Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — Q3 FY2023 Earnings Presentation
22 slides from Sundrop Brands Limited Shs Dematerialised's earnings presentation, Jan 25, 2023
Slide 1: Regulation 30 disclosure letter to stock exchanges
25th January, 2023 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233 / 22721234 Ph. No. 022-
Slide 2: Quarter 3, FY'23 Results Update
Agro Tech Foods Limited Quarter 3, FY’23 Results Update January 25th, 2023
Slide 3: Company Strategic Vision
Company Strategic Vision The Best Performing Most Respected Foods Company in India 2
Slide 4: Quarter 3 – Key Performance Highlights
Quarter 3 – Key Performance Highlights Steady Foods Growth – Improving Margins • Foods Revenues of Rs. 116 crore - growth of 7% vs PY. Diversified portfolio helps to achieve moderate growth despite RTC base impact. • Staples Margins hold up well. YTD GM of Rs. 53 crore (PY Rs. 55 cr.). • Q3 Gross Co
Slide 5: Performance Highlights by Category
Performance Highlights by Category 1. Ready to Cook 2. Ready to Eat -Western 3. Spreads (Rs. 18,000 crore) (Rs. 28,500 crore) (Rs. 3400 crore) 4. Breakfast Cereals 5. Chocolate Confectionery 6. Staples (Rs. 3500 crore) (Rs.13,600 crore) (N.A.) 4 * Category Sizes in Brackets – At Retail Price
Slide 6: Ready to Cook Snacks
Ready to Cook Snacks RTC Q1, FY’23 Q2 FY’23 Q3, FY23 YTD, FY’23 Volume -5% -4% -6% -4% Value -4% +1% -3% -1% • Covid19 base Impact continues to hold back RTC Growth. • Elevated level of Media investments initiated for Popcorn starting December 2022 – will help to deliver desired levels of Growth in
Slide 7: Ready to Eat Snacks
Ready to Eat Snacks RTE Q1 FY’23 Q2 FY’23 Q3, FY’23 YTD FY’23 Volume +65% +32% +36% +41% Value +79% +50% +37% +51% • Strong Volume growth continues with steady strengthening of the RTE Popcorn Business. • Gap between Value & Volume decreases as we start lapping periods which contain price increases
Slide 8: Spreads & Dips
Spreads & Dips Spreads Q1 FY’23 Q2 FY’23 Q3 FY’23 YTD FY’23 Volume +28% +30% +20% +26% Value +10% +14% +5% +10% • Successfully able to regain/increase share – visible in steady Volume Growth. • New competitors struggle to find relevance – large FMCG and DTC–evidence of Moats in the Foods business •
Slide 9: Breakfast Cereals
Breakfast Cereals Cereals Q1 FY’23 Q2 FY’23 Q3 FY’23 YTD FY’23 Volume +54% +40% +67% +54% Value +58% +46% +60% +54% • Expansion of Center Filled Cereals and roll out of Value Added Oats ensure strong Category Growth. • Center Filled Cereals driven by distribution expansion & introduction of Cookie &
Slide 10: Chocolates
Chocolates Chocolates Q1 FY’23 Q2 FY’23 Q3 FY’23 YTD FY’23 Volume +218% +94% +28% +79% Value +252% +105% +38% +92% • Less than desired growth in Q3 - optimization of the simultaneous production, packing and shipping of multiple SKU’s not completed during the Quarter. • Working towards establishing t
Slide 11: Staples
Staples Premium Staples Q1 FY’23 Q2 FY’23 Q3 FY’23 YTD FY’23 Volume -12% -9% -15% -12% Value -8% -0% -10% -6% Mass Staples Q1 FY’23 Q2 FY’23 Q3 FY’23 YTD FY’23 Volume -74% -70% -60% -68% Value -71% -65% -53% -63% • Margin successfully held in Premium Staples. However, resultant softness in offtake w
Slide 12: Competitive Update
Competitive Update
Slide 13: Snacks: Competition Spends
Snacks: Competition Spends Tracked Brands (in F-17 F-18 F-19 FY20 FY21 Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Q2-23 Oct-22 Nov-22 Dec-22 Q3-23 Million) ACT II 110 74 38 45 95 18 31 11 20 80 15 21 0 10 15 25 Lays 148 374 252 491 335 238 202 127 175 742 333 305 42 118 191 351 Kurkure 196 260 396 321 237 9
Slide 14: Spreads: Competition Spends
Spreads: Competition Spends Tracked Brands (in F-17 F18 F-19 FY-20 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Q2-23 Oct-22 Nov-22 Dec-22 Q3-23 Million) Kissan Jam- 357 512 704 752 679 156 154 138 124 572 133 171 49 56 1 106 Kissan PB 0 0 0 0 196 109 129 125 146 508 106 112 35 60 2 98 Sundrop PB 56 30
Slide 15: Breakfast Cereals: Competition Spends
Breakfast Cereals: Competition Spends Rs Million FY-17 FY-18 FY-19 FY-20 FY-21 Q1-22 Q2- 22 Q3-22 Q4-22 FY-22 Q1-23 Q2-23 Oct-22 Nov-22 Dec-22 Q3-23 Kellogg 202 265 390 230 355 124 124 108 171 526 136 152 43 50 48 141 Cornflakes Kellogg Chocos 0 125 203 17 9 0 0 20 29 49 20 23 8 9 8 25 Fills Kellogg
Slide 16: Chocolates: Competition Spends
Chocolates: Competition Spends Tracked Brands (in Nov- FY- 18 FY- 19 FY-20 FY-21 Q1-22 Q2-22 Q3- 22 Q4-22 FY-22 Q1-23 Q2-23 Oct-22 Dec-22 Q3-23 Million) 22 Cadbury 5 Star 744 482 727 960 150 276 377 256 1058 153 461 60 67 81 209 Cadburys Celebration 138 212 277 399 0 56 370 11 437 7 106 310 0 0 310
Slide 17: Edible Oils: Competition Spends
Edible Oils: Competition Spends Tracked Brands Oct- Nov- Dec- F-12 F-13 F-14 F-15 F-16 F-17 F-18 F-19 FY-20 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Q2-23 Q3-23 (in 22 22 22 Million) Sundrop 88 94 50 65 46 34 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Saffola 121 212 356 291 338 320 588 544 527 400 116 86 68 1
Slide 18: Noodles: Competition Spends
Noodles: Competition Spends Tracked Brands (in Oct- Nov- Dec- Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Q2-23 Q3-23 Million) 22 22 22 Chings Noodles 2 19 20 0 40 0 0 0 0 0 8 0 3 1 0 4 Wai Wai 0 0 1 17 19 6 0 0 0.2 6 20 1 0 0 0 0 Knorr Soupy Noodles 0 140 0 0 140 0 0 0 0 0 0 0
Slide 19: Pasta: Competition Spends
Pasta: Competition Spends Tracked Brands (in Oct- Nov- Dec- Q1-21 Q2-21 Q3-21 Q4-21 FY- 21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Q2-23 Q3-23 Million) 22 22 22 Bambino Pasta 0 0 0 0 1 0 0 1 1 2 0 0 2 0 0 2 Sunfeast Yippee 0 90 1 1 93 0 1 4 0 5 1 1 3 2 0 5 pasta Keya Italiano Pasta 0 0 0 0 0 0 0 13 0 13
Slide 20: Soups: Competition Spends
Soups: Competition Spends Tracked Brands (in Oct- Nov- Dec- Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Q2-23 Q3-23 Million) 22 22 22 Chings Instant Soups 0 37 29 1 66 0 5 31 0 36 0 0 0 0 0 0 Knorr Chicken Delite 19 23 42 23 107 8 22 83 84 198 77 82 40 33 0 73 Soup Knorr Chines
Slide 21: Q3 & YTD Summary
Q3 & YTD Summary • Largely navigated Commodity Inflation without derailing Volume Trajectory on Foods - moderate YTD Growth of c10%. Work underway to overcome the base impact of Covid19 on RTC Volume. • Oils Margins stable despite impact of the Ukraine War. Higher margins have come however at a cost
Slide 22: On Our Way……
On Our Way…… The Best Performing Most Respected Foods Company in India 21