Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q2 FY16 Earnings Presentation
22 slides from Globus Spirits's earnings presentation, November 2015
Slide 1: Q2 FY16 Investor Presentation
GLOB U S S P IRI T S L IMI T E D Q2 FY16 Investor Presentation
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Globus Spirits’ future business developments and economic performance. W
Slide 3: Agenda
AGENDA • Q2 & H1 FY16 Performance • Key Highlights............................................................4 • Financial Performance...............................................5 ............................................... • Annexure • Company Overview.......................................
Slide 4: Q2 FY16 – Robust IMIL Growth Drives Performance
Q2 FY16 – ROBUST IMIL GROWTH DRIVES PERFORMANCE Strong operating performance driven by IMIL growth and DDGS (value added by-product) • Standalone revenue from operations up 19% YoY to Rs 1,618mn in Q2 FY16 driven by robust growth in IMIL and DDGS • EBITDA up 17% YoY to Rs 133mn in Q2 FY16 • PBT up 1
Slide 5: Q2 FY16 YoY – Strong Revenue Growth
Q2 FY16 YOY – STRONG REVENUE GROWTH Figures in Rs Million, Standalone Financials Revenue from Operations EBITDA PAT Q2 FY16 1,618 133 13 19% 17% 2% Q2 FY15 1,365 114 12 • Revenue from operations (Net) up 19% YoY to Rs 1,618mn in Q2 FY16 driven by robust growth in IMIL and Others (by-products) segmen
Slide 6: H1 FY16 YoY – Significant Increase in PAT
H1 FY16 YOY – SIGNIFICANT INCREASE IN PAT Figures in Rs Million, Standalone Financials Revenue from Operations EBITDA PAT H1 FY16 3,196 292 47 15% 23% 40% H1 FY15 2,775 238 34 • Revenue from operations (Net) up 15% YoY to Rs 3,196mn in H1 FY16 driven by robust growth in IMIL and Others (by-products)
Slide 7: Robust IMIL Performance Driving Consumer Business
ROBUST IMIL PERFORMANCE DRIVING CONSUMER BUSINESS Figures in Rs Million, Standalone Financials Breakup of Revenue from Operations Q2 FY16 Q2 FY15 Own IMFL Own IMFL 0.3% 1% Bulk Alcohol 25% Bulk Alcohol 32% IMIL IMIL 54% Franchisee 42% IMFL 11% Others Franchisee 10% Consumer Manufacturing Others IMFL
Slide 8: IMIL Driven by Strong Traction in Rajasthan & Delhi, Haryana Revival and Bihar Launch
IMIL DRIVEN BY STRONG TRACTION IN RAJASTHAN & DELHI, HARYANA REVIVAL AND BIHAR LAUNCH Figures in Rs Million, Standalone Financials Rajasthan IMIL Haryana IMIL Delhi IMIL 600 2.0 170 0.57 0.60 60 0.18 0.20 1.69 500 160 0.50 50 1.28 1.5 150 0.50 0.15 400 40 0.11 140 300 1.0 164 0.40 30 0.10 554 130 49
Slide 9: Manufacturing: Backbone to Consumer; Driven by Value Added DDGS
MANUFACTURING: BACKBONE TO CONSUMER; DRIVEN BY VALUE ADDED DDGS Figures in Rs Million, Standalone Financials Production & Capacity Utilization Bulk Alcohol* Franchise Bottling 20.0 500 85% 12 79% 81% 9.91 9.93 80% 10 15.0 400 75% 0.665 0.660 8 70% 10.0 300 6 0.25 17.8 18.1 65% 440 0.37 402 4 5.0 60%
Slide 10: Q2 FY16 QoQ – Marginal Revenue Growth
Q2 FY16 QoQ – MARGINAL REVENUE GROWTH Figures in Rs Million, Standalone Financials Revenue from Operations EBITDA PAT Q2 FY16 1,618 133 13 3% 16% 64% Q1 FY16 1,578 158 35 • Revenue from operations (Net) up 3% QoQ to Rs 1,618mn in Q2 FY16 driven by growth in bulk alcohol, IMIL and Others (by-products
Slide 11: Agenda
AGENDA • Q2 & H1 FY16 Performance • Key highlights............................................................4 • Financial performance...............................................5 ............................................... • Annexure • Company Overview.......................................
Slide 12: Globus: Leadership in IMIL with Bihar Launch
GLOBUS: LEADERSHIP IN IMIL WITH BIHAR LAUNCH No. 1 private player in Rajasthan IMIL with 25% market share 1 5.6 mn cases in sold in FY15, up 20% YoY No. 2 private player in Haryana with 10% market share 2 2.3 mn cases in sold in FY15 Enters Bihar IMIL through a tie-up in Jan-15 Distillery to be
Slide 13: Leveraging a Strong 360º Business Model
LEVERAGING A STRONG 360º BUSINESS MODEL Bulk Focused on building a ~90 mn BL (expected to go upto profitable and niche ~150 mn BL with East India portfolio of IMFL brands commissioning in FY17) of ENA capacity Focus on value added products such as DDGS IMFL 360º Bottling model Pan India lead
Slide 14: Globus Plans
GLOBUS PLANS PRESENT NEAR TERM STRATEGY FUTURE • Established 360⁰ model in North India (Haryana & • Enter fast growing liquor • Large market share in IMIL Rajasthan) markets of West Bengal & by offering quality Bihar with complete 360⁰ products to the consumer • Amongst the largest grain offering ba
Slide 15: Expansion into East
EXPANSION INTO EAST Greenfield facilities in West Bengal/ Bihar Existing facilities at (Under Construction) Haryana & Rajasthan • Strong fit with 360⁰ Model • Large alcohol deficit, growing IMIL industry Severe Alcohol Deficit in East India (mn ltrs) 15
Slide 16: IMIL Brands Showcase
IMIL BRANDS SHOWCASE Nimboo Ghoomar 1st IMIL brand in Tribute to India positioned Rajasthani folk as awesome mix dance ; blend of natural lemon popular in the flavor with strong harsh winter yet smooth blend months of the profile desert region Heer Ranjha Narangi Tribute to the most Popular dark spi
Slide 17: Unique Competitive Strengths
UNIQUE COMPETITIVE STRENGTHS 360° Business Model Strong Consumer Portfolio Efficient Operations Healthy Balance Sheet • Only company • Leadership in key • State-of-the-art • Funding for present across full states of Rajasthan, plants across three greenfield expansion alcobev value chain Delhi and Ha
Slide 18: Shareholding Pattern
SHAREHOLDING PATTERN As on September 30, 2015 Outstanding shares – 28.8 mn Public & others 17.6% Major Non-Promoter Shareholders % shareholding Templeton Strategic Emerging Markets Corporate 17.49% 2.5% Fund IV, LDC Templeton SBI Emerging Business Fund 6.00% Strategic Promoters Emerging 56.4% Market
Slide 19: Q2 FY16: Profit & Loss Statement
Q2 FY16: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs Mn) Q2 FY16 Q2 FY15 YoY (%) Q1 FY16 QoQ (%) H1 FY16 H1 FY15 YoY (%) Gross Sales 2,160 2,060 5% 2,339 -8% 4,499 4,234 6% Less- Excise duty & Discounts 548 695 -21% 762 -28% 1,310 1,461 -10% Net Sales 1,612 1,364 18% 1,577 2% 3,189 2,772 1
Slide 20: Q2 FY16: Key Ratios
Q2 FY16: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q2 FY16 Q2 FY15 Q1 FY16 H1 FY16 H1 FY15 EBITDA 8.2% 8.4% 10.0% 9.1% 8.6% PAT 0.8% 0.9% 2.2% 1.5% 1.2% Total Expenditure 91.8% 91.6% 90.0% 90.9% 91.4% Raw material 57.5% 57.5% 58.6% 58.0% 62.2% Employee Cost 2.52% 2.47% 2.5% 2.5% 2.3%
Slide 21: Q2 FY16: Balance Sheet
Q2 FY16: BALANCE SHEET Particulars (in Rs Mn) 30-Sep-15 31-Mar-15 Liabilities Shareholders' funds 3557 3551 Non-Current Liabilities Long term borrowings 784 500 Deferred tax liabilites (Net) 450 468 Other long term liabilities/ provisions 13 12 Current Liabilities Short term borrowings 804 730 Trade
Slide 22: About Us
ABOUT US Established in 1992, Globus Sprits Limited (BSE code: 533104, NSE Id: GLOBUSSPR, ISIN Id:INE615I01010) is engaged in manufacturing, marketing and sale of Indian Made Indian Liquor(IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and contract bottling for established IMFL brands. The C