Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q1 FY25 Earnings Presentation
42 slides from Adf Foods's earnings presentation, Jul 30, 2024
Slide 1: Exchange filing cover letter for Q1 investor presentation
AtJr F O ODS LT D. 'Jeedi_,Uf dw wodd.. th 30 July, 2024 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Department of Corporate Services, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers , Bandra (East), Dalal Street, Mumbai - 400 051. Mumbai - 400 001. Symbol: ADFFOODS Scrip
Slide 2: ADF Foods Limited Investor Presentation Q1 FY25
LT D. ADF Foods Limited Investor Presentation Q1 FY25 July 2024 1
Slide 3: Contents
Contents ~ TASTE THE REAL INDIA .,8 01 Company Overview 02 Q1 FY25 Performance '-"'-"'-' . . ; ; , . - - - -' - " ' - " - " - ' HO 03 Business Overview ~ ~ Environmental, Social and 04 Governance (ESG) 05 Industry trends & ADF Growth ADF S<®UL March 2023 06 Annual Performance Highlights 2
Slide 4: Company Overview
FOOD LTD. tttll119 th, wo,(d. . Company Overview 3
Slide 5: ADF Snapshot
IADF Snapshot ~ - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. tttll119th,wo,(d. . ADF - At a Glance 2 1932 Leading Global 400+ Product Manufacturing manufacturer Network 8 Brands SKUs Facilities A leading Impressive footprint Distinctive, high-recall Wide range 9-decade Vintage Annual manufactur
Slide 6: Unlocking Growth
IUnlocking Growth ~ - - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. tttll119th,wo,(d. . A Global Culinary Cutting-edge Manufacturing Diversified Product & Sustainable Performance & Powerhouse & Wide-reaching Brand Portfolio Key Growth Initiatives Distribution Network 29%+ 400+ Product Ashoka Man
Slide 7: Investment Rationale
Investment Rationale FOOD LTD. tttll119 th, wo,(d. . ❑ Leveraging extensive experience, deep domain knowledge & multi- Vintage generational understanding along with seasoned food industry Leadership & professionals. Value Creation ❑ Stability ensured by a debt-free balance sheet and return ratios. A
Slide 8: Q1 FY25 Performance
FOOD LTD. tttll119 th, wo,(d. . Q1 FY25 Performance 7
Slide 9: Q1 FY25 Business Update
IQ1 FY25 Business Update ~ - - - - - - - - - - Q1 FY25 Delivers Healthy Performance despite headwinds - - - - - ~ ~ OS LTD. tttll119th,wo,(d. . INR 97.0 Crores INR 22.8 Crores INR 17.1 Crores Revenue from Operations EBITDA PAT 14.7% YoY 7.8% YoY 4.6% YoY (Standalone) (Standalone) (Standalone) Reve
Slide 10: Q1 FY25 Financial Performance
Q1 FY25 Financial Performance Standalone Performance Revenue from Operations (Rs. Cr.) EBITDA (Rs. Cr.) & EBITDA Margin (%) PAT (Rs. Cr.) & PAT Margin (%) 25.0% 24.7% 23.4% 19.4% 19.6% 17.7% 129.0 97.0 84.6 31.8 25.3 21.1 22.8 16.4 17.1 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24
Slide 11: Segment Performance
Segment Performance I Processed Foods Distribution Revenue from Operations (Rs. Cr.) Revenue from Operations (Rs. Cr.) 132.7 26.1 103.3 21.0 86.3 18.4 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 ----------------------------------------------------------------------------r------------------------
Slide 12: Business Overview
FOOD LTD. tttll119 th, wo,(d. . Business Overview 11
Slide 13: Business Divisions
I Business Divisions Business comprises core manufacturing i.e., processed foods business and agency distribution business. FOOD LTD. tttll119 th, wo,(d. . 2 Core Revenue Segments (Divisions) 1. Processed Foods 2. Distribution One of the largest Indian exporters of processed foods Strong presence in
Slide 14: Geographical Presence
Geographical Presence ~ I FOOD LTD. tttll119 th, wo,(d. · Impressive footprint spanning North America, Europe, Australia, Middle East, & Asia Pacific. 2 Manufacturing locations NADIAD, NASIK ...... I I ] 55+ Countries Global Global Distribution presence I I network - -1- - - - - - - - - .. I I I ',;
Slide 15: Ashoka: ADF Foods' Flagship Brand
Ashoka: ADF Foods' Flagship Brand ~ I The Taste of Home for South Asian Diaspora FOOD LTD. tttll119 th, wo,(d. . Reinforcing Indian Heritage and Pioneering Growth Born in 1988, Ashoka quickly gained momentum as ADF Foods' flagship brand catering to Indian palates globally. Ashoka Brand Sales (Rs.
Slide 16: Ashoka: Bringing Authentic Indian Taste Abroad
Ashoka: Bringing Authentic Indian Taste Abroad ~ I A Journey through India's Culinary Landscape FOOD LTD. tttll119 th, wo,(d.. ~: ut'n Curry Chatpata Aloo :.:i.r.:::r";;,;;,~"";t ,;..,,y, .. I 1~-111• /f;;; , 10lthi Roll ·····"'·· ·······-··················· ...........i ~ -- 1f'Pfll ,: ,.;~111.y f.
Slide 17: ADF Soul: Offering delicious, better-for-you packaged food products
ADF Soul: Offering delicious, “better-for-you” packaged food products I m'Fi''Fi' Target Audience: om B fFlEFB SKUs: Urban audience, residing in metropolitan cities, aged 30-55 years Offering a total of 22 SKUs including wide range of pickles (in Olive Oil Health conscious and have high dispos
Slide 18: ADF Soul: Building the foundation towards growth
ADF Soul: Building the foundation towards growth I ADF Initial Success-Driven Premium Pricing for Investment Higher Profitability Significant traction from initial Rs. 5 Offering a premium range that crore investment prompted additional ensures superior gross margins infusion to capitalize on the mo
Slide 19: Truly Indian: Unlocking Global Markets With Authentic Indian Flavours
Truly Indian: Unlocking Global Markets With Authentic Indian Flavours ~ I Bridging Cultures with Authentic Indian Taste FOODS LTD. tttll119 th, wo,(d.. Presence: Target Audience: Strong presence across Germany, now launched in USA Exclusively targeted at the global mainstream population, specifi
Slide 20: Exploring Our Other Esteemed Brands
Exploring Our Other Esteemed Brands ~ I FOOD LTD. tttll119 th, wo,(d. . Positioning Products Geographies Retail Channel Premium brand targeted at Meal accompaniments, pastes, Middle East 95% from mainstream/ modern Arabic diaspora sauces trade stores Economy Brand Meal accompaniments, pastes, Middle
Slide 21: Product Portfolio
Product Portfolio ~ I Select Key Products FOOD LTD. tttll119 th, wo,(d. . Ready-to-eat & Ready- Frozen Products Food Accompaniments Spices & Others to-cook Frozen snacks, Baked snacks Ready to eat vegetables & curries Pickles Spices- madras curry powder, Frozen Parathas & samosas Ready t
Slide 22: Marketing Initiatives
Marketing Initiatives FOOD LTD. tttll119 th, wo,(d. . Increased shelf visibility and consumer loyalty, translating into outperformance 21
Slide 23: Marketing Initiatives: Product sampling
Marketing Initiatives I Product sampling @ retail stores FOOD LTD. tttll119 th, wo,(d. . 22
Slide 24: Marketing Initiatives: Television sponsorships
Marketing Initiatives Television sponsorships OTT Advertisement on Zee5 & Willow TV GEC Sponsorship Tag News Channel L Band & Aston 23
Slide 25: Marketing Initiatives: Social media
Marketing Initiatives ~ I FOOD LTD. tttll119 th, wo, (d. . YouTube, Instagram & LinkedIn presence – Engaging fans with product stories, event snapshots and interesting contests g • -- 15 pc,oll ,, w...... .Ml ,....... ...,_ ==== -H~~ ...._.. ~ er.±.. """"4,l)R_.. ~ . , . . . _ . ~ . , . , ..........
Slide 26: Marketing Initiatives: Digital marketing
Marketing Initiatives I Building customer base through digital Online community building through social media, Visibility on E-Commerce platforms for marketing using engaging content on-site conversions Breakfast, Dips & Spreads Q seuL ADF Soul Spon$0red • ~ X < adfsoul e ... 5o~ r~~N;:r~~E~~IA~~ ~
Slide 27: Recent Product Launches
Recent Product Launches ~ I Frozen Snacks Frozen Range FOOD LTD. tttll119 th, wo,(d. . t'n "::;-~~~~~-~· @ *ti. ~- ~~. Ambient Range Meethi Baatein [Sweets] 26
Slide 28: Manufacturing Facilities
Manufacturing Facilities I FOOD LTD. tttll119 th, wo,(d. . Plant 1 Nadiad, Gujarat Plant 2 Nasik, Maharashtra Total Built up area - ~26,000 Sqm* Total Built up area – ~12,000 Sqm* Frozen foods (Samosas, vegetables, snacks, parathas, Totally automated spice processing unit by Buhler, etc.); M
Slide 29: Quality Control & Certifications
Quality Control & Certifications ~ I Quality control certifications and processes ensure high standards and excellence in our industry FOOD LTD. tttll119 th, wo,(d. . Sede~ ssat SMETA~• nongmoproject.org 0 UKAS PRODUCT Food Safety CERTIFICATION CERTIFICATED ODDS 28
Slide 30: Warehousing Facilities Available For Distribution Business
Warehousing Facilities Available For Distribution Business Warehousing and Distribution Facilities Atlanta, USA (34,000 sq.ft.) New Jersey, USA (66,000 sq.ft.) Cold storage facility in New Jersey, USA • Combined 100,000 sq. ft of area for warehousing and distributing operations shared among two ware
Slide 31: Distribution Business
Distribution Business ~ I FOODS LTD. tttll119 th, wo,(d. . Distribution Business ➢ Alongside the processed food business, ADF has undertaken the agency distribution for a select FMCG company products whose ROCE is in line with own brands, broadening the overall portfolio ➢ Serving as a distribution
Slide 32: Environmental, Social & Governance (ESG)
FOOD LTD. tttll119 th, wo,(d. . Environmental, Social & Governance (ESG) 31
Slide 33: ESG Initiatives in FY24
ESG Initiatives in FY24 Responsible sourcing Technology for good Business with a heart We source the best ingredients and ensure the We utilize technology smartly to create products Taste and convenience are at the heart of what people who supply them get a fair price. that are good for you and the
Slide 34: Governed by experienced Board Of Directors
Governed by experienced Board Of Directors ~ I FOOD LTD. tttll119 th, wo,(d. . Bimal Thakkar Ravinder Jain Viren Merchant Jay Mehta Chairman, Managing Director and CEO Independent Director Non-Executive Director Non-Executive Director ➢ 37+ years of experience in domestic and ➢ 45+ years of experien
Slide 35: Industry trends & ADF Growth Aspirations
FOOD LTD. tttll119 th, wo,(d. . Industry trends & ADF Growth Aspirations 34
Slide 36: Culinary Horizons: Key Drivers Shaping the Ethnic Food Landscape
I Culinary Horizons: Key Drivers Shaping the Ethnic Food Landscape "-------- - - - - - - - - - - - - - - - - - ~ FOOD LTD. tttll119th,wo,(d. . Ethnic Food Trends Demographic factors & Macro Economic Trends Surge in health-conscious ethnic options: plant-based, Rise in Immigration Increase in nuclear
Slide 37: ADF Foods – Our Aspirations
ADF Foods – Our Aspirations ~ I Aspirational Revenue growth potential (Rs. Cr.) . -------• Brownfield FOOD LTD. tttll119 th, wo,(d. . and debottlenecking initiatives to boost revenue potential at current capacities by Rs. 180 – 200 crores I I I r---------------- 4I ------- ♦ Upcoming Greenfield expa
Slide 38: Annual Performance Highlights
FOOD LTD. tttll119 th, wo,(d. . Annual Performance Highlights 37
Slide 39: Consolidated 3-year Financial Highlights
IConsolidated 3-year Financial Highlights ~ - - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. tttll119th,wo,(d. . Particulars (INR crores unless stated) FY22 FY23 FY24 Profit & Loss Highlights Revenue from Operations 421.2 450.3 520.3 Gross Profit 211.5 235.9 276.2 Gross Profit (%) 50.2% 52.4% 53.
Slide 40: Consistent Shareholder Returns
IConsistent Shareholder Returns ~ - - - - - - - - - - - - - - - - - - - - ~~D LTD. tttll119th,wo,(d. . Value creation for Consistent shareholder value creation through dividend payouts and buyback of shares shareholders Rs. ~120 Cr. returned to our shareholders since FY 19 43.9 30.0 13.2 * 8.8 11.0
Slide 41: Safe Harbor
Safe Harbor ~ I FOOD LTD. tttll119 th, wo,(d. . This presentation and the acc,ompanying slid,es (the "Pres,entatmon"}, whwch have be,en prep,a:red by ADF FOODS LTD (the "Company'). have been pliepared solely £or information purposes and do not constitute any offer~ recommendation or invitation to pu
Slide 42: Thank You
Thank You ADF Foods Limited Ernst & Young LLP CIN: L15400GJ1990PLC014265 Investor Relations Advisory Mr. Shardul Doshi, CFO Ravi Udeshi Sumedh Desai shardul@adf-foods.com ravi.udeshi@in.ey.com Sumedh.desai@in.ey.com 41