Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q1 FY21 Earnings Presentation
33 slides from Prataap Snacks's earnings presentation, August 2020
Slide 1: Q1 FY21 - Results Presentation
Q1 FY21 - Results Presentation August 2020
Slide 2: 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 3: Contents
Contents Company Overview 4 Industry Overview 17 COVID19 Impact on the Business 21 Q1 FY’21 Results Performance 24 3
Slide 4: Company Overview
Company Overview 4
Slide 5: Prataap Snacks at a Glance
Prataap Snacks at a Glance Over More than SKUs Manufacturing packets sold 5 year revenue Facilities* per day CAGR Over Reach of over Retail In Rings Super Stockists Distributors Touchpoints 5 *[5 Inhouse plants and 9 contract manufacturing units (3P)]
Slide 6: Diverse Product Portfolio
Diverse Product Portfolio CUP CAKE, RINGS, KURVES & NAMKEEN & POTATO CHIPS CHULBULE NAMKEEN PELLET SNACKS TIFFIN CAKE & PUFF FRYUMS SANDWICH CAKE Potato based Rice grit & Corn grit Gram based Wheat based Cake Namkeen snack Corn grit based snack SKUs: 22 SKUs: 4 variations and Fryum
Slide 7: Avadh Snacks
Avadh Snacks Product Portfolio Fastest growing and fourth Namkeen Fryums largest snacks player in Gujarat ~6% market share in Gujarat, one of the largest market 22% revenue CAGR over the past 3 years Key Products: Bhavnagri Gathiya, Sada Key Products: Tomato Cup, Salted reffil, Mamra, Papdi Gathiya,
Slide 8: Avadh Snacks - Unique Business model & Expansion plans
Avadh Snacks - Unique Business model & Expansion plans Business Model Expansion plans Avadh has a Unique Business model •Super Value Player offering higher Increased capacity of value for Money to consumers. Rajkot facility by 50% from Q1FY21 Pan India Direct Distribution model expansion To expand A
Slide 9: Sweet Snacks Portfolio
Sweet Snacks Portfolio Center Filled Choco Vanilla Sandwich Cookie-Cake Yum Cake Tiffin Cake Cup Cake Cake Cake SKU's - 3 SKU's - 2 SKU's - 1 SKU's - 1 SKU's - 1 SKU's - 3 Target Target Target Target Target Target group - group - group - group - group - group - Youth and Youth and Youth
Slide 10: Track Record of Innovation
Track Record of Innovation Launched Nachos, and Launched Launched Kurves Cup Cake, Yum Cake, Introduction Launched Tiffin Cake Cookie of Seven Yum-Pie, a and Cake and variety of Sandwich Wonders Choco sweet snacks, Cake range of Vanilla Introduction under Rich Cake healthier Feast of Yoodles Introdu
Slide 11: Key Milestones
Key Milestones Entered into 3P Contract Manufacturing Sequoia’s initial Doubled the Guwahati new plant in Karjat & investment of Rs. Installed capacity of Potato commissioned Kashipur Prakash Snacks 620 mn Chulbule Chips plant at incorporated. Prataap Snacks Introduction of plant at Indore from Conv
Slide 12: Pan India Presence
Pan India Presence Strategically located Manufacturing facilities to cater the regional demand No. of Facilities Products 1 Hissar 1 – Contract Facility Extruded Snacks, Pellets, Chulbule No. of Facilities Products Kashipur 1 - Contract Facility Chips, Namkeen, Pellet 10 1 5 Indore No. of Facilities
Slide 13: Guided by an Accomplished Board
Guided by an Accomplished Board Arvind Mehta Chairman & Executive Director Over 30 years of experience in real estate business along with over 16 years in the snacks Vineet Kumar Kapila food industry and in the financing business Independent Director Ex-COO (RPC North of United Spirits) & earlier Mr
Slide 14: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Arvind Mehta Over 30 years of experience in real estate business along with over 16 years in the Chairman & Executive snacks food industry and in the financing business Director Corporate functions Mr. Amit Kumat Managing Director and Chief Over 23 years
Slide 15: Helmed by a Professional Management Team
Helmed by a Professional Management Team He holds bachelor degree in Science (Economics). He has over 27 years of Mr. Subhashis Basu experience in the FMCG industry and worked with Parle, PepsiCo India and Mother Chief Operating Officer Dairy Corporate functions Mr. Subhash Bhatt He holds bachelor d
Slide 16: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Awadh B. Singh He holds bachelor degree in Science. He has over 31 years of experience in the General Manager Sales - FMCG industry and worked with Prakash Snacks and Hello Agro East Corporate functions Mr. Mahesh Purohit He holds bachelor degree in Comme
Slide 17: Industry Overview
Industry Overview 17
Slide 18: Favourable Demographics Supporting Industry Growth
Favourable Demographics Supporting Industry Growth POPULATION TREND (BILLIONS) INDIA’S ANNUAL CONSUMER 1.397 1.411 EXPENDITURE (RS. TRILLION) 1.352 1.366 1.380 101 110 1.310 1.324 1.338 80 84 90 71 75 1.263 1.278 1.293 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2
Slide 19: Salty Snacks – Poised for Strong Growth
Salty Snacks – Poised for Strong Growth ORGANISED MARKET TO GROW AT A CAGR OF 14.3% OVER 5 YEARS 43,000 ORGANISED SNACK MARKET BY TYPE 22,000 OF CATEGORIES 8,700 Others 2% 2010 2016 2021 Namkeen & Source: Systematix Research Report March 2019 Chips Traditional 30% 36% EXTRUDED SNACKS TO POST THE HIG
Slide 20: Sweet Snacks Industry – Size, Growth, Key Players
Sweet Snacks Industry – Size, Growth, Key Players Organized Sweet Snacks (Cakes & pies): West is Rs.2,200-2,500 crore growing fast 20% now N Limited Highly under vegetarian penetrated options in category Cake 15% W Market E 50% Very few S Growing at national fast pace players 15% 20
Slide 21: Impact of COVID19 and Initiatives taken
Impact of COVID19 and Initiatives taken 21
Slide 22: Q1FY21 – Normalcy resuming post Unlocking
Q1FY21 – Normalcy resuming post Unlocking Growth revival after nationwide reopening beings o Q1FY21 began on a cautious note with a steady revival in operations across facilities o Improved inventory levels with distributors/ shops and resolved supply chain issues to ensure faster replenishment o As
Slide 23: Gradually turning the tide
Gradually turning the tide Various initiatives taken to ramp up production at owned and 3P facilities, currently at ~ 85% of pre-Covid levels on an overall basis o Carried out necessary changes at manufacturing facilities to ensure appropriate compliance of Covid guidelines o The operational chall
Slide 24: Q1 FY’21 Results Performance
Q1 FY’21 Results Performance 24
Slide 25: Operational Overview
Operational Overview Began FY21 on a challenging note while reporting a topline de-growth, performance was affected due to the disruptions caused due to plant closures, constraints on movement of manpower and material o Mother plant, in Indore, comprising 50% of capacity faced elongated shutdown d
Slide 26: Financial Overview
Financial Overview Q1 FY’21: o Revenue of Rs. 1,957.4 million, registering de-growth of 40.9% yoy due to operating constraints on account of nationwide lockdown o Operating EBITDA of Rs. 82.4 million, translating to a margin of 4.2% was impacted by operating deleverage o PAT stood at Rs. (59.6) mill
Slide 27: MD & CEO’s Message
MD & CEO’s Message Commenting on Q1 FY’21 performance, Mr. Amit Kumat - Managing Director & CEO, Prataap Snacks Limited said: “It has been a quarter of unprecedented challenges due to the COVID19 pandemic and consequent nationwide lockdown which has impacted operations in all geographies. Though we
Slide 28: Abridged P&L Statement
Abridged P&L Statement Y-o-Y Particulars Q1 FY’21 Q1 FY’20 Change (%) Income from Operations 1,957.4 3,309.9 -40.9% Raw Material Cost 1,405.2 2,333.5 -39.8% Gross Profit 552.2 976.4 -43.5% Gross Margins 28.2% 29.5% -129 Bps EBITDA 82.4 272.1 -69.7% EBITDA Margins 4.2% 8.2% -401 Bps Depreciation 159.
Slide 29: Financials – Q1 FY’21 Performance
Financials – Q1 FY’21 Performance SALES / INCOME FROM Gross Margin (%) OPERATIONS 3,309.9 29.5% 1,957.4 28.2% Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 ▪ Income from operations in Q1 FY’21 de-grew by 41% to Rs.1,957 mn, due to operating constraints on account of nationwide lockdown ▪ Gross margins contracted
Slide 30: Financials – Q1 FY’21 Performance
Financials – Q1 FY’21 Performance EBITDA Margin (%) PAT Margin (%) 8.2% 2.9% 272.1 96.5 4.2% 82.4 Q1 FY20 Q1 FY21 -59.6 Q1 FY20 Q1 FY21 -3.0% ▪ EBITDA for Q1 FY’21 was lower by 70% YOY at Rs. 82.4 mn, due to operating deleverage as fixed cost for the entire quarter were absorbed by lower revenues ▪
Slide 31: Financials – Q1 FY’21 Performance
Financials – Q1 FY’21 Performance Cash Profit Cash EPS 10.3 241.6 82.7 3.2 Q1 FY20 Q1 FY21 Q1 FY20 Q1 FY21 ▪ The Company follows a conservative accounting policy and is amortizing intangible assets of Avadh Snacks ▪ A lateral benefit has been contained tax outflow CONSOLIDATED FINANCIALS, IN RS. MIL
Slide 32: About Prataap Snacks Ltd.
About Prataap Snacks Ltd. Prataap Snacks Ltd. (PSL) is a leading Indian Snack Foods Company. It offers multiple variants of products across categories of Potato Chips, Extruded Snacks, Namkeen (traditional Indian Sumit Sharma snacks) under the popular and vibrant Yellow Diamond brand. It has recentl
Slide 33: Thank You
Thank You 33