Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q1 FY20 Earnings Presentation
28 slides from Adf Foods's earnings presentation, August 2019
Slide 1: Investor Presentation
Investor Presentation August 2019
Slide 2: At ADF we believe in maintaining high quality standards
“ At ADF we believe in maintaining high quality standards, introducing new and innovative products “ while remaining customer centric
Slide 3: Agenda
1 Q1FY20 highlights 2 About the company 3 Strengths & drivers 4 Growth strategies 5 Historical financial overview
Slide 4: Q1FY20 highlights
Q1FY20 highlights
Slide 5: Financial highlights Q1FY20
Financial highlights Q1FY20 Rs in Crs Revenue EBITDA and EBITDA Margin PAT and PAT Margin 21.7% 25.9% 12.6% 14.8% 49.3 33% 31% 7.3 12.8 12% 9.6 5.6 44.2 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Exports contribute to more than 95% of revenues Standalone Financials
Slide 6: Recent product launches
Recent product launches Flavored Milk Use of Natural Flavors, No Artificial Colors and Essence Focus on Baked changing Snacks trends 100% Vegetarian, Just Heat & Eat, Microwaveable in 90 seconds Frozen Snacks & Chutneys No Trans Fat, No Cholesterol, Vegan, Ready-to-eat
Slide 7: Profit and loss statement
Profit and loss statement Standalone Consolidated (Rs Cr) Q1FY20 Q1FY19 YoY Q1FY20 Q1FY19 YoY Revenue from operations 44.1 40.2 9.6% 65.7 49.0 34.0% Other income 5.2 4.0 31.0% 5.2 4.0 30.9% Total Income 49.3 44.2 11.5% 70.9 53.0 33.8% Cost of material consumed 22.6 29.8 -24.4% 22.6 29.8 -24.4% Chang
Slide 8: About the company
About the company
Slide 9: Wide range of products with established brands & strong distribution
Wide range of products with established brands & strong distribution Presence in 50+ countries Wide reach across allowing wide range and markets with 180+ coverage distributors • Ashoka • Truly Indian Two state-of-art manufacturing • Aeroplane • PJ’s Organic facilities at Nashik and Nadiad • Camel •
Slide 10: Evolution of the Company
Evolution of the Company The Flagship brand offers 1985 wide range of ready-to- cook, ready-to-eat Indian food Acquired this USDA certified organic food Launched a range of Acquired this brand brand from a US based organic products under Entered a new and launched a company offering a wide 2016 this
Slide 11: Experienced management
Experienced management Bimal Thakkar Chairman, Managing Director and CEO • 30+ years of experience in domestic and export management • Instrumental role in development of Brands and new products, tapping new markets, international acquisitions, setting up of subsidiary companies in U.K. and U.S.A. A
Slide 12: Board of directors
Board of directors Jay Mehta Ravinder Jain Non-Executive Director Independent Director • 35+ years of rich industrial experience • 45+ years of experience in business management • He is the Executive Vice Chairman of Gujarat Sidhee Cement Ltd and • Has held various management position like MD of Sha
Slide 13: Giving back to stakeholders
Giving back to stakeholders Investors Consistently rewarding FY17 FY18 FY19 shareholders through Buyback of Dividend of Buyback of dividends and buybacks Rs 9.6 crore 25% Rs 30 crore ▪ Solar power projects to meet ~40% of the total power requirement at the Environment manufacturing plants at Nadiad
Slide 14: Strengths & drivers
Strengths & drivers
Slide 15: Strong industry fundamentals to drive growth
Strong industry fundamentals to drive growth Indians staying abroad (in millions) 1 Indian diaspora 3.3 driving demand 2.3 2.3 1990 for ethnic RTE 0.5 0.5 0.9 1.2 1.2 0.8 0.7 0.6 2017 0.2 0.4 0.4 0.2 food 0 UAE USA Saudi Arabia Oman Kuwait UK Qatar Canada There are more Indian staying outside their
Slide 16: The only company with a presence across all categories
The only company with a presence across all categories Ready-to-eat & Cooking sauces Flavored Ready-to-cook & pastes drinks Meal Condiment Frozen food accompaniments powders With a view to evolve with consumer preference, the company has been continuously expanding its product basket with new launch
Slide 17: Strong distribution network
Strong distribution network Masud Sethi Country manager (Canada) Savio Almeida Country manager (GCC, CANADA Levant Countries, Asia Pacific & Africa) EUROPE NORTH Bharat Sareen & Upinder Thakur AMERICA Country managers (UK) ASIA Apurva Patel & Vimal Bhalla Country managers (USA) HO MIDDLE Mumbai EAST
Slide 18: Manufacturing units
Manufacturing units Nadiad Facility ❑ The company has two state of the art manufacturing plants located at Nashik spread across 10,100 sq. meters of area and Nadiad with a built-up area of 15,000 sq. meters ❑ Both the facilities are HACCP (Hazard Analysis and Critical Control Point) and BRC (British
Slide 19: Awards & recognition
Awards & recognition ‘Truly Indian’ organic product category won two silver awards in 2017 the SOFI awards of 2017, held by Awarded ‘Best FMCG Company’ in Specialty Foods Association, USA. Agri-business sector (SME Sector) at 2009 the DHL- CNBC International Awards for 2008-09 Awarded ‘Best Overall
Slide 20: Growth strategies
Growth strategies
Slide 21: Serve changing consumer needs with focus on profitability
Serve changing consumer needs with focus on profitability ▪ Identify latest consumer trends and preferences and develop ▪ Continue to focus export products to tap those markets of North America, opportunities Continuous Europe, Australia, Middle East ▪ In-house team of food ▪ Deepen presence in spec
Slide 22: Historical financial overview
Historical financial overview
Slide 23: Financial performance
Financial performance Rs Cr Revenue EBIDTA PAT 7% 3year CAGR 16% 3year CAGR 29% 3year CAGR 49 30 202 172 182 36 165 22 31 27 14 14 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Cash flow from EBIDTA Margins PAT Margins operations % % 24% 15% 20% 12% 44 19% 16% 9% 8% 26 21 18 FY16 FY17
Slide 24: Returns ratios
Returns ratios Return on Equity Return on Capital Employed Net Worth % % Rs in Cr 14% 210 21% 208 11% 15% 198 12% 11% 7% 7% 189 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Standalone Financials
Slide 25: Historical profit and loss statement
Historical profit and loss statement Standalone Consolidated (Rs Cr) FY17 FY18 FY19 FY17 FY18 FY19 Revenue from operations 165.7 163.8 187.5 201.2 201.0 231.4 Other income 5.6 18.6 14.1 6.4 18.6 14.1 Total Income 171.3 182.4 201.5 207.5 219.6 245.5 Cost of material consumed 79.1 78.2 89.3 79.1 78.2
Slide 26: Historical balance sheet - Standalone
Historical balance sheet - Standalone Rs in Crs FY17 FY18 FY19 Rs in Crs FY17 FY18 FY19 Share Capital 21.6 21.6 20.4 Fixed Assets incl. CWIP 70.5 70.7 70.1 Reserves 176.1 186.8 190.0 Income Tax Asset (Net) 2.7 3.0 3.2 Shareholders' Funds 197.7 208.4 210.4 Other Financial Assets 64.5 60.3 59.6 Secure
Slide 27: Historical balance sheet - Consolidated
Historical balance sheet - Consolidated Rs in Crs FY17 FY18 FY19 Rs in Crs FY17 FY18 FY19 Share Capital 21.6 21.6 20.4 Fixed Assets incl. CWIP 82.3 80.2 70.5 Reserves 145.4 152.8 151.4 Income Tax Asset (Net) 2.7 3.0 3.2 Shareholders' Funds 167.0 174.4 171.8 Other Financial Assets 19.0 12.8 12.3 Secu
Slide 28: Thank You
Shalaka Ovalekar - CS ADF Foods Limited Thank You Marathon Innova B2 – G01, G. K. Road Lower Parel, Mumbai 400 013 Contact: +91 22 6141 5555 Email: co_secretary@adf-foods.com