Vadilal Industries Limited · NSE:VADILALIND
Vadilal Industries — Q2 & H1 FY18 Earnings Presentation
30 slides from Vadilal Industries's earnings presentation, Nov 30, 2017
Slide 1: Cover letter to stock exchanges: Corporate Presentation-Revised
VADILAL INDUSTRIES LTD. REGD. OFFICE : "VADILAL HOUSE 5:.SHRIMALI SOCIETY, NR. NAVRANGPURA RAILWAY CROSSING.NAVRANGPURA, AHMEDABAD - 380008, TELNO: (61) (79) 28564019-24 FAX : (91) (79) 26564027 ‘VISIT US ON : hitplwww vadilalgroup.com 3 7 Date: 30" November, 2017 To, To The National Stock Exchange
Slide 2: Vadilal Industries Q2 & H1FY18 Results Presentation
VADILAL INDUSTRIES Q2 & H1FY18 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 m
Slide 4: Table of Contents
Table of Contents Q2 & H1 FY18 Vadilal 1 Financial 3 Industries Performance Overview Financial 2 Performance 4 Outlook Trends 3
Slide 5: Q2 & H1 FY18 Financial Performance
Q2 & H1 FY18 Financial Performance
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q2 & H1 FY18 performance, Mr. Rajesh Gandhi, Chairman and Managing Director, Vadilal Industries Limited (VIL) said: “In H1FY18, we have reported 14% revenue growth*, which we believe is encouraging in the backdrop of changes in the operating environment. Domestic bus
Slide 7: Financials – Q2 & H1 FY18 Performance
Financials – Q2 & H1 FY18 Performance Revenue 354.6 313.8 In H1, VIL showed 13% y-o-y growth (14% net of excise duties) driven by 131% y-o-y higher revenues in exports business 111.9 111.8 International business has seen robust demand as we continue to expand distribution and products focused on
Slide 8: Financials – Q2 & H1 FY18 Performance
Financials – Q2 & H1 FY18 Performance EBITDA EBITDA margin was impacted by absorption of 58.0 GST-related increase in product costs in some states and 52.4 elevated raw material costs. Further, expansion initiatives in India and US/other global markets have been accelerated. 14.2 Continue to foc
Slide 9: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Debt Other Non-Current 184.7 Liabilities Liabilities 145.8 151.5 29.3 101.2 21.6 Mar 17 Sep 17 Mar 17 Sep 17 Mar 17 Sep 17 Net Fixed Assets Other Non-Current Net Current Assets 256.8 Assets 75.6 11.9 48.6 Assets 231.4 9.8 Mar 17 Sep 17 Mar 17 Se
Slide 10: Financials Performance Trends
Financials Performance Trends
Slide 11: Financials Performance Trends
Financials Performance Trends Revenue (Rs. cr) 461.7 491.7 406.3 367.3 323.6 FY13 FY14 FY15 FY16 FY17 Domestic International 48.6 425.5 450.0 44.5 41.7 361.8 34.9 36.2 288.7 318.7 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Consolidated financials in Rs. Crore 10
Slide 12: Financials Performance Trends
Financials Performance Trends EBITDA 59.4 58.8 Longer term, consumer behavior is transitioning with 44.1 45.8 increasing acceptance for western desserts. 41.7 o Domestic business growth temporarily impacted by recent changes in operating environment and consumption spending FY13 FY14 FY15 FY16 FY1
Slide 13: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Debt Other Non-Current Liabilities Liabilities 145.8 205.0 127.1 180.2 113.1 113.5 20.6 21.6 148.3 151.5 15.2 16.5 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Net Fixed Assets Other Non-Current Net Current Assets 232.3 Assets 86.
Slide 14: Financials Performance Trends – Cash Flows
Financials Performance Trends – Cash Flows Operating Cash Flow Free Cash Flows 51.8 62.2 56.6 41.3 51.7 28.5 23.0 9.4 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Inventories increased by ~Rs. 30 crore in FY17 based on production for summer season demand Interest down by Rs.5 crore to Rs. 15.5 crore
Slide 15: Vadilal Industries Overview
Vadilal Industries Overview
Slide 16: Overview
Overview Second Largest range Strong 111-year old, largest ice Expanding of ice creams distribution established cream global of any network in ice cream manufacturer business company in North, West brand in India by presence India and East India volume Currently Top 3 ice-cream Leadership in key 16
Slide 17: Vadilal: Growth Strategies
Vadilal: Growth Strategies Geographical Expansion Retail Investments New Product Development Expanding footprint in North and East 10,000 new sales outlets planned in Constantly innovating to roll out new regions of India FY18 products in domestic and global New production facility expected
Slide 18: Ice Creams - Brands Portfolio
Ice Creams - Brands Portfolio Largest range of ice creams of any company in India 300 SKU‟s of cones, candies, bars, ice lollies, cups, family packs, economy packs Constantly innovating to roll out new products in ice cream segment 17
Slide 19: Indian Ice Cream Market
Indian Ice Cream Market Evolving perceptions Innovative product development Ice cream is transitioning from periphery Shift from limited portfolios of to mainstream, from occasional traditional products to innovative, indulgence to snacking option global-standard offerings Changing demand patterns E
Slide 20: 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. 19
Slide 21: Growing International Presence
Growing International Presence Exporting ice-creams, frozen desserts and processed food products Key markets – US, Canada, UK, Kuwait, Qatar, Bahrain, UAE, Singapore, Australia, New Zealand Focused on Indian diaspora globally and adhering to international food standards Two decades of experi
Slide 22: Robust Expansion in U.S. market
Robust Expansion in U.S. market Latent demand for quality Indian products driving strong volume growth in US ice cream sales 35-member team reaching 40 plus US states and ~70% of local Indian diaspora Deriving significant benefit from the existing processed foods distribution network in the US
Slide 23: International Product Portfolio
International Product Portfolio 22
Slide 24: Production Facilities
Production Facilities Capacity expanded from 270,000 liters per day to 380,000 liters per day over the past few years Current production on automated processes “untouched by hand”, manual intervention only at packaging stage Focused production lines for international standard manufacturing for
Slide 25: Deep Domestic Distribution Presence
Deep Domestic Distribution Presence 8 9 14 States Distributor Distribution network comprises 10 11 1 Gujarat 200 of over 45,000 retailers, over 6 Bareilly 2 Uttar Pradesh 185 1,200 large distributors, 61 3 Madhya Pradesh 150 CNFs, 250 distribution vehicles 4 2 7 4 Rajasthan 138 and almost 300 SKUs.
Slide 26: Awards and Accreditations
Awards and Accreditations 25
Slide 27: Outlook
Outlook
Slide 28: Planned Initiatives
Planned Initiatives Deep penetration in US market, targeting Accelerating new expanded presence product in other Aggressive development both geographies that expansion of sales for domestic and are home to large generating international Indian populations assets/cold supply markets and improving cha
Slide 29: Contact Us
Contact Us Kalpit Gandhi Vadilal Industries Ltd Tel: +91 79 3015 3126 Email: kalpit@vadilalgroup.com Shiv Muttoo / Karl Kolah CDR India Tel: +91 22 6645 1207 / 1220 Email: shiv@cdr-india.com karl@cdr-india.com 28
Slide 30: Thank You
Thank You » 4%
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