Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q3 FY22 Earnings Presentation
35 slides from Prataap Snacks's earnings presentation, Feb 5, 2022
Slide 1: Exchange cover letter for corporate presentation
Ref No.: PSL/2021 -22/CSISE/70 Date: 5th February, 2022 II7S I $ PrafaoP ~, KARLU - To, To, Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, P.J. Towers, Plot No. C/I, G Block, Dalal Street, Bandra Kurla Complex, Mum
Slide 2: Q3 & 9M FY22 - Results Presentation
Q3 & 9M FY22 - Results Presentation February 2022
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: Contents
Contents Q3 & 9M FY22 Results 4 Company Overview 16 Industry Overview 30 3
Slide 5: Q3 & 9M FY22 Results
Q3 & 9M FY22 Results 4
Slide 6: Financial Overview
Financial Overview In Q3 FY22, PSL reported: Revenue of Rs. 3,849.5 million, registering growth of 13.5% yoy Operating EBITDA of Rs. 181.1 million, translating to a margin of 4.7% PAT* stood at Rs. 47.4 million grew by 4.1% yoy EPS* (Diluted) stood at Rs. 2.02 per share In 9M FY22, PSL repor
Slide 7: Operational Overview
Operational Overview Reported revenue growth of 14% against the backdrop of a steadily normalising macro-environment o Most Products across the portfolio have registered volumes higher than pre-Covid levels o Improved efficacy of existing distribution network due to tele-calling coupled with distr
Slide 8: Operational Overview
Operational Overview Continued to face elevated prices for palm oil while other key raw materials such as laminates and corrugated boxes also spiked up this quarter, effects of which were partially offset by cost-saving initiatives o The combined effect of the raw material price inflation has led
Slide 9: Approval under Performance Linked Incentive (PLI) Scheme
Approval under Performance Linked Incentive (‘PLI’) Scheme The company has received approval under the PLI scheme of the Government of India under ready to eat segment All the products are covered under the PLI scheme except for Potato Chips The base year for calculating the PLI benefit on-inc
Slide 10: Drivers for Top Line growth
Drivers for Top Line growth Resumption of Activities Deeper Penetration With the gradual reopening of the economy, footfall is Initiatives like tele-calling is being rolled out in a returning to pre-covid levels in most of our touchpoints phased manner which is helping to improve Enhancing geo
Slide 11: Measures To Enhance Profitability and Returns
Measures To Enhance Profitability and Returns Bottom slicing Reasons for lesser volumes were identified, and levers were Compressing of Distribution worked on to improve them Structure Indirect expenses are being PSL is implementing direct distribution saved by discontinuing less popular produ
Slide 12: MD & CEO's Message
MD & CEO’s Message Commenting on Q3 & 9M FY22 performance, Mr. Amit Kumat - Managing Director & CEO, Prataap Snacks Limited said: “We continue to rebuild our growth trajectory and have delivered an improved performance against the backdrop of gradual normalisation in the overall consumption environm
Slide 13: Abridged P&L Statement
Abridged P&L Statement Y-o-Y Y-o-Y Particulars Q3 FY’22 Q3 FY’21 9M FY’22 9M FY’21 Change (%) Change (%) Income from Operations 3,849.5 3,391.2 14% 10,351.6 8,615.5 20% Raw Material Cost 2,844.8 2,448.4 16% 7,633.6 6,143.5 24% Gross Profit 1,004.7 942.8 7% 2,718.0 2,472.0 10% Gross Margins 26.1% 27.
Slide 14: Financials – Q3 & 9M FY'22 Performance
Financials – Q3 & 9M FY’22 Performance Income From Operations Gross Margin (%) Gross Margin Margin (%) 3,849.5 10,351.6 14% 1,004.7 2,718.0 20% 942.8 3,391.2 8,615.5 2,472.0 27.8% 28.7% 26.1% 26.3% Q3 FY21 Q3 FY22 9M FY21 9M FY22 Q3 FY21 Q3 FY22 9M FY21 9M FY22 ▪ Income from operations in Q3 FY’22 s
Slide 15: Financials – Q3 & 9M FY'22 Performance
Financials – Q3 & 9M FY’22 Performance EBITDA Margin (%) PAT * Margin (%) 181.1 533.7 180.7 47.4 175.6 491.4 45.5 5.2% 5.7% 5.2% 4.7% 1.7% 70.3 1.3% 0.8% 1.2% Q3 FY21 Q3 FY22 9M FY21 9M FY22 Q3 FY21 Q3 FY22 9M FY21 9M FY22 ▪ EBITDA for Q3 FY’22 grew by 3% Y-o-Y to Rs. 181.1 mn in spite of severe pre
Slide 16: Financials – Q3 & 9M FY'22 Performance
Financials – Q3 & 9M FY’22 Performance Cash Profit * Cash EPS * 591.4 25.2 471.0 20.1 210.5 9.0 167.9 7.2 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Q3 FY21 Q3 FY22 9M FY21 9M FY22 ▪ The Company follows a conservative accounting policy and is amortizing intangible assets of Avadh Snacks ▪ A lateral benefit has
Slide 17: Company Overview
Company Overview 16
Slide 18: Prataap Snacks at a Glance
Prataap Snacks at a Glance Over Approx SKUs Manufacturing packets sold 7 year revenue Facilities* per day CAGR Over Reach of over Retail In Rings Super Stockists Distributors Touchpoints 17 *[7 Inhouse plants and 8 contract manufacturing units (3P)]
Slide 19: Diverse Product Portfolio
Diverse Product Portfolio CUP CAKE, RINGS, KURVES & TIFFIN CAKE, NAMKEEN & POTATO CHIPS CHULBULE NAMKEEN PELLET SNACKS PUFF SANDWICH CAKE FRYUMS & SWISS ROLL Potato based Rice grit & Corn grit Gram and Wheat based Cake Namkeen snack Corn grit based snack other lentils variations and Fr
Slide 20: Avadh Snacks
Avadh Snacks Product Portfolio Fastest growing and fourth Namkeen Fryums largest snacks player in Gujarat ~6% market share in Gujarat, one of the largest market 25% revenue CAGR over the past 5 years Key Products: Bhavnagri Gathiya, Sada Key Products: Tomato Cup, Salted reffil, Mamra, Papdi Gathiya,
Slide 21: Avadh Snacks - Unique Business model & Expansion plans
Avadh Snacks - Unique Business model & Expansion plans Business Model Expansion plans Avadh has a Unique Business model •Super Value Player offering higher Increased capacity of value for Money to consumers. Rajkot facility by 50% in Q1 FY21 Pan India Direct Distribution model expansion To expand Av
Slide 22: Sweet Snacks Portfolio
Sweet Snacks Portfolio Center Filled Choco Vanilla Sandwich Cookie-Cake Yum Cake Tiffin Cake Swiss Roll Cup Cake Cake Cake SKU's - 1 SKU's - 2 SKU's - 1 SKU's - 1 SKU's - 1 SKU's - 2 SKU's - 2 Target Target Target Target Target Target Target group - group - group - group - group - grou
Slide 23: Track Record of Innovation (1/2)
Track Record of Innovation (1/2) Introduction of Yoodles and Creamy Introduction Sticks Introduction of Rings, of Scoops 2016 Namkeen 2015 and Wheels 2014 Ring 2013 Namkeen • Mango Chutney 2012 Namkeen • Chana Choor • MRP 15/- pack with bigger toys 2010/11 Namkeen • Garlic Sev Mamra 2009/10 Potato C
Slide 24: Track Record of Innovation (2/2)
Track Record of Innovation (2/2) Launched Swiss Rolls Launched Plain Cut under Rich Feast Launched Chips, Nachos, and Rusk, Kurves Launched Yum Launched Cup Cake, Cake, Cookie Cake Puchka Launched Yum- Tiffin Cake and Pie, a variety of and Choco Vanilla Sandwich Cake Introduction of 2022 sweet snack
Slide 25: Key Milestones
Key Milestones Launched Plain Guwahati new plant Entered into 3P Cut Chips Sequoia’s initial Contract Doubled the commissioned investment of Rs. Manufacturing Rusk capacity of Potato Prakash Snacks 620 mn in Karjat & Installed Chips plant at Conversion of incorporated. Prataap Snacks Introduction of
Slide 26: Pan India Presence
Pan India Presence Strategically located Manufacturing facilities to cater the regional demand No. of Facilities Products Kashipur No. of Facilities Products 1 - Contract Facility Chips, Namkeen, Pellet Hissar & 1 1 – Contract Facility Extruded Snacks, Pellets, Chulbule Karnal 1 – Contract Facility
Slide 27: Guided by an Accomplished Board
Guided by an Accomplished Board Arvind Mehta Chairman & Executive Director Over 32 years of experience in real estate business along with over 17 years in the snacks food industry and in the financing business Vineet Kumar Kapila Mr. V.T. Bharadwaj Amit Kumat Independent Director Independent Directo
Slide 28: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Arvind Mehta Over 32 years of experience in real estate business along with over 17 years in the Chairman & Executive snacks food industry and in the financing business Director Corporate functions Mr. Amit Kumat Managing Director and Chief Over 25 years
Slide 29: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Sumit Sharma Member of Institute of Chartered Accountants of India. He has over 19 years of experience in accounting, finance, banking and taxation and worked with Crompton Chief Financial Officer Greaves, L&T and New Holland Group Corporate functions Mr.
Slide 30: Helmed by a Professional Management Team
Helmed by a Professional Management Team Mr. Mahesh Purohit He holds bachelor degree in Commerce. He has over 24 years of experience in the General Manager Sales - FMCG industry and worked with Parke-Davis, BPL Synergy and Candico West Corporate functions He holds bachelor degree in Commerce. He has
Slide 31: Industry Overview
Industry Overview 30
Slide 32: Favourable Demographics Supporting Industry Growth
Favourable Demographics Supporting Industry Growth POPULATION TREND (BILLIONS) INDIA’S ANNUAL CONSUMER 1.411 EXPENDITURE (RS. TRILLION) 1.397 1.366 1.380 22 1.338 1.352 21 1.324 21 1.310 20 1.278 1.293 20 20 1.263 19 19 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 MAR-18 JUL-18 OCT-18 JAN-
Slide 33: Sweet Snacks Industry – Characteristics
Sweet Snacks Industry – Characteristics Organized Sweet Snacks (Cakes & West is pies): Rs.2,200- 2,500 crore growing fast 20% now N Limited Highly under vegetarian options penetrated in Cake category 15% W Market E 50% Very few national Growing at fast S players pace 15% 32
Slide 34: About Prataap Snacks Ltd.
About Prataap Snacks Ltd. Prataap Snacks Limited (PSL) is a leading Indian Snacks Food Company. It offers multiple variants of products across categories of Potato Chips, Extruded Snacks, Namkeen Sumit Sharma (traditional Indian snacks) under the popular and vibrant Yellow Diamond brand. It has Prat
Slide 35: Thank You
Thank You 34