Slide 1: Intimation to stock exchanges: Investor Presentation
10th July, 2020 To, To, Department of Corporate Services Listing Department BSE Limited National Stock Exchange of India Limited P. J. Towers, Dalal Street, Exchange Plaza, Mumbai – 400 001 Bandra Kurla Complex, Scrip Code: 533400 Bandra (East), Mumbai-400 051 Scrip Code : FCONSUMER Dear Sir/Madam,
Slide 2: FMCG 2.0 Q4FY20 and FY20 Investor Update
FMCG 2.0 Q4FY20 and FY20 INVESTOR UPDATE JULY 2020
Slide 3: Uprathall”
Uprathall”
Slide 4: Safe Harbour Statement
Safe Harbour Statement This investor presentation has been prepared by Future Consumer Limited (“FCL”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or su
Slide 5: Table of Contents
TABLE OF CONTENTS Q4FY20 AND FY20 – AT A GLANCE 05 OVERVIEW OF FINANCIAL PERFORMANCE 11
Slide 6: Q4FY20 and FY20 at a Glance
Q4FY20 and FY20 at a Glance Previous 5 Next
Slide 7: FY20: Key Operational Milestones (1/2)
FY20 : Key Operational Milestones (1/2) Growth Engine Continues…. GOAL Brands Crossed ₹2bn 2 Milestone 1. Profitable & Won “Product of the Sustainable Year” 2020 Award Growth 2. FCF generation 3. Return Enhancement Formed partnership with Amazon FUTURE CONSUMER LIMITED | INVESTOR UPDATE – Q4 FY20 Pr
Slide 8: FY20: Key Operational Milestones (2/2)
FY20 : Key Operational Milestones (2/2) Efficiency Increase GOAL Sourcing efficiencies via Vendx and Agribid Slow Moving / Low 805 Margin SKUs Rationalized 1. Profitable & Inventory optimization Sustainable of 5 days leading to Growth 5 supply chain efficiencies 2. FCF generation & improved freshnes
Slide 9: FY20 in Numbers: Q4FY20 Impacting the Full Year Performance
FY20 in Numbers: Q4FY20 Impacting the Full Year Performance 9MFY20 Q4FY20 FY20 ₹30,933mn ₹9,471mn ₹40,403mn Sales ↑9% ↓9% ↑4% 14% 11% 13% Gross Margin ↓ 20bps ↓200bps ↓ 60bps EBITDA ₹1,208mn ₹242mn ₹1,451mn (Pre ECL) ↑44% ↓28% ↑23% EBITDA ₹1,202mn -₹612mn ₹590mn (Post ECL) ↑45% ↓49% Note: 9MFY20, Q4
Slide 10: Q4FY20 Impacting the Full Year Performance
Q4FY20 Impacting the Full Year Performance • Sales Mix tilted towards essentials impacting the gross margins • SKU Rationalization and Liquidation • 805 SKUs rationalized in FY20 impacted Q4 sales • Liquidation of near expiry SKUs in processed food and HPC impacted the margins • Covid-19 started imp
Slide 11: FY20: Hits & Misses
FY20: Hits & Misses WE ACHIEVED MISSES Topline crosses the ₹40 bn milestone, despite COVID Pandemic started disrupting the rationalization of over 805 SKUs and fewer business in Q4 FY20 new launches Challenging environment led to increased Tasty Treat and Karmiq crossed the ₹2bn prudence in accounti
Slide 12: Overview of Financial Performance
OVERVIEW OF FINANCIAL PERFORMANCE Previous 11 Next
Slide 13: Standalone: Profit & Loss Statement
Standalone: Profit & Loss Statement (₹ in Mn, Unless specified otherwise ) FY20 vs FY19: Particulars FY20 FY19 Q4 FY20 Q3 FY20 Q4 FY19 − Gross Margin expanded by 40bps Total Income from Operations 30,261 29,900 6,884 6,753 7,793 − EBITDA (pre ECL) increased by 29% with margin Gross Profit 4,410 4,24
Slide 14: Consolidated: Profit & Loss Statement
Consolidated: Profit & Loss Statement (₹ in Mn, Unless specified otherwise ) FY20 vs FY19: Particulars FY20 FY19 Q4 FY20 Q3 FY20 Q4 FY19 − Topline crossed ₹40bn milestone growing by 4% Total Income from Operations 40,403 38,806 9,471 9,240 10,374 − EBITDA (pre ECL) continues its growth trajectory as
Slide 15: Impairment in Aadhaar and Nilgiris – Higher Growth Potential vs Valuation Assumptions
Impairment in Aadhaar and Nilgiris – We Expect a Much Higher Growth Potential vs Modest Growth Assumed for Valuation Nilgiris Aadhaar • Closing of unprofitable GT business and • Strategically exited geographies which were Business Environment franchisees, outsourcing of manufacturing impacting profi
Slide 16: Expected Credit Loss
Expected Credit Loss • Expected Credit Loss (ECL) requirements is in accordance with standard IND AS 109 Standard - IND AS 109 • Applicable to receivables, lease receivables, most loan commitments, financial guarantee contracts etc. • Entities are required to recognize an allowance for either 12-mon
Slide 17: FY20: FCL Approach and Impact of IND AS 116 Accounting
FY20: FCL Approach and Impact of IND AS 116 Accounting Consolidated Standalone Particulars FY20 IND AS 116 FY20 FY20 IND AS 116 FY20 Comparable Adjustment Reported Comparable Adjustment Reported Revenue from Operations 40,403 0 40,403 30,261 0 30,261 Other Income 124 +12 136 136 +2 134 COGS -35,194
Slide 18: Consolidated Balance Sheet
Consolidated Balance Sheet (₹ in Mn, Unless specified otherwise ) As on Particulars 31-Mar-20 31-Dec-19 31-Mar-19 Shareholder's Fund 10,542 12,273 9,902 Minority Interest 0 -29 -24 Gross Debt 5,948 6,225 8,137 Less: Cash and Cash Equivalents 590 649 684 Net Debt 5,357 5,576 7,453 Lease Liabilities a
Slide 19: Thank You
Thank You Corporate Office: Future Consumer Limited Embassy 247, Tower ‘C’, LBS Marg, Vikhroli (West), Mumbai 400 083 Tel: +91 22 6119 0000 Registered Office: Future Consumer Limited Knowledge House, Shyam Nagar Off JVLR, Jogeshwari(East), Mumbai 400 060 Tel: +91 22 6644 2200 Web: www.futureconsumer