Awl Agri Business Ltd · NSE:AWL
Awl Agri Business — Adani Wilmar — Q1 FY24 Earnings Presentation
51 slides from Awl Agri Business's earnings presentation, Aug 2, 2023
Slide 1: Adani Wilmar Limited: Investor Presentation – Q1 FY24
Adani Wilmar Limited: Investor Presentation – Q1 FY24 August 2, 2023 Earnings Presentation – Q1FY24
Slide 2: Safe Harbour Statement
Safe Harbour Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar
Slide 3: Macro Context
Macro Context Earnings Presentation – Q1FY24
Slide 4: Multiple headwinds during FY23…continued to impact Q1 FY24
Multiple headwinds during FY23…continued to impact Q1 FY24 ➢ Ukraine-Russia War ➢ Indonesia export ban on Palm ➢ US Inflation & Fed rate hike ➢ TRQ / Stock control order ➢ Drought in Argentina ➢ Wheat / Rice Export Ban These events led to uncertainty & high volatility in prices of raw materials Earn
Slide 5: Continued decline in Edible Oil prices
Continued decline in Edible Oil prices Continued decline in Edible Oil prices Palm Soya Sun $2,500 $2,000 $1,500 $1,000 $500 $- Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Earnings Presentation – Q1FY24
Slide 6: Business Updates
Business Updates Earnings Presentation – Q1FY24
Slide 7: GTM Update: Q1 FY24
GTM Update: Q1 FY24 Direct Reach Coverage: Rural Towns Rural Saliency > 6 Lac+ Outlets 21,700+ rural towns ~31% (Volumes) Direct Reach: Outlets Coverage: Rural Towns 2.0x 6.7x 4.2x x 1.6x x 1.3x FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24 Focus to continue increasing the rural town cover
Slide 8: Market Share Update
Market Share Update Edible Oil: Wheat Flour Rice Continued to maintain market share #1 #2 #3 19.5% 50% 13.8% 6.3% 6.1% 7.9% 4.5% 4.9% 5.0% 5.9% ◼ Market share ~1.5x of the next competitor ◼ Potential to consolidate market share, since ~50% share is held by regional brands Jun 22 Jun 23 June 22 June
Slide 9: New Product Launches
New Product Launches Premium Whole Wheat Multi-purpose Cleaner ▪ Product: Launched 4 Premium Whole Wheat varieties ▪ Product: Multipurpose cleaning concentrate liquid ▪ Brand: Fortune ▪ Forward-integration: of Oleochemicals ▪ Customers: Retail ▪ Brand: Ozel ▪ Variants: Sharbati, Poorna 1544, Lokwan,
Slide 10: Customer Engagements through Fortune Mart & Fortune Online (D2C)
Customer Engagements through Fortune Mart & Fortune Online (D2C) Fortune Mart Fortune Online 33 Outlets 26 Cities 25 Cities 64,000+ Downloads INR 2,384 84% INR 1,143 AOV* 38,600+ Orders (FY23) Average Order Value Conversion Sales Growth Trajectory GMV Growth Trajectory 10x 15x 4x 4x x x Q1'22 Q1'23
Slide 11: Supply Chain Updates: Q1 FY24
Supply Chain Updates: Q1 FY24 90 Depots ~2 Million Sq. Ft. (Depot Storage Space) Volume Dispatch in Multi-Modal Direct Dispatches ✓ 18% of dispatches through multi-modal logistics ✓ 57% of dispatches were directly sent to customers Note: In multi-modal way, most of the distance is covered by either
Slide 12: Marketing Activities: Re-establishing the premium “Kohinoor” brand
Marketing Activities: Re-establishing the premium “Kohinoor” brand Earnings Presentation – Q1FY24
Slide 13: Marketing Activities: TVCs - Q1 FY24
Marketing Activities: TVCs - Q1 FY24 Soyabean Oil Campaign Soyabean Oil Campaign Sunflower Oil Campaign Fortune Atta Campaign King’s Mustard Oil Campaign Earnings Presentation – Q1FY24
Slide 14: Marketing Activities: Targeted Campaigns - Q1 FY24
Marketing Activities: Targeted Campaigns - Q1 FY24 Fortune Rice Bran Oil Campaign Poila Baisakh Campaign Pickle Campaign (Mustard) Rathyatra Campaign Alife Soap Campaign Earnings Presentation – Q1FY24
Slide 15: Marketing Activities: Select Social Media Engagements - Q1 FY24
Marketing Activities: Select Social Media Engagements - Q1 FY24 Regular Engagements on Social Media Influencer-led Engagements Earnings Presentation – Q1FY24
Slide 16: ESG Updates
ESG Updates Water Conservation: Efforts towards reducing water waste − ZLD installed at 9 major plants − ZLD ensures recovery & reuse of water Green Energy: Promoting alternative source of power − Successful solar power implementation at 8 plants out of 23 own units. − Plan to continue such installa
Slide 17: Update on IPO Projects
Update on IPO Projects Product Location Project Estimated Timeline Bundi 500 TPD Mustard Oil Mill FY24 Edible Oil Haldia 1500 TPD Palm Refinery FY24 Nagpur 240 TPD Chickpea Plant FY24 Dal & Besan Neemuch 240 TPD Chickpea Plant FY24 Kadi 240 TPD Chickpea Plant FY25 100 TPD Soya Nugget & Soya Nugget N
Slide 18: Update on IPO Money Utilization
Update on IPO Money Utilization Amount to be utilized as per Utilisation upto Unutilized as on Particulars prospectus June 30, 2023 June 30, 2023 Capital Expenditure 1,900 509 1,391 Repayment of borrowings 1,059 1,059 - Strategic acquisition 450 148 302 General Corporate purpose 63 - 63 Total 3,472
Slide 19: Result Highlights
Result Highlights Earnings Presentation – Q1FY24
Slide 20: Segment Mix for Q1FY24
Segment Mix for Q1FY24 Consolidated Q1 FY23 Q1 FY24 Edible Oil Food & FMCG Industry Essentials Value Value Volume Volume 78% 8% 16% 59% 6% 16% 76% 60% 24% 25% 16% 16% Revenue (value) contribution from Food & FMCG increased to 8% Earnings Presentation – Q1FY24
Slide 21: Result Highlights: Q1 FY24
Result Highlights: Q1 FY24 Consolidated Revenue Volume (LMT) Gross Profit EBITDA PBT PAT 14,724 14.9 1,492 12,928 1,178 11.9 260 443 194 130 (68) (79) Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Standalone Revenue Volume (LMT) Gross Profit EBITDA PBT PAT 14,017 14.3 1,388
Slide 22: Segment Results: Q1 FY24
Segment Results: Q1 FY24 Consolidated Segment Revenues INR in Crores Q1FY24 Q4FY23 Q1FY23 QoQ % YoY % FY23 FY22 YoY % Mix - FY23 Edible Oils 9,845 10,790 11,511 -9% -14% 46,104 45,342 2% 79% Food & FMCG 1,097 1,159 860 -5% 28% 4,053 2,621 55% 7% Industry Essentials 1,986 1,924 2,353 3% -16% 8,028 6,
Slide 23: Reasons impacting Profitability
Reasons impacting Profitability Impact Reasons for impact Inventory loss Due to decline in edible oil prices ▪ Hedge prices didn’t move in-line with physical prices, Hedges dis-alignment hence loss in inventory was not fully compensated by the gain in hedges. Disproportionate allocation ▪ We incurre
Slide 24: Outlook for Q2 FY24: Healthy Consumption Trends
Outlook for Q2 FY24: Healthy Consumption Trends Edible Oil Imports: Q1 FY24 Key Highlights of the quarter 3.39 3.21 ▪ Edible oil imports grew 19% YoY in Q1 FY24 (Oil Year has seen imports grow by 22% YoY) 2.85 ▪ Soft oils imports (soyabean & sunflower oil) was higher due to low prices. Q1 '22 Q1 '23
Slide 25: Earnings Presentation – Q1FY24
Earnings Presentation – Q1FY24
Slide 26: Company Overview
Company Overview Earnings Presentation – Q1FY24
Slide 27: Adani Wilmar Limited at glance
Adani Wilmar Limited at glance One of the largest Food FMCG company in India No. #1 Edible Oil brand Over 2 decades of trust INR 58,185 Crores Food & FMCG player offering kitchen Consolidated Operating Revenue in No. #2 wheat flour brand essentials across India FY23 No. #3 Basmati brand 113 Million
Slide 28: Business Segments
Business Segments Edible Oil Food & FMCG Industry Essentials Products: Products: Major Products: Sunflower Soyabean Mustard Atta, Suji, Rawa & Maida Soap Noodles Glycerine Stearic Acid Distilled Fatty Acid Ricebran Cottonseed Groundnut Castor Oil Deoiled Cakes Rice Besan & Pulses Key applications Fo
Slide 29: Business Mix & Customer Segments
Business Mix & Customer Segments FY23 Edible Oil Food & FMCG Industry Essentials Business Mix Customer Segments Households HoReCa Institutional Exports Emerging Opportunity ▪ Branded ▪ Branded Products ▪ Consumer & Bulk Packs ▪ Branded ▪ Loose Oil ▪ Private Label ▪ Consumer & Bulk Packs ▪ Bulk Pack
Slide 30: Presence across the price spectrum
Presence across the price spectrum Super Premium Premium Popular A healthy mix of premium and popular brands Earnings Presentation – Q1FY24
Slide 31: Portfolio of scaled up brands
Portfolio of scaled up brands Strong brands built on basis of trust and quality over last 2 decades Value Brands Segment INR 20,000 Cr + Edible Oil & fats Food & FMCG INR 4,000 Cr + Edible Oil & fats * ~INR 1,000 Cr + Edible Oil Food & FMCG Edible Oil & fats INR 500+ INR 100 Cr + Branded portfolio g
Slide 32: Leadership Position in our Key Products
Leadership Position in our Key Products Edible Oil Food & FMCG Industry Essentials #1 Player in Stearic Acid, Glycerine & #1 Edible oil brand in India #2 in Wheat Flour (atta) Soap Noodles #1 Soyabean oil, Mustard & Ricebran #3 in Basmati Rice #1 Castor exporter from India oil #2 in Palm oil #2 in S
Slide 33: Successful brand extension of Fortune
Successful brand extension of Fortune Over 2 decades of trust and quality Fortune: A household name in India ‘Edible Oil’ brand ‘Packaged Foods’ brand ‘Fortune’ brand size is INR 20,000+ Crores Earnings Presentation – Q1FY24
Slide 34: Large Opportunity in Foods Products
Large Opportunity in Foods Products Opportunity to replicate the Edible Oil playbook in other staple food categories AWL’s Share (as % of total volume consumed in India) AWL’s Competencies ~14% ✓ Edible Oil Fortune Brand Equity ✓ Distribution & Retail Reach Wheat < 1% ✓ Efficient Supply Chain Rice <
Slide 35: Enhancing GTM capabilities to capture demand
Enhancing GTM capabilities to capture demand Everyday great execution Rural Activation & Coverage Expansion • Improving daily visit calls • Rural town expansion • Improving productivity of calls • Improved quality of Town Coverage in Rural • Increase DSM effective coverage • Improved penetration in
Slide 36: Efficient supply chain to lower cost and capture demand
Efficient supply chain to lower cost and capture demand Least Cost Digitization Optimization Most of the supply chain workflow has been Plan the dispatch to optimize on various digitized, resulting in paper-less processes, parameters like raw-material prices, logistic availability of data, visibilit
Slide 37: Supply Chain – Reduction of carbon footprint in logistics
Supply Chain – Reduction of carbon footprint in logistics Clean fuel in Logistics Low emission mode of transport 3.8% Volume Dispatch in multi-modal way Dispatch* by CNG vehicle in FY 23 22% 23% ➢ Initiated use of CNG vehicles in FY’23. Vendors are incentivized to used CNG vehicle ➢ Earned 22,574 Ra
Slide 38: NPD
NPD Increasing focus on value added products Poha Ready to Cook Khichdi Fortune Xpert Soap Kohinoor Biryani Kit • Almost all value-add products are forward-integration of our existing products and leverages our existing distribution network Earnings Presentation – Q1FY24
Slide 39: AWL’s advantage
AWL’s advantage Proven Track record Fast-paced growth at scale (leadership position or amongst Top-3 in multiple Large addressable market categories) Potential for margin improvement Large distribution network Leverage existing setup to scale up new categories Support of 2 strong Few competitors Str
Slide 40: ESG
ESG Earnings Presentation – Q1FY24
Slide 41: Fortune SuPoshan: A Mission Against Malnutrition & Anemia
Fortune SuPoshan: A Mission Against Malnutrition & Anemia Fortune SuPoshan touches life of three Target Groups 0-5 yrs age children Adolescent Girls Women in Reproductive Age Fortune SuPoshan touches four core areas Health Education Women Sustainable Empowerment Livelihood Our commitment towards a “
Slide 42: Cumulative Coverage till March 2023
Cumulative Coverage till March 2023 Sr Particulars Coverage No 1 Total sites 30 2 Total Households 3,82,655 3 Total population 19,10,530 4 Total under five children 1,45,392 5 Total adolescent girls 1,28,334 6 Total women in reproductive age 3,18,647 Sr No Site Details Number 1 Exit sites (by Mar 23
Slide 43: Current Footprint (April 2022 – March 2023)
Current Footprint (April 2022 – March 2023) 14 13 20 129 1200 Sit es States Districts Slums Villages 550 1,08,132 3,06,409 Sanginis children Women & girls Alwar Varanasi Touched more The prevalence Neemuch than 3 lakh of Wasting and The SuPoshan Medadraj Vidisha Haldia 2 beneficiaries in SAM have fo
Slide 44: Progress (April 2022 – March 2023)
Progress (April 2022 – March 2023) Achievement Sr Particulars No FY 2022- 23 1 Total under five children screened 1,00,000+ Family Counselling 87662 Total complicated SAM children 2 referred to NRC 1204 Community Events Focus Group Discussion 3578 94999 Total children shifted from SAM to 3 MAM 12245
Slide 45: Poshan Shivir
Poshan Shivir Poshan Shivir Beetroot paratha with sprouted moong & chana Earnings Presentation – Q1FY24
Slide 46: Earnings Presentation – Q4FY23
46 Earnings Earnings Presentation Presentation – Q4FY23 – Q1FY24
Slide 47: Environment, Social & Governance
Environment, Social & Governance Green Energy Water Conservation - Successful solar power implementation at 7 plants - Zero Liquid Discharge out of 23 own units. installed at 9 major plants (2900 KL per day) - Plan to continue such installation across all plants over the years - ZLD ensures recovery
Slide 48: Annexure: Detailed Financials
Annexure: Detailed Financials Earnings Presentation – Q1FY24
Slide 49: Financial Performance: Consolidated
Financial Performance: Consolidated INR in Crores Q1FY24 Q4FY23 Q1FY23 QoQ % YoY % FY23 FY22 FY21 YoY % Volume (in LMT) 14.9 14.9 11.9 0% 25% 54.7 48.0 44.8 14% Revenue 12,928 13,873 14,724 -7% -12% 58,185 54,155 37,090 7% COGS 11,750 12,433 13,232 -5% -11% 52,183 48,771 32,490 7% Gross Profit 1,178
Slide 50: Financial Performance: Standalone
Financial Performance: Standalone INR in Crores Q1FY24 Q4FY23 Q1FY23 QoQ % YoY % FY23 FY22 FY21 YoY % Volume (in LMT) 14.4 14.3 11.4 1% 26% 52.3 46.1 44.6 13% Revenue 12,379 13,122 14,017 -6% -12% 55,262 52,302 37,090 6% COGS 11,265 11,767 12,629 -4% -11% 49,543 47,091 32,490 5% Gross Profit 1,113 1
Slide 51: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Wilmar Limited (together with its subsidiaries, the “Company” or “AWL”) to you solely for your reference and for Legal Disclaimer information purposes only. This presentation is highly confidential and is being give