Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q4 FY17 Earnings Presentation
24 slides from Globus Spirits's earnings presentation, May 19, 2017
Slide 1: Q4 & FY17 Investor Presentation
GLOB U S S P IRI T S L IMI T E D Q4 & FY17 Investor Presentation 19 M a y 2 017
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Globus Spirits‟ future business developments and economic performance. W
Slide 3: Company Highlights
COMPANY HIGHLIGHTS 360° ALCOBEV PLAYER – Present across Distillery, IMIL, IMFL and Franchise Bottling LARGEST GRAIN BASED DISTILLERS IN INDIA with capacity of ~150 million bulk liters MANUFACTURING EXCELLENCE – State of the art manufacturing facilities with „zero discharge‟ and „integrated evaporati
Slide 4: Agenda
AGENDA Q4 & FY17 Performance Key Developments 5 Performance Highlights 6 Financials 7 Financial Performance 10 Annexure Company Overview 17 Shareholding Pattern 23 4
Slide 5: Q4 FY17 – Key Developments
Q4 FY17 – KEY DEVELOPMENTS • Commenced commercial production at the Greenfield distillery in West Bengal (WB) in Q4. It is one of the largest distilleries in the state with capacity of ~33 million BL – WB continues to be an alcohol deficit state with demand surpassing overall supplies – expect to ra
Slide 6: Q4 FY17 – Performance Highlights
Q4 FY17 – PERFORMANCE HIGHLIGHTS • Strong increase in Bulk alcohol volumes led to steady topline performance during the quarter. This was supported by Franchise IMFL and IMIL revenues from West Bengal facility which recently commenced production – Revenue from operations stood at Rs. 2,106.7 mn in Q
Slide 7: Q4 FY17: Profit & Loss Statement
Q4 FY17: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs MN) Q4 FY17 Q4 FY16 YoY (%) Q3 FY17 QoQ (%) FY17 FY16 YoY (%) Gross Sales 2,831.88 2,749.47 3% 3,229.04 -12% 11,230.86 9,930.68 13% Less- Excise duty & Discounts 725.14 839.70 -14% 1,025.82 -29% 3,339.62 2,863.64 17% Net Sales 2,106.74 1
Slide 8: Q4 FY17: Key Ratios
Q4 FY17: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q4 FY17 Q4 FY16 Q3 FY17 FY17 FY16 EBITDA 5% 12% 8% 8% 10% PAT 0% 2% 1% 1% 2% Total Expenditure 96% 88% 93% 93% 90% Raw material 59% 58% 59% 59% 58% Employee Cost 3% 2% 2% 2% 2% Other Expenditure 34% 28% 31% 31% 30% Interest 4% 2% 2% 2
Slide 9: Q4 FY17: Balance Sheet
Q4 FY17: BALANCE SHEET Particulars (In Rs MN) 31st Mar 2017 31st Mar 2016 Liabilities Shareholders‟ Fund 3,725.6 3,635.4 Non-Current Liabilities 2226.0 2,073.7 Long term borrowings 1,750.4 1,592.5 Deferred tax liabilites (Net) 461.4 470.3 Long-term provisions 14.2 11.0 Current Liabilities 2,242.9 1,
Slide 10: Q4 FY17 YoY – Performance Overview
Q4 FY17 YoY – PERFORMANCE OVERVIEW • Revenue from operations (Net) stood at Q4 FY17 Q4 FY16 Rs. 2,107 mn in Q4 FY17, higher by 10% owing to strong volume increase in the Bulk alcohol segment – Bulk alcohol volumes improved by 44%, while the revenues grew by 53% Rs. 2,107 mn 10% Rs. 1,910 mn – Revenu
Slide 11: FY17 YoY – Performance Overview
FY17 YOY – PERFORMANCE OVERVIEW • Revenue from operations (Net) grew by 12% to Rs. 7,891 mn FY2017 FY2016 in FY17 on account of strong growth in Franchise IMFL as well as Bulk alcohol segment – Franchise IMFL volumes improved by 35% in FY17, while Bulk alcohol witnessed volume growth of 10% during t
Slide 12: Q4 & FY17 YoY – Adjusted Financials
Q4 & FY17 YOY – ADJUSTED FINANCIALS Particulars Q4 FY17 Q4 FY16 Growth (%) FY17 FY16 Growth (%) Net Revenue 2,107 1,910 10.3% 7,891 7,067 11.7% Revenue of bottling customers in Rajasthan 373 355 5.0% 1,639 1,180 38.9% & West Bengal Adjusted Revenue 1,734 1,555 11.5% 6,252 5,887 6.2% EBITDA 91 220 -5
Slide 13: Franchise IMFL Supported Overall Performance
FRANCHISE IMFL SUPPORTED OVERALL PERFORMANCE Breakup of Revenue from Operations • Revenues from manufacturing business stood at Rs. Bulk 1,267 mn in Q4 FY17, higher by 29% YoY IMFL, 0% Alcohol, 34% – This was driven by healthy growth in both Franchise IMFL as well as Bulk alcohol segment • Share of
Slide 14: IMIL - Robust Volumes in Rajasthan
IMIL - ROBUST VOLUMES IN RAJASTHAN • Aggregate IMIL revenues stood at Rs. 8,369 mn, down by 9% Y-o-Y Rajasthan IMIL – Zero IMIL revenues from Bihar as well as subdued volume 800 1.71 2.02 2.50 growth in Haryana resulted in below-par performance 600 2.00 1.50 400 • Rajasthan witnessed strong growth o
Slide 15: Manufacturing: Backbone to Consumer Business
MANUFACTURING: BACKBONE TO CONSUMER BUSINESS Production & Capacity Utilization • Capacity utilization stood at 71% in Q4 FY17 20.0 98% 71% 100% – This comprises of the production commenced at the 10.0 22 27 80% West Bengal facility during the quarter 0.0 60% Q4 FY16 Q4 FY17 Production (Mn BL) Capaci
Slide 16: Agenda
AGENDA Q4 & FY17 Performance Key Developments 5 Performance Highlights 6 Financials 7 Financial Performance 10 Annexure Company Overview 17 Shareholding Pattern 23 16
Slide 17: Globus 360º Alcobev Player - Foray into East
GLOBUS 360º ALCOBEV PLAYER - FORAY INTO EAST • No. 1 private player in Rajasthan IMIL with 30% market share – 2.02 mn cases in sold in Q4 FY17, up 18% YoY • No. 2 private player in Haryana with 13% market share – 0.48 mn cases in sold in Q4 FY17 • Commenced commercial production at both the Greenfie
Slide 18: Leveraging a Strong 360º Business Model
LEVERAGING A STRONG 360º BUSINESS MODEL Large, efficient manufacturing operations • Amongst the largest and most efficient grain- based distillery operations in India with ~150 million bulk litres of distillery capacity • Present in DDGS – a high-potential co-product used as Animal Feed 360 o • Well
Slide 19: Globus Plans
GLOBUS PLANS PRESENT FUTURE • Established 360⁰ model in North • Large market share in IMIL by India (Haryana & Rajasthan) offering quality products to the • Amongst the largest grain based consumer distilleries in India • Establish sustainable premium • Strong IMIL brands that have brands in IMFL ac
Slide 20: Expansion into East – Bihar & West Bengal
EXPANSION INTO EAST – BIHAR & WEST BENGAL • Locational advantages like lower raw material costs, higher realizations and other logistical benefits to drive Existing facilities at overall profitability Haryana & Rajasthan Severe Alcohol Deficit in West Bengal (mn ltrs) Commissioned Greenfield 98 faci
Slide 21: IMIL Brands Showcase
IMIL BRANDS SHOWCASE Nimboo Ghoomar 1st IMIL brand in India positioned Tribute to Rajasthani folk as awesome mix of natural lemon dance ; blend popular in the flavor with strong yet smooth harsh winter months of the blend profile desert region Heer Ranjha Narangi Tribute to the most popular Popular
Slide 22: Unique Competitive Strengths
UNIQUE COMPETITIVE STRENGTHS 360° Business Model Efficient Operations • Only company present across full alcobev value chain • State-of-the-art plants across three locations using latest distillation technology, zero • Helps capture IMFL growth via franchisee discharge and highest grain- recovery in
Slide 23: Shareholding Pattern
SHAREHOLDING PATTERN Corporate Bodies, Individuals & Others 26% Promoter Group 57% FII 17% As on March, 31, 2017 Outstanding shares – 28.8 mn Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% 23
Slide 24: About Us
ABOUT US Established in 1992, Globus Sprits Limited (BSE code: 533104, NSE Id: GLOBUSSPR, ISIN Id:INE615I01010) is engaged in manufacturing, marketing and sale of Indian Made Indian Liquor(IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and contract bottling for established IMFL brands. The C