Parag Milk Foods Ltd. · NSE:PARAGMILK
Parag Milk Foods — FY2024 Earnings Presentation
32 slides from Parag Milk Foods's earnings presentation, May 18, 2024
Slide 1: Cover letter to stock exchanges on investor presentation
May 18, 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 Presentation FY24
Investor Presentation FY24
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-FY24
EXECUTIVE SUMMARY-FY24 Focused approach towards driving profitable business growth Led to robust bottom line performance Sharp improvement Brand Avvatar has Core Categories of Ghee and Cheese grew by in the Gross margins Cash Flow From Operations posted strong growth 70% Growth YoY + 420 bps YoY 98%
Slide 5: Consolidated Financial Highlights- FY24
CONSOLIDATED FINANCIAL HIGHLIGHTS- FY24 Revenue Gross Profit EBITDA PAT INR INR INR INR 3,139 749 222 crore; 91 crore; crore; crore; 8.5 % 23.9 % 7.1% 2.9 % growth YoY margin margin margin 4
Slide 6: FY24: Business Composition
NEW AGE FY24: BUSINESS COMPOSITION BUSINESS 4.7% VALUE ADDED BUSINESS SMP LIQUID MILK 68.3% 17.9% 9.1% New age business includes brand Avvatar and brand Pride of Cows 5
Slide 7: Soft Milk Prices
SOFT MILK PRICES Milk Prices during Q4 FY24 remained soft down 18% yoy and up 2% sequentially Milk Rate (INR/litre) 39.4 11% down in FY 24 38.4 37.7 Vs FY 23 36.3 35.6 36.1 33.5 32.2 32.6 29.0 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 For Q4FY24, processed on an average 16 lacs lit
Slide 8: NPD – Launch of Gowardhan Sweets
NPD – Launch of Gowardhan Sweets
Slide 9: Awards & Accolades
Awards & Accolades WOMEN ENTREPRENEUR OF THE YEAR Ms. Akshali Shah - Executive Director Parag Milk Foods Thrilled to announce that Gowardhan Ghee has been honored with the prestigious FE Brandagon ACE Award 2023! Recognizing excellence in marketing campaigns, we are proud to stand out in the transfo
Slide 10: 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 9
Slide 11: 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
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Slide 13: Brand Building & Innovation
BRAND BUILDING & INNOVATION Aug 23 To Mar 24 Consumer offer for Gujarat State on Jul 23 To Dec 24 500ml PP & 1 Ltr PP Consumer offer Jan 24 To Feb 24 Print Ad campaign in top regions Jul 23 To Dec 24 Consumer offer Jan 23 To Dec 23 KBC, NEW TVC LAUNCH, FESTIVE TV INTEGRATION
Slide 14: Brand Building & Innovation
BRAND BUILDING & INNOVATION Focusing on impact led campaign to create visibility and garner eyeballs. L-bands and aston bands taken for the entire duration of IPL on 5514 exposures Star Sports 12 network channels 13
Slide 15: On Sony TV
ON SONY TV The show with 0.9 TVR delivered 68 GRPs in Q2 with 4 Go Cheese ad. Integration planned ame with Go Cheese Amazing Moment playing every week and hampers with brand mention in every episode. SE
Slide 16: Drugs-on-cruise case: ED files money laundering case
Drugs-on-cruise case: ED files money laundering case 7 against Sameer Wankhede
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Slide 18: Influencer Activity Consumer Offers E-Commerce Activity
Influencer Activity Consumer Offers E-Commerce Activity The Fit Expo 2023
Slide 19: Influencer Activation
INFLUENCER ACTIVATION — Feo S Awatar India implemented a year-long influencer marketing campaign, engaging over 300 influencers BUG a" : © awatarindia © : to-generate awareness and drive engagement through digital media. This extensive outreach | successfully integrated with the fitness industry, re
Slide 20: Strengthening New Age Business: Pride of Cows
STRENGTHENING NEW AGE BUSINESS Pride of Cows ROUTE TO MARKET INCREASING PRODUCT PORTFOLIO Direct to E-Commerce Organized Ghee | Milk | Curd Consumers Trade Channels Fat Free Milk | Paneer Entered Now present across Bengaluru 7 Cities Vadodara GROWTH STRATEGY – MORE POINT OF SALE, MORE PRODUCTS
Slide 21: 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 682 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 Distrib
Slide 22: Channels Consistently Contributing to Growth
EVOLVE ROUTE TO MARKET CHANNELS CONSISTENTLY CONTRIBUTING TO GROWTH Over FY22-FY24, the modern trade channel has witnessed strong 23% CAGR growth The General trade channel has grown by a 19% CAGR for FY22-FY24, HoReCa has grown by 7% CAGR over FY22-24 21
Slide 23: Our New Age Business
OUR NEW AGE BUSINESS India’s Only Whey Manufacturing Company > 50% of the revenue is through ecommerce 4x x FY22 FY24 22
Slide 24: 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
Slide 25: Driving Business Transformation
DRIVING BUSINESS TRANSFORMATION Cost Optimization Digitization of Plant & Operations Data Analytics Market Expansion & Penetration Strengthening the management
Slide 26: 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 27: 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, 2020 low fat milk 2011 Extending Pride of Cows to value added products- Ghee, Curd Pride of Cows 2021 Introduced Milk Shakes 2015 Topp Up 2017 Avvatar 2024 Introduced
Slide 28: Brand Positioning
BRAND POSITIONING Premium Mass Affluent Mass 27
Slide 29: 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 28
Slide 30: 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 31: 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 Monitoring and
Slide 32: Safe Harbor
Safe Harbor: Any forward-looking statements about expected future events, financial and operating results of the Company are based on certain assumptions which the Company does not guarantee the fulfilment of. These statements are subject to risks and uncertainties. Actual results might differ subst