Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q3 FY2019 Earnings Presentation
30 slides from Prataap Snacks's earnings presentation, Feb 8, 2019
Slide 1: Exchange filing cover letter
Date: February 8, 2 0 1 9 To, To, Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor PJ. Towers, Plot No. C/1, G Block Dalal Street Sandra Kurla Complex Mumbai- 400 00 I Bandra ( E), Mumbai -400 051 Symbol: DIAMONDYD Se
Slide 2: Q3 & 9MFY19 - Results Presentation
PRATAAP SNACKS LIMITED Q3 & 9MFY19 - Results Presentation February 2019
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 Company Overview 4 Industry Overview 13 Avadh Snacks Acquisition- Unlocking Synergies 16 Q3 & 9M FY19 Results Performance 20 3
Slide 5: Company Overview
Company Overview 4
Slide 6: Company Snapshot
Company Snapshot 5 year revenue SKU’s Manufacturing Market Leader in CAGR facilities Rings States Super Stockists Distributors Packets sold per day Diverse Product Portfolio Focus On Product Innovation Pan India Distribution Network Core Management With Deep Domain Expertise Strategically Located Ma
Slide 7: Diverse Product Portfolio
Diverse Product Portfolio POTATO CHIPS CHULBULE* RINGS, KURVES NAMKEEN* PELLET SNACKS NACHOS YUM CAKE & NAMKEEN & & PUFF* COOKIE CAKE FRYUMS Potato Rice grit & Corn grit Gram Wheat Made from Cake centre Namkeen based Corn grit based based# based corn tortillas filled with and Fryums
Slide 8: Focus On Product Innovation
Focus On Product Innovation Namkeen • Banana Wafer Black Pepper Namkeen • Banana Wafer • Garlic Sev Salted Mamra • Cornflake Mixture Potato Chips • Masala • Cream & • Mitha Falahar Matar • Bhel Ring Onion • Gatiya Nachos, • Mango • Nimbu Potato Chips • Sev Murmura Masala Kurves, Chutney Masala • Tas
Slide 9: Pan India Distribution Network
Pan India Distribution Network 1 States* 10 1 5 6 8 1 Super Stockist 19 29 7 4 3 6 2 21 1 4 1 1 Distributors 87 1 1 7 Region No. of States / UT No. of Super Stockists 2 1 North 7 53 2 6 East 12 39 South 5 18 7 1 West 5 135 *Includes one Union Territory, Map not to scale 8
Slide 10: Strategically Located Manufacturing Facilities
Strategically Located Manufacturing Facilities Madhya Pradesh Assam West Bengal Karnataka Uttarakhand Gujarat Ahmedabad (I&II) Kashipur Indore (I&II) Bangalore (I&II) Rajkot (I) Guwahati (I&II) Kolkata (I&II) Distribution benefits • Caters to the Contract Manufacturing • Prataap Snacks Eastern Zone
Slide 11: Core Management With Deep Domain Expertise
Core Management With Deep Domain Expertise Corporate functions Arvind Mehta Amit Kumat Apoorva Kumat Subhashis Basu Sumit Sharma Chairman & Executive Director Managing Director & CEO Executive Director (Operations) COO CFO Over 29 years of experience in Over 22 years in Snack Over 22 years in Snack
Slide 12: Guided By An Accomplished Board Of Directors
Guided By An Accomplished Board Of Directors Arvind Mehta Amit Kumat G.V. Ravishankar Anisha Motwani Chairman & Executive Director Managing Director & CEO Nominee Director (Sequoia) Independent Director Over 29 years of experience in Over 22 years in the snacks foods Over 12 years in management Part
Slide 13: Prataap Snacks' Evolution
Prataap Snacks’ Evolution Successful IPO – Sequoia’s initial oversubscribed 47x; listed investment of Rs. 620 on NSE & BSE on Oct 5, mn Doubled the 2017 Prataap Snacks capacity of Potato Prakash Snacks Chips plant at Indore Launched Yum-Pie, a incorporated. Installed Chulbule Prataap Snacks took fro
Slide 14: Industry Overview
Industry Overview 13
Slide 15: Trends In The Indian Organised Snacks Market
Trends In The Indian Organised Snacks Market Rs.220 Bn organized snack market, contributes to only ~40% of the Rs.550 Bn total snack market Category/ product* Region* Sales channels* 2% 3% Chips Independent 5% small grocers 7% Supermarkets 30% Extruded snacks 36% 10% Hypermarkets Namkeen & tradition
Slide 16: Backed By Strong Demographic Tailwinds in India
Backed By Strong Demographic Tailwinds in India Rising Population of Youth and Large and Growing Population Children¹ 1,289 1,274 Total Population 1,256 584 1,238 583 Population 1,220 580 (million) 577 (million) 574 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2013-2018 CAGR: 1.4% 2013-2018 CAG
Slide 17: Acquisition of Avadh Snacks- Unlocking Synergies
Acquisition of Avadh Snacks- Unlocking Synergies 16
Slide 18: Synergies from Avadh Snacks
Synergies from Avadh Snacks Avadh Snacks delivered a robust performance in topline and profitability for Q3 FY19 Gujarat is the biggest salty snacks market in the country and an important market for Prataap Snacks to increase its market presence – Distribution synergies from Avadh Snacks will he
Slide 19: Avadh Product Portfolio – Namkeen
Avadh Product Portfolio – Namkeen Key Products: Bhavnagri Gathiya, Sada Mamra, Papdi Gathiya, Chavanu, Lasaniya Mamra Price Point: Rs. 5, 10, 30, 50 SKUs: 34 varieties Target group: All 18
Slide 20: Avadh Product Portfolio – Fryums
Avadh Product Portfolio – Fryums Key Products: Tomato Cup, Salted reffil, Masala cup, Chiji Noodles, Salli, White crunchy papd Price Point: Rs. 5, 10, SKUs: 21 varieties Target group: Children 19
Slide 21: Q3 & 9MFY19 Results Performance
Q3 & 9MFY19 Results Performance 20
Slide 22: Operational Overview
Operational Overview During the quarter, PSL’s continuing business (ex Avadh Snacks acquisition) grew by 4%yoy Avadh Snacks also continues to show strong growth during the quarter Despite higher prices of raw materials and packaging all businesses posted healthy operational earnings The Comp
Slide 23: Financial Overview
Financial Overview In Q3 FY19,PSL reported: Revenue of Rs. 3082.5 million, delivered double digit growth of 18.7% yoy Operating EBITDA grew by 8.6%yoy to Rs. 220.7 million, translating to a margin of 7.2% PAT for the quarter stood at Rs. 80.7 million EPS (Diluted) was at Rs. 3.44 per share i
Slide 24: CEO's Message
CEO’s Message Commenting on Q3 & 9MFY19 performance, Mr. Amit Kumat - Managing Director, Prataap Snacks Limited said: “With the Avadh Snacks acquisition we have delivered a positive performance in the quarter and our consolidated revenues for 9M have grown 16.1%. On a stand-alone basis, the performa
Slide 25: Abridged P&L Statement
Abridged P&L Statement Y-o-Y Y-o-Y Particulars Q3FY19 Q3FY18 9MFY19 9MFY18 Change (%) Change (%) Income from Operations 3,082.5 2,596.7 18.7% 8,640.8 7,443.3 16.1% Raw Material Cost 2,194.8 1,775.3 (23.6)% 6,027.4 5,040.6 (19.6)% Gross Profit 887.7 821.4 8.1% 2,613.4 2,402.7 8.8% Gross Margins 28.8%
Slide 26: Financials – Q3 & 9MFY19 Performance
Financials – Q3 & 9MFY19 Performance Sales / Income from Gross Margin (%) Operations 32.3% 8,640.8 31.6% 7,443.3 30.2% 3,082.5 28.8% 2,596.7 Q3FY18 Q3FY19 9MFY18 9MFY19 Q3FY18 Q3FY19 9MFY18 9MFY19 ▪ Income from operations in Q3FY19 grew by 18.7% yoy to Rs. 3082.5 mn despite capacity constraints in s
Slide 27: Financials – Q3 & 9MFY19 Performance
Financials – Q3 & 9MFY19 Performance EBITDA Margin (%) PAT Margin (%) 8.9% 4.4% 4.6% 7.8% 7.2% 7.1% 3.4% 2.6% 203.2 220.7 663.6 609.3 114.1 80.7 340.9 297.2 Q3FY18 Q3FY19 9MFY18 9MFY19 Q3FY18 Q3FY19 9MFY18 9MFY19 ▪ EBITDA grew by 8.6%yoy to Rs. 220.7 mn , whereas the EBITDA for 9MFY19 was at Rs. 609
Slide 28: Financials – Q3 & 9MFY19 Performance
Financials – Q3 & 9MFY19 Performance Cash Profits Cash EPS 565.0 581.9 24.1 24.8 197.0 210.3 8.4 9.0 Q3FY18 Q3FY19 9MFY18 9MFY19 Q3FY18 Q3FY19 9MFY18 9MFY19 ▪ The Company follows a conservative accounting policy and is amortizing intangible assets of Avadh Snacks ▪ A lateral benefit has been contain
Slide 29: 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, Sumit Sharma Namkeen (traditional Indian snacks) under the popular and vibrant Yellow Diamond brand. It has recentl
Slide 30: Thank You
Thank You 29