Parag Milk Foods Ltd. · NSE:PARAGMILK
Parag Milk Foods — Q2 FY22 Earnings Presentation
42 slides from Parag Milk Foods's earnings presentation, Nov 2, 2021
Slide 1: Investor Presentation
Investor Presentation 1 November 2021
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Parag Milk 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 secu
Slide 3: Executive Summary
Executive Summary During the quarter, EBITDA Margin for Our Net Profit grew by We continue to invest into consolidated the quarter was up by our brand to drive long Revenue grew by 43.3% Y-o-Y term growth. Brand 27.8% Y-o-Y investment has increased 6.8% Y-o-Y by 40% Y-o-Y We launched a new product:
Slide 4: Financial Performance
Financial Performance 4
Slide 5: Q2 FY22 Financial Performance
Q2 FY22 Financial Performance Revenues (Rs. Mn) Gross Profit (Rs. Mn) EBIDTA (Rs. Mn) +7% 5,323.2 +11% +28% 4,982.3 1,492.3 530.2 1,346.1 414.9 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 EBITDA Margins PAT (Rs. Mn) PAT Margins 10.0% +43% 4.3% 8.3% 227.7 3.2% 159.0 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q
Slide 6: Product Mix
Product Mix Milk Products 71% Milk 9% SMP & Others 20% Parag Milk Foods Limited 6
Slide 7: Q2 FY22 Profit & Loss Statement
Q2 FY22 Profit & Loss Statement Particulars (Rs. Mn.) Q2 FY22 Q2 FY21 Y-o-Y Q1 FY22 Q-o-Q H1 FY22 H1 FY21 Y-o-Y Total Revenue 5,323.2 4,982.3 7% 4,384.5 21% 9,707.7 9,338.3 4% Gross Profit 1,492.3 1,346.1 11% 1,377.4 8% 2,869.7 2,469.2 16% Gross Profit Margin(%) 28.0% 27.0% 31.4% 29.6% 26.4% EBITDA
Slide 8: H1 FY22 Balance Sheet
H1 FY22 Balance Sheet Particulars (Rs. Mn.) Sep-21 Mar-21 Equity & Liabilities Total Equity 11,796.2 9,281.4 Total Non ‐ Current Liabilities 2,173.7 461.1 Total Current Liabilities 5,008.0 7,082.8 Total Equity and Liabilities 18,977.9 16,825.3 ASSETS Total Non ‐ Current Assets 4,900.7 4,966.6 Total
Slide 9: Strategic Framework
Strategic Framework 9
Slide 10: Our 6C Framework
Our 6C Framework Cows Consumer Cash Cost Corporate Community • Focus on Core • Improve • Productivity Governance Categories Profitability Improvement • Experienced Board • Corporate Social Expansion • Strengthening Brands • Strengthening • Process • Professionals team Responsibility • Procurement •
Slide 11: Our 6C Framework
Our 6C Framework COWS 01 CONSUMER 02 CASH 03 Expanding geographical coverage (Setting up new collection centres Improve profitability by change in Targeting 5% of revenue in brand building initiatives & reaching new districts) product Mix, improved efficiencies & scale benefits Focus on core
Slide 12: Our 6C Framework
Our 6C Framework CORPORATE COST 04 GOVERNANCE 05 COMMUNITY 06 Enhance Board with experienced Community services in areas of Improve operational efficiencies by resources health, education & animal welfare automation, modernisation & strict controls Professionals for core Support farmers in
Slide 13: Progress Under Our Stated Strategic Initiatives
Progress Under Our Stated Strategic Initiatives 13
Slide 14: Cows
Cows 1.1 Million Average milk procurement for the quarter liters 26.9 Average rate of milk procurement for the quarter Per Liter 3rd 3rd consecutive year of good monsoons in the country consecutive year Milk availability is good and shall continue backed by good monsoons. Further, with demand stabil
Slide 15: Cows - Bhagyalakshmi & POC Expansion
Cows - Bhagyalakshmi & POC Expansion The future of dairy farming Expansion of Portfolio Increasing Cows 14,000 2,300 2021 2028e Expanding our product portfolio Increasing milk production under our premium offering - capacity to Pride of Cows 1,40,000 litres by 2028 This expansion is aimed at from th
Slide 16: Consumer – Strengthening the core categories
Consumer – Strengthening the core categories Core Categories +23% Q2FY21 Q2FY22 Gowardhan Ghee Gowardhan Paneer Go Cheese Proteins Core category sale has increased 23% YoY (against total growth of 7%) Leader & Pioneer in Pioneers of cow‟s milk 2nd Largest player in Only Indian player cow Ghee catego
Slide 17: Consumer
Consumer Opportunity Markets have grown by 30% Q-o-Q 30% Distribution and increasing depth in weighted outlets has been our key focus: 8% Over the last quarter we have grown by 8% in weighted distribution Distribution updates We have added another 1 cold storages; 2 new Depots and 17 super stockists
Slide 18: Consumer – New Product Launched
Consumer – New Product Launched GO Milkshake Tetra pack launch Milko Cheese Launch GO Cheese Topical post for Social Media • Indian Market – mirroring trends in developed markets and moving to substitutes • We aim to target low-income group consumers • Launched in 3 SKUs Slice 200 GM, Block 200 GM a
Slide 19: Consumer – New Product Launch & Marketing Campaigns
Consumer – New Product Launch & Marketing Campaigns Independence Ganpati Neck Tag Rakshabandhan Neck Tag Day Neck Pride of Cows Paneer Launch Customer Engagement Paneer Post Card Activity Various Social Media Posts: New Launch /Reels, 50 Reasons campaign, Teacher’s day Parag Milk Foods Limited 19
Slide 20: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns Avvatar We organize a Fitness competition named “Avvatar Fitness Battle 2” continuing the trend of last year. Current trending topics and festivals were posted, and it was appreciated by the customers Parag Milk Foods Limited 20
Slide 21: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns Gowardhan Regional News Channel TV Campaign Gold Milk Bournvita OOH Activity in Mumbai Parag Milk Foods Limited 21
Slide 22: Cash & Cost
Cash & Cost Debt Reduced working capital debt by 1406 Mn Reduction Overheads Cutting costs by Leveraging vendors, Re–negotiating, Reverse Auctions, Office consolidation Supply Chain • Depot & Cold storage Restructuring Optimization • Beat planning in opportunity markets Parag Milk Foods Limited 22
Slide 23: Corporate Governance
Corporate Governance Strengthening Inducted Nikhil Vora into the board as an additional non-executive member Board and strengthened the board. Core Working on bringing professionals for core management functions Management Compliance Online compliance software tool & supervision in place. Parag Milk
Slide 24: Community
Community During the second wave of Covid we continued to work on the following areas • Food & Water facilities • Sanitization • Education • Animal Welfare Providing three nutritious meals to Covid Patients and Hospital staff on daily basis In - conjunction with state government , developed the JUMB
Slide 25: PARAG at Glance
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Slide 26: Integrated Business Model
Integrated Business Model • 3 State of Art Manufacturing Facilities • 3.4 Mn litres/day Milk Processing Capacity • 3.5 Lakh PAN India Retail • 10 Lakh litres/day Whey Processing Touch Points • 110 MT/day each of Ghee & Cheese • 100% Cow Milk from the key Milk • 3,000+ Distributors • 20 MT/day of Pan
Slide 27: Our Journey
Our Journey 1992 1998 2005 2008 2010 2011 Parag Milk Foods was Commissioned Value- Launched Commissioned Go Cheese Palamaner plant was Launched the brand- founded by Mr. Devendra added plant at Manchar Bhagyalakshmi Dairy world, India‟s largest established with world Pride of Cows- A first of Shah.
Slide 28: Brands - Gowardhan
Brands - Gowardhan The first brand launched by PMFL, Gowardhan gained quick recognition for its unique value – 100% cow milk and its quality Over the years, the category has expended into ghee, paneer (cottage cheese), curd, butter and dairy whitener Parag Milk Foods Limited 28
Slide 29: Brands - GO
Brands - GO A modern manifestation of Gowardhan from where it also derives its name, brand „Go‟ caters to consumers looking for a higher degree of comfort and convenience These products cater to those leading busy lifestyles. It includes Cheese, UHT milk, and beverages Parag Milk Foods Limited 29
Slide 30: Brands – Pride of Cows
Brands – Pride of Cows Premium milk for the uber luxury consumer Pride of Cows is a niche product originating from Bhagyalaxmi Dairy Farms. This is cow milk from India‟s most modern dairy farm and untouched by human hand right delivered directly to the consumer‟s doorstep It is a first-of-its-kind s
Slide 31: Brands - Avvatar
Brands - Avvatar Avvatar is among PMFL‟s most rapidly growing brands. The product is a category-first as truly „made in India‟ whey protein that is 100% vegetarian Milked, processed and packaged within 24 hours in the same plant, it is the freshest whey protein available in the market The product ra
Slide 32: Route To Market
Distribution Network Depot Fresh Milk 21 Jammu Super Stockists Depots Jalandhar Parwanoo Karnal 200 Delhi Siliguri Guwahati Fresh Product Route To Market Jodhpur Jaipur Super Stockists Udaipur Kanpur Patna General Trade Ranchi Ahmedabad Indore Modern Trade 3000+ Kolkata Surat Dairy Products Nagpur R
Slide 33: Future Ready Technology
Future Ready Technology Plant & Production MIS • Financial analysis • Inventory management & • Profitability analysis production planning through JIT, • Segment wise ROI & Fund lean system, throughput management accounting Supply Chain Management • Seamless integration of our Raw Material Management
Slide 34: State of Art Manufacturing Facilities
State of Art Manufacturing Facilities 3.4Mn Litres / Day 20 MT / Day 110 MT / Day 10Lakh Litres / Day Milk Processing Paneer Processing Ghee & Cheese Whey Processing Capacity Capacity Processing Capacity Capacity Manchar, Pune, Maharashtra Most modern & State of Art Full integrated largest single UH
Slide 35: Bhagyalaxmi Dairy Farm - India's most modern dairy farm
Bhagyalaxmi Dairy Farm - India‟s most modern dairy farm Spread over 35 acres and The facility features a well- Bhagyalaxmi Bioscience Division studies various The facility has its own biogas plant equipped with the finest equipped scientific laboratory, formulations for quality cattle feed to improv
Slide 36: Procurement Network
Procurement Network 2.5+ Procurement Network Lacs Farmers 2,400+ Village Level Collection points (VLC) 250 Bulk Milk Coolers 100+ Areas nears Maharashtra Milk Chillers Manchar, Pune Karnataka, Tamil Nadu & Andhra Area near 4 Pradesh Palamaner Integrated Area from which Milk is procured in Maharashtr
Slide 37: Board of Directors
Board of Directors Mr. Devendra Shah | Chairman Mr. Narendra Ambwani | Independent Director PMFL has grown consistently under the leadership of Devendra He was the Managing Director of Johnson & Johnson‟s consumer group in India. He Shah. He brings enthusiasm and innovation to business and has has 3
Slide 38: ESG Initiatives
ESG Initiatives Environmental focus centers around reducing the carbon footprint and an optimal waste management. Focus Social Focus on well-being of our milk farmers, employees, distribution partners Areas Governance framework include business governance, talent governance, and sustainability gover
Slide 39: Environmental Initiatives
Environmental Initiatives WATER CLIMATE ENERGY Reduce, Reuse, Recycle Focus on reducing Air, Soil, Emission, Energy Conservation, Sound pollutions Focus on Renewables • Water optimization • Power generation through solar • Our water consumption per liter of milk • Installation of solid waste digeste
Slide 40: Corporate Social Responsibility - Feeding Communities
Corporate Social Responsibility Feeding Communities CSR is in ourDNA, we will continue to enhance value and promote sustainable development of the environment and social welfare society at large. More than 3,50,000 nutritional food distribution for needy and COVID patients. Parag Milk Foods Limited
Slide 41: Corporate Social Responsibility
Corporate Social Responsibility Regular Sanitization and More than Provision of Vaccinations Healthcare and cancer More than 1,500 supply of clean drinking water More than 400 supply 10,000 for more than 600 camps for more than Distribution of COVID-19 Kits to protect healthcare 6 villages of grocer
Slide 42: Contact
Parag Milk Foods Ltd. Investor Relation Advisor CIN: L63090GJ1956PLC001032 Mr. Deven Dhruva +91 98333 73300 Ms. Sangeeta Tripathi deven.dhruva@linkintime.co.in sangeeta.tripathi@parag.com Ms. Rasika Sawant www.paragmilkfoods.com +91 9594457518 rasika.sawant@linkintime.co.in 42