Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q4 FY2020 Earnings Presentation
37 slides from Prataap Snacks's earnings presentation, Jun 18, 2020
Slide 1: Cover letter to stock exchanges
Ref No.: PSL/2020-21/CS/SE/18 Date: 18th June, 2020 To, To, Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5t h Floor P.J. Towers, Plot No. C/1, G Block Dalal Street Bandra Kurla Complex Mumbai- 400 001 Bandra ( E), Mumbai -4
Slide 2: Q4 & FY20 - Results Presentation
Q4 & FY20 - Results Presentation June 2020
Slide 3: 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 4: Contents
Contents Company Overview 4 Industry Overview 17 COVID19 Impact on the Business 21 Q4 & FY’20 Results Performance 26 3
Slide 5: Company Overview
Company Overview 4
Slide 6: 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)
Slide 7: 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 8: 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 9: 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 Q1FY20 Pan India Direct Distribution model expansion To expand A
Slide 10: 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 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: Industry Overview
Industry Overview 17
Slide 19: 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 1.324 1.338 80 84 90 1.293 1.310 71 75 1.263 1.278 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2
Slide 20: 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 21: 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 22: Impact of COVID19 and Initiatives taken
Impact of COVID19 and Initiatives taken 21
Slide 23: Q4FY20 – Contrasting Performance at Start and End of Quarter
Q4FY20 – Contrasting Performance at Start and End of Quarter Healthy growth witnessed in January and February o Q4FY20 began on a promising note with healthy demand witnessed in first couple of months ➢ Witnessed revenue growth over 15% in January and February o An uptick in demand witnessed across
Slide 24: Gradual Un-Locking – April & May
Gradual Un-Locking – April & May ▪ Priority was on restarting operations and ensuring delivery Key Challenges of ~100 vehicles that were in transit ▪ Despite being in the processed foods category, mother plant in Indore restarted its operations only in mid-May on account of Indore being a Covid hots
Slide 25: Reviving Operations and Preserving the Robust Financial Position
Reviving Operations and Preserving the Robust Financial Position ▪ The Company has taken various initiatives to ramp up production which is currently at 80% of pre-Covid levels on an overall basis o Undertaking necessary design changes at manufacturing facilities to ensure appropriate social distanc
Slide 26: CSR Initiatives Undertaken
CSR Initiatives Undertaken ▪ PSL focused on giving back to the society in these unprecedented times ▪ PSL delivered around 1,500 meals on a daily basis o Organized free meals for front-line workers including Policemen, medical personnel and Government staff on duty o Distributed free meals to people
Slide 27: Q4 & FY’20 Results Performance
Q4 & FY’20 Results Performance 26
Slide 28: Operational Overview
Operational Overview ▪ Closed FY20 with healthy topline growth of 19.1% with robust performance across entire portfolio of savoury and sweet snacks o In Q4FY20 PSL delivered a topline growth of 2.5% yoy despite facing the disruptions caused by the lockdown in March ▪ Faced challenges on the margin f
Slide 29: Financial Overview
Financial Overview FY’20: ▪ Total revenue of Rs. 13,937.9 million, higher by 19.1% YoY ▪ Operating EBITDA of Rs. 936.8 million, translating to a margin of 6.7% ▪ PAT of Rs. 469.2 million at a margin of 3.4% ▪ EPS (Diluted) was Rs. 20.01 per share ▪ The Board of Directors have recommended a dividend
Slide 30: MD & CEO’s Message
MD & CEO’s Message Commenting on Q4 FY’20 performance, Mr. Amit Kumat - Managing Director & CEO, Prataap Snacks Limited said: “We delivered a robust performance in FY20 with revenue growth of 19.1% despite moderate consumption trends across the country. Even as we were witnessing an upswing in deman
Slide 31: Abridged P&L Statement
Abridged P&L Statement Y-o-Y Y-o-Y Particulars Q4 FY’20 Q4 FY’19 FY’20 FY’19 Change (%) Change (%) Income from Operations 3,141.7 3,065.3 2.5% 13,937.9 11,706.1 19.1% Raw Material Cost 2,306.2 2,176.8 5.9% 9,947.1 8,204.2 21.2% Gross Profit 835.5 888.5 -6.0% 3,990.8 3,501.9 14.0% Gross Margins 26.6%
Slide 32: Financials – Q4 & FY’20 Performance
Financials – Q4 & FY’20 Performance SALES / INCOME FROM Gross Margin (%) OPERATIONS 13,937.9 11,706.1 29.9% 29.0% 28.6% 3,065.3 3,141.7 26.6% Q4 FY19 Q4 FY20 FY19 FY20 Q4 FY19 Q4 FY20 FY19 FY20 ▪ Income from operations in FY’20 grew by 19.1% to Rs. 13,937.9 mn ▪ Gross margins contracted by 129 Bps t
Slide 33: Financials – Q4 & FY’20 Performance
Financials – Q4 & FY’20 Performance EBITDA Margin (%) PAT Margin (%) 7.3% 7.1% 6.7% 6.3% 4.5% 4.4% 3.8% 3.4% 223.0 137.1 832.2 936.8 137.1 197.6 446.4 469.2 Q4 FY19 Q4 FY20 FY19 FY20 Q4 FY19 Q4 FY20 FY19 FY20 ▪ EBITDA for Q4 FY’20 was lower by 38.5% YOY at Rs. 137.1 mn , whereas the EBITDA for FY’20
Slide 34: Financials – Q4 & FY’20 Performance
Financials – Q4 & FY’20 Performance Cash Profits Cash EPS 36.8 863.5 33.8 791.5 204.3 8.7 134.4 5.7 Q4 FY19 Q4 FY20 FY19 FY20 Q4 FY19 Q4 FY20 FY19 FY20 ▪ The Company follows a conservative accounting policy and is amortizing intangible assets of Avadh Snacks ▪ A lateral benefit has been contained ta
Slide 35: Impact on PAT from non-operational adjustments
Impact on PAT from non-operational adjustments (3.2%) * This is a one time impact, as Avadh has opted for new tax regime in the current year and accordingly deferred tax liability created on the Intangibles acquired in Business Combination has been remeasured at new tax rate in consolidated financia
Slide 36: 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 37: Thank You
Thank You 36