Globus Spirits Limited · NSE:GLOBUSSPR
Globus Spirits — Q1 FY19 Earnings Presentation
23 slides from Globus Spirits's earnings presentation, Aug 14, 2018
Slide 1: Q1FY19 Earnings Presentation
GLOB U S S P IRI T S L IMI T E D Q1FY19 Earnings Presentation 14 A u g u s t 2 01 8
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: Company Highlights
COMPANY HIGHLIGHTS 360° ALCOBEV PLAYER – Present across Distillery, IMIL, IMFL and Franchise Bottling LARGEST GRAIN BASED DISTILLERS IN INDIA with capacity of ~150 million bulk liters MANUFACTURING EXCELLENCE – State of the art manufacturing facilities with ‘zero discharge’ and ‘integrated evaporati
Slide 4: Agenda
AGENDA Q1 FY19 Performance Performance Highlights 5 Key Developments 6 Financials 7 Financial Performance 9 Annexure Company Overview 12 UNIBEV 19 Shareholding Pattern 22 4
Slide 5: Q1 FY19 – Robust Performance
Q1 FY19 – ROBUST PERFORMANCE • Total Income (net of excise duty) stood at Rs. 2,323 mn in Q1 FY19, in-line with Q1FY18, due to Q1 FY19 Q1 FY18 improved realizations in key States despite marginal decrease in volumes – Price hike in Rajasthan led to increase in IMIL realization in the state by 9% YoY
Slide 6: Q1 FY19 – Key Developments
Q1 FY19 – KEY DEVELOPMENTS • UNIBEV, company’s wholly owned subsidiary launched premium and super premium whiskeys in Karnataka, India in June 2018 – Oakton, barrel aged rare premium grain whisky, is a unique blend with upto 18 year old imported scotch and matured Indian malts – Governor’s Reserve 1
Slide 7: Q1 FY19: Profit & Loss Statement
Q1 FY19: PROFIT & LOSS STATEMENT Standalone Particulars (In Rs MN) Q1 FY19 Q1 FY18 YoY (%) Q4 FY18 QoQ FY18 Gross Revenues 2,582.1 2,440.2 6% 2,221.2 16% 9,322.1 Less- Excise duty 267.0 116.5 129% 258.1 3% 771.4 Net Revenues from Operations 2,315.1 2,323.7 0% 1,963.1 18% 8,550.7 Other Income 7.7 10.
Slide 8: Q1 FY19: Key Ratios
Q1 FY19: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q1 FY19 Q1 FY18 Q4 FY18 FY18 EBITDA 11.7% 7.8% 9.4% 8.7% PAT 3.2% 0.7% 0.7% 0.8% Total Expenditure 88.3% 92.2% 90.6% 91.3% Raw material 58.7% 64.6% 56.7% 60.1% EmployeeCost 2.4% 2.3% 2.9% 2.7% OtherExpenditure 27.2% 25.3% 30.9% 28.6%
Slide 9: Segmental Performance
SEGMENTAL PERFORMANCE Breakup of Revenue from Operations (Net) IMFL, 0% Bulk Alcohol, 38% • Revenues from manufacturing business stood at Rs. 1,227 mn in Q1 FY19, against Rs. 1,290 mn in Q1 FY18 Q1 IMIL, 47% FY19 Franchisee IMFL – Share of manufacturing business stood at 53% in 0% Q1 FY19 Others, 15
Slide 10: IMIL – Strong Performance
IMIL – STRONG PERFORMANCE Rajasthan IMIL Haryana IMIL Delhi IMIL West Bengal IMIL 2.52 2.43 0.16 0.13 0.12 0.55 0.49 0.06 837 876 139.1 122.8 38.2 33.8 19.6 55.0 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 • Aggregate IMIL revenues stood at Rs. 1,088 mn, up by 5% Y-o-Y Q1 FY19 IM
Slide 11: Manufacturing: Backbone to Consumer Business
MANUFACTURING: BACKBONE TO CONSUMER BUSINESS Production & Capacity Utilization 96% 98% • Capacity utilization stood at 98% in Q1 FY19 against 96% in Q1FY18 20.00 150% 100% 10.00 (excluding Bihar) 29.8 30.5 50% 0.00 0% Q1 FY18 Q1 FY19 • Captive consumption at 42%, with significant scope for conversio
Slide 12: Company Overview
COMPANY OVERVIEW 12
Slide 13: Globus 360º Alcobev Player
GLOBUS 360º ALCOBEV PLAYER • No. 1 private player in Rajasthan IMIL with 30% market share – 2.4 mn cases sold in Q1FY19 • No. 4 private player in Haryana with 9% market share – 0.5 mn cases in sold in Q1 FY19 • Commenced commercial production at the Greenfield Distillery in West Bengal in Q4 FY17 –
Slide 14: Leveraging a Strong 360º Business Model
LEVERAGING A STRONG 360º BUSINESS MODEL Large, efficient manufacturing operations • Amongst the largest and most efficient grain-based distillery operations in India with ~150 million bulk litres of distillery capacity* • Present in DDGS – a high-potential co-product used as Animal Feed • Well place
Slide 15: Globus Plans
GLOBUS PLANS PRESENT FUTURE • Established 360⁰ model in North • Large market share in IMIL by India (Haryana & Rajasthan) offering quality products to the • Largest grain based distilleries in consumer India • Establish sustainable premium • Strong IMIL brands that have brands in IMFL acceptance and
Slide 16: Expansion into East – Bihar & West Bengal
EXPANSION INTO EAST – BIHAR & WEST BENGAL • Location advantages like lower raw material costs, higher realizations and other logistical benefits to drive overall profitability Existing facilities at Haryana & Rajasthan Severe Alcohol Deficit in West Bengal (mn ltrs) Commissioned Greenfield 98 facili
Slide 17: IMIL Brands Showcase
IMIL BRANDS SHOWCASE Nimboo Ghoomar 1st IMIL brand in India positioned Tribute to Rajasthani folk as awesome mix of natural lemon dance ; blend popular in the flavor with strong yet smooth harsh winter months of the blend profile desert region Heer Ranjha Narangi Tribute to the most popular Popular
Slide 18: Unique Competitive Strengths
UNIQUE COMPETITIVE STRENGTHS 360° Business Model Efficient Operations • Only company present across full alcobev value chain • State-of-the-art plants across three locations using latest distillation technology, zero • Helps capture IMFL growth via franchisee discharge and highest grain- recovery in
Slide 19: Marching Towards New Leg of Growth through UNIBEV
MARCHING TOWARDS NEW LEG OF GROWTH THROUGH “UNIBEV” 19
Slide 20: UNIBEV: Led by Industry Veteran Mr. Vijay Rekhi
UNIBEV: LED BY INDUSTRY VETERAN MR. VIJAY REKHI Strategy • Focus on premium IMFL • Build portfolio of 4-6 niche brands in price segments which contribute max profit and currently only have 2-3 dominant brands Premium IMFL – Attractive Industry Segment • Premium IMFL is a highly attractive segment ac
Slide 21: UNIBEV: Current Product Portfolio
UNIBEV: CURRENT PRODUCT PORTFOLIO Governor’s Reserve – 12 years Scotch Oakton – 18 years Scotch Whisky L’Affaire Napoleon – 3 years Brandy Whisky • Presence in Premium whisky segment • Presence in Premium brandy segment • Presence in Semi-premium whisky segment • Segment is about 8.5m cases • Segmen
Slide 22: Shareholding Pattern
SHAREHOLDING PATTERN Corporate Bodies, Individuals & Others 28% Promoter Group 54% FII 18% As on June 30, 2018 Outstanding shares – 28.8 mn Major Non-Promoter Shareholders % shareholding Name % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% 22
Slide 23: 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