Vadilal Industries Limited · NSE:VADILALIND
Vadilal Industries — Q1 FY18 Earnings Presentation
28 slides from Vadilal Industries's earnings presentation, Sep 20, 2017
Slide 1: Corporate announcement cover letter to stock exchanges
VADILAL INDUSTRIES LTD. 8th Floor, Tne Some. Opp. Iscon Arcade,Nr. Pariseema Complex, Road, Navrangpura, Anmedabad - 380009 Tel. 4078) 2640 7201 to 26407210 Fax:(07%) 2640 7201 VISIT US ON = http/www.vadilaigroup.com Date: 20" September, 2017 To, To The National Stock Exchange of India Ltd. Departme
Slide 2: Vadilal Industries Q1 FY18 Results Presentation
VADILAL INDUSTRIES Q1 FY18 Results Presentation
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: Table of Contents
Table of Contents Q1 FY18 Financial Performance 04 Financial Performance Trends 10 Vadilal Industries Overview 15 Outlook 25 3 \ 28
Slide 5: Q1 FY18 Performance
Q1 FY18 Performance
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q1FY18 performance, Mr. Rajesh Gandhi, Chairman and Managing Director, Vadilal Industries Limited (VIL) said: “During Q1, we have reported revenue growth of 20%. This includes one time additional, GST-related shipments to Vadilal Enterprises Limited at the end of the
Slide 7: Financials – Q1 FY18 Performance
Financials – Q1 FY18 Performance Revenue • In Q1FY18, Revenues have improved by 20.3% y-o-y 242.9 growth on account of 56% y-o-y higher revenues in 201.9 Export business driven by 300% ice cream volume growth. • Revenues also include, GST-related shipments to Vadilal Enterprises at the end of the qu
Slide 8: Financials – Q1 FY18 Performance
Financials – Q1 FY18 Performance EBITDA 46.4 • Operating margins for the quarter were impacted by higher input costs. 43.8 – Input costs based on milk prices are expected to increase based on the recent uptrend. Q1 FY17 Q1 FY18 – Undertook an 3.5% price increase in the domestic market to counter inc
Slide 9: Marketing initiatives – Thrust towards Premiumization
Marketing initiatives – Thrust towards Premiumization • Parineeti Chopra has been appointed brand ambassador for Vadilal over three years. • Unveiled new products endorsed by the brand ambassador, with the expanded range being evaluated on an ongoing basis. 8 \ 28
Slide 10: Financials Performance Trends
Financials Performance Trends
Slide 11: Financials Performance Trends
Financials Performance Trends Revenue 406.3 461.7 491.7 323.6 367.3 FY13 FY14 FY15 FY16 FY17 Ice Cream Processed Foods 404.8 438.7 341.7 73.9 294.0 60.2 65.8 265.5 54.6 50.4 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 10 \ 28 Consolidated financials in Rs. cr
Slide 12: Financials Performance Trends
Financials Performance Trends EBITDA 80 59.4 58.8 60 45.8 44.1 41.7 40 Consumer behavior is transitioning with increasing acceptance for western desserts. With 20 improving consumer sentiment and stable input 0 costs VIL is likely to maintain its growth FY13 FY14 FY15 FY16 FY17 trajectory. VIL is no
Slide 13: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Debt Other Non-Current Liabilities Liabilities 145.8 205.0 113.1 113.5 127.1 180.2 148.3 151.5 20.6 21.6 15.2 16.5 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Net Fixed Assets Other Non-Current Net Current Assets Assets 86.2 232.
Slide 14: Financials Performance Trends – Cash Flows
Financials Performance Trends – Cash Flows Operating Cash flow Free Cash Flow 51.8 62.2 56.6 41.3 51.7 28.5 23.0 9.4 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 • Inventory up by Rs.30 crore • Interest down by Rs.5 crore to Rs. 15.5 crore in FY17 • Capex up by Rs.10 crore y-o-y 13 \ 28 Standalone financ
Slide 15: Vadilal Industries Overview
Vadilal Industries Overview
Slide 16: Overview
Overview • Currently managed by fourth • Top 3 ice-cream brand in the • Leadership in Gujarat, Rajasthan, generation promoter family country, 150+ flavors UP, Uttarakhand, Haryana and • Selected India’s most trusted ice • 300 SKU’s of cones, candies, bars, Chandigarh cream brand in 2013 and 2014 by
Slide 17: Indian Ice Cream Market
Indian Ice Cream Market Ice cream is transitioning Transition from seasonal Increased disposable Consumers receptive to from periphery to to year-long incomes and spending on high quality mainstream, from consumption discretionary spending products that meet their occasional indulgence to driving se
Slide 18: Vadilal: Growth Strategies
Vadilal: Growth Strategies Retail Investments New Product Development Brand Building Initiatives • 5,000 new sales Geographical outlets planned in • Constantly FY18 Expansion innovating to roll • Seen as one of the out new products in • 100 more most trusted ice ice cream segment distributors • Expa
Slide 19: Ice Creams - Brands Portfolio
Ice Creams - Brands Portfolio 18 \ 28
Slide 20: Processed Foods Business
Processed Foods Business • Global business selling to 45 countries in four continents • Strong distribution to Indian diaspora, being further developed with new product launches • Expanded export markets from 12 SKU’s supplied to seven countries in 1991 to 300+ SKU’s to 45 countries currently • Expa
Slide 21: Processed Foods - Brands Portfolio
Processed Foods - Brands Portfolio • Processed foods products are marketed under the brand name ‘Quick Treat’ • Portfolio includes frozen vegetables, ready-to-eat/ready- to-serve frozen snacks, Indian breads and curries • Positioned to assist Indian kitchens with traditional home cooking 20 \ 28
Slide 22: Production Facilities
Production Facilities • Capacity expanded from 270,000 liters per day to 380,000 liters per day over the past few years • Current production on automated processes “untouched by hand”, manual intervention only at packaging stage • Focus on branded portfolio in Processed Foods Business • No major cap
Slide 23: Distribution Presence
Distribution Presence Distribution network Gujarat 200 comprises of over 45,000 Uttar Pradesh 185 retailers, over 1,200 large Madhya Pradesh 150 Bareilly distributors, 61 CNFs, 250 Rajasthan 138 distribution vehicles and West Bengal 89 almost 300 SKUs. Delhi 63 Adopted franchisee route Himachal Prad
Slide 24: Awards and Accreditations
Awards and Accreditations 23 \ 28
Slide 25: Outlook
Outlook
Slide 26: Planned Initiatives
Planned Initiatives Expanding Presence Increasing penetration – moving Presence across 16 states, 61 from passive to aggressive CNF’s, over 1,000+ distributors, business strategy to derive benefit 250 distribution vehicles, over from improving consumer 45,000 retail outlets behavior Product Strategi
Slide 27: Contact Us
Contact Us 26 \ 28
Slide 28: Thank You
THANK YOU 9/20/2017 27