Parag Milk Foods Ltd. · NSE:PARAGMILK
Parag Milk Foods — Q3 FY2024 Earnings Presentation
27 slides from Parag Milk Foods's earnings presentation, Feb 8, 2024
Slide 1: Exchange filing cover letter for investor presentation
February 8, 2024 Compliance Department, Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower, Exchange Plaza, Dalal Street, Fort, Plot No. C/1, G-Block, Mumbai - 400 001 Bandra Kurla Complex Bandra - (E), Mumbai - 400 051 Scrip Code:- 539889 Scrip Symbol
Slide 2: Investor & Analyst Presentation Q3 & 9M FY 2023-24
Investor & Analyst Presentation Q3 & 9M FY 2023-24
Slide 3: Message
MESSAGE A journey that began with farmers is now aiming to provide complete nutrition to consumers across the globe. The strength of our developed infrastructure, food technology expertise supported by a strong farmer network, and powerful distribution channels have been our strong pillars and have
Slide 4: Executive Summary - Q3FY24
EXECUTIVE SUMMARY- Q3FY24 Robust Performance The Core Category of Consolidated Brand Avvatar has Sharp improvement in Ghee has grown by revenue grew by posted strong growth the Gross margins 3.7X Growth YoY ~1% YoY 8.8% YoY 36% YoY + 520 bps YoY Spectacular Net profit of INR 34.2 Cr after tax © 2023
Slide 5: Executive Summary - 9MFY24
EXECUTIVE SUMMARY- 9MFY24 Focused approach towards driving profitable business growth Led to robust bottom line performance The Core Category of Consolidated Brand Avvatar has Sharp improvement in Ghee has grown by revenue grew by posted strong growth the Gross margins 161% Growth YoY Spectacular Ne
Slide 6: Consolidated Financial Highlights - Q3FY24
CONSOLIDATED FINANCIAL HIGHLIGHTS- Q3FY24 Revenue Gross Profit EBITDA PAT INR INR INR INR 800.8 210.8 68.7 crore; 34.2 crore; crore; crore; 8.8 % 26.3 % 8.6% 4.3 % growth YoY margin margin margin 5 © 2023 All Rights Reserved | Parag Milk Foods
Slide 7: Consolidated Financial Highlights - 9MFY24
CONSOLIDATED FINANCIAL HIGHLIGHTS- 9MFY24 Revenue Gross Profit EBITDA PAT INR INR INR INR 2,348.6 554.5 178.2 crore; 80.8crore; crore; crore; 12.3 % 23.6% 7.6% 3.4% growth YoY margin margin margin 6 © 2023 All Rights Reserved | Parag Milk Foods
Slide 8: 9MFY24: Business Composition
NEW AGE 9MFY24: BUSINESS COMPOSITION BUSINESS 8.0% VALUE ADDED BUSINESS SMP LIQUID MILK 64.0% 18.9% 9.1% New age business includes brand Avvatar and brand Pride of Cows © 2023 All Rights Reserved | Parag Milk Foods 7
Slide 9: Soft Milk Prices
SOFT MILK PRICES Milk Prices remained soft and were down 16% yoy and 9.6% sequentially Milk Rate (INR/litre) 39.4 18% down over 38.4 37.7 36.3 Q4FY23 36.1 35.6 33.5 32.2 29.0 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 For the quarter; on an average we processed about 17 lakh liters of mil
Slide 10: Gross Margin Expansion Continues
GROSS MARGIN EXPANSION CONTINUES 26.3% Gross Profit Margin (%) 23.0% 20.7% 21.1% 21.3% 21.4% The benign raw material prices along with improved product mix led to consistent Gross Profit Margins 15.2% improvement The overall Gross margins expanded by 520 basis points on a yoy basis. Q1 FY23 Q2 FY23
Slide 11: Our Strategic Priorities
OUR STRATEGIC PRIORITIES Strengthening & Accelerating the Core Categories Brand Building & Innovation Evolve Route to Market Strengthening New Age Business Driving Business Transformation © 2023 All Rights Reserved | Parag Milk Foods 10
Slide 12: Strengthening & Accelerating the Core Categories
STRENGTHENING & ACCELERATING THE CORE CATEGORIES Dominant player Our protein business is Leaders and pioneers of in cheese category cow ghee category with in India with Witnessing Healthy 20% 35% Growth Momentum & is outgrowing Market share in Market share the industry cow ghee segment ( source IMAR
Slide 13: Brand Building & Innovation
BRAND BUILDING & INNOVATION
Slide 14: Strengthening New Age Business - Brand Activation
STRENGTHENING NEW AGE BUSINESS – Brand Activation Pride of Cows Mall Activation Radio Mirchi Navratri Consumer Offer - Acquisition Consumer Offer Retention & Collection GROWTH STRATEGY – Driving On Ground Sales through increase activation © 2023 All Rights Reserved | Parag Milk Foods 13
Slide 15: Strengthening New Age Business - City Expansion
STRENGTHENING NEW AGE BUSINESS – City Expansion VADODARA LAUNCH
Slide 16: Influencer Activity, Consumer Offers, E-Commerce Activity
Influencer Activity Consumer Offers E-Commerce Activity The Fit Expo 2023
Slide 17: Built on the Backbone of a Robust Network
BUILT ON THE BACKBONE OF A ROBUST NETWORK 29 Srinagar Jammu Depot Depots Super Stockists To reach Parwanoo Jalandhar ~700 13-15 Lakh Karnal Dehradun Delhi Super Stockists Lucknow retail touch points Jodhpur Jaipur Siliguri Guwahati Udaipur Patna ~6,200 Ahmedabad Indore Ranchi Kolkata by 2027E Distri
Slide 18: Channels Consistently Contributing to Growth
EVOLVE ROUTE TO MARKET CHANNELS CONSISTENTLY CONTRIBUTING TO GROWTH For 9MFY24; Our modern trade channel has witnessed strong 9.1% growth YOY The General trade channel has grown by 7.7% YOY © 2023 All Rights Reserved | Parag Milk Foods 17
Slide 19: Our New Age Business - Whey Protein
OUR NEW AGE BUSINESS Whey Protein – Strong & Profitable runway for growth INR Market Growth Potential FY27 2000 cr FY23 765 cr 20.2% Total whey market Projections Achieved an ever highest sales of over INR 10 crore for the month of January More than 50% of the sales is through Ecommerce 18 © 2023 Al
Slide 20: Driving Business Transformation
DRIVING BUSINESS TRANSFORMATION Cost Optimization Digitization of Plant & Operations Data Analytics Market Expansion & Penetration Strengthening the management
Slide 21: Parag Milk Foods
3 PARAG MILK FOODS State-of the-Art Manufacturing Facilities 3.4mn 100% Litres/day Milk Processing Capacity Cow Milk from 4.6 Lakh Key Milk Belts Pan India Retail Touch Points 10 lakh Relationship with over Litres/day Whey 6,000+ 5 lakh+ Processing Capacity Distributions Farmers across India 110 MT/
Slide 22: Parag's Journey
PARAG’S JOURNEY 2008 1998 1992 Go Cheese World Gowardhan Ghee Gowardhan Milk 2021 Further extension of Pride of Cows brand to paneer, low fat milk 2011 Pride of Cows 2021 Introduced Milk Shakes 2015 Topp Up 2017 Avvatar 2020 Extending Pride of Cows to value added products- Ghee, Curd © 2023 All Righ
Slide 23: Brand Positioning
BRAND POSITIONING Premium Mass Affluent Mass © 2023 All Rights Reserved | Parag Milk Foods 22
Slide 24: Unique Business Model Caters To
UNIQUE BUSINESS MODEL CATERS TO of the consumers’ daily dietary needs Multi/Assorted MEALS CHANNEL BRANDS CATEGORY Break fast | Lunch General Trade Gowardhan Ghee | Instant Mixed Snacks | Dinner Modern Trade Go | Pride of Cows Paneer | Cheese Online | HORECA Avvatar Beverages Protein Milk Powder © 2
Slide 25: Our ESG Initiatives
OUR ESG INITIATIVES Continuous Monitoring Our ESG Framework A well articulated Also abided internal ESG policy by IFC’s policy in adherence to framework different certifications. on ESG. Performance Energy conservation Water Responsible Marked efforts both conservation Effluent & reduction thermal &
Slide 26: Green Initiatives
GREEN INITIATIVES WATER CLIMATE ENERGY REDUCE I REUSE I RECYCLE FOCUS ON REDUCING AIR l SOIL I NOISE POLLUTION EMISSION I ENERGY CONSERVATION I FOCUS ON RENEWABLES Water optimization. Installation of solid waste digester. Power generation through solar Our water consumption per liter of Monitoring a
Slide 27: © 2023 All Rights Reserved | Parag Milk Foods
© 2023 All Rights Reserved | Parag Milk Foods 26