Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q4 FY24 Earnings Presentation
36 slides from Prataap Snacks's earnings presentation, May 22, 2024
Slide 1: Prataap Snacks Limited Q4 FY24 Earnings Presentation
PRATAAP SNACKS LIMITED Q4 FY24 Earnings Presentation 22 May 2024
Slide 2: Disclaimer
DISCLAIMER Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 3: The Main Ingredients: Company Overview
THE MAIN INGREDIENTS: Company Overview
Slide 4: Company at a Glance
COMPANY AT A GLANCE Large, compounding market Market leadership Significant revenue scale INR 508 Bn market Market Leader in Rings and FY24 Revenue of INR ~ 16.2 Bn Growing at 14% CAGR(1) Extruded Snacks, 10-year revenue CAGR: 14%(2) Top 5 in Western Savoury Snacks Diverse product portfolio Nationwi
Slide 5: Key Milestones
KEY MILESTONES 2018 2022 2024 2003 2012 Forayed into Sweet Completed Consolidation of Company Doubled the Snacks 2020 restructuring Manufacturing Units in founded Eastern Region. Shifted capacity of Entered into 3P Contract Converted 3P of distribution machinery from Guwahati- Potato Chips Manufactu
Slide 6: Company Evolution
COMPANY EVOLUTION 2003 2024 Single Product Potato Chips Product Diverse Product Portfolio Single Market Mumbai Presence Pan-India Presence Single Facility 15 Facilities Indore Facility 8 Owned and 7 3P Facilities Snapshot of Recent Growth Rs. 446 Cr Revenue Rs. 1,618 Cr 2014 40+ SKUs 150+ 2024 3 Fac
Slide 7: Diverse Product Portfolio
DIVERSE PRODUCT PORTFOLIO Appealing to consumers and trade partners % of FY24 CATEGORIES Revenue PRODUCTS 58% Chulbule Rings Wheels Pellets Scoops Puff Stix Extruded Snacks 23% Market Leader in Rings Potato Chips and Extruded Snacks, Top 5 in Western Savoury Snacks 16% Namkeen 3% Cookie Center Fille
Slide 8: Branding & Marketing
BRANDING & MARKETING Brand seen to be energetic and vibrant Brand Philosophy Current Associations / Brand Ambassadors Consumer oriented focus Providing value in multiple ways – great taste, high quality ingredients, vibrant packaging, reasonable price Past Associations / Brand Ambassadors Brand tagl
Slide 9: Operational Excellence
OPERATIONAL EXCELLENCE Powered by tech and automation Data Analytics Production Automation Sales Automation Experienced Sales Analytics department working Complete ERP Solution to manage State-of-the-art SFA being used to with advanced BI Tools production processes; Software guide sales team with as
Slide 10: Established Manufacturing Network
ESTABLISHED MANUFACTURING NETWORK Reduced distribution costs; Improved time-to-market; Disciplined investment mindset STRATEGICALLY LOCATED North India (35% of rev.) MANUFACTURING 5 plants in Hisar, Karnal, Nationwide manufacturing FACILITIES TO CATER TO Kanpur, Patna, Jammu footprint THE REGIONAL D
Slide 11: Optimised Distribution Model
OPTIMISED DISTRIBUTION MODEL Direct distribution model on a nationwide scale OLD DIRECT Shifted to a direct distribution model upon hitting DISTRIBUTION Prataap Prataap DISTRIBUTION critical scale MODEL MODEL • Decentralized manufacturing footprint allows us to supply directly to distributors Supers
Slide 12: Our ESG Approach
OUR ESG APPROACH Cornerstones of doing good business • Actively working in accordance with Uniform Framework for Extended Producers Responsibility (EPR) issued by the Ministry of Environment, Forest, and Climate Change Waste management • We engage in mass collection for processing and disposal of em
Slide 13: Strong 'Value-for-Money' Brand
STRONG ‘VALUE-FOR-MONEY’ BRAND Appealing to customers across socio-demographic profiles CATEGORIES CHILDREN YOUTH ADULTS/FAMILY Rings, Kurves, Puff, Stix Chulbule Extruded Snacks Pellets Potato Chips Potato Chips Namkeen Namkeen Sweet Snacks Sweet Snacks Targeting value for money segment 13
Slide 14: Guided by an Accomplished Board
Guided by an Accomplished Board Mr. Arvind Mehta Vineet Kumar Kapila Mr. V.T. Bharadwaj Chairman & Executive Director Independent Director Independent Director Over 35 years of experience in real Ex COO (RPC North of United Spirits) General Partner (A91 Partners) Over 23 estate business along with o
Slide 15: Essential Flavours: Growth Strategies and Financial Progress
ESSENTIAL FLAVOURS: Growth Strategies and Financial Progress
Slide 16: Strategic Initiatives
STRATEGIC INITIATIVES Executing on a clear roadmap for robust and disciplined growth TOP LINE GROWTH Expand Namkeen Implementation of SFA Entered into Modern Addition of premium Footprint to drive Range Selling Trade and Quick products to portfolio ~44% of snacks Sales force automation Commerce Enha
Slide 17: Measures to Enhance Profitability and Returns
MEASURES TO ENHANCE PROFITABILITY AND RETURNS Cost optimisation Compression of distribution structure • Reduction in overheads, improvement in • PSL has implemented direct distribution productivity and overall efficiency across all regions, ahead of schedule • Indirect expenses are being saved by •
Slide 18: Robust Revenue Growth
ROBUST REVENUE GROWTH Consistent execution track record TOTAL REVENUE (INR Mn) COVID DISRUPTION 16,529 16,179 Avadh 13,938 13,966 Acquisition 1,688 11,706 11,711 10,174 8,940 7,572 5,493 12,250 4,460 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 18
Slide 19: EBITDA Margin Recovery
EBITDA MARGIN RECOVERY On the back of recent stabilization of volatile raw material prices EBITDA MARGIN (%) 5 year (FY16-FY20) average EBITDA margin was 6.9%. 9.1% 8.5% 8.8% 8.5% In FY21-22 and FY22-23, there was impact on margin due to: Covid period: supply 7.6% • Operating deleverage due to Infla
Slide 20: Overcoming Cost Pressures
OVERCOMING COST PRESSURES UNDERTOOK MULTIPLE INITIATIVES TO OVERCOME SHARP RISE IN INPUT PRICES There was sharp inflation in RM prices during the period RM/PM Price Increase from compared to the average during FY16-FY20 EBITDA MARGIN(%) FY16-20(avg) to FY24 In addition to RM prices inflation there h
Slide 21: ROCE Expansion
ROCE EXPANSION SHARP INCREASE IN RETURN RATIO WHICH IS SET TO IMPROVE FURTHER 20.6% In line with rise in profitability the Company has witnessed a sharp improvement in RoCE 13.3% The RoCE of the core business has surpassed 20% in FY24 5.70% Further improvement in RoCE is expected due to: • Measures
Slide 22: Approval under Performance Linked Incentive (PLI) Scheme
APPROVAL UNDER PERFORMANCE LINKED INCENTIVE (‘PLI’) SCHEME The minimum CAGR for sales for calculating the incentive is 10% with the maximum cap of Received approval under PLI The benefit is available 13% CAGR for eligible products scheme of the Government of The base year for calculating including g
Slide 23: Our Long-Term Target Operating Model
OUR LONG-TERM TARGET OPERATING MODEL CONSISTENT PROFITABILITY CAPITAL GROWTH CENTRIC EFFICIENCY ~15% >10% 15–20% Revenue growth EBITDA margin RoCE (faster than industry) 23
Slide 24: Proof of the Pudding: Q4 FY24 Performance Update
PROOF OF THE PUDDING: Q4 FY24 Performance Update
Slide 25: Operational Overview
OPERATIONAL OVERVIEW • Despite the challenging macroeconomic environment and ongoing inflationary pressures impacting consumption trends, we delivered a resilient performance during the quarter. Reported Sales of Rs. 3,865.3 million in Q4 FY24, continues to be • During the quarter, PSL (Yellow Diamo
Slide 26: Sustaining EBITDA Trajectory
SUSTAINING EBITDA TRAJECTORY Reports highest ever annual EBITDA and has reported EBITDA of over Rs. 300 Mn for fifth successive quarter EBITDA (INR Mn) 379 *Adjusted EBITDA represents 347 355 EBITDA excluding reversal of 328 Production Linked Incentive of Rs. 113 million 302* 242 234 221 113 176 181
Slide 27: MD & CEO's Message
MD & CEO’s Message “I'm pleased to share that we have delivered a resilient performance in Q4 FY24, despite the challenging macroeconomic environment and continued inflationary pressures impacting consumption trends. Key highlights of our performance have been maintaining of our leadership position
Slide 28: Abridged P&L Statement
ABRIDGED P&L STATEMENT Y-o-Y Y-o-Y (INR Mn) Q4 FY’24 Q4 FY’23 FY’24 FY’23 Change (%) Change (%) Sales/Income from 3,865.3 3,979.1 (3%) 16,101.5 16,417.1 (2%) operations Other operating Income 15.7 (112.8) (114%) 77.9 112.2 (31%) Total Income from Operations 3,881.0 3,866.3 0.4% 16,179.3 16,529.3 (2%
Slide 29: Balance Sheet
Balance Sheet YoY YoY (INRm) March 2024 March 2023 (INRm) March 2024 March 2023 change change Closing cash and cash 298.2 219.0 36.1% Payables 1,145.7 1,038.1 10.4% equivalents Fixed Deposit with Banks 850.2 385.8 120.4% Other current liabilities 275.6 288.0 (4.3%) Inventory 1,423.8 1,352.8 5.2% Oth
Slide 30: Cash Flow Statement
Cash Flow Statement (INRm) FY24 FY23 YoY change Reported EBITDA 1,409.9 624.3 125.8% Commentary Noncash items in P&L 21.6 6.1 254.4% • Significant improvement in cash Change in WC -36.0 225.4 -116% generation in FY24 Income tax paid -128.6 -57.8 122% • Despite CAPEX deployment primarily Cash From Op
Slide 31: Financials – Q4 & FY'24 Performance
FINANCIALS – Q4 & FY’24 PERFORMANCE Sales / Income from Gross Profit Operations (INR Mn) (INR Mn) Gross Profit Gross margin 16,417 16,102 5,409 4,609 32% 33% 33% 28% 3,979 3,865 1,218 1,290 Q4 FY23 Q4 FY24 FY23 FY24 Q4 FY23 Q4 FY24 FY23 FY24 • In a challenging macroeconomic backdrop, the Sales was c
Slide 32: Financials – Q4 & FY'24 Performance
FINANCIALS – Q4 & FY’24 PERFORMANCE EBITDA (INR Mn) PAT (INR Mn) EBITDA EBITDA margin PAT PAT margin 3.2% 1,410 531 2.5% 3.3% 9.1% 8.7% 624 4.9% 3.8% 355 124 95 0.1% 189 10 Q4 FY23 Q4 FY24 FY23 FY24 Q4 FY23* Q4 FY24 FY23# FY24 • PAT grew 52x from Rs. 10 Mn to Rs. 531 Mn in • EBITDA grew 1.26x from R
Slide 33: Financials – Q4 & FY'24 Performance
FINANCIALS – Q4 & FY’24 PERFORMANCE Cash profit Cash EPS (INR Mn) (INR) 1,202 51.3 631 26.9 315 13.2 248 10.6 Q4 FY23* Q4 FY24 FY23# FY24 Q4 FY23* Q4 FY24 FY23# FY24 • The company continues to generate • The Company follows a conservative Generating enhanced level of cash profit Cash EPS accounting
Slide 34: Evolving Tastes: Industry Overview
EVOLVING TASTES: Industry Overview
Slide 35: Favourable Demographics Supporting Industry Growth
Favourable Demographics Supporting Industry Growth India Population Trend Total Organized Snacks Food Market Size ~50,800 (MIllions) Crores (FY24) Potato Chips 1,468 23% 1,339 1,326 1,368 1,379 1,392 1,405 1,418 1,431 1,444 1,456 Namkeen 44% Extruded Snacks 16% 2017 2018 2019 2020 2021 2022 2023 202
Slide 36: Thank You!
Sumit Sharma Prataap Snacks Ltd Email: cfo@yellowdiamond.in THANK YOU! Mayank Vaswani / Mit Shah CDR India Tel: +91 98209 40953 / +91 99201 68314 Email: mayank@cdr-india.com / mit@cdr-india.com