Parag Milk Foods Ltd. · NSE:PARAGMILK
Parag Milk Foods — Q3 FY22 Earnings Presentation
41 slides from Parag Milk Foods's earnings presentation, Feb 7, 2022
Slide 1: Investor Presentation
Investor Presentation
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 Consolidated Q3 FY22 EBITDA for Q3 FY22 was Our Net Profit for Q3 FY22 Revenue grew by 13.8% up by 39.6% Y-o-Y and grew by 69.5% Y-o-Y and Y-o-Y and 9M FY22 Revenue for 9M FY22 was up by for 9M FY22 grew by 95.4% grew by 7.3% Y-o-Y 38.2% Y-o-Y Y-o-Y During the quarter lot of market
Slide 4: Financial Performance
Financial Performance 4
Slide 5: Q3 FY22 Financial Performance
Q3 FY22 Financial Performance Revenues (Rs. Mn) Gross Profit (Rs. Mn) EBIDTA (Rs. Mn) +14% +18% +40% 5,387.1 1,507.5 490.7 4,735.9 1,280.8 351.5 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 EBITDA Margins PAT (Rs. Mn) PAT Margins 170 Bps +70% 110 Bps 9.1% 190.2 3.5% 7.4% 2.4% 112.2 Q3FY21 Q3FY22 Q2FY21
Slide 6: 9M FY22 Financial Performance
9M FY22 Financial Performance Revenues (Rs. Mn) Gross Profit (Rs. Mn) EBIDTA (Rs. Mn) +7% +17% +38% 15,094.8 4,377.2 1,470.1 14,074.2 3,750.0 1,063.5 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 EBITDA Margins PAT (Rs. Mn) PAT Margins 210 Bps +95% 170 Bps 9.7% 592.9 3.9% 7.6% 303.5 2.2% 9MFY21 9MFY22 9
Slide 7: Product Mix of Q3FY22
Product Mix of Q3FY22 Milk 9% Milk Products SMP & Others 74% 16 % Product Mix Parag Milk Foods Limited 7
Slide 8: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs. Mn.) Q3 FY22 Q3 FY21 Y-o-Y Q2 FY22 Q-o-Q 9M FY22 9M FY21 Y-o-Y Total Revenue 5,387.1 4,735.9 13.8% 5,323.2 1.2% 15,094.8 14,074.2 7.3% Gross Profit 1507.5 1280.8 17.7% 1492.3 1.0% 4,377.2 3,750.0 16.7% Gross Profit Margin(%) 28.0% 27.0% 28.0% 29.0% 26.6% EBIT
Slide 9: Progress Under Our Stated Strategic Initiatives
Progress Under Our Stated Strategic Initiatives 9
Slide 10: Cows
Cows 1.04 29.0 As expected, Million liters Per Liter inflation per day Average rate witnessed in Average milk of milk the procurement procurement procurement for the quarter for the price quarter Despite milk prices inching up; the overall availability remains comfortable. Further, the prices are on
Slide 11: Consumer
Consumer Opportunity Markets have grown by 27% Y-o-Y Distribution and increasing depth in weighted outlets has been our key focus: for the quarter, the unique build outlets have increased by 27% Y-o-Y Core category sales has increased 8.8% YoY, while cheese category has grown strong double digit for
Slide 12: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns Gowardhan Times of India promoted Gowardhan Ghee’s Winter Film through their spotlight article, focusing on the importance of Ghee & endorsing #Thandpadi Parag Milk Foods Limited 12
Slide 13: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns Gowardhan Social Samosa Posted on Social Samosa Pages Facebook, Twitter. LinkedIn & Instagram FACEBOOK & LINKDIN FACEBOOK Parag Milk Foods Limited 13
Slide 14: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns Gowardhan Impact Campaign On Tv Vasubaras Radio and TV Campaigns Parag Milk Foods Limited 14
Slide 15: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns GO Cheese Topical post for Social Media Parag Milk Foods Limited 15
Slide 16: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns Pride of Cows Halloween Karva Chauth Celebrated 10th year Anniversary Various Social Media Posts: Repost Parag Milk Foods Limited 16
Slide 17: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns Parag Milk Foods Limited 17
Slide 18: Consumer – Brand Building & Marketing Campaigns
Consumer – Brand Building & Marketing Campaigns Avvatar Current trending topics and festivals were posted, and it was appreciated by the customers Parag Milk Foods Limited 18
Slide 19: Cash & Cost
Cash & Cost Efforts on cost optimization and productivity enhancement has started yielding results Despite inflationary impact on power & fuel, freight, logistics and packaging material, we were able to control the other expenses for the quarter Other expenses for the quarter (ex advertisement and s
Slide 20: Strategic Framework
Strategic Framework
Slide 21: Our 6C Framework
Our 6C Framework Improve Profitability Productivity Improvement Strengthening Balance Sheet Process Innovation Focus on Core Categories Cash Cost Experienced Board Strengthening Brands Professionals team at each levels. Evolve Route to Market Strong Internal Controls Product Innovation Compliance Co
Slide 22: Our 6C Framework
Our 6C Framework COWS CONSUMER CASH ▪ Targeting 5% of revenue in brand building initiatives ▪ Improve profitability by change in ▪ Expanding geographical coverage product Mix, improved efficiencies (Setting up new collection centres & ▪ Focus on core categories: Ghee, Cheese, Paneer & & scale benefi
Slide 23: Our 6C Framework
Our 6C Framework CORPORATE COST GOVERNANCE COMMUNITY ▪ Improve operational efficiencies by ▪ Enhance Board with experienced ▪ Community services in areas of automation, modernisation & strict resources health, education & animal welfare controls ▪ Professionals for core management ▪ Support farmers
Slide 24: PARAG at Glance
PARAG at Glance 24
Slide 25: 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 26: Our Journey
Our Journey 1992 2010 2016 2005 2014 2018 Parag Milk Foods Realizing the need Parag Milk Launched Palamaner plant was founded by Mr. of market & to add Foods Limited Bhagyalakshmi Dairy was established Established the third Devendra Shah. It is further value, got listed on Farm, India's most with wo
Slide 27: 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 27
Slide 28: 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 28
Slide 29: 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 30: 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 31: Distribution Network
Distribution Network Depot 21 Fresh Milk Super Stockists Jammu Depots Jalandhar Parwanoo Karnal 200 Delhi Siliguri Guwahati Fresh Product Route To Market Jodhpur Super Stockists Udaipur Jaipur Kanpur Patna General Trade Ranchi Modern Trade 3000+ Ahmedabad Indore Kolkata Surat Dairy Products Nagpur R
Slide 32: Future Ready Technology
Future Ready Technology Plant & Production MIS • Financial analysis • Inventory management & • Profitability analysis production planning through • Segment wise ROI & Fund JIT, lean system, throughput management accounting Supply Chain Management • Seamless integration of our Raw Material Management
Slide 33: 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 Full integrated Whey to Most modern & largest single State o
Slide 34: The future of dairy farming
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 equipped with the finest equipped scientific laboratory, formulations for quality cattle feed to improve plan
Slide 35: Procurement Network
Procurement Network Procurement Network 2.5+ Lacs Farmers 2,400+ Village Level Collection points (VLC) 250 Bulk Milk Coolers 100+ Areas nears Maharashtra Milk Chillers Manchar, Pune Karnataka, Tamil Area near 4 Nadu & Andhra Palamaner Pradesh Integrated Area from which Milk is procured in Maharashtr
Slide 36: 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. Shah. He brings enthusiasm and innovation to business and has He has 3
Slide 37: 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 38: 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 • Installation of solid waste digester • E
Slide 39: Corporate Social Responsibility Feeding Communities
Corporate Social Responsibility Feeding Communities DNA, CSR is in our 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 40: 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 10,000 600 camps for more than Distribution of COVID-19 Kits to protect healthcare 6 villages supply of grocery kits Asha wo
Slide 41: Contact
Parag Milk Foods Ltd. Investor Relation Advisor CIN: L63090GJ1956PLC001032 Ms. Rasika Sawant +91 95944 57518 rasika.sawant@linkintime.co.in Ms. Sangeeta Tripathi sangeeta.tripathi@parag.com Mr. Faraz Ahmed +91 96197 05150 www.paragmilkfoods.com faraz.ahmed@linkintime.co.in 41