Vadilal Industries Limited · NSE:VADILALIND
Vadilal Industries — H1 FY2017 Earnings Presentation
30 slides from Vadilal Industries's earnings presentation, Nov 17, 2016
Slide 1: Corporate announcement cover letter to stock exchanges
VADILAL INDUSTRIES LTD. REGD. OFFICE : “VADILAL HOUSE” 53,SHRIMAL! SOCIETY, NR. NAVRANGPURA RLY. CROSSING, NAVRANGPURA, AHMEDABAD - 380008 TELE. NO. : (81) (79) 26564019-24 FAX: (91) (79) 26564027 CIN No: L81110Gu1982PLO005169 VISIT US ON : hitp/www.vadilalaroup.com Email: shareslogs@vadilalgroup.co
Slide 2: Vadilal Industries Q2 & H1 FY17 Results Presentation
VADILAL INDUSTRIES Q2 & H1 FY17 Results Presentation
Slide 3: 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 4: Table of Contents
Table of Contents Q2 & H1 FY17 Financial Performance 04 Financial Performance Trends 10 Vadilal Industries Overview 15 Outlook 25 3 \ 28
Slide 5: Q2 & H1 FY17 Performance
Q2 & H1 FY17 Performance
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q2 & H1 FY17 performance, Mr. Rajesh Gandhi, Chairman and Managing Director, Vadilal Industries Limited (VIL) said: “We have delivered a steady performance during the quarter and half year under review. This period has seen some changing patterns in consumption, we h
Slide 7: Financials – Q2 & H1 FY17 Performance
Financials – Q2 & H1 FY17 Performance Revenue • In H1, VIL showed a 4.9% y-o-y growth driven by 293.2 307.6 6.5% y-o-y higher revenues in Ice Cream business. • Realizations have improved based on higher 105.8 106.7 contribution from impulse purchasing. • Revenues from Processed Foods division was su
Slide 8: Financials – Q2 & H1 FY17 Performance (PBIT)
Financials – Q2 & H1 FY17 Performance Ice Cream - PBIT 53.2 53.1 • Ice Cream margins include accelerated marketing spends on building the Vadilal brand in targeted 12.7 12.0 markets. Input costs have remained largely unchanged. Q2 FY16 Q2 FY17 H1 FY16 H1FY17 • Distribution continues to expand across
Slide 9: Financials – EBITDA and PAT
Financials – Q2 & H1 FY17 Performance EBITDA 54.6 55.4 • Gross margins have improved in H1 as: – Ice Cream revenues have higher contribution 12.8 12.7 from impulse purchases and individualized packs which contribute over 60% by value. – Processed Foods has discontinued some low Q2 FY16 H1 FY16 Q2 FY
Slide 10: Financials Performance – Balance Sheet
Financials Performance – Balance Sheet Networth Debt Other Non-Current Liabilities 155.5 Liabilities 139.2 144.9 148.3 128.1 20.6 21.1 95.6 18.6 Sept-15 Mar-16 Sept-15 Sept-15 Mar-16 Sept-16 Sept-15 Mar-16 Sept-16 Net Fixed Assets Other Non-Current Net Current Assets Assets 224.0 Assets 16.9 65.9 15
Slide 11: Marketing initiatives – Thrust towards Premiumization
Marketing initiatives – Thrust towards Premiumization • Parineeti Chopra has been appointed brand ambassador for Vadilal over three years. • Unveiled new products endorsed by the brand ambassador, with the expanded range being evaluated on an ongoing basis. 10 \ 28
Slide 12: Financials Performance Trends
Financials Performance Trends
Slide 13: Financials Performance Trends – Revenue
Financials Performance Trends Revenue 444.5 371.7 403.4 330.1 285.8 236.5 FY11 FY12 FY13 FY14 FY15 FY16 Ice Cream Processed Foods 393.9 73.9 344.3 62.3 265.5 294.0 60.2 236.0 48.1 51.1 198.8 38.9 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 12 \ 28 Standalone financials in Rs. cr
Slide 14: Financials Performance Trends – EBITDA and PAT
Financials Performance Trends EBITDA 80 57.9 60 36.8 40.5 39.1 40.9 40 Consumer behavior is transitioning with 25.1 increasing acceptance for western desserts. With 20 improving consumer sentiment and stable input 0 costs VIL is likely to maintain its growth FY11 FY12 FY13 FY14 FY15 FY16 trajectory.
Slide 15: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Debt Other Non-Current Liabilities 128.1 Liabilities 205.0 180.2 115.1 115.1 148.3 20.6 15.2 16.5 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 Net Fixed Assets Other Non-Current Net Current Assets Assets 84.5 231.2 19.6 68.8 Assets 56.0 18.1 224
Slide 16: Financials Performance Trends – Cash Flows
Financials Performance Trends – Cash Flows Operating Cash flow Free Cash Flow 51.8 62.2 56.6 41.3 51.7 23.0 FY14 FY15 FY16 FY14 FY15 FY16 15 \ 28 Standalone financials in Rs. cr
Slide 17: Vadilal Industries Overview
Vadilal Industries Overview
Slide 18: Overview
Overview • Currently managed by fourth • Top 3 ice-cream brand in the • Leadership in Gujarat, Rajasthan, generation promoter family country, 150+ flavors UP, Uttarakhand, Haryana and • Selected India’s most trusted ice • 300 SKU’s of cones, candies, bars, Chandigarh cream brand in 2013 and 2014 by
Slide 19: Indian Ice Cream Market
Indian Ice Cream Market Ice cream is transitioning Transition from seasonal Increased disposable Consumers receptive to from periphery to to year-long incomes and spending on high quality mainstream, from consumption discretionary spending products that meet their occasional indulgence to driving se
Slide 20: Vadilal: Growth Strategies
Vadilal: Growth Strategies Retail Investments New Product Development Brand Building Initiatives • 15,000 new sales Geographical outlets planned in • Constantly FY17 Expansion innovating to roll • Seen as one of the out new products in • 100 more most trusted ice ice cream segment distributors • Exp
Slide 21: Ice Creams - Brands Portfolio
Ice Creams - Brands Portfolio 20 \ 28
Slide 22: Processed Foods Business
Processed Foods Business • Global business selling to 45 countries in four continents • Strong distribution to Indian diaspora, being further developed with new product launches • Expanded export markets from 12 SKU’s supplied to seven countries in 1991 to 100+ SKU’s to 45 countries currently • Expa
Slide 23: Processed Foods - Brands Portfolio
Processed Foods - Brands Portfolio • Processed foods products are marketed under the brand name ‘Quick Treat’ • Portfolio includes frozen vegetables, ready-to-eat/ready- to-serve frozen snacks, Indian breads and curries • Positioned to assist Indian kitchens with traditional home cooking 22 \ 28
Slide 24: Production Facilities
Production Facilities • Capacity expanded from 175,000 liters per day to 230,000 liters per day over the past one year • Current production on automated processes “untouched by hand”, manual intervention only at packaging stage • Focus on branded portfolio in Processed Foods Business • No further ca
Slide 25: Distribution Presence
Distribution Presence Distribution network Uttar Pradesh 185 comprises of over 55,000 Gujarat 140 retailers, over 1,000 Rajasthan 138 Bareilly distributors, 61 CNFs, 250 Madhya Pradesh 105 distribution vehicles and West Bengal 89 almost 300 SKUs. Delhi 63 Adopted franchisee route Himachal Pradesh 58
Slide 26: Awards and Accreditations
Awards and Accreditations 25 \ 28
Slide 27: Outlook
Outlook
Slide 28: Planned Initiatives
Planned Initiatives Expanding Presence Increasing penetration – moving Presence across 16 states, 61 from passive to aggressive CNF’s, over 1,000 distributors, 250 business strategy to derive benefit distribution vehicles, over 55,000 from improving consumer retail outlets behavior Product Strategie
Slide 29: Contact Us
Contact Us 28 \ 28
Slide 30: Thank You
THANK YOU 11/16/2016 29