Vadilal Industries Limited · NSE:VADILALIND
Vadilal Industries — Q4 FY2017 Earnings Presentation
29 slides from Vadilal Industries's earnings presentation, Jun 5, 2017
Slide 1: Cover letter to stock exchanges: earnings presentation Q4 FY2016-17
VADILAL INDUSTRIES LTD. REGD. OFFICE ; “VADILAL HOUSE” 53,SHRIMAL! SOCIETY, NR. NAVRANGPURA ALY. CROSSING, NAVRANGPURA, AHMEDABAD - 380009, _ TELE. NO. : (91) (79) 26564019-24 FAX : (91) (79) 26564027 GIN No: L91110GJ1982PLC005169 VISIT US ON : httpwww.vadilalgroup.cam - 5" June, 2017 To The Nationa
Slide 2: Vadilal Industries Q4 & FY17 Results Presentation
VADILAL INDUSTRIES Q4 & 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 Q4 & FY17 Financial Performance 04 Financial Performance Trends 10 Vadilal Industries Overview 15 Outlook 25 3 \ 28
Slide 5: Q4 & FY17 Performance
Q4 & FY17 Performance
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q4 & FY17 performance, Mr. Rajesh Gandhi, Chairman and Managing Director, Vadilal Industries Limited (VIL) said: “We have delivered a stable operating and financial performance for the year under review despite some recent headwinds including currency demonetization
Slide 7: Financials – Q4 & FY17 Performance: Revenue
Financials – Q4 & FY17 Performance Revenue • In FY17, Revenues have improved by 5.7% y-o-y 456.4 482.3 growth on account of 8.4% y-o-y higher revenues in Ice Cream business driven by 1.5% volume and 4.05% value. 92.7 99.7 • Revenues from Processed Foods division were subdued due to discontinuation o
Slide 8: Financials – Q4 & FY17 Performance: PBIT by segment
Financials – Q4 & FY17 Performance Ice Cream - PBIT 56.1 55.6 5.5 1.6 • PBIT of Ice Cream Business was stable y-o-y. • The Company has undertaken an 4.5% price Q4 FY16 Q4 FY17 FY16 FY17 increase to offset the high input costs. • Focus on expanding distribution across the country and in lucrative exp
Slide 9: Financials – Q4 & FY17 Performance: EBITDA and PAT
Financials – Q4 & FY17 Performance EBITDA 56.3 58.9 • Operating margins for FY17 were stable. 6.3 – Higher contribution from impulse purchases and individualized packs in Ice Creams -0.7 division now contribute 72% by value. Q4 FY16 Q4 FY17 FY16 FY17 – Impact of expanded organizational base . • Cont
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 403.4 456.4 482.3 330.1 371.7 236.5 285.8 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Ice Cream Processed Foods 404.8 438.7 344.3 73.9 294.0 60.2 62.3 236.0 265.5 48.1 51.1 198.8 38.9 43.1 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY11 FY12 FY13 FY14 FY15 FY16 FY17 11 \ 28 Stan
Slide 13: Financials Performance Trends: EBITDA and PAT
Financials Performance Trends EBITDA 80 56.3 58.9 60 36.8 40.5 39.1 40.9 Consumer behavior is transitioning with 40 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 FY17 t
Slide 14: Financials Performance Trends – Balance Sheet
Financials Performance Trends – Balance Sheet Networth Debt Other Non-Current Liabilities Liabilities 144.4 205.0 115.1 115.1 128.1 180.2 148.3 151.5 21.6 21.6 15.2 16.5 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 Net Fixed Assets Other Non-Current Net Current Assets Assets 84.5 231.
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 28.5 23.0 9.4 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 • Inventory up by Rs.30 crore • Interest down by Rs.5 crore to Rs. 15.5 crore in FY17 • Capex up by Rs.10 crore y-o-y 14 \ 28 Standalone financ
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 • 5,000 new sales Geographical outlets planned in • Constantly FY18 Expansion innovating to roll • Seen as one of the out new products in • 100 more most trusted ice ice cream segment distributors • Expa
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 270,000 liters per day to 380,000 liters per day over the past few years • Current production on automated processes “untouched by hand”, manual intervention only at packaging stage • Focus on branded portfolio in Processed Foods Business • No major cap
Slide 24: Distribution Presence
Distribution Presence Distribution network Gujarat 200 comprises of over 45,000 Uttar Pradesh 185 retailers, over 1,200 large Madhya Pradesh 150 Bareilly distributors, 61 CNFs, 250 Rajasthan 138 distribution vehicles and West Bengal 89 almost 300 SKUs. Delhi 63 Adopted franchisee route Himachal Prad
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, business strategy to derive benefit 250 distribution vehicles, over from improving consumer 45,000 retail outlets behavior Product Strategi
Slide 28: Contact Us
Contact Us 27 \ 28
Slide 29: Thank You
THANK YOU 6/5/2017 28