Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Q4 FY2020 Earnings Presentation
35 slides from Hindustan Foods's earnings presentation, Jul 3, 2020
Slide 1: Hindustan Foods Limited - Investor Presentation Q4 FY2019-20 filing letter
HINDUSTAN FOODS LIMITED A Vanity Case Group Company Registered Office: Office No. 3, Level 2, Centrium, Phoenix Market City, 15, Lal Bahadur Shastri Road, Kurla (West), Mumbai, Maharashtra, India, 400 070. Email: business@thevanitycase.com, Website: www.hindustanfoodslimited.com Tel. No.: +91 22 618
Slide 2: Investor Presentation July 2020
Investor Presentation July 2020 HOME CARE | PERSONAL CARE | FOOD & BEVERAGES | LEATHER INDIA’S MOST DIVERSIFIED CONTRACT MANUFACTURER
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Hindustan Foods Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: HFL at a Glance
HFL at a Glance HOME CARE | PERSONAL CARE | FOOD & BEVERAGES | LEATHER INDIA’S MOST DIVERSIFIED CONTRACT MANUFACTURER
Slide 5: We Have Developed The EDGE
We Have Developed The EDGE 9 Sites Pioneers in FMCG Contract Manufacturing 30+ Years of Experience (Product + Service) One-stop contract manufacturing solutions & consistently deliver quality products 3Mn+ Most Diversified and Trusted Lives are touched everyday FMCG contract manufacturers for marque
Slide 6: With Legacy of Over 3 Decades
With Legacy of Over 3 Decades Setting up of the liquid detergent and shampoo manufacturing unit in Hyderabad The company acquired 40% stake in ATC Beverages Ltd. Which is engaged in the business of manufacturing and distribution of 2020 Acquired Ponds Exports Ltd., beverages like soft drinks, juices
Slide 7: Vision Mission & Values
Vision Mission & Values To become India’s largest To provide world class solutions FMCG contract manufacturer, for the FMCG industry in the diversified across product areas of product innovation, categories and geographies manufacturing and distribution Integrity Innovation Initiative We believe in
Slide 8: Industry Section
Industry Section HOME CARE | PERSONAL CARE | FOOD & BEVERAGES | LEATHER INDIA’S MOST DIVERSIFIED CONTRACT MANUFACTURER
Slide 9: Industry Opportunity is huge
Industry Opportunity is huge… FMCG Market Size Personal Care ~50% Outsourced Manufacturing Home / Health Care* Opportunity ~31% Rs. 50,000 Crores - Rs. 1,00,000 Crores $103.70 Billion translates to Food & Beverages Company Estimates Rs. 8,00,000 Crores ~19% HFL is the most diversified and versatile
Slide 10: …with Multiple Levers for Growth
…with Multiple Levers for Growth E – Commerce GST Implementation Make in India Favourable Macro Factors Growing Consumer Demand Ease of Doing Business Evolving Regulatory Environment Increasing Rural Incomes Specialized Business Approach Cost Efficiencies Business approach Strategy to engage into co
Slide 11: HFL is best placed to capitalize on the Growth Story
HFL is best placed to capitalize on the Growth Story One of the Largest Organized Management Expertise Largest Organized Player with decades of Management with over two decades of Player experience Expertise experience in contract manufacturing HFL’s Redefined Business Longer Term Relationships with
Slide 12: Barriers to Entry makes us even more Competitive
Barriers to Entry makes us even more Competitive Setting up Regulatory & Manufacturing plant is HFL has overcome all the Environment capital intensive barriers over the years challenges Stringent Quality Control Logistics (QC) of Customers & Supply chain management Efficient allocation Skilled Labou
Slide 13: HFL has the edge
HFL has the edge HOME CARE | PERSONAL CARE | FOOD & BEVERAGES | LEATHER INDIA’S MOST DIVERSIFIED CONTRACT MANUFACTURER
Slide 14: With Diversified Product Portfolio
With Diversified Product Portfolio Most Diversified & Versatile Contract Manufacturing Company in the Country Food & Beverages Home Care Personal Care Leather Extruded Cereals & Snacks Fabric Care Hair Care Leather Shoes & • Shampoo Accessories • Breakfast Cereals • Liquid Detergent • Hair Oil & Foo
Slide 15: With Trust & Credibility
With Trust & Credibility @£) (Long term relationship with all giant FMCG players) H INDUSTAN FOODS LIM IT ED ~~ ., Reckitt DANONe Benckiser ON£ PlANET. ON£ HEAlTH GlaxoSmithKiine HERBA L HEALTHCARE Gabof 1omos ~PEPSICO HECTOR ~ BOMBAY SHAVING ~~~(it;:;;..~ COMPANY BEVERAGES mar1co IT Lirnited •• •••
Slide 16: Supported by key elements in Business Model
Supported by key elements in Business Model • Capex vendor development • Private label business • Arranging the funding • In-house labs • Domain expertise • Global certifications • Project management skills Project Execution QA & R&D The Brawn Behind Your Licensing & • • Full fledge team to handle e
Slide 17: With State-of-the-Art Manufacturing
With State-of-the-Art Manufacturing JAMMU COIMBATORE • Spread across 35,143 square meters of area at IGC II, SIDCO Samba • Manufactures pest control products such as coil, aerosols and vaporisers • Spread across 85,000 square feet and the facility commenced production • Unit was acquired from Reckit
Slide 18: With State-of-the-Art Manufacturing
With State-of-the-Art Manufacturing HYDERABAD – 1st Plant HYDERABAD – 2nd Plant • This facility is engaged in the manufacturing of detergent powders • Unit boasts of a fully automated end-to-end material handling where we • Facility is engaged in the manufacturing of manufactures Liquid manufacture
Slide 19: With State-of-the-Art Manufacturing
With State-of-the-Art Manufacturing PUDUCHERRY MUMBAI • Facility was an acquisition by HFL of Ponds Exports Ltd. which is a subsidiary of Hindustan Unilever Ltd. in 2016-2017 • Manufactures Leather shoes • Unit was acquired as an on-going concern • Robust quality assurance system, excellent manufact
Slide 20: With State-of-the-Art Manufacturing
With State-of-the-Art Manufacturing GOA MYSURU* • Plant is located at Usgaon, Ponda, that is spread across 52,625 square meters of area • Manufactures food products such as cereals, porridges and snacks • HFL acquired 40% stake in ATC Beverages Ltd. In January 2019 • Facility is equipped with the st
Slide 21: With Safety & Quality
With Safety & Quality H INDUSTAN FOODS LIM IT ED ~ BRC I FOOD CERTIFICATED I ~ Food Safety System Certificati an 2 2 DOD " #""' 20
Slide 22: With Experienced Board Members
With Experienced Board Members Shrinivas Dempo | Chairman, Non-Executive Honey Vazirani | Independent Woman Director ▪ Shrinivas Dempo is the third-generation entrepreneur and chairman of ▪ Honey Vazirani served as the Vice President of Labels & International Goa’s Leading business House, Dempo Busi
Slide 23: With Professional Management Team
With Professional Management Team Mayank Samdani Rajiv Bahadur K. Shivaram Prasad Group CFO President, Leather Business AGM, Projects Chartered Accountant with expertise in the Footwear specialist with 32 years of operations, Energy (Electrical Engineer) from IIT Kharagpur area of Finance, Accounts,
Slide 24: Future Strategy
Future Strategy HOME CARE | PERSONAL CARE | FOOD & BEVERAGES | LEATHER INDIA’S MOST DIVERSIFIED CONTRACT MANUFACTURER
Slide 25: Disciplined Capital Allocation Strategy & Way Forward
Disciplined Capital Allocation Strategy & Way Forward Operating Cash Flows Net Working Capital^ / Sales 17.0 8.6% Capital Expenditure 4.7% 3.1% • Set up floor cleaner and toilet cleaner manufacturing 1.0% facility in Silvassa for leading home care brands with -5.3 -5.0 -4.9 FY17 FY18 FY19 FY20 an in
Slide 26: Future Strategy
Future Strategy Strong Entry There is a growing opportunity in the contract manufacturing space in India as the space is not marked by a large barriers number of organised players with access to financial resources, execution capability, ability to manage multi- locational facilities or possessing d
Slide 27: Quarterly Performance
Quarterly Performance HOME CARE | PERSONAL CARE | FOOD & BEVERAGES | LEATHER INDIA’S MOST DIVERSIFIED CONTRACT MANUFACTURER
Slide 28: Q4 & FY20 Standalone Financial Highlights
Q4 & FY20 Standalone Financial Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs.) Profit after Tax (Rs. Crs.) +66% +155% +297% Q4 FY20 248.3 17.7 7.1 149.4 6.9 1.8 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Revenue (Rs. Crs.) EBITDA (Rs. Crs.) Profit after Tax (Rs. Crs.) +57% +72% +91% FY20 773.1
Slide 29: Profit & Loss Account - Standalone
Profit & Loss Account - Standalone Particulars (Rs. Crs.) Q4 FY20 Q4FY19 Y-o-Y FY20 FY19 Y-o-Y Total Revenue 248.3 149.4 66% 773.1 492.6 57% Cost of Goods Sold 204.8 117.1 618.7 369.9 Gross Profit 43.5 32.2 35% 154.4 122.7 26% Gross Profit (%) 17.5% 21.6% 20.0% 24.9% Employee Expenses 5.4 5.1 24.2 1
Slide 30: Historical Financials
Historical Financials HOME CARE | PERSONAL CARE | FOOD & BEVERAGES | LEATHER INDIA’S MOST DIVERSIFIED CONTRACT MANUFACTURER
Slide 31: Historical Financial Highlights
Historical Financial Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) 773 57 23 +171% +170% +219% 493 33 12 6 139 10 39 3 1 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 EPS Fixed Assets Debt / Equity (x) 12.0 274.3 1.51 +164% +178% 6.5 0.85 0.87 131.7 4.8 42.0 0.16 0.7 1
Slide 32: Profit & Loss Account
Profit & Loss Account Particulars (Rs. Crs.) FY20 FY19 FY18 FY17 Total Revenue 773.1 492.6 140.0 38.9 Cost of Goods Sold 618.7 369.9 78.4 22.6 Gross Profit 154.4 122.7 61.6 16.3 Gross Profit (%) 20.0% 24.9% 43.5% 41.5% Employee Expenses 24.2 18.5 8.0 3.2 Other Expenses 73.3 71.2 42.4 9.9 EBITDA 56.9
Slide 33: Balance Sheet Statement
Balance Sheet Statement Particulars (Rs. Crs.) Mar-20 Mar-19 Mar-18 Mar-17 Particulars (Rs. Crs.) Mar-20 Mar-19 Mar-18 Mar-17 Equity & Liabilities Assets Equity 187.9 65.2 38.2 32.0 Non-Current Assets 286.0 147.3 46.0 17.7 Equity Share Capital 21.2 13.5 13.0 13.0 Property, Plant and Equipment 248.7
Slide 34: Social Initiatives
Social Initiatives Health, Hygiene and Books, Benches & Grocery Supporting Differently Education of the Girl Child Distribution to Schools Abled Building and Renovating Classrooms and Bathrooms, Ensuring Clean Providing Water Tanks Drinking Water 33
Slide 35: Thank You
Thank You Company : Investor Relations Advisor : Hindustan Foods Limited Strategic Growth Advisors Private Limited CIN: L15139MH1984PLC316003 CIN: U74140MH2010PTC204285 Mr. Vimal Solanki Mr. Deven Dhruva / Ms. Neha Shroff E: vimal.solanki@thevanitycase.com E: deven.dhruva@sgapl.net / neha.shroff@sga