Vadilal Industries Limited · NSE:VADILALIND
Vadilal Industries — Q3 FY2019 Earnings Presentation
29 slides from Vadilal Industries's earnings presentation, Feb 15, 2019
Slide 1: Exchange filing cover letter for earnings presentation
-------- --- th 15 February, 2019 To, To The National Stock Exchange ) f India Ltd . Department of Corporate Services, Exchange Plaza, Bombay Stock Exchange Limited, Plot no. C/1, G Block, 1st Floor, Rotunda Building, Bandra-Kurla Complex Dalal Street, Fort, Bandra (El, Mumbai - 400 051 Mumbai - 400
Slide 2: Q3 & 9M FY19 Results Presentation
VADILAL INDUSTRIES Q3 & 9M FY19 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 Q3 & 9M FY19 Vadilal 1 Financial 3 Industries Performance Overview Financial 2 Performance 4 Outlook Trends 3
Slide 5: Q3 & 9M FY19 Financial Performance
Q3 & 9M FY19 Financial Performance
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q3 & 9M FY19 performance, Mr. Rajesh Gandhi, Chairman and Managing Director, Vadilal Industries Limited s “During Q3, we have delivered ~27% growth in revenues – including 12% growth in the domestic business and 71% growth in the international business that continues
Slide 7: Financials – Q3 & 9M FY19 Performance
Financials – Q3 & 9M FY19 Performance Revenue In Q3 FY19 VIL revenues grew by 27% y-o-y driven by 12% y-o-y growth in the domestic business 463.2 431.4 Domestic business was driven by higher volumes International business revenues grew by 71% yoy 74.8 95.6 International business witnessed ro
Slide 8: Financials – Q3FY19 & 9MFY19 Performance
Financials – Q3FY19 & 9MFY19 Performance EBITDA 82.9 EBITDA margin for the quarter were higher by ~1408 bps on account of higher volumes, lower input costs and 44.9 focus on efficiencies -7.5 3.9 Continue to focus on rationalization of debt: Q3 FY18 Q3 FY19 9M FY18 9M FY19 o Reconstituted outsta
Slide 9: Financials Performance Trends
Financials Performance Trends
Slide 10: Financials Performance Trends
Financials Performance Trends Revenue (Rs. cr) 550.3 482.2 449.7 406.3 367.3 323.6 FY13 FY14 FY15 FY16 FY17 FY18 Domestic International 85.7 464.6 413.5 428.0 361.8 54.2 288.7 318.7 48.6 44.5 34.9 36.2 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Consolidated financials in Rs. Crore 9
Slide 11: Financials Performance Trends
Financials Performance Trends EBITDA Longer term, consumer behavior is transitioning with 59.4 60.2 54.4 increasing acceptance for western desserts. 44.1 41.7 42.6 o Domestic business growth, temporarily impacted by recent changes in operating environment and consumption spending, is now reverting
Slide 12: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Debt Other Non-Current 175.6 Liabilities 161.1 Liabilities 127.1 205.0 29.0 113.1 113.5 180.2 26.6 148.3 154.3 159.8 20.6 15.2 16.5 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Net Fixed Assets Other Non-Current Net
Slide 13: 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 26.0 26.0 23.0 7.1 1.4 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Estimated capex for FY 19 at ~ Rs. 35 crore Consolidated financials in Rs. Crore 12
Slide 14: Vadilal Industries Overview
Vadilal Industries Overview
Slide 15: 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 16: 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 FY19 products in domestic and global New production facility expected
Slide 17: 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 16
Slide 18: 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 19: Marketing initiatives – Thrust towards Premiumization
Marketing initiatives – Thrust towards Premiumization Parineeti Chopra associated as ambassador for Vadilal brand till 2018 season. Unveiled new products endorsed by the brand ambassador, with the expanded range being evaluated on an ongoing basis. 18
Slide 20: 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 21: 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 22: International Product Portfolio
International Product Portfolio 21
Slide 23: 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 24: Deep Domestic Distribution Presence
Deep Domestic Distribution Presence 8 9 14 States Distributor Distribution network comprises 10 of over 55,000 retailers, over 11 1 Gujarat 200 6 Bareilly 2 Uttar Pradesh 185 1,200 large distributors, 63 3 Madhya Pradesh 150 CNFs, 290 distribution vehicles 4 2 7 4 Rajasthan 138 and almost 300 SKUs.
Slide 25: Awards and Accreditations
Awards and Accreditations 24
Slide 26: Outlook
Outlook
Slide 27: 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 28: Contact Us
Contact Us Kalpit Gandhi Vadilal Industries Ltd Tel: +79-30921200 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 27
Slide 29: Thank You
Thank You jag on Vad