Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Q2 FY23 Earnings Presentation
38 slides from Dodla Dairy's earnings presentation, Oct 22, 2022
Slide 1: Filing cover letter to stock exchanges
Date: 22 October 2022 The General Manager The Manager Department of Corporate Services Listing Department BSE Limited National Stock Exchanges of India Limited Phiroze Jeejeebhoy Towers "Exchange Plaza", 5th Floor, Dalai Street, Fort Plot No.C/1, G Block Mumbai-400 001 Bandra-Kurla Complex Bandra (E
Slide 2: Dodla Dairy Investor Presentation October 2022 Q2 & H1FY23
DODLA DAIRY I N V E S T O R P R E S E N TAT I O N OCTOBER 2022| Q2 & H1FY23
Slide 3: Table of Content
Table of Content 3 Quarterly Highlights 10 Full Year Financials 14 About Us 23 Company Canvas 27 Strategic Advantages
Slide 4: Quarterly Highlights
Quarterly Highlights
Slide 5: Management Commentary
Management Commentary “Dodla Dairy’s operating revenue grew by 22.8% YoY to INR 6,953 Mn supported by gradual rise in the selling prices coupled with strong demand of milk and value-added products during the festive season. The Company successfully navigated multiple sectoral headwinds including Lum
Slide 6: Quarterly Operational Highlights
Quarterly Operational Highlights A B ~14.3 LLPD 10.9 LLPD Average milk procurement during Q2FY23 as Average milk sales during Q2FY23 as compared to compared to 12.8 LLPD in Q2FY22 9.5 LLPD in Q2FY22 11.2% YoY 14.7% YoY C D 292.4 MTPD 25.3% Curd sales during Q2FY23 as compared to 252.1 Revenue from v
Slide 7: Quarter-wise Historical Operational Highlights
Quarter-wise Historical Operational Highlights AVERAGE MILK PROCUREMENT (in LLPD) AVERAGE MILK SALES (in LLPD) 11.2% YoY 14.7% YoY 16. 0 11. 5 • 14. 0 12. 0 11. 0 Average milk procurement during 10. 0 10. 5 Q2FY23 increased by 11.2% YoY to 14.3 8.0 10. 0 LLPD 6.0 9.5 4.0 9.0 • Average milk sales dur
Slide 8: Key Financial Metrics (Quarterly)
Key Financial Metrics (Quarterly) OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) 8,0 00 2,2 00 29.3 35. 0 Steady Q-o-Q and Y-o-Y increase in quarterly revenue 7,0 00 25.6 30. 0 23.3 2,0 00 6,0 00 numbers powered by increase in milk volumes and 25. 0 1,8 00 5,0 00 healthy V
Slide 9: Key Financial Metrics (Half-yearly)
Key Financial Metrics (Half-yearly) OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) 14,123 5,0 00 28.8 30 4,5 00 24.4 28 10,784 Revenues grew by 31% Y-o-Y to INR 14,123 Mn in H1FY23 26 4,0 00 24 navigating multiple sectoral headwinds like lumpy skin 3,5 00 22 3,0 00 20 2,5
Slide 10: Consolidated Profit & Loss Results
Consolidated Profit & Loss Results Particulars (INR in millions) Q2FY23 Q2FY22 YoY H1FY23 H1FY22 YoY FY22 Revenues 6,953 5,664 22.8% 14,123 10,784 31.0% 22,434 Cost of Goods Sold 5,171 4,006 29.1% 10,672 7,674 39.1% 16,262 Gross Profit 1,783 1,658 7.5% 3,451 3,110 10.9% 6,172 Gross Profit margin 25.
Slide 11: Full Year Financials
Full Year Financials
Slide 12: Financial Highlights
Financial Highlights OPERATING REVENUE GROSS PROFIT & GROSS MARGINS (in ₹ Mn) (in ₹ Mn) (in %) Saw a healthy 15% Y-o-Y growth in revenue, despite a 21,394 22,434 7,0 00 30.5 27.5 35 tumultuous year due to multiple COVID waves. 19,400 6,0 00 25.7 30 23.3 15,905 16,888 5,0 00 22.6 25 4,0 00 20 3,0 00
Slide 13: Key Ratios – Full Year
Key Ratios – Full Year NETWORTH & ROCE CASH & CASH EQUIVALENT & ROE (in ₹ Mn) ROCE (in %) (in ₹ Mn) (ROE in %) 9,0 00 30. 0 25.5 3,0 00 25. 0 23.3 19.1 8,0 00 25. 0 2,5 00 19.1 16.8 15.8 20. 0 18.9 7,0 00 6,0 00 17.0 20. 0 2,0 00 15.5 Healthy growth leading to high capital efficiency, zero 11.5 15.
Slide 14: Balance Sheet Summary (Full Year)
Balance Sheet Summary (Full Year) Particulars FY19 FY20 FY21 FY22 Particulars FY19 FY20 FY21 FY22 Equity 4,068 4,335 6,580 8,432 ASSETS Non-current Liabilities 1,459 1,426 1,197 576 Non-current Assets 5,374 5,697 35,703 6,854 Current Liabilities 1,908 2,165 1,946 1,877 Current Assets 2,061 2,229 4,0
Slide 15: About Us
About Us
Slide 16: Dodla Dairy Snapshot
Dodla Dairy Snapshot Founded in 1995, Dodla Dairy is an integrated dairy company based in South India. Processes and sells milk and produces dairy-based value-added products (“VAPs”) 3rd 38+ Sales Office 22+ LLPD aggregate highest market presence across installed capacity 12 states in India* 3rd 7,7
Slide 17: Our Journey So Far: 25+ years of dairy operations
Our Journey So Far: 25+ years of dairy operations in partnership with marquee investors 1995 1997 2007 2009 2012 Incorporation of Parent Badvel and Milk powder and Investment by Dodla Dairy processing plant Sattenapally SMP plant at Black River* at Nellore plants Nellore 2014 2017 2019 2021 2022 ▪ A
Slide 18: Presence Across Dairy Value Chain
Presence Across Dairy Value Chain DAIRY FARM PROCESSING PLANTS Procurement of raw milk from 1.2+ lakh Total 15 milk processing plants in India farmers across 8,000+ villages through & Uganda 7,700+ VLCCs Company regularly incurs capex to Raw milk directly procured from farmers upgrade technology, au
Slide 19: Few of Our Products
Few of Our Products SOLD IN INDIA PASTEURIZED POUCH MILK UHT MILK CURD GHEE ICE CREAM Full cream, Standardized Milk, Toned, Double Toned Sachet Curd, Bucket Cow ghee, White ghee (buffalo Vanilla, Elaichi, Pista, Badam, Toned Curd, Cup Curd ghee) and Premium ghee (full Chocolate, Strawberry, Pineappl
Slide 20: Few of Our Products - Shri Krishna Milks
Few of Our Products - Shri Krishna Milks TONED MILK CURD NATURAL GOLD MILK RICH MILK DODLA DAIRY LIMITED 19
Slide 21: Orgafeed Private Limited: Built On A Strong Foundation
Orgafeed Private Limited: Built On A Strong Foundation Orgafeed primarily engaged in farming, breeding, agriculture, horticulture and allied activities such as poultry, dairy and livestock ₹282 ₹27MN farming. Additionally, it is also in the business of seed crushers, manufacturing and dealing of gro
Slide 22: Meet The Executive Team
Meet The Executive Team MR. DODLA SUNIL REDDY MR. VENKAT KRISHNA REDDY BUSIREDDY MR. ANJANEYULU GANJI Managing Director Chief Executive Officer Chief Financial Officer DODLA DAIRY LIMITED 21
Slide 23: Board of Directors
Board of Directors Mr. Dodla Mr. Raja Mr. Akshay Tanna Rathinam Non-Executive Nominee Director Sesha Reddy Chairman & Non- Independent Director Exp: Deutsche Bank and Merrill Executive Director Exp: 40+ years in Dairy Lynch Previously Associated: Partner: TPG Growth & Rise Exp: 22+ years in Dairy Fu
Slide 24: Company Canvas
Company Canvas
Slide 25: Our strength to deliver competitive advantage
Our strength to deliver competitive advantage 12.2 PROCESSING CAPACITY 12.5 20 ▪ Best practices to maximize capacity utilization, FY18 operating metrics and profitability ▪ Flexible and agile with continuous 10.9 improvement mindset 10.8 20 FY19 13 MILK PROCUREMENT 12.1 ▪ All dairy processors have a
Slide 26: Value-added Product (VAP) Trajectory
Value-added Product (VAP) Trajectory VAP Sales (in ₹ Mn) The company already has a strong distribution network in southern states for milk as FY22 5,254 well as value added products through which it can roll out existing and upcoming products FY21 4,324 FY20 4,890 STRONG VAP PORTFOLIO Dodla Dairy is
Slide 27: Our Overseas Presence
Our Overseas Presence Dodla operates in Kenya and Uganda in Africa through its subsidiaries Lakeside Dairy Limited & Dodla Dairy Kenya Limited. Our African product portfolio is marketed under the “Dairy Top” and “Dodla +” brands and includes Milk, yogurt with different flavors, ghee, paneer, cheese
Slide 28: Strategic Advantages
Strategic Advantages
Slide 29: Key Strengths
Key Strengths 3rd largest player in terms of milk procurement (in South India) * Global Presence: Uganda Kenya Higher B2C Sales through Strong Branding 12 states engaged in our strong distribution network An Extensive Product Portfolio (Milk Based Value-Added Products) 15 Processing Plants 1 Feed Pl
Slide 30: Stringent Quality Control Procedures
Stringent Quality Control Procedures Well Defined Quality and Food Safety Procedures at Various Stages from Procurement to Distribution PROCUREMENT STAGE ▪ VLCCs equipped with GPRS enabled electronic milk analyzers which test for the fat and solid not fat (SNF) content of the raw milk ▪ Tests conduc
Slide 31: Focused Engagement and Long-Term Relationship with Dairy Farmers
Focused Engagement and Long-Term Relationship with Dairy Farmers REGULAR DIRECT PAYMENT ▪ Money paid directly to farmers in their bank accounts once every 10 to 15 days ▪ ~88% of total farmers payment covered as of Q2 FY23 TRANSPARENCY IN PROCUREMENT ▪ Company has VLCCs equipped with GPRS enabled El
Slide 32: Investment Rationale
Investment Rationale INTEGRATED AUTOMATED BACKWARD PROVEN ROBUST BALANCE SUPPLY CHAIN PLANTS INTEGRATED TRACK RECORD SHEET Strong Direct Fully automated plants Presence in cattle feed Proven track record of Strong cashflows led to procurement model, leading to improved business through its successfu
Slide 33: Dodla's ESG Commitment
Dodla’s ESG Commitment ENVIRONMENT ▪ We are dedicated to producing dairy products in a manner that is humane toward people, animals, and the environment, as well as beneficial to our societies ▪ We believe that preserving and rebuilding the environment is crucial in providing opportunities for futur
Slide 34: Capital Market Information
Capital Market Information Few of our Key Investors as on 30th Sep 2022 (% of Total Equity) SBI MF 9.24 40,000+ Total Shareholders International Finance Corporation Bharat Biotech International Ltd. Ashoka India Opportunities Fund Steinberg India Emerging Opportunities Fund 4.46 3.41 2.70 2.52 Adity
Slide 35: Contact Us
Contact Us • CHIEF FINANCIAL OFFICER Ganji Anjaneyulu investorqueries@dodladairy.com T: +91 40 4546 7777 • IR Contact: Vikash Verma T: +91 9664009029 • Diwakar Pingle T: +91 9833904971 • CORPORATE OFFICE 8-2-293/82/A, 270/Q, Road No 10-C, Jubilee Hills, Hyderabad – 500 033. Telangana, India. T: +91
Slide 36: Appendix
Appendix
Slide 37: Glossary
Glossary LLPD: Lakhs Liter per day LPA: Liters Per Annum MTPD: Metric Tonnage Per day MT: Metric Ton UHT milk: Ultrahigh Temperature Processed Milk VAP: Value-added Product VLCC: Village Level Collection Center FII: Foreign Institutional Investor DRP: Dodla Retail Parlours DODLA DAIRY LIMITED 36
Slide 38: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dodla Dairy Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities,