Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — Q3 FY2023 Earnings Presentation
23 slides from Apex Frozen Foods's earnings presentation, February 2023
Slide 1: Result Presentation Q3/9MFY23
Apex Frozen Foods Result Presentation Q3/9MFY23
Slide 2: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apex Frozen Foods Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not f
Slide 3: Key Business Updates Q3/9MFY23
1 Key Business Updates Q3/9MFY23 3
Slide 4: Financial Highlights – Q3 & 9MFY23
Financial Highlights – Q3 & 9MFY23 9M ↑ Net Revenue at Rs 8,131 Mn, up 16% YoY, backed by volume growth of 6% YoY to 10,193 MT and realization growth of 10% YoY to Rs 798* per kg with share of Ready-To-Eat (RTE) products increased to ~23% versus ~20% in 9MFY22 ↑ EBITDA at Rs 817 Mn (up 12% YoY); Aid
Slide 5: Sales Volume Break-up
Sales Volume Break-up Shrimp Sales (MT) Shrimp Sales – Q3FY23 Geographical Mix (%) China RTE RTC 3% 10,193 Europe 9,637 18% 2,833 2,869 7,888 7,725 2,347 2,494 USA 79% 375 1,912 2,305 486 Q3FY22 Q3FY23 9MFY22 9MFY23 In Q3FY23, Shrimp sales grew by 1% YoY, on account of muted demand in key markets of
Slide 6: Income Statement Highlights
Income Statement Highlights Particulars (Rs Mn) Q3 FY23 Q3 FY22 Y-o-Y % Q2 FY23 Q-o-Q % 9M FY23 9M FY22 Y-o-Y % Net revenue 2,145 2,148 2,928 8,131 6,987 Other income* 162 62 163 517 235 Total Income 2,307 2,210 4% 3,091 -25% 8,648 7,222 20% Raw material costs 1,612 1,488 2,143 5,826 4,735 Employee
Slide 7: Key Operational and Financial Ratios
Key Operational and Financial Ratios Key Operational Data Q3FY23 Q3FY22 Q2FY23 9MFY23 9MFY22 Volumes sold (MT) 2,869 2,833 3,565 10,193 9,637 Average realisation (Rs/Kg)* 748 758 821 798 725 Key Ratios (% of Total Income) Q3FY23 Q3FY22 Q2FY23 9MFY23 9MFY22 Other income (% of Net Revenue)^ 7.5% 2.9%
Slide 8: Key Growth Drivers
Key Growth Drivers 1 Improving Product Mix with 2 Current Capacity Offers Growing Share of RTE sales Headroom for Growth Enhancing RTE capacity from 5,000 MT to Sales (MT) to Capacity ratio below 50% 10,000 MT at marginal capex; Installation completed and ready for commercial production by end of Q4
Slide 9: Company At a Glance
2 Company At a Glance 9
Slide 10: The Growth Journey So Far…
The Growth Journey So Far… Leased Capacity Owned Capacity RTE capacity expansion of ~1,200 MT 29,240 MT 5,000 MT, likely by end of FY23 ▪ IPO and Listing on BSE & NSE in Sep’17 ▪ Backward Integration: Three owned Hatcheries in AP over 2016-19 ▪ Focus on VAP: Pre-processing unit in Well placed to ▪ O
Slide 11: …To Having Built a Well Integrated Operations
…To Having Built a Well Integrated Operations One Of The Leading Exporters Of Processed Shrimp In India Key Export Markets – FY22 18% 2% Catering to wide array of customers such as Food USA Companies, Retail Chains, Restaurants, Club Stores and Europe Distributors spread across multiple geographies
Slide 12: Strategically Located Facilities
Strategically Located Facilities E n a b l i n g s m o o t h t ra n s i t i o n o f p ro d u c t s t o t h e n e x t s ta g e Three Hatcheries with a total capacity of 1.2-1.4 billion SPF seed Two Processing plants with a total capacity of 29,240 MTPA, along with Cold Storage capacity of ~3,500 MT L
Slide 13: Processing Capacity Offers Headroom for Growth
Processing Capacity Offers Headroom for Growth Total Capacity – 29,240 MTPA Process: Washing, Weighing, Beheading, Grading, Peeling, De- veining, Cooking and Freezing Unit 2 - G. Ragampeta, AP Unit 1 - Kakinada, AP Ready-to-Cook: 15,000 MTPA Ready-to-Cook: 9,240 MTPA Ready-to-Eat: 5000 MTPA* Cold St
Slide 14: Product Offering – Moving up the Value Chain
Product Offering – Moving up the Value Chain READY-TO-EAT (RTE) SPECIALTY PRODUCT Cooked Peeled & De-veined Tail–on PEELED PRODUCT Butterfly shrimp Cooked in Shell Skewered shrimp Shrimp Rings BASE PRODUCT Peeled, Deveined, Tail-on Seasoned shrimp Dusted and Breaded Peeled, Un-deveined, Tail-on Head
Slide 15: Annexures
3 Annexures 15
Slide 16: Key Performance Highlights (1/2)
Key Performance Highlights (1/2) Total Shrimp Sales (MT) Average Realisation (Rs per kg) Sales (MT) RTE (%) 15,000 798 12,243 11,702 12,067 10,193 743 682 10,000 633 23% 20% 5,000 15% 0% 0 FY20 FY21 FY22 9MFY23 FY20 FY21 FY22 9MFY23 Improving Return Ratios (%) RoNW RoCE 16.9% 12.6% 11.5% 12.3% 9.6%
Slide 17: Key Performance Highlights (2/2)
Key Performance Highlights (2/2) Gross Debt and Net Debt (Rs Mn) Total Debt To Equity (Times) Gross debt Net Debt 0.38 1,661 1,652 1,599 0.35 1,562 1,578 0.32 1,440 Mar-21 Mar-22 Sep-22 Mar-21 Mar-22 Sep-22 Working Capital (Days) Net Cashflow from Operations (Rs Mn) 126 126 284 272 115 218 129 Mar-2
Slide 18: Income Statement Highlights
Income Statement Highlights Profit & Loss (Rs Mn) FY20 FY21 FY22* 9MFY23* Net revenue 8,271 8,185 8,970 8,131 Other income 190 75 349 517 Total income 8,461 8,260 9,319 8,648 Raw material costs 5,735 5,531 6,150 5,826 Employee expenses 437 398 430 361 Other expenses 1,228 1,346 1,818 1,644 EBITDA 1,
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights Liabilities (Rs Mn) Mar-21 Mar-22 Sep-22 Assets (Rs Mn) Mar-21 Mar-22 Sep-22 Shareholder’s Funds 4,398 4,754 4,934 Non-current assets 2,708 2,619 2,581 Share capital 313 313 313 Net block 2,504 2,360 2,293 Reserves & surplus 4,086 4,442 4,621 Capital work-in-progress 154 219
Slide 20: India's Seafood Exports Driven by Surging Shrimp Exports
India’s Seafood Exports Driven by Surging Shrimp Exports Frozen Shrimp Other Seafood Total Seafood 1,377 1,393 1,369 1,290 1,135 1,149 1,051 928 984 946 813 862 678 603 614 652 728 566 590 358 374 434 189 229 301 126 131 151 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 India
Slide 21: Key Considerations for the Sector
Key Considerations for the Sector Demand Slowdown Disease Related Volatile Pricing Being an export-oriented sector, Global imbalances in demand- Highly susceptible to outbreak of any slowdown in consumption in supply can impact pricing. diseases, which can have a key markets like the USA, EU and Exc
Slide 22: Share Capital Information
Share Capital Information Share Price Movement – 1 Year 400 350 300 250 200 150 100 50 0 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 NSE / BSE code APEX / 540692 21.06% Shareholding CMP (Rs/share) (as on 03-Feb-23) 225 Pattern as on Market Cap (Rs Mn) 7
Slide 23: Thank You
Thank You Apex Frozen Foods Stellar Investor Relations Mr Chowdary Karuturi, Managing Director Ms Pooja Sharma / Ms Amritha Poojari ir@apexfrozenfoods.com pooja.sharma@stellar-ir.com / amritha@stellar-ir.com CIN: L15490AP2012PLC080067 23