Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Q4 FY2022 Earnings Presentation
40 slides from Hindustan Foods's earnings presentation, May 20, 2022
Slide 1: Hindustan Foods Limited Investor Presentation
HINDUSTAN FOODS LIMITED Investor Presentation May 2022 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Hindustan 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 secur
Slide 3: Our Journey of Rs. 2,000 crores: Onwards and Upwards
Our Journey of Rs. 2,000 crores : Onwards and Upwards Revenue (Rs in Crores) 2x Growth 1983-84 Guidance Of Incorporated as a JV with Growth Phase 4,000 Rs. 2,000 crores Glaxo India Ltd. Revenue for FY22 Set up the facility at Goa 2,026 +120.4% 1,410 for manufacturing ‘Farex’ 772 493 39 140 FY17 FY18
Slide 4: Strong Financial Performance
Strong Financial Performance Rs in Cr Revenue# EBITDA 2,026 120 93 +120.4% 1,410 +110.7% 57 773 493 33 140 11 39 3 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 PAT Gross Block^ 50 550 +108.4% 418 +134.9% 35 309 23 12 156 6 45 1 14 FY17 FY18 FY19 FY20 FY21* FY22 FY17 FY18 FY19 FY20 FY2
Slide 5: Key Developments
Key Developments The wholly owned subsidiary, HFL Consumer Products has successfully set up the Ice Cream plant in Uttar Pradesh and commenced trial production during the quarter. The first dispatch was done in April ‘22 and the production is expected to be ramped up to 15,000 litons of Ice Cream by
Slide 6: Acquisition of Reckitt Benckiser Scholl India to expand Healthcare & Wellness Portfolio
Acquisition of Reckitt Benckiser Scholl India to expand Healthcare & Wellness Portfolio Overview ▪ HFL has signed a Share Purchase Agreement with Reckitt Benckiser India Pvt Ltd. to acquire the entire issued Share Capital of Reckitt Benckiser Scholl India Private Limited (RBSIPL) ▪ RBSIPL was incorp
Slide 7: Investment in AeroCare marks entry into Colour Cosmetics
Investment in AeroCare marks entry into Colour Cosmetics Overview ▪ HFL has acquired AeroCare Personal Products LLP in January 2022 ▪ The facility is situated at Silvassa and engaged in manufacturing of Color Cosmetics like lipsticks, eye make-up, pressed powders and lip gloss; And also Oral Care, A
Slide 8: Message from Managing Director and Group CFO
Message from Managing Director and Group CFO Commenting on the Results, Mr. Sameer R. Kothari, Managing Director said, “I am quite pleased with the performance of our business model that has been tested in this quarter, hit by high inflation and slowing demand. I am happy that in spite of the headwi
Slide 9: It Has Just Started To Sync…
It Has Just Started To Sync… Execution M&A Team Performance Contract Mfg Executed and The integration that All the hands working Revenue CAGR of 120% GO TO Contract Delivered as per has been undertaken together in sync to over FY17-FY22 Manufacturer for our expectation during the year and in achieve
Slide 10: Q4FY22 Overview
Q4FY22 Overview Uttar Pradesh|Ice Cream Plant 10
Slide 11: Key Parameters
Key Parameters 2,026 crore Rs. 50 crore Rs. 550 crore Rs. 44% growth YoY 41% growth* YoY PROFIT AFTER TAX GROSS BLOCK** TOTAL REVENUES For FY22 as on 31st March 2022 For FY22 Rs. 308 crore Rs. 77 crore 0.87 41% growth YoY NETWORTH PROFIT BEFORE TAX Debt to Equity Ratio as on 31st March 2022 for FY22
Slide 12: FY22 Standalone Result Highlights
FY22 Standalone Result Highlights Revenue# (Rs. Crs.) EBITDA (Rs. Crs.) 44% 30% 2,026.0 120.4 92.8 1,409.9 FY21 FY22 FY21 FY22 Profit before Tax (Rs. Crs.) Profit after Tax (Rs. Crs.) 41% 41% 76.9 50.1 54.5 35.4 FY21 FY22 FY21* FY22 # Includes Other Income * PAT for FY21 excludes tax adjustments per
Slide 13: Q4 FY22 Standalone Result Highlights
Q4 FY22 Standalone Result Highlights Revenue# (Rs. Crs.) EBITDA (Rs. Crs.) 15% 7% 563.3 32.3 30.3 491.9 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Profit before Tax (Rs. Crs.) Profit after Tax (Rs. Crs.) 7% 8% 22.0 14.6 20.6 13.4 Q4 FY21 FY22 Q4 FY21 Q4 FY22 # Includes Other Income 13 Note: Previous Year/Quart
Slide 14: Standalone Profit & Loss Statement – Q4 & FY22
Standalone Profit & Loss Statement – Q4 & FY22 Particulars (Rs. Crs.) Q4 FY22 Q4 FY21 Y-o-Y Q3 FY22 Q-o-Q FY22 FY21 Y-o-Y Total Revenue# 563.3 491.9 15% 528.5 7% 2026.0 1409.9 44% Cost of Goods Sold 493.6 423.9 460.5 1761.2 1190.6 Manufacturing and Operating Costs 20.9 18.7 20.6 78.8 66.4 Gross Prof
Slide 15: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. Crs.) 31-Mar-22 31-Mar-21 Particulars (Rs. Crs.) 31-Mar-22 31-Mar-21 Non-Current Assets 438.2 378.0 Equity 308.0 257.3 Property, plant and equipment 383.8 300.4 Equity share capital 22.5 21.2 Capital work-in-progress 8.8 52.8 Other equity 285.5 236.1 Right o
Slide 16: Summary of Standalone Cashflows
Summary of Standalone Cashflows Particulars (Rs. Crs.) 31-Mar-22 31-Mar-21 Operating profit before working capital changes 118.3 91.9 Changes in working capital (55.1) (1.5) Cash generated from operations 63.2 90.4 Direct taxes paid (net of refund) (28.7) (17.6) Net Cash from Operating Activities (A
Slide 17: Capex Update
Capex Update Uttar Pradesh: Ice Cream Hyderabad: Bath Soaps & Detergent Bars New Capex: Healthcare & Wellness Capex Rs. 125 Crores Capex Rs. 150 Crores Rs. 100 Crores • The Uttar Pradesh Ice Cream Project has • As a part of Rs 100 crores capex approval commenced commercial production • The on-going
Slide 18: HFL at a glance
HFL at a glance Goa | Baby Food, Extruded Cereals & Snacks 18
Slide 19: We Have The EDGE
We Have The EDGE The Brawn Behind Your Brands 17 Pioneers in FMCG Contract Manufacturing [Product + Service] One-stop contract 30+ manufacturing solutions & consistently deliver YEARS OF PLANTS quality products EXPERIENCE Most Diversified and Trusted FMCG contract manufacturers for Domestic and Inte
Slide 20: The Vanity Case Group
The Vanity Case Group 8 30+ State-of-the-art Exclusive Years of R&D Lab Private Label Sites Division Experience Wide-ranging Pioneers in New Products & Packaging Concept to Market Solutions F&B and Home Care Categories development experts Caters to Private Labels Domestic and Export Markets For Reta
Slide 21: Our Journey
Our Journey 2015-16 2015-16 ➢ Acquired Ponds Exports Ltd, shoe manufacturing ➢ Raised capital through promoter units from Hindustan Unilever Ltd. and started 2013-14 and non-promoters of the manufacturing for legacy clients like TBS, Gabor, Company including Sixth Sense Jomos & Richter. Soon after,
Slide 22: Our Journey
Our Journey 2021-22 2021-22 ➢ Started production of Floor & Surface Cleaner at ➢ Company got the final order of NCLT in Dec’21, Silvassa plant in May’22 approving the scheme of arrangement for merger ➢ Project work started for manufacturing Bath Soaps of Malt Beverages plant in Coimbatore and and De
Slide 23: Our Product Portfolio
Our Product Portfolio Most Diversified Contract Manufacturing Company in the Country Food & Beverages Home Care Personal Care Health & Wellness Leather & Sports Shoes Extruded Cereals & Fabric Care Hair Care ➢ Vitamins, Minerals & Leather, Sports & Knitted ➢ Shampoo, Hair Oil & Nutraceuticals Snacks
Slide 24: Business Models | How we do it
Business Models | How we do it Entire Dedicated Manufacturing The entire manufacturing facility is built-to-suit, exclusively utilised for the Principal Company Anchor-Tenant Manufacturing & Shared Manufacturing The manufacturing facility is not entirely dedicated to a single Principal Company, but
Slide 25: FMCG Partners all over India
FMCG Partners all over India 25
Slide 26: Experienced Board
Experienced Board Shrinivas Dempo Nikhil Vora Chairman, Non-Executive Non-Executive Director Third-generation entrepreneur & chairman of Goa’s Leading business House, Founder and CEO of Sixth Sense Ventures Dempo Nikhil was earlier the Managing Director and Head of Research at IDFC Received Postgrad
Slide 27: Certifications
Certifications » GH v BRC ram FO 0 D Bureau of Indian Standards CERTIFICATED GMP STANDARD. —_— Food Safety System Certification 22000 ——*
Slide 28: State Of The Art Manufacturing Facilities
State Of The Art Manufacturing Facilities Location No. of Units Details ✓ Manufactures Pest Control products such as coils, aerosols and vaporizers Jammu 1 ✓ Aggregate Capacity: Coils: 1,200 Mn PA; Vaporizers: 43.2 Mn PA; ✓ Aerosols: 7.2 Mn PA ✓ Processes, blends and packs Malt Beverages, Tea and Co
Slide 29: State Of The Art Manufacturing Facilities
State Of The Art Manufacturing Facilities Location No. of Units Details ✓ Manufactures Leather Footwear and accessories Puducherry 3 ✓ Full Shoes Production Capacity : 0.5 Mn pairs ✓ Shoes Uppers Production Capacity : 0.7 Mn pairs ✓ Manufactures Leather & Injection moulded Footwear Mumbai 1 ✓ Shoes
Slide 30: Future Growth Strategy
Future Growth Strategy HFL Coimbatore | Tea & Coffee 30
Slide 31: Evolution of Contract Manufacturing
Evolution of Contract Manufacturing Phase IV (The Future) Phase III (Present Times) Phase II • Global sourcing hub like Pharma generics (The 2000’s) Phase I • GST • Explosion of small brands who do not want to invest (The 1980’s) • One Country One Market in manufacturing facilities • Area-based rese
Slide 32: Industry Opportunity is huge
Industry Opportunity is huge FMCG Market Size Personal Care Outsourced Manufacturing ~50% Opportunity Home / Health Care* Rs. 50,000 Crores - Rs. 1,00,000 Crores ~31% Company Estimates $103.70 Billion translates to Food & Beverages ✓ HFL is the most diversified and versatile contract manufacturing c
Slide 33: Favourable Demographics of India ensures incessant growth in FMCG
Favourable Demographics of India ensures incessant growth in FMCG Young & Working Population • India’s large share of population is young and working; this gives a huge encouraging signs of sustainable growth in FMCG products in country Rising Nuclear Families • According to the reports, India is mo
Slide 34: India seeing huge headroom for FMCG growth
India seeing huge headroom for FMCG growth • India has low FMCG per capital consumption even as compared to other emerging nations like Indonesia, China, Philippines, Thailand • India has low penetration in many FMCG categories like MFD, Face Wash, Body Lotions, Washing Liquids, Dishwash Liquids, Ha
Slide 35: Competitive Edge: High Entry Barriers
Competitive Edge : High Entry Barriers Setting up Manufacturing plant is capital intensive Efficient allocation of resources to Skilled Labour Management fuel growth 02 04 06 01 03 05 07 Logistics & Supply chain Stringent Quality Control Regulatory & Increasing competitiveness in the management (QC)
Slide 36: HFL is best placed to capitalize on the Growth Story
HFL is best placed to capitalize on the Growth Story Largest Organized Redefined Long Term Management Expertise Business Model Player Relationships Management Expertise HFL’s redefined business Longer term relationships One of the largest with over three decades models focus on creating with leading
Slide 37: Multiple Levers of Growth
Multiple Levers of Growth Business approach Specialized Business Foster Innovation Asset-light Operating Approach Models by Brands Customers & Strategy to engage into Outsourcing Partners Strategy to pass on the core business activities work together to operational complexities and outsource develop
Slide 38: Building a Sustainable Future
Building a Sustainable Future • New factories have solar power plants installed overhead, and rainwater harvesting • Have begun installing briquette boilers to replace the traditional coal fired ones • Ensuring smart lights and air- conditioning, digital payments and signatures, minimal paper • Work
Slide 39: Corporate Social Responsibility
Corporate Social Responsibility There is nothing more rewarding than giving back to the society and making a difference • As a responsible Corporate Entity, committed towards the upliftment and development of the local communities we work with. We leverage our resources, experience and geographic sp
Slide 40: Thank You
Company: THANK YOU Investor Relations Advisors: Hindustan Foods Limited Strategic Growth Advisors Pvt. Ltd. CIN: L15139MH1984PLC316003 CIN: U74140MH2010PTC204285 Vimal Solanki Rahul Agarwal / Brinkle Shah Jariwala vimal.solanki@thevanitycase.com rahul.agarwal@sgapl.net / Brinkle.shah@sgapl.net +91 9