Unity Foods Ltd · PSX:UNITY
Unity Foods — Investor Presentation (December 2020)
26 slides from Unity Foods's investor presentation, December 2020
Slide 1: Unity Foods Limited Analyst Briefing Presentation 2020
UNITY FOODS LIMITED ANALYST BRIEFING PRESENTATION - 2020
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Unity Foods Limited (“UNITY”) solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance should be placed on, the fairness, accuracy, sufficiency, completeness or correctness of the information
Slide 3: Unity in a Snapshot – Three Year Journey
UNITY IN A SNAPSHOT – THREE YEAR JOURNEY Financial FY 2020 2 Year Revenue LT Credit Net Margins Revenue CAGR Rating 1QFY21 Highlights PKR 30bn PKR 231% A- PKR 5.0% Purchase Expansions Reverse Merger Solvent Plant, Purchase of Acquisition (69%) Mergers & Change of name to Refinery and refinery Sunrid
Slide 4: Company Overview: Unity Foods Ltd
COMPANY OVERVIEW: UNITY FOODS LTD Formed as a result of reverse merger with Taha Spinning Mills Limited in the year 2016 Refining capacity Principal business - refining and marketing of edible oil products, animal feed, meal and industrial fats 650 MT / day Additionally, the Company has recent
Slide 5: Brands and Products
BRANDS AND PRODUCTS Cooking Oil Canola Oil Banaspati Whole Wheat Atta Palm Olein Fortified Atta 33 SKUs 3 SKUs Palm Kernel Expeller Palm Kernel Pellets Cooking Oil Soybean Meal Hi-Pro Canola Oil Soybean Meal Low-Pro Banaspati Soya Pellets Palm Olein Canola Meal 43 SKUs 7 SKUs Ultra Choco Cooking Oil
Slide 6: Milestones
MILESTONES Market capitalization of over PKR 22bn Exceptional sales growth post acquisition coupled with consistent positive bottom line is the testament to the success of new management in its commitment to maximize shareholder wealth, as well as an indicator of the strong capacity to serve the
Slide 7: Production Facilities
PRODUCTION FACILITIES Oil Refinery, SITE, Karachi Capacity 150 metric tons / day Standards applied ISO 9001 (Quality Management System) ISO 22000 (Food Safety Management System) HACCP PS 3733 & GSO/UAE 2055-1(Halal Food Management System) (ISO 14001:2015) Environmental Management System FSSC 22000:2
Slide 8: Production Facilities
PRODUCTION FACILITIES Solvent Plant, Kotri Capacity 450 metric tons / day Standards applied ISO 9001 (Quality Management System) ISO 22000 (Food Safety Management System) HACCP PS 3733 & GSO/UAE 2055-1(Halal Food Management System) (ISO 14001:2015) Environmental Management System Sunridge Foods, Por
Slide 9: Business Partners
BUSINESS PARTNERS Customers Suppliers UNITY FOODS LIMITED 9
Slide 10: Geographic Footprint & Distribution Network
GEOGRAPHIC FOOTPRINT & DISTRIBUTION NETWORK Numeric Region Towns Customers Coverage Karachi 6 106 5,093 Sindh 84 119 5,047 South Punjab 32 48 7,165 Central Punjab 60 110 12,519 North 70 104 12,145 Others 2 2 5,209 Total 254 489 47,178 UNITY FOODS LIMITED 10
Slide 11: Industry Trends
INDUSTRY TRENDS Pakistan: Edible Oil Market (tons) 5,000,000 GHEE COOKING OIL TOTAL MARKET SIZE 4,000,000 3,000,000 2,000,000 1,000,000 - 2016 2017 2018 2019 2020 GHEE 2,427,938 2,502,270 2,615,990 2,753,670 2,781,207 COOKING OIL 1,405,611 1,495,793 1,577,836 1,654,695 1,737,430 TOTAL MARKET SIZE 3,
Slide 12: Consolidated Sales – Unity Foods Limited (Annual)
CONSOLIDATED SALES – UNITY FOODS LIMITED (ANNUAL) 40,000 Preceding fiscal year remained challenging for the (PKR MN) company in many ways; 6.9% High policy rate during the first half PKR 30.5 bn 30,000 Second half was marred by business disruptions caused by the spread of COVID-19 Internatio
Slide 13: Consolidated Sales & NPAT (Quarterly)
CONSOLIDATED SALES & NPAT – UNITY FOODS LIMITED (QUARTERLY) SALES NPAT 16,000 800 5.0% (PKR MN) (PKR MN) 8.7% 4.2% 12,000 4.7% 5.7% 400 • COVID 19 • International 2.0% edible oil prices 1.6% 8,000 9.8% Net crashed to Margin their lowest levels 9.6% - 4,000 Gross Margins - (400) -3.3% 1QFY20 2QFY20 3
Slide 14: Performance Review – Sunridge Foods
PERFORMANCE REVIEW – SUNRIDGE FOODS SALES NPAT 1,600 11% 10% 100 PKR 44mn (PKR MN) -17% Acquisition Net -108% by UFL Margin 1,200 -2% - PKR -27mn -1.1% (PKR MN) 800 (100) PKR -129mn 23% -28.9% (200) 400 Gross PKR -222mn Margin (300) FY18A FY19A FY20A 1QFY21 - FY18A FY19A FY20A 1QFY21 UNITY FOODS LIM
Slide 15: Total Oil Sales FY20
TOTAL OIL SALES FY20 B2B B2C CONSUMER PACKS BULK SALES Sales FY18 FY19 FY20 1QFY21 (PKR mn) Bulk 1,615 9,160 13,945 6,173 Consumer - 1,178 7,595 2,170 Packs UNITY FOODS LIMITED 15
Slide 16: Sales Breakup – Consumer Packs
SALES BREAKUP – Consumer Packs Regional Sales (tons) Product Wise Sales Karachi North 14% Ehtimam 24% Sindh 24% Zauqeen Dastak 8% 39% 47% FY19 FY20 Dastak 76% South Central Punjab 22% Ehtimam Punjab 14% 32% Regional Sales FY 2019 FY 2020 1Q FY 2021 Dastak 26% Karachi 26% 14% 13% Sindh 21% 8% 20% Zau
Slide 17: Segment Financials
SEGMENT FINANCIALS (PKR mn) 16,000 13,945 12,000 FY18 9,160 FY19 8,000 7,595 6,173 6,238 FY20 4,000 3,076 1QFY21 2,170 2,205 2,1051,622 1,615 1,178 1,133 683 598 411 - - - 34 - Bulk Oils Branded Oils Animal Feed Wheat Flour Others SALES FY 18 SALES FY 19 SALES FY 20 1% 7% 5% 47% 22% 21% Bulk Oils Bu
Slide 18: 1QFY20 Performance
1QFY20 PERFORMANCE SALES (PKR mn) MARGINS 12% 15,000 9.8% PKR 12,580mn 10% 10% 9% 12,500 8% 10,000 1QFY19 6% 5% Net Margins 7,500 1QFY20 4% Gross Margin PKR 4,555mn 2% 5,000 2% 2,500 0% - 1QFY19 1QFY20 SALES – SEGMENT WISE GROSS MARGINS CONTRIBUTION – SEGMENT WISE FY20 1QFY21 9% Segment Sales Sales
Slide 19: Capacity Utilization FY20 Future Expectations
CAPACITY UTILIZATION FY20 Future Expectations Utilization Utilization Utilization Utilization* (MT) (%) (MT) (%) Annual Capacity (Metric Tons) FY20 1QFY21 Edible Oil Refinery - PQ 180,000 142,968 79% 32,509 72% Edible Oil Refinery - SITE 54,000 33,585 62% 7,048 52% Solvent Extraction Plant 162,000 9
Slide 20: COVID-19 Impact
COVID-19 IMPACT During 3QFY20, COVID-19 emerged in Pakistan and marred almost every aspect of the Malaysian crude palm oil active contract prices economy including the edible oil business The Company also faced an adverse impact due to higher inventory levels and 900 declining exchange rate 600
Slide 21: COVID-19 – Future Strategy to Curb the Potential Impact of Second Wave
COVID-19 – Future Strategy to Curb the potential impact of Second Wave • A strategic team was formulated in early March 2020 to ensure 100 900 that it was fully prepared to operate under the unprecedented 750 80 circumstances, keeping in mind health and safety of the employees 600 USD/Barrel 60 USD/
Slide 22: Capital Structure and Debt
CAPITAL STRUCTURE AND DEBT Capital Structure (PKR ‘Bn’) 30 Prior to 27 acquisition of After inception in FY18, various projects undertaken to expand Sunridge Foods 20 capacity and widen customer base 20 16 14 10 11 10 The total paid-up capital rose from PKR 1.69bn in FY18 to PKR 6 6 5 5 9.94 bn
Slide 23: Expansion & Investment Projects
EXPANSION & INVESTMENT PROJECTS Sunridge Foods Flour Mill Flour Mill Capacity: Capacity: 440 175 metric tons Metric tons per day per day 2QFY21 3QFY21 4QFY21 2QFY22 2QFY22 2QFY22 3QFY22 Production Physical & Oil Terminal Margarine of Soap & Fractionation Chemical & related Plant Capacity: Refinery 4
Slide 24: Business Outlook
BUSINESS OUTLOOK Significant Growth The company has been able to achieve commendable organic as well as external growth by acquisition in manufacturing & processing of edible oils and oilseeds since the inception of new management in 2017, the company has taken little time to achieve a strong foot
Slide 25: Risk Mitigation Strategies
RISK MITIGATION STRATEGIES RISKS MITIGANTS Competition Risk Mitigant The risk of new or existing competitors upgrading their facilities It will require a considerable amount of time and financial and taking away the Company’s market share. resources for any new or existing set up to upgrade their fa
Slide 26: www.unityfoods.pk /unity-foods-limited info@unityfoods.com
www.unityfoods.pk /unity-foods-limited info@unityfoods.com UNITY FOODS LIMITED 26