Parag Milk Foods Ltd. · NSE:PARAGMILK
Parag Milk Foods — Q4 FY20 Earnings Presentation
42 slides from Parag Milk Foods's earnings presentation, Jun 30, 2020
Slide 1: Parag Milk Foods Limited Investor Presentation June 2020
PARAG MILK FOODS LIMITED Investor Presentation June 2020
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Parag Milk 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 secu
Slide 3: Contents
Contents 1 Q4 & FY20 Financials & Key Developments 2 Company Overview 3 Industry Dynamics 4 Annexures 3
Slide 4: Q4 & FY20 Financials & Key Developments
Q4 & FY20 Financials & Key Developments
Slide 5: Consolidated Financial Analysis – FY20
Consolidated Financial Analysis – FY20 Revenue (Rs. Mn) EBITDA (Rs. Mn) Product wise Revenue Break-up (Rs. Mn) +1.8% -5.5% 23,957 24,379 2,235 2,111 14.3% 12.8% 17.7% 18.6% FY19 FY20 FY19 FY20 PAT (Rs. Mn) Margins (%) 66.1% 67.4% EBITDA% PAT% -22.4% 1,207 8.7% 937 9.3% 1.9% 1.2% FY19 FY20 5.0% 3.8%
Slide 6: Consolidated Financial Analysis – Q4 FY20 (YoY)
Consolidated Financial Analysis – Q4 FY20 (YoY) Revenue (Rs. Mn) EBITDA (Rs. Mn) Product wise Revenue Break-up (Rs. Mn) -20.4% -8.5% 6,722 437 400 5,352 16.5% 14.5% 16.3% 18.7% Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 PAT (Rs. Mn) Margins (%) 65.9% 67.2% EBITDA% PAT% -67.7% 313 7.5% 6.5% 1.5% -0.5% 4.7% Q4 F
Slide 7: Key Highlights
Key Highlights • Consolidated Revenue from Operations for FY20 stood at Rs. 24,379 million, a growth of 2% YoY • Growth was subdued mainly due to: • Lower milk availability & substantially higher raw milk prices leading to drop in volumes Revenue • Q4 impact in which sales was disrupted on account o
Slide 8: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars Q4 FY20 Q4 FY19 YoY Q3 FY20 QoQ FY20 FY19 YoY Revenue from Operations 5,352.3 6,721.5 -20% 6,329.3 -15% 24,379.2 23,956.6 2% Raw Material Costs 4,059.1 4,731.2 4,717.6 18,146.9 16,573.6 GROSS PROFIT 1,293.3 1,990.4 -35% 1,611.7 -20% 6,232.4 7,383.0 -1
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars Mar-20 Mar-19 Particulars Mar-20 Mar-19 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Property, plant and equipment 4,132.9 4,023.4 Equity Share capital 839.4 839.4 Capital work-in-progress 70.2 290.3 Other equity 8,272.2 7,432.0 26.5 34.5 Sub-total -
Slide 10: Marketing Campaigns & Consumer Engagement Initiatives
Marketing Campaigns & Consumer Engagement Initiatives GO Cheese NEW TVC Pride of Cows Gowardhan - Raho Sehatmand “Contactless” milk #PakNahiKuchPaka delivery offered to our Live on Hindi, Marathi and Gujarati News consumers Digital Campaign across Channels (Total 13 channels) Instagram, Facebook & T
Slide 11: New Product Launches
New Product Launches I III Mozzarella + Cheddar Cheese in the form of dices Go Processed Angles (Spreads easily on pizzas) II Combination of Cheddar + Monterey Jack + IV Mozzarella + Colby Go Jalapeno Slice (Taste of 4 cheeses in one to satisfy cheese cravings) (Add some twist to your sandwich or a
Slide 12: Impact of COVID-19 (1/4)
Impact of COVID-19 (1/4) The World Health Organisation declared COVID-19 as a pandemic on March 11, 2020 and India has been under a national lockdown since March 22, 2020. Below are the key highlights on the same: • Ensured 100% functionality of all manufacturing facilities during the entire lockdow
Slide 13: Impact of COVID-19 (2/4)
Impact of COVID-19 (2/4) Financial Performance Impact during H1 FY21 • Witnessed an increase in demand across all our core consumer • With earlier than expected onset of monsoons and good coverage product categories such as ghee, cheese, paneer & UHT due to a across India till date, milk production
Slide 14: Key Initiatives undertaken for our Stakeholders (3/4)
Key Initiatives undertaken for our Stakeholders (3/4) • Developed new and innovative ways of serving consumers by offering direct delivery of products to residences/societies in the form of bulk orders at a discounted price Consumers • Despite several restrictions due to lockdown, frontline employee
Slide 15: CSR Activities (4/4)
CSR Activities (4/4) Drinking water provided Sanitization of Manchar & Daily distribution of food to migrant workers crossing Manchar to people on a daily basis nearby villages ~5,000+ families were supported by ~ 3,000 People were given healthy meals prepared in Sanitisation of Govt. hospitals in g
Slide 16: Company Overview
Company Overview Sustainability Innovation
Slide 17: Parag at a Glance
Parag at a Glance Strong State-of-the-art Strong 170+ SKU’s 7 Brands Ranked #1 Relationships Facilities Distribution Aggregate milk Gowardhan processing capacity Pan-India Go Established Strong of 2.9 mn litres per Diversified product Parag Milk Foods Distribution Network Pride Of Cows Relationships
Slide 18: Evolution of the Company
Evolution of the Company 1992 1998 2005 2008 2010 2011 Parag Milk Foods Ltd founded Commissioned Manchar Birth of Bhagyalaxmi Commissioned “Go Cheese Palamaner plant was Birth of ‘Pride of Cows’, a in 1992 with one purpose: plant and began manufacturing Dairy Farm - India’s most World” - India’s lar
Slide 19: Our Diverse Product Portfolio catering to all segments of customers
Our Diverse Product Portfolio catering to all segments of customers Brands Target Customer Group Positioning Household consumers seeking premium quality cow’s milk Health enthusiasts Premium Children and the youth primarily for direct consumption On-the-go consumption as source of instant no
Slide 20: Our Brand Power
Our Brand Power 2nd Largest Player in Cheese in the India with Pioneers of Fresh Paneer with a 75 Day Shelf Life 35% Market Share Leaders & Pioneers of Cow Ghee category Own one of the Largest Cow Farms in India under Brand ‘Gowardhan’ Ghee India’s First Company to launch a truly made Leading privat
Slide 21: Pan-India Reach Distribution Network
Last mile availability from ‘Farm to Fork’ Pan-India Reach Distribution Network Route-to-market Strategy Depot Super Stockist Jammu 19 Depots Jalandhar Parwanoo Karnal Fresh Milk Delhi Siliguri Guwahati 140+ Exports Jodhpur Udaipur Jaipur Kanpur Patna Super Stockists Products General Trade Ranchi Mo
Slide 22: Partner with Leading Institutions and Quick Service Restaurants
Partner with Leading Institutions and Quick Service Restaurants Interact with Customers at Customization of the Maintaining the Strong/ Long term the Inception Phase of product according to the Exclusivity of the Relations with the Product and even help Need Product Customers them to curate a menu S
Slide 23: A Pan-India Manufacturing Footprint
A Pan-India Manufacturing Footprint Key Features : Parag’s Manufacturing Footprint State-of-the-art Technology Newly Acquired • One of the Largest Cheese Plants in India Facility from Danone Sonipat Plant, Haryana • India’s 1st state-of-the-art fully integrated Whey Protein Plant • Fully automated P
Slide 24: Farmer Relationship is an Integral part of our Business
Farmer Relationship is an Integral part of our Business 3-tier Milk Procurement Process Procurement Network Farmer Services Village collection centres Never Say No for Milk procure milk Correct Quantity & Tier 1 Quality from over 2 lakh farmers in 29 districts Haryana Supplying Cattle feed at subsid
Slide 25: Integration of Technology across all verticals
Integration of Technology across all verticals Business intelligence and Seamless integration of our Analytics captured through manufacturing facilities, cold SAP chain and our distribution network of super-stockists & retailers Theory of Constraints (Vector) Dashboard for live monitoring of order t
Slide 26: Our Strategy for Value Creation
Our Strategy for Value Creation Increase Operational Efficiencies Focus on Health & Nutrition Leverage in-house technological, R&D capabilities Introduce healthy & nutritious product variants like to: Whey protein powder for mass consumption and in Maintain strict operational controls different
Slide 27: Industry Dynamics
Industry Dynamics
Slide 28: Indian Dairy Market
Indian Dairy Market Indian Dairy Market (US$ 107 Bn) Organised Dairy Market Unorganised Dairy (US$ 15 Bn) Market (US$ 92 Bn) Traditional Milkmen / Self Consumption at Home Cooperatives (US$ 7 Bn) Private Dairies (US$ 8 Bn) Vendors (US$ 34 Bn) (US$ 58 Bn) Milk production volume break-up Marketable Mi
Slide 29: Tremendous Growth Potential across Product Segments
Tremendous Growth Potential across Product Segments Liquid Milk Ghee Paneer Curd +15.0% +14.8% Traditional Products Growth 9,761 7,358 90,567 20,403 +14.8% +14.8% CAGR of 22,403 39,119 5,149 9,224 2,448 4,373 1,851 3,239 15% 2010 2014 2020E 2010 2014 2020E 2010 2014 2020E 2010 2014 2020E UHT Milk Fl
Slide 30: Annexures
Annexures
Slide 31: India’s Favourable Dynamics offer Huge Opportunities
India’s Favourable Dynamics offer Huge Opportunities Rising Middle Class • Middle class households to grow from 255 million in 2015 to 586 million in 2025 at a CAGR of 8.7% Population & Income • Rising income & disposable income to drive consumption of milk Levels & dairy products India – GDP Growth
Slide 32: India Contributes > 20% of Global Milk Production
India Contributes > 20% of Global Milk Production Top Milk Producing Countries (Million MT) Global - Animal Wise Milk Production - 2017 Countries 2017 2018 2019 2020E 2027E CAGR 11.5% 3.5% India 169 174 181 188 244 3.7% Cow EU – 28 164 167 167 169 177 0.8% Buffalo USA 98 98 99 100 105 0.7% Goat & Ot
Slide 33: Milk Production in India
Milk Production in India Liberalization of the sector in 1991 led to entry of private players Dr. Verghese Kurien initiated 244 operation Flood to increase Milk Production 188 +4.3% 169 116 78 +2.8% 51 30 17 20 21 1950 1960 1970 1980 1990 2000 2010 2017 2020E 2027E Milk Production (Million MT) Sourc
Slide 34: Ghee Market (Butter Oil/Cooking Oil/Clarified Butter)
Ghee Market (Butter Oil/Cooking Oil/Clarified Butter) India’s Ghee Market Size (in US$ Million) Key Highlights 20,403 17,985 13,836 15,791 • Ghee is traditionally used as cooking oil in Indian +16.0% 10,582 households 8,030 6,030 3,075 4,463 • It is the 2nd largest category in the Indian dairy indus
Slide 35: Cheese Market
Cheese Market India’s Cheese Market Size (in US$ Million) Key Highlights 513 • Cheese is one of the fastest growing segments 410 among dairy products in India 328 +25.3% 263 • Rise in food service outlets and changing food 204 134 164 habits are major drivers 85 106 54 69 • Earlier, the cheese marke
Slide 36: Paneer (Cottage cheese)
Paneer (Cottage cheese) India’s Paneer Market Size (in US$ Million) Key Highlights 9,761 • Paneer is to India what cheese is to the Western 8,582 world and is an integral part of many Indian 7,522 +16.8% 6,597 recipes 5,030 3,806 2,896 • Paneer is the third largest segment in the milk 1,940 1,358 pr
Slide 37: Curd (Dahi)
Curd (Dahi) India’s Curd Market Size (in US$ Million) Key Highlights 7,358 6,478 5,687 • Curd industry has transformed from being a +15.4% 4,940 3,746 product that was traditionally made at home to a 2,836 branded & packaged product 2,134 1,597 1,179 • The organized curd market is growing rapidly at
Slide 38: UHT & Beverages
UHT & Beverages India’s UHT Market Size (in US$ Million) India’s Flavoured Milk Beverages Market Size (US$ Million) 1,552 716 1,239 582 985 463 +28.4% 791 +25.5% 373 493 239 313 149 194 60 90 104 2009 2011 2013 2015 2017 2018 2019 2020E 2009 2011 2013 2015 2017 2018 2019 2020E Key Highlights Key Hig
Slide 39: Whey Protein
Whey Protein Key Highlights Sports Health & Category Nutrition Nutrition Segment Segment • Whey Protein market is estimated at 35,000 MT, translating US$ 225-300 US$ 225-300 into business potential of US$ 450 Million, growing upwards Market Size Million Million of 25% • Parag has the most integrated
Slide 40: Liquid Milk Market
Liquid Milk Market India’s Liquid Milk Market Size (in US$ Million ) Key Highlights 90,567 • A majority (77%) of the milk sold in India is 79,015 unorganized and in the form of loose milk sold by 68,731 +16.4% 59,791 milkmen 45,090 33,896 25,463 • The organized sector in liquid milk is highly 18,060
Slide 41: We are present in all key Cow milk procuring States
We are present in all key Cow milk procuring States In Million MT Milk % Share of CAGR Cow Milk CAGR Sr. % Share of States Production Total Milk for last Production for last No Cow Milk (2016-17) Produced 2 years (2016-17) 2 years 1 Tamil Nadu 7.6 4.6% 2.9% 7.1 93% 3.1% 2 Karnataka 6.6 4.0% 3.5% 4.6
Slide 42: Contact Us
Contact Us Company : Investor Relations Advisors: Parag Milk Foods Limited Strategic Growth Advisors Pvt. Ltd. CIN: L15204PN1992PLC070209 CIN: U74140MH2010PTC204285 Name: Natasha Kedia Mr. Deven Dhruva Email: natasha.kedia@paragmilkfoods.com deven.dhruva@sgapl.net Phone: +91 22 4300 5555/ Ext: 631 +