Prataap Snacks Ltd. · NSE:DIAMONDYD
Prataap Snacks — Q1 FY25 Earnings Presentation
33 slides from Prataap Snacks's earnings presentation, Aug 2, 2024
Slide 1: Prataap Snacks Limited Q1 FY25 Earnings Presentation
PRATAAP SNACKS LIMITED Q1 FY25 Earnings Presentation 2nd August 2024
Slide 2: 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 3: The Main Ingredients: Company Overview
THE MAIN INGREDIENTS: Company Overview
Slide 4: Company at a Glance
COMPANY AT A GLANCE Large, compounding market Market leadership Significant revenue scale INR 508 Bn market Market Leader in Rings and FY24 Revenue of INR ~ 16.2 Bn Growing at 14% CAGR(1) Extruded Snacks, 10-year revenue CAGR: 14%(2) Top 5 in Western Savoury Snacks Diverse product portfolio Nationwi
Slide 5: Key Milestones
KEY MILESTONES 2018 2022 2024 2003 2012 Forayed into Sweet Completed Consolidation of Company Doubled the Snacks 2020 restructuring Manufacturing Units in founded Eastern Region. Shifted capacity of Entered into 3P Contract Converted 3P of distribution machinery from Guwahati- Potato Chips Manufactu
Slide 6: Company Evolution
COMPANY EVOLUTION 2003 2024 Single Product Potato Chips Product Diverse Product Portfolio Single Market Mumbai Presence Pan-India Presence Single Facility 15 Facilities Indore Facility 8 Owned and 7 3P Facilities Snapshot of Recent Growth Rs. 446 Cr Revenue Rs. 1,618 Cr 2014 40+ SKUs 150+ 2024 3 Fac
Slide 7: Diverse Product Portfolio
DIVERSE PRODUCT PORTFOLIO Appealing to consumers and trade partners % of FY24 CATEGORIES Revenue PRODUCTS 58% Chulbule Rings Wheels Pellets Scoops Puff Stix Extruded Snacks 23% Market Leader in Rings Potato Chips and Extruded Snacks, Top 5 in Western Savoury Snacks 16% Namkeen 3% Cookie Center Fille
Slide 8: Branding & Marketing
BRANDING & MARKETING Brand seen to be energetic and vibrant Brand Philosophy Current Associations / Brand Ambassadors Consumer oriented focus Providing value in multiple ways – great taste, high quality ingredients, vibrant packaging, reasonable price Past Associations / Brand Ambassadors Brand tagl
Slide 9: Operational Excellence
OPERATIONAL EXCELLENCE Powered by tech and automation Data Analytics Production Automation Sales Automation Experienced Sales Analytics department working Complete ERP Solution to manage State-of-the-art SFA being used to with advanced BI Tools production processes; Software guide sales team with as
Slide 10: Established Manufacturing Network
ESTABLISHED MANUFACTURING NETWORK Reduced distribution costs; Improved time-to-market; Disciplined investment mindset STRATEGICALLY LOCATED North India (35% of rev.) MANUFACTURING 5 plants in Hisar, Karnal, Nationwide manufacturing FACILITIES TO CATER TO Kanpur, Patna, Jammu footprint THE REGIONAL D
Slide 11: Optimised Distribution Model
OPTIMISED DISTRIBUTION MODEL Direct distribution model on a nationwide scale OLD DIRECT Shifted to a direct distribution model upon hitting DISTRIBUTION Prataap Prataap DISTRIBUTION critical scale MODEL MODEL • Decentralized manufacturing footprint allows us to supply directly to distributors Supers
Slide 12: Our ESG Approach
OUR ESG APPROACH Cornerstones of doing good business • Actively working in accordance with Uniform Framework for Extended Producers Responsibility (EPR) issued by the Ministry of Environment, Forest, and Climate Change Waste management • We engage in mass collection for processing and disposal of em
Slide 13: Strong 'Value-for-Money' Brand
STRONG ‘VALUE-FOR-MONEY’ BRAND Appealing to customers across socio-demographic profiles CATEGORIES CHILDREN YOUTH ADULTS/FAMILY Rings, Kurves, Puff, Stix Chulbule Extruded Snacks Pellets Potato Chips Potato Chips Namkeen Namkeen Sweet Snacks Sweet Snacks Targeting value for money segment 13
Slide 14: Guided by an Accomplished Board
Guided by an Accomplished Board Arvind Mehta Vineet Kumar Kapila V.T. Bharadwaj Chairman & Executive Director Independent Director Independent Director Over 35 years of experience in real (Retired w.e.f. 2nd August 2024) General Partner (A91 Partners) Over 23 estate business along with over 21 Ex CO
Slide 15: Essential Flavours: Growth Strategies and Financial Progress
ESSENTIAL FLAVOURS: Growth Strategies and Financial Progress
Slide 16: Strategic Initiatives
STRATEGIC INITIATIVES Executing on a clear roadmap for robust and disciplined growth TOP LINE GROWTH Expand Namkeen Implementation of SFA Entered into Modern Addition of premium Footprint to drive Range Selling Trade and Quick products to portfolio ~44% of snacks Sales force automation Commerce Enha
Slide 17: Measures to Enhance Profitability and Returns
MEASURES TO ENHANCE PROFITABILITY AND RETURNS Cost optimisation Compression of distribution structure • Reduction in overheads, improvement in • PSL has implemented direct distribution productivity and overall efficiency across all regions, ahead of schedule • Indirect expenses are being saved by •
Slide 18: Robust Revenue Growth
ROBUST REVENUE GROWTH Consistent execution track record TOTAL REVENUE (INR Mn) COVID DISRUPTION 16,529 16,179 Avadh 13,938 13,966 Acquisition 1,688 11,706 11,711 10,174 8,940 7,572 5,493 12,250 4,460 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 18
Slide 19: Overcoming Cost Pressures
OVERCOMING COST PRESSURES UNDERTOOK MULTIPLE INITIATIVES TO OVERCOME SHARP RISE IN INPUT PRICES There was sharp inflation in RM prices during the period RM/PM Price Increase from compared to the average during FY16-FY20 EBITDA MARGIN(%) FY16-20(avg) to Q1 FY25 In addition to RM prices inflation ther
Slide 20: ROCE Expansion
ROCE EXPANSION SHARP INCREASE IN RETURN RATIO WHICH IS SET TO IMPROVE FURTHER 20.6% In line with rise in profitability the Company has witnessed a sharp improvement in RoCE 13.3% The RoCE of the core business has surpassed 20% in FY24 5.70% Further improvement in RoCE is expected due to: • Measures
Slide 21: Approval Under Performance Linked Incentive (PLI) Scheme
APPROVAL UNDER PERFORMANCE LINKED INCENTIVE (‘PLI’) SCHEME The minimum CAGR for sales for calculating the incentive is 10% with the maximum cap of Received approval under PLI The benefit is available 13% CAGR for eligible products scheme of the Government of The base year for calculating including g
Slide 22: Our Long-Term Target Operating Model
OUR LONG-TERM TARGET OPERATING MODEL CONSISTENT PROFITABILITY CAPITAL GROWTH CENTRIC EFFICIENCY ~15% >10% 15–20% Revenue growth EBITDA margin RoCE (faster than industry) 22
Slide 23: Proof of the Pudding: Q1 FY25 Performance Update
PROOF OF THE PUDDING: Q1 FY25 Performance Update
Slide 24: Operational Overview
OPERATIONAL OVERVIEW • After 3 quarters of revenue decline, the Company has reported topline growth of 8.7% YoY on the back of improving consumer demand and easing macroeconomic pressures. Reported Revenue of Rs. 4,214 million • Sales of Namkeen products continue to be strong and with the category o
Slide 25: Sustaining EBITDA Trajectory
SUSTAINING EBITDA TRAJECTORY Reports EBITDA of over Rs. 300 Mn for sixth successive quarter EBITDA (INR Mn) 379 347 355 *Adjusted EBITDA represents 328 EBITDA excluding reversal of Production Linked Incentive of 302* 300 Rs. 113 million 242 234 221 113 181 111 49 -20 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22
Slide 26: MD & CEO's Message
MD & CEO’s Message “We are pleased to report a positive start to FY25 as we reported revenues of Rs. 4,214.4 mn in Q1 FY25, higher by 8.7% YoY. There are initial signs of improvement in consumer demand and easing of macro-economic pressures this quarter. Further, our strategic actions of enhancing r
Slide 27: Abridged P&L Statement
ABRIDGED P&L STATEMENT Y-o-Y (INR Mn) Q1 FY’25 Q1 FY’24 Change (%) Sales/Income from operations 4,191.3 3,859.0 8.6% Other operating Income 23.1 19.2 20.3% Total Income from Operations 4,214.4 3,878.2 8.7% Raw Material Cost 2,898.7 2,568.7 12.9% Gross Profit 1,315.7 1,309.5 0.5% Gross Margin 31.2% 3
Slide 28: Financials – Q1 FY'25 Performance
FINANCIALS – Q1 FY’25 PERFORMANCE Revenue from Operations Gross Profit (INR Mn) (INR Mn) 4,214 Gross Profit Gross margin 3,878 1,310 1,316 34% 31% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 • Delivered improved revenue growth of 9% • Witnessed a sharp rise in the prices of YoY in Q1 after three quarters of rev
Slide 29: Financials – Q1 FY'25 Performance
FINANCIALS – Q1 FY’25 PERFORMANCE EBITDA (INR Mn) PAT (INR Mn) EBITDA PAT* EBITDA margin PAT margin* 8.5% 3.5% 7.1% 329 300 134 2.2% 94 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 • The company reported PAT of Rs. 94 mn in • The company has reported EBITDA of Rs. 300 mn for Q1 FY25. the sixth consecutive quarte
Slide 30: Financials – Q1 FY'25 Performance
FINANCIALS – Q1 FY’25 PERFORMANCE Cash profit Cash EPS (INR Mn) (INR Mn) 12.0 287 11.3 270 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 • The Company follows a conservative Continued to • Despite impact on profitability the Cash EPS accounting policy and is amortizing generate intangible assets of Avadh Snacks c
Slide 31: Evolving Tastes: Industry Overview
EVOLVING TASTES: Industry Overview
Slide 32: Favourable Demographics Supporting Industry Growth
Favourable Demographics Supporting Industry Growth India Population Trend Total Organized Snacks Food Market Size ~50,800 (MIllions) Crores (FY24) Potato Chips 1,468 23% 1,339 1,326 1,368 1,379 1,392 1,405 1,418 1,431 1,444 1,456 Namkeen 44% Extruded Snacks 16% 2017 2018 2019 2020 2021 2022 2023 202
Slide 33: Thank You!
Sumit Sharma Prataap Snacks Ltd Email: cfo@yellowdiamond.in THANK YOU! Mayank Vaswani / Mit Shah CDR India Tel: +91 98209 40953 / +91 99201 68314 Email: mayank@cdr-india.com / mit@cdr-india.com