Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — Investor Presentation (November 2022)
27 slides from Sundrop Brands Limited Shs Dematerialised's investor presentation, Nov 29, 2022
Slide 1: Regulation 30 disclosure letter to BSE and NSE
Agro Tech Foods Limited 29th November, 2022 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233
Slide 2: Agro Tech Foods Limited Analyst Meet
Agro Tech Foods Limited Analyst Meet November 29th, 2022
Slide 3: Company Strategic Vision
Company Strategic Vision The Best Performing Most Respected Foods Company in India 2
Slide 4: Today's Agenda
Today’s Agenda •The Last 12 Months & Next 12 Months – Overall and by Category. •Building Blocks for the Next Rs. 500 crore of Foods. •Why ATFL is a compelling bet for a $ 1 Billion High Quality Snack Foods Company in India. 3
Slide 5: The Last 12 Months & The Next 12 Months
The Last 12 Months & The Next 12 Months
Slide 6: Overall: The Last 12 Months
Overall The Last 12 Months • Steady continued growth in Foods – Q2 results of Rs. 124 crore the closest ever to an Annual Revenue Rate of Rs. 500 crore. • Largely able to navigate through the choppy waters of commodity prices of Q1 with the help of Pricing, Mix, Operating Leverage & softening of inp
Slide 7: Overall: The Next 12 Months
Overall The Next 12 Months • Deliver strong growth in Foods boosted by an improved RTC growth. • Seek opportunities to improve A&P on Foods with greater stability in in Edible Oils. • Scale up Spreads to be Rs. 100 crore+ with RTE close behind. • Build Breakfast Cereals to be an A&P grade business.
Slide 8: Ready to Cook Snacks: The Last 12 Months
Ready to Cook Snacks The Last 12 Months • Post strong Growth in FY’22, RTC Popcorn sees impact of lower WFH with YTD Revenues marginally lower than PY. Impact partly mitigated by distribution expansion. With PY normalization expect to return to historical growth levels. • Commodity headwinds largely
Slide 9: Ready to Cook Snacks: The Next 12 Months
Ready to Cook Snacks The Next 12 Months • Continue to lead Category Growth with Ready to Cook Popcorn. Expand Distribution & continue investing in Media Support. • Expand the penetration of Snacking Aids – Sweet Corn, Pizza & Pasta Sauces etc. Leverage ability to deliver High Quality Snacking Aids a
Slide 10: Ready to Eat Snacks: The Last 12 Months
Ready to Eat Snacks The Last 12 Months • End of Work From Home drives strong growth in Out of Home. • Salty Snacks growth led by RTE Popcorn – biggest beneficiary of OOH. • Sweet Snacks portfolio expanded with launch of Duo Cruncheez – Sweet now accounting for between 5% and 10% of RTE Snacks. • Mar
Slide 11: Ready to Eat Snacks: The Next 12 Months
Ready to Eat Snacks The Next 12 Months • Continue to enhance scale in Salty Snacks categories led by Ready To Eat Popcorn while working towards greater efficiencies in Extruded and Tortilla Chips. • Refine business model for Potato/Vegetable Chips – seek to harness smaller but more profitable niches
Slide 12: Spreads & Dips: The Last 12 Months
Spreads & Dips The Last 12 Months • Strong Volume Growth and resultant Share Gains in Peanut Butter. Capacity expansion work underway to meet higher demand levels. • PB extension initiated for a Protein play with the launch of “PeAq” Peanut Butter. • Expanded Chocolate Spreads Range- Peanut, Almond
Slide 13: Spreads & Dips: The Next 12 Months
Spreads & Dips The Next 12 Months • Continue to build Nut Butters led by recipe based Peanut Butter – Distribution Expansion, Media Support and Entry Level Packs. • Undertake Capacity Expansion and Cost Reduction programs to translate the benefit of higher Volumes into Margin Improvement. • Keep bui
Slide 14: Breakfast Cereals: The Last 12 Months
Breakfast Cereals The Last 12 Months • Strong Volume Growth driven by Center Filled Cereals with clear product superiority. Increased OOH and Retailing drives Visibility & Distribution. • Category Distribution starts to nudge the 100,000 store mark. • Continued growth in the Granola category driven
Slide 15: Breakfast Cereals: The Next 12 Months
Breakfast Cereals The Next 12 Months • Continue to drive Category presence with Center Filled Cereals - Superior Product Quality & Innovation. • Together with Distribution Expansion addressing Cereals as a Snack, build On Shelf Presence in the primary Breakfast Cereals Category with a complete SKU l
Slide 16: Chocolates: The Last 12 Months
Chocolates The Last 12 Months • Successfully established credibility in the category with the launch of Coconut Duo followed by the introduction of Peanut Duo. • Category Distribution nudging 100,000 stores – fastest growth in ATFL history. • Strong Value Proposition combined with Superior Quality d
Slide 17: Chocolates: Where to Play – Count Lines & Bags
Chocolates Where to Play – Count Lines & Bags Sales By Company (Rs. Crore) Sales By Category (Rs. Crore) 700 500 500 1100 600 1100 4700 ATFL 2200 6000 2600 ■ Mondelez ■ Nestle ■ Mars ■ Ferrero ■ Others ■ Molded ■ Count ■ Bags ■ Toys ■ Assortments Focus on Count Lines & Bags with Differentiated Produ
Slide 18: Chocolates: How to Win – Importance of Cash Ring
Chocolates How to Win – The Importance of Cash Ring Sales By Price Point (%) 20 55 25 ■ Rs. 5 ■ Rs. 10 ■ > Rs. 10 Dominant share of Transactions happening at Rs. 5 /Rs. 10 price points – Key for Scale. .17 *Management Estimates basis Market Understanding.
Slide 19: Chocolates: How to Win – Importance of Price/Kg
Chocolates How to Win – The Importance of Price/Kg Rs/Kg Most Competitive SKU/Kg Rs. 5 Rs. 10 Mondelez - Non Wafer 495 513 > 2000 +Lindt… Mondelez - Wafer 385 385 (+)Hershey, 1000- 2000 Nestle -Non Wafer 500 463 Ferrero (-) ATFL Nestle - Wafer 476 498 (+) Mars 500 - 1000 ATFL - Peanut Duo 625 488 Mo
Slide 20: Chocolates: The Next 12 Months – Expectations
Chocolates The Next 12 Months – Expectations • Expand Distribution of both Coconut & Peanut Duo products – long runaway for growth. • Use In Store Display as a lever for growth. Test the limits of growth possible through Distribution & Display before investing in Media. • Expand Product Offering to
Slide 21: Premium & Mass Staples
Premium & Mass Staples The Last 12 Months – The Next 12 Months • The Last 12 Months • Execution underway to make Premium Staples more broad based while providing procurement scale to Foods e.g. Oats. • With franchising of Crystal, share of Mass Staples reduced to c 5% of Total Revenues. • The Next 1
Slide 22: The Next Rs. 500 crore
The Next Rs. 500 crore
Slide 23: The Next Rs. 500 crore: Source of Growth
The Next Rs. 500 crore Source of Growth • RTC & Chocolates will give the largest incremental Revenues: • Ready to Cook is currently our largest business with a strong growth record led by Popcorn. • Chocolate Confectionery is a large category & ATFL has clearly demonstrated right to win with the Coc
Slide 24: The Next Rs. 500 crore: Rationale for Expectations
The Next Rs. 500 crore Rationale for Expectations Right to Win in Count Clear Leadership in Lines + Network Popcorn + Launches Effect w/Right to Win Ready to Chocolates Cook Ready to Breakfast Eat Cereals Right to Win in Leadership in RTE Spreads Cereal Snacks + Popcorn + Sweet Distributed Right to
Slide 25: Why ATFL is a compelling bet for a $1 Billion Snack Foods business
Why ATFL is a compelling bet for a $ 1 Billion High Quality Snack Foods business in India
Slide 26: Why ATFL is a compelling bet for a $1 Billion Snack Foods Business
Why ATFL is a compelling bet for a High Quality $ 1 Billion Snack Foods Business in India • Proven track record of a 19% CAGR in the Snack Foods business over 15 years. • Profitable Model based on 7-8% A&P spends with demonstrated building of 3 categories already – RTC Popcorn, Peanut Butter & RTE P
Slide 27: On our Way…
On our Way…. The Best Performing Most Respected Foods Company in India 26
Agro Tech Foods — Investor Presentation (November 2022) on 6ix