Vadilal Industries Limited · NSE:VADILALIND
Vadilal Industries — Q3 FY17 Earnings Presentation
29 slides from Vadilal Industries's earnings presentation, Feb 13, 2017
Slide 1: Covering letter to stock exchanges
VADILAL INDUSTRIES LTD. REGD, OFFICE : "VADILAL HOUSE" 53,SHRIMALI SOCIETY, NR. NAVRANGPURA RLY. CROSSING, NAVRANGPURA, AHMEDABAD - 380009 TELE. NO. ; (81) (79) 26564019-24 FAX : (91) (79) 26564027 CIN No: L911 10GJ1982PLCo0s169 VISIT US ON : httn/www. vad otoroup com 13" February, 2017 To The Natio
Slide 2: Q3 & 9M FY17 Results Presentation
VADILAL INDUSTRIES Q3 & 9M FY17 Results Presentation
Slide 3: Disclaimer
Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 4: Table of Contents
Table of Contents Q3 & 9M FY17 Financial Performance 04 Financial Performance Trends 10 Vadilal Industries Overview 15 Outlook 25 3 \ 28
Slide 5: Q3 & 9M FY17 Performance
Q3 & 9M FY17 > Performance
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q3 & 9M FY17 performance, Mr. Rajesh Gandhi, Chairman and Managing Director, Vadilal Industries Limited (VIL) said: “We have delivered another steady performance during Q3, a period impacted by demonetization and weakness in consumption spending across the board. Rev
Slide 7: Financials – Q3 & 9M FY17 Performance: Revenue
Financials – Q3 & 9M FY17 Performance Revenue • In 9M FY17, Revenues have improved by 4.9% y-o-y 363.0 381.0 growth driven by 7.7% y-o-y higher revenues in Ice Cream business. • Realizations improved based on higher contribution 69.8 73.4 from impulse purchasing. • Revenues from Processed Foods divi
Slide 8: Financials – Q3 & 9M FY17 Performance: PBIT
Financials – Q3 & 9M FY17 Performance Ice Cream - PBIT 50.5 54.1 • PBIT of Ice Cream business in Q3FY17 showed a 0.9 positive contribution in a seasonally weak quarter as against a loss last year. -2.4 9M FY16 • Input costs based on milk prices are expected to 9M FY17 Q3 FY16 Q3 FY17 increase based
Slide 9: Financials – Q3 & 9M FY17 Performance: EBITDA and PAT
Financials – Q3 & 9M FY17 Performance EBITDA 51.9 55.1 • Operating margins have improved in 9M as: – Higher contribution from impulse purchases and individualized packs in Ice Creams -2.7 -0.3 division which contribute over 72% by value. Q3 FY16 Q3 FY17 9M FY16 9M FY17 – Discontinued some low margin
Slide 10: Marketing initiatives – Thrust towards Premiumization
Marketing initiatives – Thrust towards Premiumization • Parineeti Chopra has been appointed brand ambassador for Vadilal over three years. • Unveiled new products endorsed by the brand ambassador, with the expanded range being evaluated on an ongoing basis. 9 \ 28
Slide 11: Financials Performance Trends
Financials Performance Trends
Slide 12: Financials Performance Trends: Revenue
Financials Performance Trends Revenue 444.5 371.7 403.4 330.1 285.8 236.5 FY11 FY12 FY13 FY14 FY15 FY16 Ice Cream Processed Foods 393.9 73.9 344.3 62.3 265.5 294.0 60.2 236.0 48.1 51.1 198.8 38.9 FY11 FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY16 11 \ 28 Standalone financials in Rs. cr
Slide 13: Financials Performance Trends: EBITDA and PAT
Financials Performance Trends EBITDA 80 57.9 60 36.8 40.5 39.1 40.9 40 Consumer behavior is transitioning with 25.1 increasing acceptance for western desserts. With 20 improving consumer sentiment and stable input 0 costs VIL is likely to maintain its growth FY11 FY12 FY13 FY14 FY15 FY16 trajectory.
Slide 14: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Debt Other Non-Current Liabilities 128.1 Liabilities 205.0 180.2 115.1 115.1 148.3 20.6 15.2 16.5 FY14 FY15 FY16 FY14 FY15 FY16 FY14 FY15 FY16 Net Fixed Assets Other Non-Current Net Current Assets Assets 84.5 231.2 19.6 Assets 68.8 56.0 18.1 224
Slide 15: Financials Performance Trends – Cash Flows
Financials Performance Trends – Cash Flows Operating Cash flow Free Cash Flow 51.8 62.2 56.6 41.3 51.7 23.0 FY14 FY15 FY16 FY14 FY15 FY16 14 \ 28 Standalone financials in Rs. cr
Slide 16: Vadilal Industries Overview
Vadilal Industries Overview
Slide 17: Overview
Overview • Currently managed by fourth • Top 3 ice-cream brand in the • Leadership in Gujarat, Rajasthan, generation promoter family country, 150+ flavors UP, Uttarakhand, Haryana and • Selected India’s most trusted ice • 300 SKU’s of cones, candies, bars, Chandigarh cream brand in 2013 and 2014 by
Slide 18: Indian Ice Cream Market
Indian Ice Cream Market Ice cream is transitioning Transition from seasonal Increased disposable Consumers receptive to from periphery to to year-long incomes and spending on high quality mainstream, from consumption discretionary spending products that meet their occasional indulgence to driving se
Slide 19: Vadilal: Growth Strategies
Vadilal: Growth Strategies Retail Investments New Product Development Brand Building Initiatives • 15,000 new sales Geographical outlets planned in • Constantly FY17 Expansion innovating to roll • Seen as one of the out new products in • 100 more most trusted ice ice cream segment distributors • Exp
Slide 20: Ice Creams - Brands Portfolio
Ice Creams - Brands Portfolio 19 \ 28
Slide 21: Processed Foods Business
Processed Foods Business • Global business selling to 45 countries in four continents • Strong distribution to Indian diaspora, being further developed with new product launches • Expanded export markets from 12 SKU’s supplied to seven countries in 1991 to 100+ SKU’s to 45 countries currently • Expa
Slide 22: Processed Foods - Brands Portfolio
Processed Foods - Brands Portfolio • Processed foods products are marketed under the brand name ‘Quick Treat’ • Portfolio includes frozen vegetables, ready-to-eat/ready- to-serve frozen snacks, Indian breads and curries • Positioned to assist Indian kitchens with traditional home cooking 21 \ 28
Slide 23: Production Facilities
Production Facilities • Capacity expanded from 175,000 liters per day to 230,000 liters per day over the past one year • Current production on automated processes “untouched by hand”, manual intervention only at packaging stage • Focus on branded portfolio in Processed Foods Business • No further ca
Slide 24: Distribution Presence
Distribution Presence Distribution network Uttar Pradesh 185 comprises of over 55,000 Gujarat 140 retailers, over 1,000 Rajasthan 138 Bareilly distributors, 61 CNFs, 250 Madhya Pradesh 105 distribution vehicles and West Bengal 89 almost 300 SKUs. Delhi 63 Adopted franchisee route Himachal Pradesh 58
Slide 25: Awards and Accreditations
Awards and Accreditations 24 \ 28
Slide 26: Outlook
Outlook
Slide 27: Planned Initiatives
Planned Initiatives Expanding Presence Increasing penetration – moving Presence across 16 states, 61 from passive to aggressive CNF’s, over 1,000 distributors, 250 business strategy to derive benefit distribution vehicles, over 55,000 from improving consumer retail outlets behavior Product Strategie
Slide 28: Contact Us
Contact Us 27 \ 28
Slide 29: Thank You
THANK YOU 2/11/2017 28