Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Q2 FY25 Earnings Presentation
44 slides from Dodla Dairy's earnings presentation, Oct 23, 2024
Slide 1: Exchange filing cover letter
Date: 23 October 2024 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited National Stock Exchanges of India Limited Phiroze Jeejeebhoy Towers "Exchange Plaza", 5th Floor, Dalai Street, Fort Plot No.C/1, G Block Mumbai-400 001 Bandra-Kurla Complex Bandra (E
Slide 2: Dodla Dairy Limited Q2 FY25 Investor Presentation
Dodla Dairy Limited Q2 FY25 Investor Presentation
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dodla Dairy Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, a
Slide 4: Q2 FY25 Healthy quarterly performance
9,976 Mn Q2 FY25 Highest ever ₹ Revenues 29.9% (YoY) Healthy quarterly EBITDA 963 Mn ₹ performance 37.0% I 9.6% margin (YoY) (on a consolidated basis) 634 Mn ₹ PAT 45.3% I 6.4% margin (YoY) 3
Slide 5: Management commentary
Management commentary “I am pleased to share that for the second time in a row, our company has reported its highest ever quarterly revenue with a 29.9% growth on a yoy basis for Q2FY25. Additionally, in the quarter, our VAP sales rose by 93.5% to ₹3,779 Mn, primarily due to the higher sale of Butte
Slide 6: Financial Highlights Consolidated
Financial Highlights Consolidated Operating Revenue (in ₹ Mn) Gross Profit (in ₹ Mn & Margin %) EBITDA (in ₹ Mn & Margin %) PAT (in ₹ Mn & Margin %) 26.8 29.1 25.5 % 9.1 11.5 9.6 % 5.7 7.1 6.4 % 29.9% YoY 23.4% YoY 37.0% YoY 45.3% YoY Q2FY25 9,976 9,116 7,678 2,656 2,540 2,059 1.051 963 702 650 634
Slide 7: Quarter-wise Historical Operational Highlights
Quarter-wise Historical Operational Highlights* Average Milk Procurement Average Milk Sales Curd Sales (in MTPD) VAP Sales (in ₹ Mn) (in LLPD) (in LLPD) % 26.1 25.6 29.0 35.4 39.2 1.5% YoY 7.2% YoY 4.7% YoY Sales Contribution 17.0 17.5 17.6 17.2 3,779 16.7 11.3 11.6 3,139 10.9 10.7 10.8 467.4 360.0
Slide 8: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (in ₹ Mn) Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Revenues 9,976 7,678 29.9% 19,092 15,912 20.0% Cost of Goods Sold 7,436 5,619 13,896 11,901 Gross Profit* 2,540 2,059 23.4% 5,196 4,011 29.6% Gross Profit margin 25.5% 26.8% 27.2% 25.2% Employee Expenses 3
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (in ₹ Mn) Sep’24 Mar’24 Equity & Liabilities (in ₹ Mn) Sep’24 Mar’24 Non - Current Assets 7,710 7,693 Total Equity 12,895 11,389 Property Plant & Equipments 6,421 6,287 Share Capital 603 595 CWIP 93 124 Other Equity 12,292 10,794 Goodwill 516 516 Equity attributable
Slide 10: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Cash flows statement (in ₹ Mn) H1FY25 H1FY24 Net Profit Before Tax 1,791 1,100 Adjustments for: Non -Cash Items / Other Investment or Financial Items 262 253 Operating profit before working capital changes 2,053 1,353 Changes in working capital 1,775 -751 Cash genera
Slide 11: Awards Received During The Quarter
Awards Received During The Quarter Confederation of Indian Industry (CII) Bureau of Indian Standards (BIS) 25th National Award for Excellence in Energy Management 2024 Skimmed Milk Powder Part- 1 standard grade
Slide 12: About Us
Dodla Dairy Limited About Us
Slide 13: Dodla Dairy Ltd.: At a glance
Dodla Dairy Ltd.: At a glance Unique positioning in the dairy segment with presence in the Indian and the African markets along with Orgafeed India Business Africa Business (Uganda & Kenya) Founded in 1995, Dodla Dairy is an Dodla Dairy has extended its integrated dairy company based in footprint to
Slide 14: Dodla Dairy Limited: Snapshot
Dodla Dairy Limited: Snapshot Consolidated Standalone 55+ 2,050+ 2,750+ 40+ 1,750+ 2,600+ Sales offices Milk and milk product Agents Sales offices Milk and milk product Agents distributors distributors 24+ 16 645 20+ 14 616 LLPD aggregate Processing Dodla Retail LLPD aggregate Processing Dodla Retai
Slide 15: Africa Business: Snapshot
Africa Business: Snapshot Salient Features Presence in Africa (Kenya & Uganda) Dairy player margins are higher due to limited Operates in Uganda through its subsidiary Lakeside competition and constrained supply of Dairy Ltd processed milk Operates in Kenya through its subsidiaries, Dodla Dairy
Slide 16: Financial Performance: Snapshot
Financial Performance: Snapshot Consolidated (in ₹ Mn & Margin %) Standalone (in ₹ Mn & Margin %) % 9.1 11.1 9.6 11.5 9.6 % 8.8 10.9 8.5 10.0 9.6 9,976 9,116 9,032 7,678 7,874 8,279 7,468 7,155 7,280 7,007 828 1,051 963 702 754 630 765 621 828 866 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4F
Slide 17: Orgafeed: Snapshot
Orgafeed: Snapshot Financial Performance (in ₹ Mn & Margin %) 480 MTPD ₹639 Mn ₹83 Mn % 6.8 7.4 10.5 12.4 13.7 Cattle feed plants Operating revenue in EBITDA in H1 H1 FY25 FY25 capacity 317 322 Orgafeed is primarily engaged in the business of seed crushers, manufacturing and dealing of groundnuts, g
Slide 18: Processing Plants Across South India and Africa
Processing Plants Across South India and Africa KENYA UGANDA PULLUR, KURNOOL Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, time liness or completeness. 17
Slide 19: Journey So Far: 25+ years of dairy operations
Journey So Far: 25+ years of dairy operations • Investment by The Rise Fund (TGP) as it acquired • IFC invested • Commissioned New stake of Black River * ~INR1,000Mn Orgafeed Plant Incorporation of Badvel and Investment by Black • Gundrampally, Hyderabad, • Listed on BSE & • Commissioned Dodla Dairy
Slide 20: Presence Across Dairy Value Chain
Presence Across Dairy Value Chain…. Dairy Farm Processing Plants Procurement of raw milk from 1.4+ Total 16 milk processing plants in lakh farmers across 8,000+ villages India, Kenya & Uganda through 7,600+ VLCCs Company regularly incurs capex to Raw milk directly procured from upgrade technology, a
Slide 21: Key Highlights Enabling Competitive Advantage
.. Enabling Dodla to Deliver Competitive Advantage Milk Procurement MILK PROCUREMENT All dairy processors have access to the same raw 16.8 ▪ All dairymaterial processors FY24 24.1 and have accesswhat equipment; to the same raw material distinguishes us is 14.6 and equipment; whatemployees our dedi
Slide 22: Comprehensive Product Portfolio
Comprehensive Product Portfolio Pasteurized Pouch Milk Curd UHT Milk Flavored Milk Milk-Based Sweets Full cream, Standardized Milk, Sachet Curd, Bucket Curd, Toned, Double Toned Badam, Strawberry, Pista, Doodhpeda, Gulab Jamun, Sona Toned Cup Curd Chocolate Papidi, Milk Cake and Basundhi Paneer & Ch
Slide 23: Seasonality Factor
Seasonality Factor Milk Procurement LLPD FY22 Milk Sales LLPD FY23 17.6 17.5 FY24 16.9 17.2 16.7 15.9 FY25 14.8 10.9 11.6 14.3 11.1 11.3 13.5 10.9 10.5 10.7 10.8 10.8 12.3 12.8 12.4 12.8 12.3 10.4 9.5 9.9 9.7 8.3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 The business in the dairy sector is influenced by two primary s
Slide 24: Board of Directors
Board of Directors Akshay Tanna Dodla Sesha Reddy Dodla Sunil Reddy Madhusudhana Reddy Non-Executive Non-Independent Chairman & Non-Executive Director Managing Director Ambavaram Whole-time Director Director He has more than 60 He has been leading the He has over 30 years of He is currently Partner
Slide 25: Strong Management Team
Strong Management Team 29+ Years A MA Average Management Experience in Diversified Industries MADHUDHUSUDHANA REDDY SURESH SUBRAMANIAN LAXMA REDDY RAKESH RAMNANI Head HR & Legal Head Procurement Head Production Head Sales & Marketing BVK REDDY 35 Years Chief Executive Officer Average Employee Age 34
Slide 26: Competitive Advantages
Competitive Advantages Ph 3 Je € Sa, (lous DRINK
Slide 27: Key Strengths
Key Strengths Strong Presence End to end integrated dairy company in South India International Consistent product Presence quality Operations in Uganda An extensive Product and Kenya Portfolio (Milk-Based value- added Products) Branding Production Higher B2C Sales Capacity through strong branding 16
Slide 28: Stringent Quality Control Procedures
Stringent Quality Control Procedures Well Defined Quality and Food Safety Procedures at Various Stages from Procurement to Distribution Procurement Stage Processing Stage VLCCs equipped with GPRS enabled electronic milk analyzers At chilling centers and processing plants, the raw milk undergoes
Slide 29: Focused Engagement and Long-Term Relationship with Dairy Farmers
Focused Engagement and Long-Term Relationship with Dairy Farmers Regular direct payment Tie up with veterinarians Money paid directly to farmers in Organize training camps to educate their bank accounts once every 10 about ways to prevent common to 15 days ailments for cattle ~92% of total far
Slide 30: Investment Rationale
Investment Rationale c ar a c cep t able si n a ture check appr o ed c alcu l a te l o an Integrated supply chain Proven track record Strong Direct procurement model, eliminating Proven track record of successfully integrating middleman, reducing s t an d ard the cost m o tiofaprimary tion raw p
Slide 31: Dodla's ESG Commitment
Dodla’s ESG Commitment Environment We believe that preserving and rebuilding the environment is crucial in providing opportunities for future generations We are dedicated to producing dairy products in a manner that is humane toward people, animals, and the environment, as well as beneficial to
Slide 32: Way Forward
Way Forward
Slide 33: Strategic Priorities
Continuous effort towards higher procurement, 01 and widening distribution Strategic Priorities Curated focus towards value added products 02 (VAP) Focused brand connecting activities amongst 03 consumers, robust distribution network and strong brand recall value Achieve optimum capacity utilization
Slide 34: Value-added Products (VAP) Trajectory
Value-added Products (VAP) Trajectory VAP Sales (in ₹ Mn)* Strong distribution network FY24 8,181 The company already has a strong distribution network in southern states for milk as well as value added products through which it can roll out existing and upcoming products FY23 6,957 FY22 5,254 Vas
Slide 35: Raising the Visibility Quotient
Raising the Visibility Quotient Brand Building Initiatives Aired television commercials (TVC) on the leading regional TV channels and popular digital channels for the first time capturing the festive vibes of consumers during Makar Sankranti/Pongal festival Penetrate deeper in the market through
Slide 36: Historical Financials
Historical Financials
Slide 37: Year-wise Historical Operational Highlights
Year-wise Historical Operational Highlights Average Milk Procurement Average Milk Sales Curd Sales (in MTPD) VAP Sales (in INR Mn) (in LLPD) (in LLPD) % 27.2 25.2 26.6 26.8 28.3 Sales Contribution 16.8 10.7 10.9 349.9 8,619 9.9 323.8 9.3 292.5 7,408 13.8 12.5 8.5 269.8 12.1 5,794 5,878 10.8 223.8 4,
Slide 38: Financial Highlights
Financial Highlights Contributing Average Milk Procurement Average Milk Sales Curd Sales Value Added Products 28.3% to the Topline FY24 16.8 LLPD 10.9 LLPD 349.9 MTPD ₹ 8,619 Mn ▲ 21.2% YoY ▲ 1.6% YoY ▲ 8.1% YoY ▲ 16.3%YoY Operating Revenue (in ₹ Mn) Gross Profit (in ₹ Mn & Margin %) EBITDA (in ₹ Mn
Slide 39: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Common Size Particulars (in ₹ Mn) FY24 FY23 FY22 FY21 FY20 FY24 FY23 FY22 FY21 FY20 Revenues 31,255 28,120 22,434 19,440 21,394 100.0 100.0 100.0 100.0 100.0 Cost of Goods Sold 22,821 21,409 16,262 13,509 16,406 73.0 76.1 72.5 69.5 76.7 Gross Profit* 8,434 6,711
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet Equity & Liabilities (in ₹ Mn) FY24 FY23 FY22 FY21 FY20 Assets (in ₹ Mn) FY24 FY23 FY22 FY21 FY20 Equity 11,389 9,722 8,432 6,580 4,335 Non-current Assets 7,693 7,775 6,869 5,703 5,697 Non-current Liabilities 767 636 576 1,197 1,426 Current Liabilities 2,621 2,156 1,877 1,
Slide 41: Key Ratios – Full Year
Key Ratios – Full Year Cash & Cash Equivalent (in ₹ Receivable Days / Payable Networth (in ₹ Mn) & ROCE (%) Debt (in ₹ Mn) & Debt / Equity Mn) & ROE % Days /NWC Days % 15.6 24.7 19.3 14.9 20.4 % 11.9 23.1 17.6 13.5 15.8 0.38 0.18 0.02 0.04 0.04 11 4 5 0 40 Payable Days Receivable Days NWC 11,389 Day
Slide 42: Capital Market Information
Capital Market Information Key Investors as on 30th September 2024 (% of Total Equity) SBI Mutual Funds 8.01 DSP Small Cap Fund 6.24 Bharat Biotech International Ltd 3.41 Steinberg India Emerging Opportunities Fund 2.65 29,000+ Total Shareholders Ashoka Whiteoak India Opportunities Fund Pinebridge G
Slide 43: Glossary
Glossary LLPD Lakhs Liter per day LPA Liters Per Annum MTPD Metric Tonnage Per Day MT Metric Ton UHT Ultrahigh Temperature Processed Milk Value- added Product VAP milk VLCC Village Level Collection Centers FII Foreign Institutional Investor DRP Dodla Retail Parlours 42
Slide 44: For More Details Contact us
For More Details Contact us: Company: Dodla Dairy Limited CIN: L1509TG1995PLC020324 Surya Prakash Mungelkar Email id: investorqueries@dodladairy.com 13.33 Tel No: +91 40 4546 7777 Investor Relations Advisor: Strategic Growth Advisors Pvt Ltd. CIN: U74140MH2010PTC204285 Shikha Puri / Dharmik Kansara