Associated Alcohols & Breweries Ltd. · NSE:ASALCBR
Associated Alcohols & Breweries — FY2020 Earnings Presentation
28 slides from Associated Alcohols & Breweries's earnings presentation, Jul 13, 2020
Slide 1: Investor presentation on audited financial results, quarter and year ended March 2020
Registered / Corporate Office : 4th Floor, BPK Star Tower, A.B. Road, Indore - 452 008, (M.P.) India Contact No, +91 731 4780400/490 Fax : +91 731 4780410 E-mail : info@aabl.in CIN : L1SS20MP1989PLC049380 ASSOCIATED KEDIA GROUP Dreams Determination Dexterity 134 July, 2020 To, lhe Listing Department
Slide 2: AABL 2.0
AABL 2.0 ASSOCIATED ALCOHOLS AND BREWERIES LIMITED A PRESENTATION OF OUR 2019-20 PERFORMANCE AND HOW WE INTEND TO GRADUATE TO THE NEXT LEVEL
Slide 3: This presentation is segregated into three parts for easy reading
This presentation is segregated into three parts for easy reading Part one. Review of AABL’s performance in 2019-20 Part two. How we have built a robust integrated alco-bev company Part three. Where we go from here 2
Slide 4: Associated Alcohols. One of the most exciting alco-beverage companies
Associated Alcohols. One of the most exciting alco-beverage companies in India. Background: Founded by Late Shri Bhagwati Promoters: Promoters Prasad Kedia in 1989. Among the flagship comprise Mr. Anand Kumar companies of the Associated Kedia Group Kedia and Mr. Prasann Kumar involved in the manufac
Slide 5: Associated Alcohols. One of the most exciting alco-beverage companies
Associated Alcohols. One of the most exciting alco-beverage companies in India. Market presence Facilities Credit rating One of the largest State-of-the-art CARE reaffirmed the A-/A2 distilleries in India. manufacturing facility rating on the company for Geographic presence in 4 located in Khodigram
Slide 6: Products
Products Premium extra Indian Made Indian Made Rectified Contract neutral alcohol/ Indian liquor Foreign liquor spirit manufacturing grain spirit (IMIL) (IMFL) partner (Diageo – USL) Big numbers 4.5 32 12.5 (cr litres) ENA Bottling lines (mn) cases manufacturing capacity as on capacity as on 31st Ma
Slide 7: Part One: Our performance for 2019-20
PART ONE OUR PERFORMANCE FOR 2019-20 6
Slide 8: The big picture of our 2019-20 performance
The big picture of our 2019-20 performance 535 79.89 15 49.33 Rs cr, Revenues, Crores EBIDTA, EBIDTA margin Rs cr, PAT, 2019- 2019-20 2019-20 %, 2019-20 20 411.5 61.84 15 30.26 Rs cr, Revenues, Crores EBIDTA, EBIDTA margin Rs cr, PAT, 2018- 2018-19 2018-19 %, 2018-19 19 30% 30% Constant 63% Growth i
Slide 9: The big picture of our Q4 2019-20 performance (Q-o-Q comparison)
The big picture of our Q4 2019-20 performance (Q-o-Q comparison) 135.80 18.15 13.37 10.74 Rs cr, Revenues, EBIDTA, EBIDTA Rs cr, PAT, Q4 2019-20 Q4 2019-20 margin %, Q4 2019-20 Q4 2019-20 121.80 13.59 11.15 5.72 Rs cr, Revenues, EBIDTA, EBIDTA Rs cr, PAT, Q4 2018-19 Q4 2018-19 margin %, Q4 2018-19 Q
Slide 10: Financial performance of the last 3 years
Financial performance of the last 3 years (Rs. in Lakhs except EBITDA margin , EPS and BV) 2019-20 2018-19 2017-18 Income From Operations 53500 41158 33099 Total Expenses 47456 36847 29464 EBIDTA 7990 6184 5459 EBIDTA margin (%) 15 15 16.5 Depreciation 1410 1229 1132 Finance cost 208 223 384 PBT 637
Slide 11: The challenges we faced in 2019-20
The challenges we faced in 2019-20 First year of full capacity availability after expansion Weakness in Fluctuating Market demand India’s /uneven grain stabilisation in alco-bev sector prices Delhi and Kerala General inability Extended to pass cost monsoons increases to in Central India customers 10
Slide 12: How we overcame those challenges of 2019-20
How we overcame those challenges of 2019-20 Technical and continuous Direct mandi procurement Kerala entry asset-light (spirit review of plant operations supply from central location+ outsourced bottling plant) Increased Operated at Increased sales higher capacity production 52% 3.5 3.38 increase in
Slide 13: Industry moving towards an inflection opportunity
Industry moving towards an inflection opportunity No. 1 Player Intending Seeking five AABL one of Inflection seeking to exit to focus on pan-India the selected, opportunity to manufacture premiumisation manufacturing trusted with consume raw of mass market partners proven quality material and segmen
Slide 14: Part Two: How we have built a robust alco-bev company
PART TWO HOW WE HAVE BUILT A ROBUST ALCO-BEV COMPANY 13
Slide 15: Introduction
Introduction Fully integrated Wide alcohol play Responsible Flexibility Raw material Full range of Zero-discharge Can use multiple (grain) to end products, distillery grains; de-risked product (liquor) to Environment resourcing marketing Friendly Operations at plant Ranked among top 5 listed alco-be
Slide 16: Working with strong brands
Working with strong brands Government- Major regulated retail clients Diageo/ United contractors/ Spirits Limited agencies (both IMFL and IMIL) Lincesed brands/ franchised brands Bagpiper Directors Flavoured Director’s DSP Black McDowell’s Deluxe Special White Special Gold Special No. 1 XXX Whisky W
Slide 17: Own proprietary brands
Own proprietary brands Proprietary products James Central Jamaican Bombay Super Titanium Triple McGill Province Magic Rum Special Man Series Distilled Vodka Whisky Whisky Series with Orange and Green Apple flavor Contracted manufacturing brands Black Dog VAT 69 Smirnoff Black & White Scotch Whisky S
Slide 18: Associated Alcohols. Power of integration
Associated Alcohols. Power of integration Product range: Focus: Grain-based By-products: From ENA manufacturer; Process residue manufacture to superior quality; converted into bottling to lower consumption monetizable by- marketing (water, power and products steam) Location: Largest Products: IMIL t
Slide 19: How we have transformed in the last 3 years
How we have transformed in the last 3 years Backed Improved Deeper Governance Expansion Diageo/USL Operational Inducted Specialized Discipline : Efficiency Professional; Franchise Migrated Smoothly 4.5 Crores from Agreement in popular brands in from conventional 3.0 Crores litres Madhya Pradesh acco
Slide 20: Sustainable value-creation focus
Sustainable value-creation focus ENA capacity Capital- Focus on Low dividend Aggressive Kick-start expansion 1.5x hungry phase maximising payout; high reinvestment faster times with a of the accruals and re-investment virtuous Rs 25 Cr business RoCE in the cycle investment (from business Jan’18 to M
Slide 21: Outcomes: Where we were and where we are
Outcomes: Where we were and where we are Revenues EBIDTA Net worth Debt-equity ratio Gross block 330 54.59 120.77 0.09 102.58 Rs cr, 2017-18 Rs cr, 2017-18 Rs cr, 2017-18 2017-18 Rs cr, 2017-18 Revenues EBIDTA Net worth Debt-equity ratio Gross block 535 79.90 195.27 0.04 120.73 Rs cr, 2019-20 Rs cr,
Slide 22: Take-home: Where AABL stands today
Take-home: Where AABL stands today Standing on Franchise Business Best Performance higher capacity at Model delivered as in industry in spite 4.5 crores per expected of major revenue annum from low/mid range products Clean governance Low post-expansion Pass-through of Towards a debt light and enviro
Slide 23: Part Three: Where we go from here
PART THREE WHERE WE GO FROM HERE 22
Slide 24: The Indian alcohol industry
The Indian alcohol industry The third largest in Per capita alcohol Increased social Millennials the world consumption at 5.9 ltr acceptance constitute 35% of per adult per annum of alcohol total Indian consumption population Increased Seen as an economy State governments Larger opportunities discre
Slide 25: What is expected to drive India's alco-bev market
What is expected to drive India’s alco-bev market ENA capacity to Key international Regional players Small players be critical for brands shutting with better prospects to find it difficult success capacities (working and facilities to survive on the franchisee model) Located in the Equidistant from
Slide 26: AABL's focus ahead
AABL’s focus ahead Double ENA Setting/ Creation Increase in Conversion of capacity to 9 of spirit malt proprietary max ENA to crores per manufacturing brands in other value added annum and storage major parts of capacity the country 25
Slide 27: The AABL big picture
The AABL big picture Scale Cusp of structural Emergence among transforming the shift in value- the three largest company’s creation ENA players in dynamics India Blended play (raw Phased and de-risked Capacity, Contract material and marketing footprint Manufacturing, premium liquor; (MP, NCR, Centra
Slide 28: For any further information, please contact
FOR ANY FURTHER INFORMATION, PLEASE CONTACT Mr. Sumit Jaitely Company Secretary & Compliance Officer E-mail: cs@aabl.in Phone: 0731-4780400/490 www.associatedalcohols.com Disclaimer In this presentation we have disclosed forward-looking information to enable investors to comprehend our prospects and
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