Slide 1: Q3FY19 Earnings Presentation
GLOBUS SPIRITS LIMITED Q3FY19 Earnings Presentation 07 February 2019
Slide 2: Safe Harbor
SAFE HARBOR 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 Globus Spirits’ future business developments and economic performance. W
Slide 3: Company Highlights
COMPANY HIGHLIGHTS 360° ALCOBEV PLAYER – Present across Distillery, IMIL, IMFL and Franchise Bottling LARGEST GRAIN BASED DISTILLERS IN INDIA with capacity of ~150 million bulk liters MANUFACTURING EXCELLENCE – State of the art manufacturing facilities with ‘zero discharge’ and ‘integrated evaporati
Slide 4: Agenda
AGENDA Q3 FY19 Performance Performance Highlights 5 Key Developments 6 Financials 7 Financial Performance 9 Annexure Company Overview 14 UNIBEV 22 Shareholding Pattern 24 4
Slide 5: Q3 FY19 – Performance Highlights
Q3 FY19 – PERFORMANCE HIGHLIGHTS • Total Income (net of excise duty) stood at Rs. 2,608 mn in Q3 FY19, 16% growth against Rs. 2,255 mn in Q3FY18 Q3 FY19 Q3 FY18 – Higher Bulk Alcohol sales driven by commencement of Bihar Facility, Bulk Alcohol Sales grew by 19% YoY – Strong volume growth in Franchis
Slide 6: Key Developments
KEY DEVELOPMENTS • Updates on Bihar Facility – Production at full swing, capacity utilization is ramping up – ~50% of total Ethanol supplies to be produced in Bihar Facility • Received total supplies of 35 Mn liters of Ethanol from OMC’s – Total supplies of 35 Mn liters at an average realization of
Slide 7: Q3 FY19: Profit & Loss Statement
Q3 FY19: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs MN) Q3 FY19 Q3 FY18 YoY (%) Q2 FY19 QoQ 9M FY19 9M FY18 YoY FY18 Gross Revenues 2,783.2 2,436.6 14% 2,491.5 12% 7,856.9 7,101.0 11% 9,322.1 Less- Excise duty 215.5 188.5 14% 240.1 -10% 722.6 513.3 41% 771.4 Net Revenues from Operations 2
Slide 8: Q3 FY19: Key Ratios
Q3 FY19: KEY RATIOS Standalone Key Ratios as a % of Total Q3 FY19 Q3 FY18 Q2 FY19 9MFY19 9MFY18 FY18 Revenue EBITDA 9.6% 7.8% 9.1% 10.1% 8.5% 8.7% PAT 2.2% 0.6% 1.2% 2.2% 0.8% 0.8% Total Expenditure 90.4% 92.2% 90.9% 89.9% 91.5% 91.3% Raw material 60.5% 60.5% 59.3% 59.5% 61.1% 60.1% Employee Cost 2.
Slide 9: Segmental Performance
SEGMENTAL PERFORMANCE Breakup of Revenue from Operations (Net) Bulk IMFL, Alcohol, 0.0% 44.9% • Revenues from manufacturing business Q3 stood at Rs. 1,518 mn in Q3 FY19, against Rs. 1,225 mn in Q3 FY18 FY19 Franchise IMIL, e IMFL 40.9% 2.2% – Share of manufacturing business stood Others, 12.0% at 59
Slide 10: IMIL – Driver of Profitability
IMIL – DRIVER OF PROFITABILITY Rajasthan IMIL Haryana IMIL Delhi IMIL West Bengal IMIL 2.46 2.42 0.11 0.13 0.56 0.11 0.40 0.04 806.9 871.2 145.2 109.0 10.2 32.0 39.5 40.6 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY18 Q3 FY19 Q3 FY19 IMIL Split by Volume • Aggregate IMIL revenues stood at R
Slide 11: Manufacturing: Backbone to Consumer Business
MANUFACTURING: BACKBONE TO CONSUMER BUSINESS Production & Capacity Utilization • Capacity utilization stood at 88.4% in Q3 FY19 against 99.7% in Q3FY18 (Q3FY19 utilization includes Bihar 20.00 99.7% 88.4% 150% Facility) 10.00 100% 31.2 37.8 50% - 0% • Captive consumption at 43%, with significant sco
Slide 12: Company Overview
COMPANY OVERVIEW 12
Slide 13: Globus 360º Alcobev Player
GLOBUS 360º ALCOBEV PLAYER • No. 1 private player in Rajasthan IMIL with 29% market share – 2.46 mn cases sold in Q3FY19 • No. 4 private player in Haryana with 7% market share – 0.40 mn cases in sold in Q3 FY19 • Increasing market share in West Bengal – 0.13 mn cases sold in Q3 FY19 • Recommencement
Slide 14: Leveraging a Strong 360º Business Model
LEVERAGING A STRONG 360º BUSINESS MODEL Large, efficient manufacturing operations • Amongst the largest and most efficient grain- based distillery operations in India with ~150 million bulk litres of distillery capacity* • Present in DDGS – a high-potential co- product used as Animal Feed • Well pla
Slide 15: Globus Plans
GLOBUS PLANS PRESENT FUTURE • Established 360⁰ model in • Large market share in IMIL by North India (Haryana & offering quality products to Rajasthan) the consumer • Largest grain based • Establish sustainable distilleries in India premium brands in IMFL • Strong IMIL brands that have • High capacit
Slide 16: Expansion into East – Bihar & West Bengal
EXPANSION INTO EAST – BIHAR & WEST BENGAL • Location advantages like lower raw material costs, higher realizations and other logistical benefits to drive overall Existing profitability facilities at Haryana & Rajasthan Severe Alcohol Deficit in Commissioned West Bengal (mn ltrs) Greenfield facilitie
Slide 17: IMIL Brands Showcase
IMIL BRANDS SHOWCASE Nimboo Ghoomar 1st IMIL brand in India Tribute to Rajasthani positioned as awesome mix folk dance ; blend of natural lemon flavor with popular in the harsh strong yet smooth blend winter months of the profile desert region Heer Ranjha Narangi Tribute to the most Popular dark spi
Slide 18: Unique Competitive Strengths
UNIQUE COMPETITIVE STRENGTHS 360° Business Model • Only company present across full Efficient Operations alcobev value chain • State-of-the-art plants across three • Helps capture IMFL growth via locations using latest distillation franchisee bottling for top IMFL technology, zero discharge and high
Slide 19: Ethanol - A Great Opportunity
ETHANOL - A GREAT OPPORTUNITY Alcohol demand of 6.3bn litres Strategically located assets to expected to grow at 12% maximise realisations Alcohol Demand 2018-19 (Bn Litres) Opportunity in Ethanol – Presence in alcohol deficit/ adding ethanol balanced states – healthy manufacturing capability realiz
Slide 20: Marching Towards New Leg of Growth Through UNIBEV
MARCHING TOWARDS NEW LEG OF GROWTH THROUGH “UNIBEV” 20
Slide 21: UNIBEV: Led by Industry Veteran Mr. Vijay Rekhi
UNIBEV: LED BY INDUSTRY VETERAN MR. VIJAY REKHI Strategy • Focus on premium IMFL • Build portfolio of 4-6 niche brands in price segments which contribute max profit and currently only have 2-3 dominant brands Premium IMFL – Attractive Industry Segment • Premium IMFL is a highly attractive segment ac
Slide 22: UNIBEV: Current Product Portfolio
UNIBEV: CURRENT PRODUCT PORTFOLIO Governor’s Reserve – 12 years L’Affaire Napoleon – 3 years Oakton – 18 years Scotch Whisky Scotch Whisky Brandy • Presence in Premium whisky segment • Presence in Semi-premium whisky segment • Presence in Premium brandy segment • Segment is about 8.5m cases • Segmen
Slide 23: Shareholding Pattern
SHAREHOLDING PATTERN Corporate Bodies, Individuals & Others 28% Promoter Group 54% FIIs 18% As on December 31, 2018 Outstanding shares – 28.8 mn Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% 23
Slide 24: About Us
ABOUT US Established in 1992, Globus Sprits Limited (BSE code: 533104, NSE Id: GLOBUSSPR, ISIN Id:INE615I01010) is engaged in manufacturing, marketing and sale of Indian Made Indian Liquor(IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and contract bottling for established IMFL brands. The C