Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Q1 FY2023 Earnings Presentation
39 slides from Hindustan Foods's earnings presentation, August 2022
Slide 1: Hindustan Foods Limited Investor Presentation August 2022
Hindustan Foods Limited INVESTOR PRESENTATION AUGUST 2022
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Hindustan Foods Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 3: Q1FY23 Overview
Q1FY23 Overview Uttar Pradesh|Ice Cream Plant 3
Slide 4: Key Parameters
Key Parameters NETWORTH as on 30th June 2022 Rs. 319 crore GROSS BLOCK** as on 30th June 2022 Rs. 649 crore TOTAL REVENUES For Q1FY23 Rs. 599 crore HINDUSTAN EBITDA For Q1FY23 Rs. 39 crore 30% growth YoY 43% growth YoY FOODS LIMITED PROFIT AFTER TAX Rs. 15 crore Q1FY23 PROFIT BEFORE TAX Rs. 23 crore
Slide 5: Key Developments
Key Developments Reckitt Benckiser Scholl India The merger of the malt Limited acquisition has been Beverages plant at Coimbatore has also completed and the • The wholly owned subsidiary, HFL successfully completed. The Board has sanctioned an Consumer Products has successfully company is working on
Slide 6: Message from Managing Director and Group CFO
Message from Managing Director and Group CFO Commenting on the Results, Mr. Sameer R. Kothari, Managing Director said ,“The company’s performance in this quarter has been satisfactory and along expected lines. The new project in Lucknow started commercial production and I am proud that the team has
Slide 7: Q1 FY23 Consolidated Result Highlights
Q1 FY23 Consolidated Result Highlights Revenue# (Rs. Crs.) EBITDA (Rs. Crs.) 30% 43% 598.6 38.6 461.5 27.0 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Profit before Tax (Rs. Crs.) Profit after Tax (Rs. Crs.) 43% 48% 22.9 14.9 16.0 10.1 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 # Includes Other Income 7 Note: Q1FY22 numbe
Slide 8: Consolidated Profit & Loss Statement – Q1FY23
Consolidated Profit & Loss Statement – Q1FY23 Particulars (Rs. Crs.) Q1 FY23 Q1 FY22 Y-o-Y Q4 FY22 Q-o-Q FY22 Total Revenue# 598.6 461.5 29.7% 582.5 2.8% 2043.8 Cost of Goods Sold 515.7 401.5 510.5 1778.1 Manufacturing and Operating Costs 25.1 17.9 21.7 79.6 Gross Profit 57.8 42.2 37.1% 50.3 14.9% 1
Slide 9: Capex Update
Capex Update Uttar Pradesh: Ice Cream Hyderabad: Bath Soaps & Detergent Bars New Capex: Healthcare & Wellness Capex Rs. 125 Crores Capex Rs. 150 Crores Rs. 100 Crores • The Uttar Pradesh Ice Cream Project has • As a part of our entry into “Healthcare & commenced commercial production • The Project w
Slide 10: Our Journey of Rs. 2,000 crores: Onwards and Upwards
Our Journey of Rs. 2,000 crores : Onwards and Upwards Revenue (Rs in Crores) 2x Growth 1983-84 Incorporated as a JV with Growth Phase 4,000 2,026 Glaxo India Ltd. +120.4% 1,410 Set up the facility at Goa for manufacturing ‘Farex’ 772 493 39 140 FY17 FY18 FY19 FY20 FY21 FY22 FY25E 2013-16 Commencemen
Slide 11: It Has Just Started To Sync…
It Has Just Started To Sync… Execution M&A Team Performance Contract Mfg Executed and Delivered The integration that has All the hands working Revenue CAGR of 120% GO TO Contract as per expectation been undertaken during together in sync to over FY17-FY22 Manufacturer for our the year and in the rec
Slide 12: HFL At A Glance
HFL At A Glance Goa | Baby Food, Extruded Cereals & Snacks 12
Slide 13: We Have The EDGE
We Have The EDGE The Brawn Behind Your Brands 01 Flexible Business Model suitable for any size of 05 1200+ customer and across product categories TEAM MEMBERS 02 Pioneers in FMCG Contract Manufacturing 06 17 PLANTS Most Diversified and Trusted FMCG contract 07 30+ 03 manufacturers for Domestic and I
Slide 14: The Vanity Case Group
The Vanity Case Group State-of-the-art R&D Lab Exclusive Private Label Division New Products & Packaging development experts Wide-ranging Private Labels Concept to Market Solutions For Retail Chains & E-Commerce Brands Pioneers in Vanity Case Caters to Group Domestic and Export Markets F&B and Home
Slide 15: Our Journey
Our Journey 2015-16 2015-16 ➢ Acquired Ponds Exports Ltd, shoe manufacturing ➢ Raised capital through promoter units from Hindustan Unilever Ltd. and started 2013-14 and non-promoters of the manufacturing for legacy clients like TBS, Gabor, Company including Sixth Sense Jomos & Richter. Soon after,
Slide 16: Our Journey
Our Journey 2021-22 2021-22 ➢ Started production of Floor & Surface Cleaner at ➢ Company got the final order of NCLT in Dec’21, Silvassa plant in May’22 approving the scheme of arrangement for merger ➢ Project work started for manufacturing Bath Soaps of Malt Beverages plant in Coimbatore and and De
Slide 17: Our Product Capabilities
Our Product Capabilities Personal Care Food and Beverages Health & Wellness Hair Care o Vitamins, Minerals & Extruded Cereals & Snacks, RTC, RTE Nutraceuticals o Cosmeceutical & Skin o Shampoo, Hair Oil & Hair Foods care - Allopathic, Herbal o Hair Gel & Hair Cream o Breakfast Cereals o Nutrition -
Slide 18: Business Models | How we do it
Business Models | How we do it Entire Dedicated Manufacturing The entire manufacturing facility is built-to-suit, exclusively utilised for the Principal Company Anchor-Tenant Manufacturing & Shared Manufacturing The manufacturing facility is not entirely dedicated to a single Principal Company, but
Slide 19: FMCG Partners all over India
FMCG Partners all over India 19
Slide 20: Experienced Board
Experienced Board Shrinivas Dempo Nikhil Vora Chairman, Non-Executive Non-Executive Director Third-generation entrepreneur & chairman of Goa’s Leading business House, Founder and CEO of Sixth Sense Ventures Dempo Nikhil was earlier the Managing Director and Head of Research at IDFC Received Postgrad
Slide 21: Certifications
Certifications (HOF) ; Piss 4 BRC FOOD CERTIFICATED Bureau of Indian Standards GMP STANDARD a > oe, f * $ ISO Siz 3 Food Safety System 9001:2008 é ae ff: Certification 22000 CERTIFIED, ISO 14001 —_— atti 21
Slide 22: State Of The Art Manufacturing Facilities
State Of The Art Manufacturing Facilities Location No. of Units Details ✓ Manufactures Pest Control products such as coils, aerosols and vaporizers Jammu 1 ✓ Aggregate Capacity: Coils: 1,200 Mn PA; Vaporizers: 43.2 Mn PA; ✓ Aerosols: 7.2 Mn PA ✓ Manufactures Ice Creams & Desserts – Sticks, Cones, Cu
Slide 23: State Of The Art Manufacturing Facilities
State Of The Art Manufacturing Facilities Location No. of Units Details ✓ Hyderabad I: Manufactures Detergent Powders. Capacity : 70,000 TPA Hyderabad 2 ✓ Hyderabad II: Manufactures Liquid Detergents, Fabric Conditioners & Softeners, Liquid Soaps and Shampoos. Capacity: 60,000 KLPA Mysuru 1 ✓ Manufa
Slide 24: Future Growth Strategy
Future Growth Strategy HFL Coimbatore | Tea & Coffee 24
Slide 25: Evolution Of Contract Manufacturing
Evolution Of Contract Manufacturing Phase IV (The Future) o Global sourcing hub like Pharma generics o Explosion of small brands who do not want to invest in manufacturing facilities Phase III (Present Times) o Most product categories in India are duopolies or oligopolies unlike in the US/ Europe wh
Slide 26: Industry Opportunity is huge
Industry Opportunity is huge FMCG Market Size Personal Care Outsourced Manufacturing ~50% Opportunity Home / Health Care* Rs. 50,000 Crores - Rs. 1,00,000 Crores ~31% Company Estimates $103.70 Billion translates to Food & Beverages The outsourced Rs. 8,00,000 Crores manufacturing HFL plans to add in
Slide 27: Favourable Demographics of India ensures incessant growth in FMCG
Favourable Demographics of India ensures incessant growth in FMCG Young & Working Population Urbanization India’s large share of population is young and Infrastructure development across smaller working; this gives a huge encouraging signs of cities ensures large share of country’s sustainable growt
Slide 28: India seeing huge headroom for FMCG growth
India seeing huge headroom for FMCG growth Penetration of few FMCG Categories in India (%) FMCG Per Capita Consumption India X Body Wash 2 Hair Conditioner Indonesia 2X Dishwash Liquids Washing Liquids China 3X Body Lotion Face Wash Philippines 6X Food Drinks 25 Thailand 10X 0 5 10 15 20 25 30 • Ind
Slide 29: Competitive Edge: High Entry Barriers
Competitive Edge : High Entry Barriers Setting up Manufacturing plant Skilled Labour Efficient allocation of resources is capital intensive Management To fuel growth 02 04 06 01 03 05 07 Logistics & Supply chain Stringent Quality Control Regulatory & Increasing competitiveness management (QC) of Cus
Slide 30: HFL is best placed to capitalize on the Growth Story
HFL is best placed to capitalize on the Growth Story Largest Organized Player One of the largest Organized Player with 30+ decades of experience Management Expertise Management Expertise with over three decades of experience in Contract Manufacturing Redefined Business Model HFL’s redefined business
Slide 31: Multiple Levers of Growth
Multiple Levers of Growth Evolving Regulatory Environment Growing Consumer Asset-light Operating Specialized Business Foster Innovation Models Demand Approach 01 E – Commerce Customers & Outsourcing Strategy to pass on the Strategy to engage into core Partners work together to operational complexiti
Slide 32: Historical Financials
Historical Financials HFL Jammu Plant
Slide 33: Consolidated Profit & Loss Statement – Q1FY23
Consolidated Profit & Loss Statement – Q1FY23 Particulars (Rs. Crs.) FY22 FY21 FY20 Total Revenue# 2043.8 1409.8 773.1 Cost of Goods Sold 1778.1 1190.6 618.7 Manufacturing and Operating Costs 79.6 66.4 55.6 Gross Profit 186.1 152.7 98.8 Employee Expenses 40.8 34.7 24.2 Other Expenses 26.7 25.3 17.7
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crs.) 31-Mar-22 31-Mar-21 31-Mar-20 Particulars (Rs. Crs.) 31-Mar-22 31-Mar-21 31-Mar-20 Non-Current Assets 546.1 386.8 286.0 Equity 304.1 254.4 187.0 Property, plant and equipment 394.6 300.4 248.7 Equity share capital 22.5 21.2 21.2 Capital work-in-progr
Slide 35: Summary of Consolidated Cashflows
Summary of Consolidated Cashflows Particulars (Rs. Crs.) 31-Mar-22 31-Mar-21 31-Mar-20 Operating profit before working capital changes 118.9 91.9 56.3 Changes in working capital -53.8 -2.3 -31.5 Cash generated from operations 65.1 89.6 24.8 Direct taxes paid (net of refund) -28.7 -17.6 -7.7 Net Cash
Slide 36: ESG Initiatives
ESG Initiatives HINDUSTAN FOODS LIMITED
Slide 37: Building a Sustainable Future
Building a Sustainable Future New factories have solar power plants installed overhead, and rainwater harvesting Have begun installing briquette boilers to replace the traditional coal fired ones Ensuring smart lights and air-conditioning, digital payments and signatures, minimal paper Working with
Slide 38: Corporate Social Responsibility
Corporate Social Responsibility There is nothing more rewarding than giving back to the society and making a difference • As a responsible Corporate Entity, committed towards the upliftment and development of the local communities we work with. We leverage our resources, experience and geographic sp
Slide 39: Thank You
Company: THANK YOU Investor Relations Advisors: Hindustan Foods Limited Strategic Growth Advisors Pvt. Ltd. CIN: L15139MH1984PLC316003 CIN: U74140MH2010PTC204285 Vimal Solanki Rahul Agarwal / Brinkle Shah Jariwala vimal.solanki@thevanitycase.com rahul.agarwal@sgapl.net / Brinkle.shah@sgapl.net +91 9