Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — Investor Presentation (December 2020)
29 slides from Sundrop Brands Limited Shs Dematerialised's investor presentation, Dec 1, 2020
Slide 1: Regulation 30 disclosure letter to stock exchanges
1st December, 2020 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233 / 22721234 Ph.No. 022- 2
Slide 2: Agro Tech Foods Limited Investor Presentation
Agro Tech Foods Limited. Investor Presentation December 1st, 2020
Slide 3: Presentation Structure
Presentation Structure • Mission & Vision • Performance Summary by Category • Competitive Update • Current Status • Strategy by Category • Summary 2
Slide 4: Mission & Vision
Mission & Vision The Best Performing Most Respected Foods Company in India 3
Slide 5: Performance Summary by Category
Performance Summary by Category
Slide 6: Ready to Cook Snacks
5 Ready to Cook Snacks Ready to Cook Q4 Q1 Q2 YTD, FY'21 Volume +26% +42% +64% +55% Value +22% +37% +60% +50% • Rise in In Home consumption gives a clear lift with 50%+ growth in YTD Volumes compared to 26% in Q4. • Sweet Corn contributes to c 400 bps of YTD Growth of RTC. • Sustained media presence
Slide 7: Ready to Eat Snacks
6 Ready to Eat Snacks Ready to Eat Q4 Q1 Q2 YTD, FY'21 Volume -11% -37% -14% -25% Value -13% -36% -8% -22% • Gap vs PY narrowed with improved supplies in Q2. • Go To Market (GTM) changes fully implemented on Rs.5 packs of Savory Snacks consistent with bottom end market practices: • Direct shipments
Slide 8: Spreads
7 Spreads Spreads Q4 Q1 Q2 YTD, FY'21 Volume +23% + 16% +28% +23% Value +24% + 16% +30% +24% • Continued Strong Growth of c 24%: – 2000 bps from Base Peanut Butter business – 440 bps from Cocoa Nut Chocolate Spread • Strong acceptance of Sundrop Chocolate Spread – clear Competitive Advantage, Right
Slide 9: Breakfast Cereals
8 Breakfast Cereals Breakfast Cereals Q4 Q1 Q2 YTD,FY'21 Cont. Foods Growth-bps + 320 + 210 + 120 +160 • Strong acceptance of both Extruded Center Filled Cereals and Honey Roasted Oats (Granola). • Significantly outperform major Competitors in the Category in terms of Product Quality - steady month
Slide 10: Chocolate Confectionery
9 Chocolate Confectionery Chocolates Q4 Q1 Q2 YTD,FY'21 Cont. Foods Growth-bps +174 +60 +40 +50 • Completed 12 Months in the Category. • Learnings from Summer being incorporated into Product – Price - Architecture and into Supply Chain practices. • Limited Volumes of Gift Pack also tested over Diwal
Slide 11: Edible Oils
10 Edible Oils Sundrop Oils Q4 Q1 Q2 YTD, FY'21 Volume -8% -10% -10% -10% Value -6% -3% -6% -5% Crystal Oils Q4 Q1 Q2 YTD, FY'21 Volume -4% -10% -9% -10% Value +5% +2% +6% +3% • Overall Trends on Sundrop Oils not dissimilar to Q4, FY’20. • Impact of higher Commodity Prices reflected in Margin as rep
Slide 12: Competitive Update
Competitive Update
Slide 13: Competitive Spends - Snacks
12 Competitive Spends - Snacks Rs. Million F-17 F-18 F-19 Q1-20 Q2-20 Q3-20 Q4-20 FY20 Q1-21 Q2-20 Oct'20 ACT II 125 80 34 11 16 14 0 41 13 32 10 Lays 148 374 252 84 177 189 56 506 28 83 66 Kurkure 202 259 405 74 69 85 72 300 0 61 54 Doritos 0 128 150 51 90 78 33 252 0 0 0 Cheetos 0 0 46 18 16 0 0 3
Slide 14: Competitive Spends - Spreads
13 Competitive Spends - Spreads Rs Million F-13 F-14 F-15 F-16 F-17 F-18 F-19 Q1-20 Q2-20 Q3-20 Q4-20 FY-20 Q1-21 Q2-21 Oct'20 Kissan Jam- Total 254 207 304 381 357 512 704 201 235 184 133 752 218 218 52 Kissan PB 41 Sundrop PB 0 0 42 64 56 30 16 5 8 7 0 20 8 18 6 Patanjali Honey 0 0 0 102 317 182 9
Slide 15: Competitive Spends – Breakfast Cereals
14 Competitive Spends – Breakfast Cereals Rs Million FY-17 FY-18 FY-19 Q1-20 Q2-20 Q3-20 Q4-20 FY-20 Q1-21 Q2-20 Oct'20 Kelloggs Cornflakes - Total 202 265 390 66 31 4 128 230 7 118 31 Kelloggs Chocos Fills 0 125 203 17 0 0 0 17 0 0 0 Kelloggs Chocos - Total 310 362 509 104 112 31 82 329 38 122 26 K
Slide 16: Competitive Spends – Chocolates
15 Competitive Spends – Chocolates Rs. Million F-17 F-18 F-19 Q1-20 Q2-20 Q3-20 Q4-20 FY20 Q1-21 Q2-21 Oct’20 5 Star 642 744 482 91 189 227 220 727 102 192 213 Cadbury Celebration 142 138 212 12 135 129 0 277 0 79 165 Dairy Milk 1599 2229 2166 586 844 363 568 2362 209 915 280 Cadbury Fuse 226 598 40
Slide 17: Competitive Spends - Oils
16 Competitive Spends - Oils Rs Million F-12 F-13 F-14 F-15 F-16 F-17 F-18 F-19 Q1-20 Q2-20 Q3-20 Q4-20 FY-20 Q1-21 Q2-21 Oct'20 Sundrop Heart 88 94 50 65 46 34 21 0 0 0 0 0 0 0 0 0 Saffola 121 212 356 291 338 320 588 544 248 123 109 48 527 114 145 0 Fortune 0 203 356 148 319 828 666 543 209 193 79
Slide 18: Current Status & Expectations
Current Status & Expectations
Slide 19: What makes ATFL Unique
What makes ATFL Unique Proven ability in • One of the few Companies in India that has successfully built two Category Building. cRs. 500 crore categories in India – Popcorn & Nut Based Spreads. • Continue to seed and build new categories while leveraging manufacturing capabilities to generate profit
Slide 20: Implications for Stakeholders
Implications for Stakeholders One of the fastest • Consistent growth –c 15% CAGR in the Foods business over the Growing Foods last 10 years through selective entry into fast growing categories. businesses in India. • Growth now further increased to 20%+ with portfolio expansion in back half of FY’20
Slide 21: What to expect in the next 12 Months
What to expect in the next 12 Months • Continued sustained investments behind Ready to Cook Popcorn & Peanut Butter – seek to minimize the post pandemic changes in demand patterns. • Restoration of strong growth in the RTE Snacks category with start up of Chittoor and Unnao providing impetus to Cove
Slide 22: Strategy by Category Groups
Strategy by Category Groups
Slide 23: Ready to Cook Foods & Snacks
Ready to Cook Foods & Snacks Ready to Cook Market Strategy Rs. 13,000 crore* • Continue to invest behind the Popcorn 350 80 category while expanding Distribution. 850 • Successfully expand the Sweet Corn category and thereby gain clear leadership. 2500 Leverage Unmet consumer need addressed by curre
Slide 24: Ready to Eat Snacks
Ready to Eat Snacks RTE Western Snacks Market Strategy Rs. 27,000 crore* 150 • Continue to improve Supply Chain and lower cost of Market Access: • Primary role of Category is to be the Conveyor Belt of our Distribution System. 13000 • Lower the Cost of Market Access - Wider our reach and penetration
Slide 25: Spreads & Dips
Spreads & Dips Shelf Stable Spreads Market Strategy Rs. 3,000 crore* • Continue to build the Nut & Seed based category – invest behind Peanut Butter and introduce other Nut Variants. 445 • Strengthen presence in and build the Chocolate Spreads category. 445 • Consider entry into Jams/Honey only on 1
Slide 26: Breakfast Cereals
Breakfast Cereals Breakfast Cereals Market Strategy Rs. 3650 crore* • Expand and drive presence in the Extruded Cereals segment leveraging Competitive 540 Advantage. 1300 • Leverage product superiority to gain share in the Granola & Muesli segment. • Expand the business through Distribution until su
Slide 27: Chocolate Confectionery
Chocolate Confectionery Chocolate Confectionery Market Strategy Rs. 13,000 crore* • Expand presence in Count Line segment with 700 products which address Unmet Consumer Needs and with Competitive Advantage. Refine 1300 offerings. 1400 5800 • Leverage Supply Chain capabilities built through Bagged Sn
Slide 28: Summary
Summary • ATFL Transformation Journey clearly at an inflexion point – Gross Margin from Foods now exceeds the Gross Margin from Oils. • Historical CAGR of c 15% in the Foods business (10% from Ready to Cook Popcorn and 500 bps from Peanut Butter/RTE Snacks) ready for further boost. • FY’21 sees the
Slide 29: The Best Performing Most Respected Foods Company in India
The Best Performing Most Respected Foods Company in India 28
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