 19
Slide 20: Retail : Consolidation
Retail : Consolidation o Crossed 100 store mark Hyderabad(60), Chennai(34), and Bangalore(16) totalling 110 stores. o Total square feet size 3.89 lakh as on 31st March, 2016. o Likely to achieve PBT breakeven after crossing 5 lakh sq ft of trading space. o Expected to turn into profits from FY18 onw
Slide 21: Agri Business Vertical
Agri Business Vertical Net Sales (Rs. in Mn.) & Growth % 1200 80.00 70.01% 957 70.00 1000 840 60.00 800 678 50.00 600 37.90% 40.00 399 30.00 400 302 311 326 219 22.39% 23.83% 20.00 200 13.90% 2.98% 10.00 0 0.00% 0.00% 4.82% 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Capita
Slide 22: Agri : Highlights
Agri : Highlights • Pioneers in “Custom Farming”. Working closely with farmers and providing assistance regarding - Good Agricultural Practices Annual crop calendar Integrated Pest management Credit linkage Input supply Pre/post harvest management • Commercial sales of 25 MT/day. • Custo
Slide 23: Bakery Business Vertical
Bakery Business Vertical Net Sales (Rs. in Mn.) & Growth % 120 100.00% 100 81 80 59 60 60.93% 41 37 40 27 31 32 37.87% 12.90% 21.95% 20 0 0.00% 0 0.00% 3.13% 0 -10.81% -20 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Capital Employed (Rs. in Mn.) 140 124 122 117 120 112 112 108 106
Slide 24: Bakery : Highlights
Bakery : Highlights • State-of-the-art bakery production facility. • Provides backend production for Heritage Fresh and Private Label. • Manufactures a range of breads, puffs, pastries, puddings cookies, cakes and custards. • European equipment - spiral mixers, digitally controlled laminated dough l
Slide 25: Renewable Energy: Business Vertical
Renewable Energy: Business Vertical Turnover in FY2016 was Rs. 30.40 mn. Capital Employed for Renewable Energy division Rs. 260.92 mn. • Solar Heritage Foods Ltd has commissioned a 2.34 MWP Solar Power Project at IPH, Masjid Adavi Village, Mulugu Mandal, in Medak district near Hyderabad on Sept. 29,
Slide 26: Comparative Shareholding Pattern
Comparative Shareholding Pattern Shareholding pattern as on March ,2016; March, 2015 & March, 2014 120.00 100.00 80.00 50.85 53.67 56.62 60.00 % 40.00 9.25 6.31 3.35 20.00 39.90 40.03 40.03 0.00 FY16 FY15 FY14 Promoters Institutions Non-Institutions 26
Slide 27: Economic Activity - Manpower as on 31st March, 2016
Economic Activity - Manpower as on 31st March, 2016 Division Regular Jobs Dairy 2235 Retail 2689 Agri 110 Bakery 43 Total 5077 27
Slide 28: Thank you
Thank yow Bui q Howe Health. & Happiness