Awl Agri Business Ltd · NSE:AWL
Awl Agri Business — Adani Wilmar — Q1 FY24 Earnings Presentation
52 slides from Awl Agri Business's earnings presentation, Aug 2, 2023
Slide 1: Cover letter to stock exchanges
adani wilmar Ref No: AWL/SECT/2023-2024/38 August 2, 2023 BSE Limited National Stock Exchange of India Limited Floor 25, P J Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 543458 Scrip Code: AWL Dear Sir/ Madam, Sub: Investor Pre
Slide 2: Adani Wilmar Limited: Investor Presentation – Q1 FY24
ad1ani1 1 wilmar edtble otls and foods For a healthy growing nation Adani Wilmar Limited: Investor Presentation – Q1 FY24 August 2, 2023 ----------------------- -------------------- ------- ------ ------- ------- -- -- --- --- ---- ---- --- --- --- --- --- --- ------ --------------------------------
Slide 3: Safe Harbour Statement
Safe Harbour Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar
Slide 4: Macro Context
Macro Context ad an r wilrnar Earnings Presentation – Q1FY24
Slide 5: Multiple headwinds during FY23…continued to impact Q1 FY24
Multiple headwinds during FY23…continued to impact Q1 FY24 ➢ Ukraine-Russia War ➢ Indonesia export ban on Palm ➢ US Inflation & Fed rate hike ➢ TRQ / Stock control order ➢ Drought in Argentina ➢ Wheat / Rice Export Ban \ y , These events led to uncertainty & high volatility in prices of raw material
Slide 6: Continued decline in Edible Oil prices
Continued decline in Edible Oil prices Continued decline in Edible Oil prices Palm Soya Sun $2,500 $2,000 $1,500 $1,000 $500 $- r r r Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 adani wilmar ~ rtune ed!lle oils and foods Earnings Presentat
Slide 7: Business Updates
Business Updates poha (thick} ......,,_ f0<tvnefoods..com ·- """'·"' Net Weight 500 9 ad an r wilrnar Earnings Presentation – Q1FY24
Slide 8: GTM Update: Q1 FY24
GTM Update: Q1 FY24 Direct Reach Coverage: Rural Towns Rural Saliency > 6 Lac+ Outlets 21,700+ rural towns ~31% (Volumes) Direct Reach: Outlets Coverage: Rural Towns 2.0x 6.7x 4.2x x 1.6x x 1.3x T T T FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24 Focus to continue increasing the rural town
Slide 9: Market Share Update
Market Share Update Edible Oil: Wheat Flour Rice Continued to maintain market share #1 #2 #3 adani 19.5% wilmar 50% 13.8% 6.3% 6.1% 7.9% 4.5% 4.9% 5.0% 5.9% ◼ Market share ~1.5x of the next competitor ◼ Potential to consolidate market share, since ~50% share is held r r by regional brands Jun 22 Jun
Slide 10: New Product Launches
New Product Launches Premium Whole Wheat Multi-purpose Cleaner '' ' ' Fortune '' ' ' Fortune '' ' ' Fortune '' ' ' Fortune MP Grade-1 Pure Lokwan Pure Sharbati Pure 1544 Wheat Wheat Wheat Wheat (Poorna) ▪ Product: Launched 4 Premium Whole Wheat varieties ▪ Product: Multipurpose cleaning concentrate
Slide 11: Customer Engagements through Fortune Mart & Fortune Online (D2C)
Customer Engagements through Fortune Mart & Fortune Online (D2C) Fortune Mart Fortune Online is pr duct - - - - - edible oils and foods - - - - - livere ho 33 Outlets 26 Cities 25 Cities 64,000+ Downloads INR 2,384 84% INR 1,143 AOV* 38,600+ Orders (FY23) Average Order Value Conversion Sales Growth
Slide 12: Supply Chain Updates: Q1 FY24
Supply Chain Updates: Q1 FY24 90 Depots ~2 Million Sq. Ft. (Depot Storage Space) Volume Dispatch in Multi-Modal Direct Dispatches ✓ 18% of dispatches through multi-modal logistics ✓ 57% of dispatches were directly sent to customers Note: In multi-modal way, most of the distance is covered by either
Slide 13: Marketing Activities: Re-establishing the premium Kohinoor brand
Marketing Activities: Re-establishing the premium “Kohinoor” brand adani wilmar For a healthy growing nation fortune ed!lle oils and foods Earnings Presentation – Q1FY24
Slide 14: Marketing Activities: TVCs - Q1 FY24
Marketing Activities: TVCs - Q1 FY24 Soyabean Oil Campaign Soyabean Oil Campaign Sunflower Oil Campaign Fortune Atta Campaign King’s Mustard Oil Campaign adani wilmar ~ rtune ed!lle oils and foods Earnings Presentation – Q1FY24 For a healthy growing nation
Slide 15: Marketing Activities: Targeted Campaigns - Q1 FY24
Marketing Activities: Targeted Campaigns - Q1 FY24 Fortune Rice Bran Oil Campaign Poila Baisakh Campaign Pickle Campaign (Mustard) Apno Ki Sehot our di o rokho aya! Upgrade ka,o with Fortune Rice Bra_n Health Oil 'Bocbor bo«l1ay, Now available at a fi rtune. premium kachi ghani store near you! pure
Slide 16: Marketing Activities: Select Social Media Engagements - Q1 FY24
Marketing Activities: Select Social Media Engagements - Q1 FY24 Regular Engagements on Social Media Fi rtune· chokki fresh otto Dough up your picnic with these snacks Influencer-led Engagements adani wilmar ~ rtune ed!lle oils and foods Earnings Presentation – Q1FY24 For a healthy growing nation
Slide 17: ESG Updates
ESG Updates A ·s,sion Against aln _trition & Anemi,a Water Conservation: Efforts towards reducing water waste − ZLD installed at 9 major plants − ZLD ensures recovery & reuse of water Touched over 1.6 million lives across India till date Green Energy: Promoting alternative source of power − Successf
Slide 18: Update on IPO Projects
Update on IPO Projects Product Location Project Estimated Timeline Bundi 500 TPD Mustard Oil Mill FY24 Edible Oil Haldia 1500 TPD Palm Refinery FY24 Nagpur 240 TPD Chickpea Plant FY24 Dal & Besan Neemuch 240 TPD Chickpea Plant FY24 Kadi 240 TPD Chickpea Plant FY25 100 TPD Soya Nugget & Soya Nugget N
Slide 19: Update on IPO Money Utilization
Update on IPO Money Utilization Amount to be utilized as per Utilisation upto Unutilized as on Particulars prospectus June 30, 2023 June 30, 2023 Capital Expenditure 1,900 509 1,391 Repayment of borrowings 1,059 1,059 - Strategic acquisition 450 148 302 General Corporate purpose 63 - 63 Total 3,472
Slide 20: Result Highlights
Result Highlights cu a da nr wilrnar fOftunefoods.com Earnings Presentation – Q1FY24
Slide 21: Segment Mix for Q1FY24 Consolidated
Segment Mix for Q1FY24 Consolidated e edible oils and foods Q1 FY23 Q1 FY24 Edible Oil Food & FMCG Industry Essentials Value Value Volume Volume 78% 8% 16% 59% 6% 16% 76% 60% 24% 25% 16% 16% Revenue (value) contribution from Food & FMCG increased to 8% adani wilmar ~ rtune ed!lle oils and foods Earn
Slide 22: Result Highlights: Q1 FY24
Result Highlights: Q1 FY24 rtu e edible oils and foods Consolidated Revenue Volume (LMT) Gross Profit EBITDA PBT PAT -12% -21% 14.9 -71% 14,724 1,492 12,928 1,178 11.9 260 443 194 130 (68) (79) T T T Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Q1'23 Q1'24 Standalone Revenue Volume (L
Slide 23: Segment Results: Q1 FY24
Segment Results: Q1 FY24 Consolidated Segment Revenues I I I INR in Crores Q1FY24 Q4FY23 Q1FY23 QoQ % YoY % FY23 FY22 YoY % Mix - FY23 Edible Oils 9,845 10,790 11,511 -9% -14% 46,104 45,342 2% 79% Food & FMCG 1,097 1,159 860 -5% 28% 4,053 2,621 55% 7% Industry Essentials 1,986 1,924 2,353 3% -16% 8,
Slide 24: Reasons impacting Profitability
Reasons impacting Profitability Impact Reasons for impact Inventory loss Due to decline in edible oil prices ▪ Hedge prices didn’t move in-line with physical prices, Hedges dis-alignment hence loss in inventory was not fully compensated by the gain in hedges. Disproportionate allocation ▪ We incurre
Slide 25: Outlook for Q2 FY24: Healthy Consumption Trends
Outlook for Q2 FY24: Healthy Consumption Trends Edible Oil Imports: Q1 FY24 Key Highlights of the quarter 3.39 3.21 ▪ Edible oil imports grew 19% YoY in Q1 FY24 (Oil Year has seen imports grow by 22% YoY) 2.85 ▪ Soft oils imports (soyabean & sunflower oil) was higher due to low prices. Q1 '22 Q1 '23
Slide 26: ~ rtune
adani wilmar ~ rtune ed!lle oils and foods Earnings Presentation – Q1FY24 For a healthy growing nation
Slide 27: Company Overview
Company Overview cu a da nr wilrnar fOftunefoods.com Earnings Presentation – Q1FY24
Slide 28: Adani Wilmar Limited at glance
Adani Wilmar Limited at glance One of the largest Food FMCG company in India No. #1 Edible Oil brand Over 2 decades of trust INR 58,185 Crores ~ rtune Food & FMCG player offering kitchen edible oi~ and foods Consolidated Operating Revenue in No. #2 wheat flour brand essentials across India FY23 No.
Slide 29: Business Segments
Business Segments Edible Oil Food & FMCG Industry Essentials Products: Products: Major Products: Sunflower Soyabean Mustard Atta, Suji, Rawa & Maida Soap Noodles Glycerine Stearic Acid Distilled Fatty Acid Ricebran Cottonseed Groundnut Castor Oil Deoiled Cakes Rice Besan & Pulses Key applications Fo
Slide 30: Business Mix & Customer Segments
Business Mix & Customer Segments FY23 - Edible Oil -Value Food & FMCG Industry Essentials Business Mix Customer Segments Households HoReCa Institutional Exports : I I I --- L----------------------------------------------------~----------------------------------------------~--------------------------
Slide 31: Presence across the price spectrum
Presence across the price spectrum Super Premium n rt® Premium edible oils and foods ___- w ilm;u KING'S- S OYABEAN OIL Popular <ID REnNEO PALMOLEIN First Choice Wht'al Flour (Alla) Avsar CHAR MINAR. A healthy mix of premium and popular brands adani wilmar ~ rtune ed!lle oils and foods Earnings Pres
Slide 32: Portfolio of scaled up brands
Portfolio of scaled up brands Strong brands built on basis of trust and quality over last 2 decades Value Brands Segment INR 20,000 Cr + rtuneedible oils and foods Edible Oil & fats + Food & FMCG ------- -KING'S" w ilma, INR 4,000 Cr + --- SOYABEAN O IL Edible Oil & fats * ~INR 1,000 Cr + Edible Oil
Slide 33: Leadership Position in our Key Products
Leadership Position in our Key Products Edible Oil Food & FMCG Industry Essentials #1 Player in Stearic Acid, Glycerine & - [ ---= ====~]. = = ~]. = = ~] #1 Edible oil brand in India ' [ = #2 in Wheat Flour (atta) ' [ = Soap Noodles #1 Soyabean oil, Mustard & Ricebran ' [ ----= = = ~] [ oil ] [ ] #3
Slide 34: Successful brand extension of Fortune
Successful brand extension of Fortune Over 2 decades of trust and quality Fortune: A household name in India Fortune rtu edible oils and foods ‘Edible Oil’ brand ‘Packaged Foods’ brand ‘Fortune’ brand size is INR 20,000+ Crores adani wilmar ~ rtune ed!lle oils and foods Earnings Presentation – Q1FY2
Slide 35: Large Opportunity in Foods Products
Large Opportunity in Foods Products Opportunity to replicate the Edible Oil playbook in other staple food categories AWL’s Share (as % of total volume consumed in India) AWL’s Competencies ~14% ✓ Edible Oil Fortune Brand Equity ✓ Distribution & Retail Reach Wheat < 1% ✓ Efficient Supply Chain Rice <
Slide 36: Enhancing GTM capabilities to capture demand
Enhancing GTM capabilities to capture demand Everyday great execution Rural Activation & Coverage Expansion • Improving daily visit calls • Rural town expansion • Improving productivity of calls • Improved quality of Town Coverage in Rural • Increase DSM effective coverage • Improved penetration in
Slide 37: Efficient supply chain to lower cost and capture demand
Efficient supply chain to lower cost and capture demand If Least Cost Digitization .r+l 1111 1111 Optimization Most of the supply chain workflow has been Plan the dispatch to optimize on various digitized, resulting in paper-less processes, parameters like raw-material prices, logistic availability
Slide 38: Supply Chain – Reduction of carbon footprint in logistics
Supply Chain – Reduction of carbon footprint in logistics Clean fuel in Logistics Low emission mode of transport 3.8% Volume Dispatch in multi-modal way Dispatch* by CNG vehicle in FY 23 22% 23% ➢ Initiated use of CNG vehicles in FY’23. Vendors are incentivized to used CNG vehicle ➢ Earned 22,574 Ra
Slide 39: NPD
NPD Increasing focus on value added products Poha Ready to Cook Khichdi Fortune Xpert Soap Kohinoor Biryani Kit • Almost all value-add products are forward-integration of our existing products and leverages our existing distribution network adani wilmar ~ rtune ed!lle oils and foods Earnings Present
Slide 40: AWL's advantage
AWL’s advantage Proven Track record Fast-paced growth at scale (leadership position or amongst Top-3 in multiple Large addressable market categories) Potential for margin improvement Large distribution network Leverage existing setup to scale up new categories Support of 2 strong Few competitors Str
Slide 41: ESG
ESG ad an r wilrnar Earnings Presentation – Q1FY24
Slide 42: Fortune SuPoshan: A Mission Against Malnutrition & Anemia
Fortune SuPoshan: A Mission Against Malnutrition & Anemia A CSR Initiative by Adani Wilmar Ltd . Fortune SuPoshan touches life of three Target Groups 0-5 yrs age children Adolescent Girls Women in Reproductive Age Fortune SuPoshan touches four core areas Health Education Women Sustainable Empowermen
Slide 43: Cumulative Coverage till March 2023
Cumulative Coverage till March 2023 Sr I Particulars Coverage No I I 1 Total sites 30 I I 2 Total Households 3,82,655 I I 3 Total population 19,10,530 I I 4 Total under five children 1,45,392 I I 5 Total adolescent girls 1,28,334 I I 6 Total women in reproductive age 3,18,647 I I I I I Sr No Site De
Slide 44: Current Footprint (April 2022 – March 2023)
Current Footprint (April 2022 – March 2023) I I 5 GENDER EQUALITY 14 13 20 129 1200 I I Cf I Sit es States Districts Slums Villages I I I I 550 1,08,132 3,06,409 I I I Sanginis children Women & girls I I I Alwar ~ I Ci) f I t Touched more than 3 lakh The prevalence of Wasting and SAM have found The
Slide 45: Progress (April 2022 – March 2023)
Progress (April 2022 – March 2023) Achievement Sr Particulars No FY 2022- 23 1 Total under five children screened 1,00,000+ Family Counselling 87662 Total complicated SAM children 2 referred to NRC 1204 Community Events Focus Group Discussion 3578 94999 Total children shifted from SAM to 3 MAM 12245
Slide 46: Poshan Shivir
Poshan Shivir Poshan Shivir Beetroot paratha with sprouted moong & chana Earnings Presentation – Q1FY24
Slide 47: Earnings Presentation – Q4FY23
46 Earnings Earnings Presentation Presentation – Q4FY23 – Q1FY24
Slide 48: Environment, Social & Governance
Environment, Social & Governance Green Energy Water Conservation - Successful solar power implementation at 7 plants - Zero Liquid Discharge out of 23 own units. installed at 9 major plants (2900 KL per day) - Plan to continue such installation across all plants over the years - ZLD ensures recovery
Slide 49: Annexure: Detailed Financials
Annexure: Detailed Financials ad an r wilrnar Earnings Presentation – Q1FY24
Slide 50: Financial Performance: Consolidated
Financial Performance: Consolidated I I I I I I INR in Crores Q1FY24 Q4FY23 Q1FY23 I I I QoQ % I I I YoY % FY23 FY22 FY21 YoY % Volume (in LMT) 14.9 14.9 11.9 0% 25% 54.7 48.0 44.8 14% Revenue 12,928 13,873 14,724 -7% -12% 58,185 54,155 37,090 7% COGS 11,750 12,433 13,232 -5% -11% 52,183 48,771 32,4
Slide 51: Financial Performance: Standalone
Financial Performance: Standalone I I I INR in Crores Q1FY24 Q4FY23 Q1FY23 I I I QoQ % I I I YoY % FY23 FY22 FY21 I I I YoY % Volume (in LMT) I 14.4 14.3 11.4 1% 26% 52.3 46.1 44.6 13% Revenue 12,379 13,122 14,017 -6% -12% 55,262 52,302 37,090 6% COGS 11,265 11,767 12,629 -4% -11% 49,543 47,091 32,4
Slide 52: Legal Disclaimer
Legal Disclaimer The information contained in this presentation is provided by Adani Wilmar Limited (together with its subsidiaries, the “Company” or “AWL”) to you solely for your reference and for Legal Disclaimer information purposes only. This presentation is highly confidential and is being give