Vadilal Industries Limited · NSE:VADILALIND
Vadilal Industries — Q4 FY16 Earnings Presentation
28 slides from Vadilal Industries's earnings presentation, May 31, 2016
Slide 1: Corporate announcement to NSE and BSE
VADILAL INDUSTRIES LTD. REGD. OFFICE : “VADILAL HOUSE" 53,SHRIMAL! SOCIETY, NR. NAVRANGPURA RLY. CROSSING, NAVRANGPURA, AHMEDABAD - 380009. TELE. NO. ; (91) (79) 26564019-26 FAX : (91) (79) 26564027 CIN No: L91110GJ1982PL.C005169 VISIT US ON eager com Email: sharesiogs@vadilalgroup.com 31% May, 2016
Slide 2: Vadilal Industries Q4 & FY16 Results Presentation
VADILAL INDUSTRIES Q4 & FY16 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 Q4 & FY16 Financial Performance Financial Performance Trends Vadilal Industries Overview Outlook 3 \ 26
Slide 5: Q4 & FY16 Performance
we as — DS ileal (8 _ — Q4 & FY16 Performance
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q4 & FY16 performance, Mr. Rajesh Gandhi, Chairman and Managing Director, Vadilal Industries Limited (VIL) said: “We have delivered 15% revenue growth in Q4. The ice cream business grew 21% while processed foods has focused on branded products and exports. Margins ha
Slide 7: Financials – Q4 & FY16 Performance: Revenue
Financials – Q4 & FY16 Performance Revenue • In Q4, VIL delivered 15% y-o-y growth driven by 21% y- 444.5 403.4 o-y higher revenues in ice cream business. Revenue growth of 14% in ice cream during FY16 was driven by 11% volume and 3% value. 78.0 89.7 • In FY16, revenues from processed foods division
Slide 8: Financials – Q4 & FY16 Performance: PBIT by segment
Financials – Q4 & FY16 Performance Ice Cream - PBIT 56.1 • Expanded volumes in the ice cream segment helped 34.2 increase utilization levels. This combined with lower input costs enhanced performance. 4.7 5.5 • Continue to focus on branding/advertising to improve visibility and augment penetration i
Slide 9: Financials – Q4 & FY16 Performance: EBITDA and PAT
Financials – Q4 & FY16 Performance EBITDA • In FY16, EBIDTA grew 42% y-o-y leading to margin 57.9 expansion of 310 bps as the company gained from 40.9 weak dairy commodity prices, lower packaging and transportation costs. 6.3 5.9 • Gross margin expansion of over 500 bps in FY16 also Q4FY15 Q4FY16 FY
Slide 10: Marketing initiatives – Thrust towards Premiumization
Marketing initiatives – Thrust towards Premiumization • Parineeti Chopra was recently announced brand ambassador for Vadilal. • Vadilal also unveiled three new ice creams – a Belgian chocolate-based bar branded Badabite Select; a new premium variety of Flingo centre filled cones; and new variants of
Slide 11: Financials Performance Trends
Financials Performance Trends
Slide 12: 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 Standalone financials in Rs. cr 11 \ 26
Slide 13: Financials Performance Trends: EBITDA and PAT
Financials Performance Trends EBITDA 80 57.9 In the past, consumer behavior was largely subdued. 60 36.8 40.5 39.1 40.9 With improving consumer sentiment and stable input 40 costs VIL is likely to maintain the growth trajectory in 25.1 20 the coming years. 0 FY15 VIL is now reaping benefits of subst
Slide 14: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Net Fixed Assets 128.1 231.2 115.1 115.1 224.9 224.0 FY14 FY15 FY16 FY14 FY15 FY16 Debt Other Non-Current Assets 19.6 18.1 205.0 180.2 148.3 16.9 FY14 FY15 FY16 FY14 FY15 FY16 Other Non-Current Liabilities Net Current Assets 84.5 68.8 16.5 20.6
Slide 15: Vadilal Industries Overview
Vadilal Industries Overview
Slide 16: Overview
Overview • Currently managed by fourth generation promoter family 108-year old, established • Selected India’s most trusted ice cream brand in 2013 and 2014 by the ice cream brand Brand Trust Report • Top 3 ice-cream brand in the country , 150+ flavors Largest range of ice creams of • 300 SKU’s of c
Slide 17: Indian Ice Cream Market
Indian Ice Cream Market Evolving perceptions • Ice cream is transitioning from periphery to mainstream, from occasional indulgence to snacking option Changing demand patterns • Transition from seasonal to year-long consumption Growing affordability • Increased disposable incomes and discretionary sp
Slide 18: Vadilal: Growth Strategies
Vadilal: Growth Strategies Retail Investments New Product Development Brand Building Initiatives • 5,000 new sales Geographical outlets planned in • Constantly innovating FY16 Expansion to roll out new • Seen as one of the products in ice cream • 50 new branded ice most trusted ice segment cream par
Slide 19: Ice Creams - Brands Portfolio
Ice Creams - Brands Portfolio 18 \ 26
Slide 20: 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 21: 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 20 \ 26
Slide 22: Production Facilities
Production Facilities • Capacity expanded across production facilities over the last three years, • Current production on automated processes “untouched by hand”, manual intervention only at packaging stage • Discontinuing production of non-branded canned pulp products to focus on branded portfolio
Slide 23: Distribution Presence
Distribution Presence Jammu & Himachal Kashmir Pradesh Chandigarh Punjab Bihar Uttaranchal Delhi Haryana Bareilly Uttar Pradesh Rajasthan West Madhya Pradesh Pundhra Bengal Jharkhand Dharampur Gujarat Chhattisgarh Orissa Distribution network comprises of 55,000 retailers, over 800 distributors, 50 C
Slide 24: Awards and Accreditations
Awards and Accreditations 23 \ 26
Slide 25: Outlook
Outlook
Slide 26: Planned Initiatives
Planned Initiatives Corporate Transition Expanding Presence Increasing penetration into 24 states Presence across 16 states, 50 CNF’s, Discontinuation of non-branded/ Planned merger of Vadilal Industries in India – moving from passive to over 800 distributors, 250 bulk processed foods to aid debt (m
Slide 27: Contact Us
Contact Us 26 \ 26
Slide 28: Thank You
THANK YOU 5/30/2016 27