Apex Frozen Foods Ltd. · NSE:APEX
Apex Frozen Foods — Q1 FY19 Earnings Presentation
25 slides from Apex Frozen Foods's earnings presentation, Aug 1, 2018
Slide 1: Investor Presentation Q1 FY19 Results
Investor Presentation Apex Frozen Foods Limited CIN: L15490AP2012PLC080067 Q1 FY19 Results
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Apex Frozen Foods Ltd (the “Company”) solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not f
Slide 3: Table of Contents
Table of Contents 1 Key Highlights – Q1 FY19 2 Industry Trends 3 Our Core Strengths 4 Past Performance Investor Presentation Q1 FY19 Apex Frozen Foods Limited 3
Slide 4: Key Highlights – Q1 FY19
01 Key Highlights – Q1 FY19 Investor Presentation Q1 FY19 Apex Frozen Foods Limited 4
Slide 5: Completion Status of the New Shrimp Processing Plant
Completion Status of the New Shrimp Processing Plant Existing shrimp processing capacity of 15,240 MTPA (owned + leased) New shrimp processing plant with installed capacity of 20,000 MTPA: 15,000 MTPA for Ready-To-Cook (RTC) products 5,000 MTPA for Ready-To-Eat (RTE) products Total planned
Slide 6: Operational Performance – Q1 FY19 (1)
Operational Performance – Q1 FY19 (1) Volumes sold (MT) and Capacity utilisation* (%) Geographical break up of Revenue (%) USA UK Other EU 93% 97% 81% 10.6% 17.6% 7.6% 23.7% 14,146 6.2% 2.2% 9,897 81.8% 76.2% 74.1% 3,680 FY17 FY18 Q1 FY19 F Y17 F Y18 Q 1 F Y19 Total installed capacity of 15,240 MTPA
Slide 7: Operational Performance – Q1 FY19 (2)
Operational Performance – Q1 FY19 (2) Shrimp price correction led to lower Avg. Realisation* Although, EBITDA per kg# continued to improve (Rs/Kg) (Rs/Kg) 729 101 717 718 720 89 92 92 55 663 FY17 H1 FY18 9M FY18 FY18 Q1 FY19 FY17 H1 FY18 9M FY18 FY18 Q1 FY19 Globally, shrimp prices have corrected by
Slide 8: Profit & Loss Highlights – Q1 FY19
Profit & Loss Highlights – Q1 FY19 Standalone (Rs mn) Q1 FY19 Q4 FY18 Q-o-Q % FY18 FY17 Y-o-Y % Net revenue 2,393 2,031 17.8 9,986 6,987 42.9 Other income 47 29 61.1 199 106 88.1 Total Income 2,440 2,060 18.4 10,185 7,093 43.6 Raw material 1,501 1,394 7.7 7,031 5,317 32.2 Employee expenses 117 106 1
Slide 9: Industry Trends
02 Industry Trends Investor Presentation Q1 FY19 Apex Frozen Foods Limited 9
Slide 10: Global Seafood Industry – Overview
Global Seafood Industry – Overview Increased seafood intake globally, reflected in higher per capita consumption of seafood (kg) Rising income level Variety in product offering 20 15 Richer protein content 1995 2015 Favourable State policies like FTAs Source: FAO, CRISIL Research Seafood ind
Slide 11: Global Demand-Supply Scenario, Favourable for India
Global Demand-Supply Scenario, Favourable for India Demand: Top 5 importing countries, forming ~50% Supply: Asia forms ~92% of total aquaculture production 69.6% 15.0% 2015 67.7% 14.7% 2015 20-22% 2020P 2020P 18.0% 9.9% 7.8% 11.0% 6.8%6.7% 9-11% 8-10% 9.0% 5.2% 7.0% 4.8% 5-7% 5-7% 5.0% 3.0%3.0% USA
Slide 12: India's Growth in Aquaculture Exports and Farming
India’s Growth in Aquaculture Exports and Farming India’s exports on a rise – FY18 (lakh tonnes) Frozen shrimp exports by India 4.8 13.77 Total Seafood 3.7 3.7 (21% y-o-y) 3.2 3.1 5.66 (30% y-o-y) Frozen Shrimp 1.7 1.8 189 229 301 358 374 434 566 4.02 L. Vannamei FY12 FY13 FY14 FY15 FY16 FY17 FY18 (
Slide 13: Our Core Strengths
03 Our Core Strengths Investor Presentation Q1 FY19 Apex Frozen Foods Limited 13
Slide 14: Integrated Operations Ensure Quality Control & Timely Delivery
Integrated Operations Ensure Quality Control & Timely Delivery Hatchery Farming Processing Packaging Logistics • Capacity of • As per customer • 1,500 MT of cold • Three operational • 1,800 acres land 15,240 MTPA of requirement in storage capacity units; combined • Forms 18-20% of processed shrimp R
Slide 15: Strategically Located – Close to Farms as well as Ports
Strategically Located – Close to Farms as well as Ports Andhra Pradesh accounts for ~70% of the total shrimp farming in India Processing Plant Hatchery and Farm Locations Our facilities are in proximity to one another, enabling smooth transition to the next stage: Farms are within 10-200 kms; Kakina
Slide 16: Long Standing Relationships with Reputed Clients
Long Standing Relationships with Reputed Clients Our key distributors… …The end customers (Retail/Food Service Companies) Pacific Seafood Walmart WinCo FOODS OCEAN WORLD VENTURES Sysco US. Kroger FOODS Mazzetta Company Chicken of the Sea SAFEWAY ALDI frozen foods Investor Presentation Q1 FY19 Apex F
Slide 17: Quality Control Certifications act as Entry Barrier
Quality Control Certifications act as Entry Barrier EU Approved Government of India Ministry of Commerce Directorate General of Foreign Trade Four Star Export House Approved Investor Presentation Q1 FY19 Apex Frozen Foods Limited 17
Slide 18: Founded by Promoters with Extensive Experience
Founded by Promoters with Extensive Experience … Industry knowledge, relationships and experience of the founders has enabled sustained growth Karuturi Satyanarayana Murthy, Chairman and Managing Director Founding Promoter of the company and has an experience of over 25 years in aquaculture indust
Slide 19: Annual Financial Highlights
04 Annual Financial Highlights Investor Presentation Q1 FY19 Apex Frozen Foods Limited 19
Slide 20: Robust Growth in Revenue and Profits…
Robust Growth in Revenue and Profits… Total income (Rs mn) EBITDA (Rs mn) & Margin (%) PAT (Rs mn) & Margin (%) FY14 5,146 FY14 329 6.4% FY14 134 2.6% FY15 6,044 FY15 382 6.3% FY15 186 3.1% FY16 6,083 FY16 455 7.5% FY16 197 3.2% FY17 7,093 FY17 549 7.7% FY17 251 3.5% FY18 10,185 FY18 1,299 12.8% FY1
Slide 21: …Led by Strong Financial Discipline, Leading to…
…Led by Strong Financial Discipline, Leading to… Net debt-to-equity (x) Working capital (Days) Diluted Book value (Rs/share) FY14 2.0 FY14 48 FY14 12.1 FY15 1.5 FY15 54 FY15 17.9 FY16 1.0 FY16 51 FY16 24.1 FY17 0.9 FY17 60 FY17 35.0 FY18 0.1 FY18 52 FY18 96.7 Improved D/E led by… …largely stable wor
Slide 22: …Enhanced Profitability for Stakeholders
…Enhanced Profitability for Stakeholders Return on Net Worth (%) Return on Capital Employed (%) FY14 43.1% FY14 18.6% FY15 39.6% FY15 19.3% FY16 30.0% FY16 18.0% FY17 27.2% FY17 17.8% FY18 38.4% FY18 28.5% Consistently generating high Return Ratios Note: The data beyond FY17 is as per Restated Finan
Slide 23: Profit & Loss Highlights
Profit & Loss Highlights Profilt & Loss (Rs mn) FY14 FY15 FY16 FY17 FY18 Net revenue 5,143 5,994 6,035 6,987 9,986 Other income 3 50 47 106 199 Total income 5,146 6,044 6,083 7,093 10,185 Raw material 3,885 4,752 4,510 5,317 7,031 Employee expenses 226 258 233 249 389 Other expenses 705 652 884 977
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights Standalone (Rs mn) FY15 FY16 FY17 FY18 Standalone (Rs mn) FY15 FY16 FY17 FY18 Shareholder’s Funds 560 753 1,094 3,023 Non-current assets 523 632 857 1,373 Share capital 240 240 240 313 Net block 523 552 829 1,111 Reserves & surplus 320 513 854 2,710 Non-current liabilities 1
Slide 25: For further information, contact
For further information, contact: Mr. Subhramanya Chowdary Ms. Pooja Sharma Executive Director pooja.sharma@stellar-ir.com ir@apexfrozenfoods.com Investor Presentation Q1 FY19 Apex Frozen Foods Limited 25