Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — Q3 FY2024 Earnings Presentation
19 slides from Sundrop Brands Limited Shs Dematerialised's earnings presentation, Jan 24, 2024
Slide 1: Regulation 30 disclosure letter to stock exchanges
24th January 2024 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233 / 22721234 Ph.No. 022- 26
Slide 2: Agro Tech Foods Limited Q3, FY'24 Update
Agro Tech Foods Limited Q3, FY’24 Update January 24th, 2024
Slide 3: Company Strategic Vision
Company Strategic Vision The Best Performing Most Respected Foods Company in India 2
Slide 4: Quarter 3 FY'24 – Key Performance Highlights
Quarter 3 FY’24 – Key Performance Highlights Slow Growth in Foods – Lower Pricing in Staples • Foods Growth Rate starts to inch up but Spreads and RTC continue to be a drag. Update on actions taken and results to be shared. • Current Growth driven by Semi Urban/Rural (Super Distributor Network) with
Slide 5: Performance Highlights by Category
Performance Highlights by Category 1. Ready to Cook 2. Ready to Eat -Western 3. Spreads (Rs. 18,000 crore) (Rs. 28,500 crore) (Rs. 3400 crore) ;. . ..{ " t · £::F NUTRIJ:Y HONEY IIOASTID O AT$ 4. Breakfast Cereals 5. Chocolate Confectionery 6. Staples (Rs. 3500 crore) (Rs.13,600 crore) (N.A.) 4 * Ca
Slide 6: Ready to Cook
Ready to Cook RTC Q1, FY’24 Q2, FY’24 Q3, FY’24 YTD, FY’24 Volume +4% +1% +4% +3% Value +4% -4% +0% +0% • YTD Volume Growth of 5% in Instant Popcorn partly offset by flat Microwave Popcorn/Lower adjacencies. • Plan to close the gap in IPC growth between 5% and the required 8% with higher media spend
Slide 7: Ready to Eat
Ready eady to o Eat Eat RTE Q1, FY’24 Q2, FY’24 Q3, FY’24 YTD, FY’24 Volume +35% +15% +15% +20% Value +32% +15% +13% +19% • Steady Volume growth in Popcorn drives Category Growth. • Sweet Snacks up 66% up to 8% share of RTE. To get to 10%+ some recipe changes required in Panned. • Gift Packs of Swee
Slide 8: Spreads & Dips
Spreads & Dips Spreads Q1, FY’24 Q2, FY’24 Q3, FY’24 YTD, FY’24 Volume +0% -4% -5% -3% Value -2% -7% -8% -6% • Steadily gaining ground in Mid Size Packs driven by Honey Roast PB– already dominate the Large Packs. • Expect to be in positive Volume Growth by Q4 setting the base for solid growth in FY’
Slide 9: Breakfast Cereals
Breakfast Cereals Breakfast Cereals Q1, FY’24 Q2, FY’24 Q3, FY’24 YTD, FY’24 Volume +40% +43% -3% +23% Value +49% +45% +6% +30% • Popz Center Filled Cereals continues steady growth – lower Volume index for Total Cereals due to launch of Masala Oats in Prior Year same period. Mr•• 'I ii • Rewired arc
Slide 10: Chocolates
Chocolates Chocolates Q1, FY’24 Q2, FY’24 Q3, FY’24 YTD, FY’24 Volume +38% +9% +11% +17% Value +37% -1% +7% +11% • Steady expansion in distribution (up to c 120M stores). However low level of Volume Growth. • Moderate acceptance of Rs. 5 pack - Size impression a likely barrier in comparison with waf
Slide 11: Staples
Staples Q1, Q2, Q3, YTD, Volume FY’24 FY’24 FY’24 FY’24 Premium +5% -10% -12% -6% Mass +49% -10% -+7% +9% Total +9% -10% -9% -4% Q1 Q2, Q3, YTD Value FY’24 FY’24 FY’24 FY’24 Premium -13% -31% -32% -26% Mass +38% -24% -18% -8% Total -8% -30% -30% -24% • Staples Volumes down 4% vs PY –Premium Oils par
Slide 12: Competitive Update
Competitive Update
Slide 13: Snacks: Competition Spends
Snacks: Competition Spends Rs. Million F-17 F-18 F-19 FY20 FY21 FY22 Q1-23 Q2-23 Q3-23 Q4-23 FY23 Apr-23 May-23 Jun-23 Q1-24 Jul-23 Aug-23 Sep-23 Q2-24 Oct-23 Nov-23 Dec-23 Q3-24 ACT II 110 74 38 45 104 99 15 21 25 30 91 0 5 10 15 10 10 10 30 5 5 5 16 Lays 148 374 252 491 335 742 333 409 406 287 143
Slide 14: Spreads: Competition Spends
Spreads: Competition Spends Nov- Rs Million FY-21 FY-22 Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Apr-23 May-23 Jun-23 Q1-24 Jul-23 Aug-23 Sep-23 Q2-24 Oct-23 Dec-23 Q3-24 23 Sundrop Spreads 58 49 10 18 13 12 54 0 3 6 10 6 6 7 19 3 3 3 10 Kissan Jam- 679 572 133 171 106 168 578 63 56 138 257 68 62 62 191 68 65
Slide 15: Breakfast Cereals: Competition Spends
Breakfast Cereals: Competition Spends Rs Million FY-17 FY-18 FY-19 FY-20 FY-21 FY-22 Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Apr-23 May-23 Jun-23 Q1-24 Jul-23 Aug-23 Sep-23 Q2-24 Oct-23 Nov-23 Dec-23 Q3-24 Sundrop Popz 5 5 5 5 4 14 3 3 3 8 Kellogg Cornflakes 202 265 390 230 355 526 136 152 141 211 639 48 37 5
Slide 16: Chocolates: Competition Spends
Chocolates: Competition Spends Rs Million FY- 18 FY- 19 FY-20 FY-21 FY-22 Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Apr-23 May-23 Jun-23 Q1-24 Jul-23 Aug-23 Sep-23 Q2-24 Oct-23 Nov-23 Dec-23 Q3-24 Sundrop Duo 5 0 0 0 0 0 0 5 6 11 3 3 3 8 Cadbury 5 Star 744 482 727 960 1059 153 461 209 245 1067 55 64 62 181 63 5
Slide 17: Edible Oils: Competition Spends
Edible Oils: Competition Spends Rs FY-12 FY-13FY-14FY-15FY-16FY-17FY-18FY-19 FY-20 FY-21 FY-22 Q1-23 Q2-23 Q3-23 Q4-23 FY-23 Apr-23 May-23 Jun-23 Q1-24 Jul-23 Aug-23 Sep-23 Q2-24 Oct-23 Nov-23 Dec-23 Q3-24 Million Sundrop 88 94 50 65 46 34 21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Heart Saffola 1
Slide 18: Q3 FY'24 Summary
Q3 FY’24 Summary • YTD Foods Volume Growth at 5%. Addressing the drag caused by RTC and Spreads and believe there is sufficient strength in actions being taken/proposed. • Gross Contribution levels of Foods at 46% close to best in class. With sufficient capacity in hand focus now on reducing cost in
Slide 19: On Track…
On Track… The Best Performing Most Respected Foods Company in India 18