Adf Foods Limited · NSE:ADFFOODS
Adf Foods — H1 FY2020 Earnings Presentation
30 slides from Adf Foods's earnings presentation, November 2019
Slide 1: Investor Presentation
Investor Presentation November 2019
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by ADF 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 securities,
Slide 3: Quality standards and innovative products quote
“ At ADF we believe in maintaining high quality standards, introducing new and innovative products “ while remaining customer centric
Slide 4: Agenda
1 Q2 & H1FY20 highlights 2 About the company 3 Strengths & drivers 4 Growth strategies 5 Historical financial overview
Slide 5: Q2 & H1FY20 highlights
Q2 & H1FY20 highlights
Slide 6: Consolidated Financial highlights H1FY20
Consolidated Financial highlights H1FY20 Rs in Crs Revenue (Rs Cr) EBITDA (Rs Cr) and Margin PAT (Rs Cr) and Margin 22.5% 22.3% 14.5% 13.7% 14% 8% 134.6 13% 118.2 18.5 30 17.1 26.6 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 Exports contribute to more than 95% of revenues 6
Slide 7: Consolidated profit and loss statement
Consolidated profit and loss statement (Rs Cr) Q2FY20 Q2FY19 YoY H1FY20 H1FY19 YoY Revenue from operations 56.9 59.7 122.7 108.7 Other income 6.7 5.5 11.9 9.4 Total Income 63.7 65.2 -2.3% 134.6 118.2 13.9% Cost of material consumed 16.1 19.9 38.6 49.7 Changes in inventories 2.0 2.9 -5.2 -11.2 Purcha
Slide 8: Consolidated Balance sheet
Consolidated Balance sheet Rs in Crs Sept'19 Mar'19 Rs in Crs Sept'19 Mar'19 Share Capital 20.4 20.4 Fixed Assets incl. CWIP 78.9 70.5 Reserves 170.1 151.4 Income Tax Asset (Net) 3.1 3.2 Shareholders' Funds 190.5 171.8 Other Financial Assets 25.9 1.7 Other liabilities 12.8 10.1 Other Non Current Ass
Slide 9: New product launches in FY20
New product launches in FY20 Flavored Milk Use of Natural Flavors, No Artificial Colors and Essence Focus on Baked changing Snacks trends 100% Vegetarian, Just Heat & Eat, Microwaveable in 90 seconds Frozen Snacks & Chutneys No Trans Fat, No Cholesterol, Vegan, Ready-to-eat
Slide 10: About the company
About the company
Slide 11: Wide range of products with established brands & strong distribution
Wide range of products with established brands & strong distribution Presence in 50+ countries Wide reach across allowing wide range and markets with 180+ coverage distributors • Ashoka • Truly Indian Two state-of-art manufacturing • Aeroplane • PJ’s Organic facilities at Nashik and Nadiad • Camel •
Slide 12: Evolution of the Company
Evolution of the Company The Flagship brand offers 1985 wide range of ready-to- cook, ready-to-eat Indian food Acquired this USDA certified organic food Launched a range of Acquired this brand brand from a US based organic products under Entered a new and launched a company offering a wide 2016 this
Slide 13: Experienced management
Experienced management Bimal Thakkar Chairman, Managing Director and CEO • 30+ years of experience in domestic and export management • Instrumental role in development of Brands and new products, tapping new markets, international acquisitions, setting up of subsidiary companies in U.K. and U.S.A. A
Slide 14: Board of directors
Board of directors Jay Mehta Ravinder Jain Non-Executive Director Independent Director • 35+ years of rich industrial experience • 45+ years of experience in business management • He is the Executive Vice Chairman of Gujarat Sidhee Cement Ltd and • Has held various management position like MD of Sha
Slide 15: Giving back to stakeholders
Giving back to stakeholders Consistently FY17 FY18 FY19 H1FY20 rewarding Investors Buyback of Dividend of Buyback of Interim shareholders through Rs 9.6 crore 25% Rs 30 crore dividend of dividends and buybacks 15% ▪ Solar power projects to meet ~40% of the total power requirement at the Environment
Slide 16: Strengths & drivers
Strengths & drivers
Slide 17: Strong industry fundamentals to drive growth
Strong industry fundamentals to drive growth Indians staying abroad (in millions) 1 Indian diaspora 3.3 driving demand 2.3 2.3 1990 for ethnic RTE 0.5 0.5 0.9 1.2 1.2 0.8 0.7 0.6 2017 0.2 0.4 0.4 0.2 food 0 UAE USA Saudi Arabia Oman Kuwait UK Qatar Canada There are more Indian staying outside their
Slide 18: The only company with a presence across all categories
The only company with a presence across all categories Ready-to-eat & Cooking sauces Flavored Ready-to-cook & pastes drinks Meal Condiment Frozen food accompaniments powders With a view to evolve with consumer preference, the company has been continuously expanding its product basket with new launch
Slide 19: Strong distribution network
Strong distribution network Masud Sethi Country manager (Canada) Savio Almeida Country manager (GCC, CANADA Levant Countries, Asia Pacific & Africa) EUROPE NORTH Bharat Sareen & Upinder Thakur AMERICA Country managers (UK) ASIA Apurva Patel & Vimal Bhalla Country managers (USA) HO MIDDLE Mumbai EAST
Slide 20: Manufacturing units
Manufacturing units Nadiad Facility ❑ 2 state of the art manufacturing plants located at Nashik spread across 10,100 sq. meters of area and Nadiad with a built-up area of 15,000 sq. meters ❑ Both the facilities are HACCP (Hazard Analysis and Critical Control Point) and BRC (British Retail Consortium
Slide 21: Awards & recognition
Awards & recognition ‘Truly Indian’ organic product category won two silver awards in 2017 the SOFI awards of 2017, held by Awarded ‘Best FMCG Company’ in Specialty Foods Association, USA. Agri-business sector (SME Sector) at 2009 the DHL- CNBC International Awards for 2008-09 Awarded ‘Best Overall
Slide 22: Growth strategies
Growth strategies
Slide 23: Serve changing consumer needs with focus on profitability
Serve changing consumer needs with focus on profitability ▪ Identify latest consumer trends and preferences and develop ▪ Continue to focus export products to tap those markets of North America, opportunities Continuous Europe, Australia, Middle East ▪ In-house team of food ▪ Deepen presence in spec
Slide 24: Historical financial overview
Historical financial overview
Slide 25: Financial performance
Financial performance Rs Cr Revenue EBIDTA PAT 7% 3year CAGR 16% 3year CAGR 29% 3year CAGR 49 30 202 172 182 36 165 22 31 27 14 14 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Cash flow from EBIDTA Margins PAT Margins operations % % 24% 15% 20% 12% 44 19% 16% 9% 8% 26 21 18 FY16 FY17
Slide 26: Returns ratios
Returns ratios Return on Equity Return on Capital Employed Net Worth % % Rs in Cr 14% 210 21% 208 11% 15% 198 12% 11% 7% 7% 189 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Standalone Financials 26
Slide 27: Historical profit and loss statement
Historical profit and loss statement Standalone Consolidated (Rs Cr) FY17 FY18 FY19 FY17 FY18 FY19 Revenue from operations 165.7 163.8 187.5 201.2 201.0 231.4 Other income 5.6 18.6 14.1 6.4 18.6 14.1 Total Income 171.3 182.4 201.5 207.5 219.6 245.5 Cost of material consumed 79.1 78.2 89.3 79.1 78.2
Slide 28: Historical balance sheet - Standalone
Historical balance sheet - Standalone Rs in Crs FY17 FY18 FY19 Rs in Crs FY17 FY18 FY19 Share Capital 21.6 21.6 20.4 Fixed Assets incl. CWIP 70.5 70.7 70.1 Reserves 176.1 186.8 190.0 Income Tax Asset (Net) 2.7 3.0 3.2 Shareholders' Funds 197.7 208.4 210.4 Other Financial Assets 64.5 60.3 59.6 Secure
Slide 29: Historical balance sheet - Consolidated
Historical balance sheet - Consolidated Rs in Crs FY17 FY18 FY19 Rs in Crs FY17 FY18 FY19 Share Capital 21.6 21.6 20.4 Fixed Assets incl. CWIP 82.3 80.2 70.5 Reserves 145.4 152.8 151.4 Income Tax Asset (Net) 2.7 3.0 3.2 Shareholders' Funds 167.0 174.4 171.8 Other Financial Assets 19.0 12.8 12.3 Secu
Slide 30: Thank You
Anish Jhaveri (CFO)/ Shalaka Ovalekar (CS) ADF Foods Limited anish@adf-foods.com/ co_secretary@adf-foods.com Marathon Innova B2 – G01, G. K. Road Thank You Lower Parel, Mumbai 400 013 Pooja Dokania/ Arpit Gandhi Pareto Capital (Investor Relations) pooja.dokania@paretocapital.in/ arpit.gandhi@paretoc