Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — Q3 FY2019 Earnings Presentation
27 slides from Apex Frozen Foods's earnings presentation, Feb 13, 2019
Slide 1: Submission of Investor Presentation on Q3 FY19 results (exchange letter)
3 460, Punusapadul Knkinada 533 005 Andhra Prod-sh , India A3?" aft +91 836 2383902 » 4 (3 lines) A fax +91 884 2383905 - 6 kkd@apo)droszwds.com cm: L1549nne2onencoaooev Date: 13.022019 To To The General Manager, The Manager, Department of Corporate Services, Listing Department, Bombay Stock Exchang
Slide 2: Investor Presentation - 9M & Q3 FY19 Result
Investor Presentation Apex Frozen Foods Limited CIN: L15490AP2012PLC080067 9M & Q3 FY19 Result
Slide 3: Safe Harbor
Safe Harbor 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 4: Table of Contents
Table of Contents 1 Key Business Highlights 2 Industry Trends 3 Our Core Strengths 4 Past Performance Investor Presentation Q3 FY19 Apex Frozen Foods Limited 3
Slide 5: Key Business Highlights
01 Key Business Highlights Investor Presentation Q3 FY19 Apex Frozen Foods Limited 4
Slide 6: An Update on the Capacity Expansion Plans
An Update on the Capacity Expansion Plans New Shrimp Processing Plant – Completion Status ▪ Total installed capacity of 20,000 MTPA; of which: ▪ 15,000 MTPA for Ready-To-Cook (RTC) products and ▪ 5,000 MTPA for Ready-To-Eat (RTE) products ▪ Total planned outlay of Rs 902 mn, of which, Rs 802 mn has
Slide 7: 9M FY19: Key Performance Indicators
9M FY19 : Key Performance Indicators Total income (Rs mn) EBITDA (Rs mn) and margin (%) PAT (Rs mn) and margin (%) 12.6% 12.8% 7.3% 7.2% 8,124 1,023 7,292 591 935 524 9M FY18 9M FY19 9M FY18 9M FY19 9M FY18 9M FY19 Volumes sold (MT) Average Realisation* (Rs/kg) EBITDA per kg # (Rs) 9M FY18 11,140 9M
Slide 8: Q3 FY19: Key Performance Indicators
Q3 FY19 : Key Performance Indicators Total income (Rs mn) EBITDA (Rs mn) and margin (%) PAT (Rs mn) and margin (%) 12.6% 10.3% 7.0% 5.1% 188 2,671 343 2,209 229 113 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Volumes sold (MT) Average Realisation* (Rs/kg) EBITDA per kg # (Rs) Q3 FY18 3,542 Q3 FY
Slide 9: Profit & Loss Highlights
Profit & Loss Highlights Standalone (Rs mn) Q3 FY19 Q3 FY18 Q2 FY19 9M FY19 9M FY18 y-o-y % Net revenue 2,160 2,628 2,555 7,108 7,955 -11 Other income 50 43 87 184 169 8 Total Income 2,209 2,671 2,642 7,292 8,124 -10 Raw material 1,520 1,855 1,762 4,783 5,637 -15 Employee expenses 121 115 121 359 28
Slide 10: Management Commentary
Management Commentary ▪ The growth in shrimp consumption in some of our key markets like the USA, continue to remain muted largely on account of inventory pile-up and extended winters. However, as part of our diversification plan, the Company has forayed into new markets / geographies like China in
Slide 11: Industry Trends
02 Industry Trends Investor Presentation Q3 FY19 Apex Frozen Foods Limited 10
Slide 12: Global Seafood Industry – Overview
Global Seafood Industry – Overview Increased seafood intake globally, reflected in higher per capita consumption of seafood (kg) ✓ Rising income level ✓ Variety in product offering 20 ✓ Richer protein content 15 1995 2015 ✓ Favourable State policies like FTAs Source: FAO, CRISIL Research Seafood ind
Slide 13: Global Demand-Supply Scenario, Favourable for India
Global Demand-Supply Scenario, Favourable for India Demand: Top 5 importing countries, forming ~50% Supply: Asia forms ~92% of total aquaculture production 69.6% 15.0% 2015 67.7% 2015 14.7% 20-22% 2020P 2020P 18.0% 9.9% 7.8% 11.0% 6.8%6.7% 9-11% 8-10% 9.0% 5.2% 7.0% 4.8% 5-7% 5-7% 5.0% 3.0%3.0% USA
Slide 14: India's Growth in Aquaculture Exports and Farming
India’s Growth in Aquaculture Exports and Farming India’s exports on a rise – FY18 (lakh tonnes) Frozen shrimp exports by India 4.8 13.77 Total Seafood 3.7 3.7 (21% y-o-y) 3.2 3.1 5.66 (30% y-o-y) Frozen Shrimp 1.7 1.8 189 229 301 358 374 434 566 4.02 L. Vannamei FY12 FY13 FY14 FY15 FY16 FY17 FY18 (
Slide 15: Our Core Strengths
03 Our Core Strengths Investor Presentation Q3 FY19 Apex Frozen Foods Limited 14
Slide 16: Integrated Operations Ensure Quality Control & Timely Delivery
Integrated Operations Ensure Quality Control & Timely Delivery Hatchery Farming Processing Packaging Logistics • Capacity of • As per customer • 1,500 MT of cold • Four operational • 1,800 acres land 15,240 MTPA of requirement in storage capacity units; breeding • Forms 18-20% of processed shrimp Re
Slide 17: Strategically Located – Close to Farms as well as Ports
Strategically Located – Close to Farms as well as Ports Andhra Pradesh accounts for ~70% of the total shrimp farming in India Processing Plant Hatchery and Farm Locations Our facilities are in proximity to one another, enabling smooth transition to the next stage: Farms are within 10-200 kms; Kakina
Slide 18: Long Standing Relationships with Reputed Clients
Long Standing Relationships with Reputed Clients Our key distributors… …The end customers (Retail/Food Service Companies) Pacific Seafood Walmart WinCo FOODS OCEAN WORLD VENTURES Sysco US. Kroger FOODS Mazzetta Company Chicken of the Sea SAFEWAY ALDI frozen foods Investor Presentation Q3 FY19 Apex F
Slide 19: Quality Control Certifications act as Entry Barrier
Quality Control Certifications act as Entry Barrier EU Approved Government of India Ministry of Commerce Directorate General of Foreign Trade Four Star Export House Approved Investor Presentation Q3 FY19 Apex Frozen Foods Limited 18
Slide 20: Founded by Promoters with Extensive Experience
Founded by Promoters with Extensive Experience … Industry knowledge, relationships and experience of the founders has enabled sustained growth Karuturi Satyanarayana Murthy, Chairman and Managing Director ▪ Founding Promoter of the company and has an experience of over 25 years in aquaculture indust
Slide 21: Annual Financial Highlights
04 Annual Financial Highlights Investor Presentation Q3 FY19 Apex Frozen Foods Limited 20
Slide 22: Robust Growth in Revenue and Profits
Robust Growth in Revenue and Profits… Total income (Rs mn) EBITDA (Rs mn) & Margin (%) PAT (Rs mn) & Margin (%) FY14 5,146 FY14 329 6.4% FY14 134 2.6% FY15 6,044 FY15 382 6.3% FY15 186 3.1% FY16 6,083 FY16 455 7.5% FY16 197 3.2% FY17 7,093 FY17 549 7.7% FY17 251 3.5% FY18 10,185 FY18 1,299 12.8% FY1
Slide 23: Led by Strong Financial Discipline
…Led by Strong Financial Discipline, Leading to… Net debt-to-equity (x) Working capital (Days) Diluted Book value (Rs/share) FY14 2.0 FY14 48 FY14 12.1 FY15 1.6 FY15 54 FY15 17.9 FY16 0.9 FY16 51 FY16 26.6 FY17 1.0 FY17 60 FY17 35.0 FY18 0.1 FY18 52 FY18 96.7 Improved D/E led by… …largely stable wor
Slide 24: Enhanced Profitability for Stakeholders
…Enhanced Profitability for Stakeholders Return on Net Worth (%) Return on Capital Employed (%) FY14 43.1% FY14 18.3% FY15 39.6% FY15 18.9% FY16 28.3% FY16 17.2% FY17 26.1% FY17 17.1% FY18 38.4% FY18 28.1% Consistently generating high Return Ratios Note: The data beyond FY17 is as per Restated Finan
Slide 25: Profit & Loss Highlights
Profit & Loss Highlights Profit & Loss (Rs mn) FY14 FY15 FY16 FY17 FY18 Net revenue 5,143 5,994 6,035 6,987 9,986 Other income 3 50 47 106 199 Total income 5,146 6,044 6,083 7,093 10,185 Raw material 3,885 4,752 4,510 5,317 7,031 Employee expenses 226 258 233 249 389 Other expenses 705 652 884 977 1
Slide 26: Balance Sheet Highlights
Balance Sheet Highlights Standalone (Rs mn) FY16 FY17 FY18 Standalone (Rs mn) FY16 FY17 FY18 Shareholder’s Funds 831 1,094 3,023 Non-current assets 632 857 1,408 Share capital 240 240 313 Net block 552 829 1,111 Reserves & surplus 591 854 2,710 Capital work-in-progress 80 8 209 Non-current liabiliti
Slide 27: For further information, contact
For further information, contact: Mr. Subhramanya Chowdary Ms. Pooja Sharma Executive Director pooja.sharma@stellar-ir.com ir@apexfrozenfoods.com Investor Presentation Q3 FY19 Apex Frozen Foods Limited 26