Manorama Industries Ltd. · NSE:MANORAMA
Manorama Industries — FY2022 Earnings Presentation
52 slides from Manorama Industries's earnings presentation, May 13, 2022
Slide 1: Manorama Industries Limited Investor Presentation Cover Letter
é Manorama Industries Limited May 13, 2022 The Manager BSE Limited 25" Floor, P.J. Towers, Dalal Street, Fort, Mumbai — 400 001 Scrip Code: 541974 Dear Sir/Madam, Subject: Investor Presentation. In reference to the above captioned subject, please find attached a copy of Investor's Presentation for M
Slide 2: Manorama Industries Limited Investor Presentation – May 2022
Manorama Industries Limited Investor Presentation – May 2022
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Manorama Industries 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 s
Slide 4: Q4 & FY22 - Highlights
Q4 & FY22 - Highlights
Slide 5: Management Commentary – FY22
Management Commentary – FY22 Commenting on the results and performance, Ms. Vinita Saraf, Chairperson and Managing Director said: “I am very pleased to report that our company has maintained consistent performance throughout FY22. Despite the pandemic and the resulting supply chain challenges, the C
Slide 6: Q4 FY22 – Financial Highlights
Q4 FY22 – Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn) Profit after Tax (Rs. In Mn) +27% +54% +109% 776.4 115.4 68.2 610.5 74.9 32.6 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 EBITDA Margins (%) PAT Margins (%) 14.9% 8.8% 12.3% 5.3% Q4 FY21 Q4 FY22 Q4 FY21 Q4 FY22 5
Slide 7: FY22 – Financial Highlights
FY22 – Financial Highlights Revenue (Rs. In Mn) EBITDA (Rs. In Mn & EBITDA Margin (%) PAT (Rs. In Mn) & PAT Margin (%) +38% +12.3% +65.6% 2,791.2 389.4 241.6 346.6 2,026.3 145.8 17.1% 14.0% 7.2% 8.7% FY21 FY22 FY21 FY22 FY21 FY22 ROCE & ROE (%) Net Debt (Rs. In Mn) Net Debt / Equity (x) 14.3% 679.5
Slide 8: FY22 – Core RoCE Profile
FY22 – Core RoCE Profile Particulars (Rs. Million.) FY21 FY22 Gross Debt 853.5 1084.4 Net worth 1447.3 2,682.6 Total Capital Employed 2,300.8 3,766.9 Less: New Capex Investments – Land for new plant, Capital Advances, CWIP 0.0 573.5 Less: Cash and Cash Equivalents & Bank 174.1 530.4 Core Business Ca
Slide 9: Q4 & FY22 – Profit & Loss Account
Q4 & FY22 – Profit & Loss Account Profit and Loss (Rs. Millions) Q4FY22 Q4FY21 YoY Q3FY22 YoY FY22 FY21 YoY Update on financials Revenue from Operations (Net of Excise) 776.4 610.5 27.2% 687.3 13.0% 2,791.2 2,026.3 37.8% • The Company's Employee costs increased as it has Raw Material 451.2 383.0 391
Slide 10: FY22 – Balance Sheet Statement
FY22 – Balance Sheet Statement Equity & Liabilities (Rs. Millions) Mar-22 Mar-21 Assets (in Rs. Millions) Mar-22 Mar-21 Total Equity 2,682.6 1,447.3 Non - Current Assets 1,169.2 737.4 Share Capital 119.2 111.3 Property Plant & Equipment's 553.2 566.0 Reserves & Surplus 2,563.4 1,336.0 CWIP 415.8 0.0
Slide 11: FY22 – Cash Flow Statement
FY22 – Cash Flow Statement Particulars (Rs. Millions) Mar-22 Mar-21 Net Profit Before Tax 335.1 223.6 Adjustments for: Non-Cash Items / Other Investment or Financial Items 121.3 164.2 Operating profit before working capital changes 456.5 387.8 Changes in working capital -676.2 32.9 Cash generated fr
Slide 12: Business Update - New Expansion Plan & Fund Raise
Business Update - New Expansion Plan & Fund Raise
Slide 13: Expansion Plan
Expansion Plan Particulars Amount (in Cr.) Details For new investments in setting up new capacity of Fractionation and Refinery process by 25,000 MT per annum each along with supporting infrastructure with the total estimated capex of Rs. 65 Cr. Board has also approved the acquisition of land around
Slide 14: Details of Expansion Plan
Details of Expansion Plan Putting up a 300 TPD Solvent Extraction Plant. Currently the Company is doing Solvent extraction under job work process through a third party vendor which entails additional transportation costs and processing costs. The said expansion will save on these additional costs ,
Slide 15: Update on Capex
Update on Capex New Warehouse & Solvent Extraction Plant • As of 31st March 2022, the company has incurred Rs. 573.52 million (Land, Project and Capital Advances) in this regard. • The management is confident of completing the expansion project by Q3FY23. 14
Slide 16: Capacity that Drives Growth
Capacity that Drives Growth Proposed New Capacity Existing Capacity Total Capacity Process Expansion (metric tonnes per annuam) (metric tonnes per annum) (metric tonnes per annuam) Seed Milling 60,000 60,000 1,20,000 (Expeller) Solvent Extraction - 90,000 90,000 Plant Refinery 15,000 25,000 40,000 I
Slide 17: Company Overview
Company Overview
Slide 18: About Us
About Us Since its incorporation 16 years ago in 2005, started with extracting A global pioneer in the butter and fats from Sal manufacturing of The World’s exclusive producer of Mango seeds and Mango kernel Specialty Fats and based Cocoa Butter Equivalent (CBE), Sal Based and gradually forayed CBE,
Slide 19: Our Key Milestones
Our Key Milestones Company has successfully migrated from BSE SME Board to BSE Main Board • Received the GoI Department of Scientific & Industrial Research Company has raised successfully certificate approved in 2020 Rs. 100.88 Crore for its New Capex plans • Commenced new Plant at Birkoni • Signed
Slide 20: Experienced Board of Directors
Experienced Board of Directors Vinita Saraf - Chairperson and Managing Director Nipun Sumanlal Mehta - Independent Director Experience : 20 Years Experience : 36 Years Background : She has completed her bachelor’s degree in commerce from Mount Background: A CA by qualification. He is an expert in Fi
Slide 21: Experienced Management Team
Experienced Management Team Ashish Saraf - President Dr. Krishnadath Bhaggan -VP - R&D in Apel Sten - VP – Projects (New & product development Existing) A B.Com. He has over 32 years of experience in Experience in R&D and Innovation for 21 yrs.+ He Degree in Chemical Engineering from Aalborg managin
Slide 22: Our Vision and Mission
Our Vision and Mission VISION • Acquire and maintain leadership position in chosen areas of business by innovating and co- developing products for different applications for various segments using continues Research & Developments. • Continuously create new opportunities for growth MISSION • Produce
Slide 23: Global Certifications
Global Certifications Manorama Industries’ quest for quality has earned it a spectrum of prestigious certifications ISO 16128 Organic Cosmetic Products 22
Slide 24: Our Commitment to UN Global Compact
Our Commitment to UN Global Compact Committed to UN Sustainable Development Goals Over the years, developed an extensive supply chain network of Millions of women tribal and forest-dwellers ………and have positively impacted the livelihoods Committed to UN Global Compact With the signature of the UN Gl
Slide 25: Recent Awards & Accolades (1/3)
Recent Awards & Accolades (1/3) Awarded four ‘Highest Unique Processors and Highest Unique Excellence in Exports of Vegetable Butters from India’ Solvent Extractors’ Association of India at Goa GLOBOIL INDIA 2021 Awards Ceremony & Conference at Goa Awarded ‘Excellence in Highest Exports of Specialty
Slide 26: Recent Awards & Accolades (2/3)
Recent Awards & Accolades (2/3) Awarded Awarded Awarded ‘Highest Exporter of Kokum ‘Highest Exporter of Mango ‘Highest Exporter of Sal Oil Oil (Fats) 2020-21’ Kernel Oil (Fats) 2020-21’ (fats) 2020-21’ Consecutively from many years MIL has meritoriously conferred 4 (four) awards at Awarded ‘Highest
Slide 27: Awards & Accolades (3/3)
Awards & Accolades (3/3) National & International Awards Received by Manorama from Government of India, Ministry of Commerce and Various other National & International Organizations 26
Slide 28: Our Business Model
Our Business Model
Slide 29: Weaving a Revolution - Wealth Out of Waste
Weaving a Revolution - Wealth Out of Waste ‘’We source from poor and sell to rich’’ From the Poorest To the Richest From Forests to premium Brands • Procuring Raw Materials from the marginalized tribal located in remote forest areas • Transforming their lives and helping them sustain themselves econ
Slide 30: Collecting Nature’s Gift to Make Natural Products
Collecting Nature’s Gift to Make Natural Products Our business model is entirely nature based, sourcing our entire raw material from forests. No Risk of non-availability of raw material. Trees flower every year and seeds are produced. Available in plenty in India and other Countries. There is limite
Slide 31: Manufacturing Process and Capacities
Manufacturing Process and Capacities Raw Materials Sal / Mango / Shea / Illipe & Other Exotic Seeds Raw Materials Shea / Illipe Raw Materials Sal /Mango / Others Expeller Crude Oil Cake Solvent Extraction Process Refinery Process Crude Oil De-oiled Cake (Cattle Feed) Byproducts / Gums Refined Butter
Slide 32: Enhancing Capacities for an Expanding Business
Enhancing Capacities for an Expanding Business Favourable plant location provides us an edge in sourcing raw-materials and ensuring adequate supply To meet the huge surge in specialty tailor-made fats and CBE demand, the company has set up an integrated state of the art manufacturing plant at Birkon
Slide 33: Key Product Components
Key Product Components Shea nuts (Vitellaria paradoxa) The Shea trees that yield Shea nuts are found mainly in West Africa region. The Shea nut collection season is from September to January. The Ghanaian kernels are considered to be of the best quality due to their consistently lower free fatty-aci
Slide 34: De-Oiled Cake for Cattle Industry
De-Oiled Cake for Cattle Industry De-Oiled Cake is the by-products sold as Cattle Feed. India is the world’s largest consumer of cattle-feed 01 & largest Milk Producer FY22 Revenue contribution from cattle feed business The Company has Sizeable presence in the Cattle feed Rs. 455.5 Million 02 segmen
Slide 35: Our Key Product Portfolio
Our Key Product Portfolio Shea butter Shea stearin Shea olein Kokum Butter Shea nuts have 45-52% butter content, high in Is the solid fraction obtained Is the soft fraction obtained when processing It is obtained from kokum seeds. It stearic, oleic-and other essential fatty acids, which via solvent
Slide 36: Supply Chain Network
Supply Chain Network Manorama Supply Network in West - Africa Sal seed Collection Process in India Scattered Sal Shea Forest Shea Tree Shea Fruit in forest bed Picking of Shea nuts Seeds picking by tribal women At Manorama Manorama buying Shea nuts Deshelling of Boiling & Cleaning Shea at Bushes She
Slide 37: Procurement of Shea Nuts (Africa)
Procurement of Shea Nuts (Africa) Developing a comprehensive and efficient system for procuring Shea nuts and other agricultural goods from Ghana's West African neighbors such as Burkina Faso, Ivory Coast, Mali, and others This system gives a competitive edge in meeting rising raw material requireme
Slide 38: World’s Leading Brands are Our Customers
World’s Leading Brands are Our Customers The Company derives major revenue from the chocolate and confectionery industry, with a significant portion of the balance revenues coming from the cosmetics industry Food & Confectionery Chocolate Plant Based Food Industry Cosmetics (Vegan Food) The Brand Na
Slide 39: Geographical Footprint
Geographical Footprint Trusted manufacturer of food, chocolate, confectionary and cosmetics ingredients industry having FY22 – Average Revenue Breakup customer base spanning across the globe 38% 62% Domestic International The Company enjoys a global leadership position in the manufacturing and expor
Slide 40: Client Testimonials (1/2)
Client Testimonials (1/2) Meet the Women of Manorama – Article Published on The Body Shop Website Link – Click Here Note: The Brand names mentioned are the property of their respective owners and are used here for identification purposes only 39
Slide 41: Client Testimonials (2/2)
Client Testimonials (2/2) Article Published on Lush Website Link – Click Here Note: The Brand names mentioned are the property of their respective owners and are used here for identification purposes only 40
Slide 42: Industry Overview
Industry Overview Indian consumption of chocolate Global Industry Landscape was ~228,000 tons in 2016. In May 2017, FSSAI allowed the use of 5% CBEs in chocolates from January 1st, 2018. With the positive change in the standards of chocolates, the CBE demand is estimated to grow substantially. India
Slide 43: Innovation & Research
Innovation & Research
Slide 44: Product Portfolio - MILCOA® Range & Spread Fats
Product Portfolio - MILCOA® Range & Spread Fats Through extensive customized solution provider and with co-development approach with customers and in-house research, Manorama Industries Limited has developed a number of customized products: Milcoa® ES70, Milcoa® ES70S, Milcoa® Milcoa® IS1016, Milcoa
Slide 45: Excellence Through Innovation & Research, But Naturally!
Excellence Through Innovation & Research, But Naturally! Milcoa® Innovation & Research Center, a high standard research laboratory equipped with cutting-edge technologies Collaborates closely with Develop creative innovative customers’ R&D teams solutions to use its CBEs, CBIs and other offerings. L
Slide 46: R&D, Innovation & QA/QC Capabilities
R&D, Innovation & QA/QC Capabilities New Products for : Building on its core competencies Confectionery, Bakery, Culinary and non- in the food and cosmetics food, Health drink, Personal care segments, the Company is 5 (B2B) developing new products for 1-2 (B2C) 2025 Under Development (B2B) segments
Slide 47: Historical Financial Highlights
Historical Financial Highlights
Slide 48: Financial Highlights
Financial Highlights Profit and Loss (Rs. Millions) FY22 FY21* FY20 FY19 Revenue from Operations (Net of Excise) 2,791.2 2,026.3 1,882.4 1,024.0 Raw Material 1,546.2 1,199.0 867.3 495.4 Employee Cost 96.4 74.7 69.1 35.0 Other Expenses 759.2 406.0 507.6 210.7 EBITDA 389.4 346.6 438.5 282.8 EBITDA Mar
Slide 49: Balance Sheet Statement
Balance Sheet Statement Equity & Liabilities (Rs. Millions) Mar-22 Mar-21 Mar-20 Mar-19 Assets (in Rs. Millions) Mar-22 Mar-21 Mar-21 Mar-21 Total Equity 2,682.6 1,447.3 1,272.6 1,039.2 Non - Current Assets 1169.2 737.4 628.8 357.9 Share Capital 119.2 111.3 111.3 111.3 Property Plant & Equipments 55
Slide 50: Cash Flow Statement
Cash Flow Statement Particulars (Rs. Millions) Mar-22 Mar-21 Mar-20 Mar-19 Net Profit Before Tax 335.1 223.6 323.7 265.6 Adjustments for: Non-Cash Items / Other Investment or Financial Items 121.3 164.2 145.9 23.2 Operating profit before working capital changes 456.5 387.8 469.6 288.8 Changes in wor
Slide 51: Growth Drivers - Market Strategy
Growth Drivers - Market Strategy Optimum capacity utilisation at Birkoni and new capex Growing opportunities in Chocolate Industry The Birkoni Plant has achieved optimum commercial production and able to reach one of highest output for the year. It has also begun A major driver for the sector is pro
Slide 52: Thank You
Contact Information Company : Investor Relations Advisor : Manorama Industries Limited Strategic Growth Advisors Pvt. Ltd. CIN: L15142MH2005PLC243687 CIN: U74140MH2010PTC204285 Mr. Ashok Jain – Chief Financial Officer Mr. Shogun Jain / Mr. Abhishek Shah E: shogun.jain@sgapl.net / abhishek.shah@sgapl