Radico Khaitan Limited · NSE:RADICO
Radico Khaitan — Q2 FY2017 Earnings Presentation
24 slides from Radico Khaitan's earnings presentation, Nov 4, 2016
Slide 1: Quality Earnings & Superior Cash Flows
Quality Earnings & Superior Cash Flows Q2 & Half Year FY2017 Earnings Presentation November 4, 2016
Slide 2: Important Notice
Important Notice 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 Radico Khaitan’s future business developments and economic performa
Slide 3: Quality Earnings & Superior Cash Flows
Quality Earnings & Superior Cash Flows Increasing total volumes driven by strong Prestige & Above category growth Total volume +4.5%; Prestige & Above +13.0% Continued top-line growth and profitability improvement Net Sales +11.3%; Net Profit +27.4% Strong cash flow generation and ongoing deleveragi
Slide 4: Performance Highlights
Performance Highlights Increasing total volume growth led by Prestige & Above category brands … +4.5% +13.0% +2.0% 42.90 44.84 10.61 11.99 24.7% 26.7% Q2 FY16 Q2 FY17 Q2 FY16 Q2 FY17 Q2 FY16 Q2 FY17 Total Volume Prestige & Above Prestige & Above (lakhs cases) (lakhs cases) (as % of Total Volume) www
Slide 5: Performance Highlights
Performance Highlights … Driving all round financial performance +11.3% +15.8% +27.4% 394.3 438.7 49.0 56.8 17.1 21.8 Q2 FY16 Q2 FY17 Q2 FY16 Q2 FY17 Q2 FY16 Q2 FY17 Net Sales (Rs. Cr) EBITDA (Rs. Cr) Net Income (Rs. Cr) www.radicokhaitan.com 5
Slide 6: Performance Highlights
Performance Highlights Overall strong top line performance leading to profitability improvement 13.0% 11.3% 8.7% o Continue to gain market share in 4.5% the white spirits category (Magic Moments currently holds over 50% 1.7% of the vodka market share) (1.6)% o New launches (e.g. Magic Moments Electr
Slide 7: Performance Highlights
Performance Highlights Ongoing deleveraging and cash flow generation 840.9 810.9 o Longstanding focus on (30.0) 740.1 premiumization coupled with cost (70.8) optimization efforts resulted in improved profitability and cash flow generation o This resulted in bringing the Net Debt down from Rs. 840.9
Slide 8: Management Perspectives
Management Perspectives Commenting on the results and performance, Dr. Lalit Khaitan, Chairman & Managing Director said: “After a strong start to the year, I am pleased to announce another quarter with a stellar performance. Our topline continued to improve driven by a robust Prestige & Above catego
Slide 9: Economic Environment
Economic Environment o As per the latest release by the India Sugar Mills Association (ISMA), the overall sugarcane acreage in 2016-17 sugar season is estimated to be at 4.99 million hectares which is 5.5% lower compared with the last season o Sugar production based on advanced estimates is expected
Slide 10: Financial Overview
Financial Overview Q2 and Half Year FY2017 Financial Performance (Ind AS) Q2 y-o-y Half Year y-o-y (Rs. Crore) FY2017 FY2016 Growth (%) FY2017 FY2016 Growth (%) Gross Sales 1,202.8 1,012.0 18.9% 2,407.5 2,101.2 14.6% Net Sales 438.7 394.3 11.3% 860.8 802.7 7.2% EBITDA 56.8 49.0 15.8% 113.9 95.9 18.7
Slide 11: Operational Performance
Operational Performance Pick up in the Regular & Others category volumes; Continued increase in the share of Prestige & Above category volumes Prestige & Above as 24.7% +2.0% 26.7% 25.0% +1.8% 26.8% % of Total Volume 94.64 90.95 166.43 154.45 37.17 40.43 FY14 FY15 69.26 68.23 42.90 44.84 32.29 32.85
Slide 12: Performance Discussion
Performance Discussion Q2 FY2017 Highlights (Y-o-Y) Net Sales: Net Sales increased by 11.3% compared to Q2 FY2016. Total IMFL volume increased by 4.5% driven by the continued growth in the Prestige & Above category brands and a pick up in the Regular & Others category. Prestige & Above brands volume
Slide 13: Company Overview
Company Overview Radico Khaitan is one of the leading players in the premium spirits segment Radico Khaitan Overview Market Leading Premium Brands o One of the largest players in the Indian spirits o Launched in 2005, Magic Moments is the market industry leader in India in the premium vodka category
Slide 14: New Product Launch – Rampur Indian Single Malt
New Product Launch – Rampur Indian Single Malt A salute to the royal heritage • Takes forward the rich heritage of Rampur, a princely state of British India and the 75 years of distillation expertise of Radico Khaitan, the pioneers of legendary spirits in India • Aged in the foothills of the Himalay
Slide 15: New Product Launch – Rampur Indian Single Malt
New Product Launch – Rampur Indian Single Malt A leap into the journey of creating super premium products and brands Tasting Notes • Aroma: Rich fruity top note, toffee in the background, floral, honey, dried fruits and hint of spice • Appearance: Golden amber • Palate: All round balanced taste with
Slide 16: New Product Launch – Pluton Bay Premium Rum
New Product Launch – Pluton Bay Premium Rum Rare Exotic Rum. The Spirit of Adventure • Product: A unique experience, with a perfect blend of international design and world-class packaging. Rare and smooth taste, offering a premium blend • Packaging: A key differentiator from the existing competition
Slide 17: New Product Launch – Regal Talons Semi Premium Whisky
New Product Launch – Regal Talons Semi Premium Whisky Rare generation whisky Brand Positioning • The finest blend that combines Indian grain spirits with imported aged scotch malts to deliver an exceptional smoothness • Regal Talons has been especially made for those who believe in conquering and al
Slide 18: New Product Launch – Magic Moment ELECTRA
New Product Launch – Magic Moment ELECTRA A premium ready-to-drink (RTD) product • ELECTRA has been positioned to capture the significant market opportunity in the RTD segment • Launched in three unique flavours after extensive research: o Cosmopolitan: Cranberry Base with the hint of lime o Appleti
Slide 19: New Product Launch – Magic Moment ELECTRA
New Product Launch – Magic Moment ELECTRA Premium Chocolate & Coffee Flavour – marketing campaign Starry Night Martini Premium Chocolate & Coffee Flavour If you are ready to play, then the blend is energy and sin. That’s what coffee and chocolate brings to the new flavour of ELECTRA which is set to
Slide 20: Statutory Results
Statutory Results Statement of Standalone Unaudited Financial Results for the quarter and half year ended 30th September 2016 (Rs in Lakhs) No. Particulars (1) (2) (3) (4) (5) No. Particulars (1) (2) (3) (4) (5) Quarter Quarter Quarter Half year Half year Quarter Quarter Quarter Half year Half year
Slide 21: Statutory Results
Statutory Results Statement of Assets & Liabilities under regulation 33 of the Listing Regulations (Rs. In Lakhs) Standalone Standalone Six Months Six Months Ended Ended No. Particulars No. Particulars 30.09.2016 30.09.2016 Unaudited Unaudited A ASSETS B EQUITY AND LIABILITIES (1) Non-current assets
Slide 22: Statutory Results
Statutory Results Notes: 1 The above unaudited results were reviewed by the Audit Committee and were approved and taken on record by the Board of Directors in their meeting held on November 04, 2016. Further, in accordance with the requirements under Regulation 33 of the Listing Regulations with the
Slide 23: Statutory Results
Statutory Results Notes: 5 Reconciliation between financial results as previously reported (referred to as 'Previous Indian GAAP ) and Ind-AS for quarter ended September 30, 2015 is as below: (Rs. in Lakhs) Six Months Quarter Particulars ended September 2015 Net profit as reported under Previous GAA
Slide 24: Radico Khaitan Limited
Radico Khaitan Limited (CIN: L26941UP1983PLC027278) Plot No. J-I, Block B-I Mohan Co-operative Industrial Area Mathura Road, New Delhi-110 044 Ph.: +91-11-4097 5400/5500 Fax: +91-11-41678841/42 E-mail: info@radico.co.in www.radicokhaitan.com Dilip Kumar Banthiya banthiyadk@radico.co.in Chief Financi