Adf Foods Limited · NSE:ADFFOODS
Adf Foods — Q4 FY23 Earnings Presentation
38 slides from Adf Foods's earnings presentation, May 6, 2023
Slide 1: Cover letter to stock exchanges
6th May, 2023 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Department of Corporate Services, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers , Bandra (East), Dalal Street, Mumbai - 400 051. Mumbai - 400 001. Symbol: ADFFOODS Scrip Code: 519183 Dear Sir/Madam, Sub: Investor
Slide 2: Investor Presentation May 2023
Investor Presentation May 2023
Slide 3: Safe Harbor
SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by ADF FOODS LTD (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and
Slide 4: About ADF Foods
ABOUT ADF FOODS ABOUT US ADF Foods (ADF) is a leading manufacturer of prepared ethnic food, offering frozen foods, ready-to-eat (RTE) items, ready-to-cook (RTC) items, chutneys, sauces, pickles, spices, pastes, dips and milk drinks under its 8 Flagship brands. OUR BRANDS 3
Slide 5: Q4 & FY23 Performance Highlights
Q4 & FY23 Performance Highlights
Slide 6: Q4 FY23 Result Highlights
Q4 FY23 RESULT HIGHLIGHTS REVENUE (₹ Cr ) EBITDA (₹ Cr ) & MARGIN PAT (₹ Cr ) & MARGIN Standalone Quarterly 17.2% 25.8% 28.8% 14.3% 19.3% 20.7% performance +19.1% +99.8% +71.8% 99.8 98.2 28.3 19.2 20.3 25.7 82.4 11.8 14.1 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 14.1% 22.0% 21.
Slide 7: FY23 Result Highlights
FY23 RESULT HIGHLIGHTS REVENUE (₹ Cr ) EBITDA (₹ Cr ) & MARGIN PAT (₹ Cr ) & MARGIN 17.6% 21.7% 13.7% 17.0% +17.0% +44.1% +44.6% Standalone FY23 353.3 performance 302.0 76.8 60.0 53.3 41.5 FY22 FY23 FY22 FY23 FY22 FY23 15.8% 17.9% 11.5% 12.4% Consolidated FY23 +6.9% +21.1% +15.1% performance 421.2 4
Slide 8: Standalone Performance Highlights
STANDALONE PERFORMANCE HIGHLIGHTS REVENUE (₹ Cr ) EBITDA (₹ Cr ) & MARGIN (%) PAT (₹ Cr ) & MARGIN (%) 19.7% 22.0% 17.6% 21.7% 16.4% 15.5% 13.7% 17.0% CAGR 353.3 +22.0% 76.8 60.0 CAGR CAGR 302.0 +26.0% +23.6% 236.6 53.3 41.5 52.0 36.7 194.5 31.8 38.3 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21
Slide 9: Consolidated Performance Highlights
CONSOLIDATED PERFORMANCE HIGHLIGHTS FY23: PAT (₹ Cr ) • In FY23, ADF Foods USA incurred a loss of ~₹5 Cr on account of supply chain disruptions. For FY22, this business 2 generated a topline of ~₹32 Cr and net 3 60 profit of ~₹2.5 Cr. Further, in FY21 (full year of operations), Revenue was ~₹53 Cr 5
Slide 10: Key Financial Ratios
KEY FINANCIAL RATIOS ROCE (%) ROE (%) 21.0 15.5 19.4 14.5 18.2 13.6 17.1 12.8 15.9 11.9 Standalone FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 27.7 20.9 24.2 18.3 18.6 20.0 14.7 14.0 14.6 Consolidated 18.1 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 9
Slide 11: Segment Wise Results Break Up
SEGMENT WISE RESULTS BREAK UP REVENUE (₹ Cr ) Particulate (₹ Cr) Q4 FY23 Q4 FY22 Y-o-Y FY23 FY22 Y-o-Y Revenue 450.3 Processed & Preserved Foods 102.8 87.4 17.6% 362.2 335.3 8.0% 421.2 Distribution 20.3 20.7 -2.2% 88.1 85.9 2.6% Total 123.1 108.2 13.8% 450.3 421.2 6.9% 335.3 362.2 108.2 123.1 Result
Slide 12: Q4 FY23 Standalone Profit & Loss
Q4 FY23 STANDALONE PROFIT & LOSS Particulate (₹ Cr) Q4 FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 98.2 82.4 19.1% 99.8 -1.6% 353.3 302.0 17.0% Cost of Materials consumed 36.6 30.5 34.8 143.6 120.2 Purchase of stock-in-trade 1.0 1.7 4.0 7.5 6.3 Changes in Inventories 2.5
Slide 13: Q4 & FY23 Consolidated Profit & Loss
Q4 & FY23 CONSOLIDATED PROFIT & LOSS Particulate (₹ Cr) Q4 FY23 Q4 FY22 Y-o-Y Q3 FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 123.1 108.2 13.8% 123.2 -0.1% 450.3 421.2 6.9% Cost of Materials consumed 36.6 30.5 34.8 143.6 120.2 Purchase of stock-in-trade 8.1 17.7 16.7 56.9 88.8 Changes in Inven
Slide 14: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Equity & Liabilities (₹ Cr) Mar’23 Mar’22 Assets (₹ Cr) Mar’23 Mar’22 Equity Non-Current Assets (a) Equity Share Capital 22.4 21.3 (a) Property, plant and equipment 129.1 115.6 (b) Other Equity 396.9 321.6 (b) Capital Work-in-Progress 6.7 0.1 (b) Non-controlling interest 2
Slide 15: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT Cash Flow Statement (₹ Cr) Mar’23 Mar’22 Cash Flow from Operating Activities Profit before Tax 75.5 65.1 Adjustment for Non-Operating Items 10.9 -6.7 Operating Profit before Working Capital Changes 86.4 71.8 Changes in Working Capital -15.1 -23.4 Cash Generated from
Slide 16: Key Developments – Q4 FY23
KEY DEVELOPMENTS – Q4 FY23
Slide 17: New Product Launches Throughout FY23 - Ashoka
NEW PRODUCT LAUNCHES THROUGHOUT FY23 - ASHOKA Entered 2 new product categories - plant-based products and frozen desserts in addition to existing range extensions. 16
Slide 18: New Product Launches Throughout FY23 – ADF Soul
NEW PRODUCT LAUNCHES THROUGHOUT FY23 – ADF SOUL Olive oil-based Pickle range International gourmet range 17
Slide 19: Business Overview
BUSINESS OVERVIEW
Slide 20: Business Divisions
BUSINESS DIVISIONS Revenue (₹ Cr ) PROCESSED FOODS BUSINESS CAGR Large range of products suited for +12.7% 362 335 different palates 293 253 20% One of the top brands in ethnic food shelves in key markets One of the largest Indian exporters of processed food FY20 FY21 FY22 FY23 CAGR DISTRIBUTION BUS
Slide 21: Business Snapshot with Multiple Growth Levers
BUSINESS SNAPSHOT WITH MULTIPLE GROWTH LEVERS 8 3 55+ 2 Strong Net Debt Free BRANDS MANUFACTURING COUNTRIES WAREHOUSES in US DISTRIBUTION HEALTHY FACILITIES for Distribution NETWORK BALANCE SHEET Growth Opportunities Capacity Expansion PLI Scheme Focus • Greenfield project in Surat to increase • 50%
Slide 22: Strengthening Brand Ashoka
STRENGTHENING BRAND ASHOKA… Ashoka as a brand has About grown ~2X in last 2 years ✓ Ashoka is our flagship brand targeted towards Indian diaspora 211 ✓ Sold in 55+ Countries +33.2% ✓ Authentic Indian taste 157 ✓ DESI AT HEART is the essence of ASHOKA 119 Categories Ambient Range Pickles, Chutney, Pa
Slide 23: With Meaningful Advertising & Marketing
… WITH MEANINGFUL ADVERTISING & MARKETING 22
Slide 24: And Positive Social Media Testimonials
… AND POSITIVE SOCIAL MEDIA TESTIMONIALS 23
Slide 25: Leading to Increase in Shelf Space for Ashoka
… LEADING TO INCREASE IN SHELF SPACE FOR ASHOKA 24
Slide 26: Focus on Creating Successful Brands
FOCUS ON CREATING SUCCESSFUL BRANDS ADF Soul Truly Indian ➢ Products under ADF Soul brand have been launched PAN India on ➢ Truly Indian is targeted at the ecommerce platform (https://soul- global mainstream population foods.in/) and on Amazon. Soon to be available on all leading e- ➢ Premium range
Slide 27: A Bouquet of Other Global Brands
A BOUQUET OF OTHER GLOBAL BRANDS Positioning Products Geographies Retail Channel Premium brand targeted at Arabic Meal accompaniments, pastes, Middle East 95% from mainstream/ modern diaspora sauces trade stores Economy Brand Meal accompaniments, pastes, Middle East 65% from mainstream/modern sauces
Slide 28: Product Portfolio
PRODUCT PORTFOLIO Select key products ▪ Snacks- Punjabi samosas, batata vada, kathi rolls Frozen Products ▪ Vegetables- Green chilli, Mix vegetable cut, methi, palak ▪ Breads- Naans, parathas Ready-to-eat & ▪ Ready to eat- Pav Bhaji, dal makhni, matar paneer Ready-to-cook ▪ Ready to eat Vegan- Bhind
Slide 29: Manufacturing Facilities
MANUFACTURING FACILITIES • Total Built up factory area - 15,000 Sqm • Nadiad, Frozen foods (Samosas, vegetables, Gujarat snacks, parathas, etc.) • Meal accompaniments (Pickles, chutneys, pastes, sauces) • Ready to eat curries & canned vegetables Manufacturing expansion Maharashtra • Total Built up f
Slide 30: Warehousing and Distribution Facilities
Warehousing and Distribution Facilities Atlanta, USA New Jersey, USA Atlanta, USA New Jersey: 66,000 sq.ft. Atlanta: 34,000 sq.ft. New Jersey, USA
Slide 31: Certifications & Accreditations
CERTIFICATIONS & ACCREDITATIONS ISO 2200: 2018 certification by BVQI for management system standards BRC accreditation - Grade A . APEDA (Ministry of Commerce and Industries) Award for exceptional performance in Exports SMETA AUDIT Both our facilities undergo SMETA AUDIT for the 4 Pillars - Labour S
Slide 32: Customer Centric Approach
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Slide 33: Strengthening Distribution
STRENGTHENING DISTRIBUTION Patanjali Ayurveda Patanjali Ayurveda is a rapidly growing Indian Positioning Selling Indian ethnic tea, coffee, beverages, etc. multinational consumer goods company based in Uttarakhand, India Products Indian tea and coffee beverages, soups & wheat flour Natural, herbal a
Slide 34: Governance Focused
GOVERNANCE FOCUSED
Slide 35: Consistent Shareholder Returns
CONSISTENT SHAREHOLDER RETURNS FY18 FY19 FY20 FY21 FY22 Rs 57.4 crores VALUE CREATION FOR Rs 6.6 crore Rs 30 crore Rs 6 crore Rs 6 crore Rs 8.8 crore Returned to SHAREHOLDERS Buyback Buyback Dividend Payout Dividend Dividend shareholders in the last Payout Payout 5 years 30.0 Robust shareholder retu
Slide 36: Corporate Social Responsibility (CSR)
CORPORATE SOCIAL RESPONSIBILITY (CSR) Education support Covid Measures Clean India Mission Women Empowerment program ₋ Partnered with NGOs for supply of oxygen ₋ Swachch Bharat Abhiyaan: Constructed over 100 ₋ Partnered with several education not-for-profit ₋ ADF helps in the cause of giving women a
Slide 37: Board of Directors
BOARD OF DIRECTORS Bimal Thakkar Deepa Harris Chandir Gidwani Ravinder Jain Jay Mehta Viren Merchant Chairman, Managing Independent Director Independent Director Independent Director Non-Executive Director Non-Executive Director Director and CEO ▪ 35 36 years of experience ▪ 30+ years of expertise i
Slide 38: Thank You
THANK YOU ADF Foods Limited CIN: L15400GJ1990PLC014265 Mr. Shardul Doshi, CFO shardul@adf-foods.com Mr. Irfan Raeen +91 9773778669 Irfan.raeen@linkintime.co.in Mr. Devansh Dedhia +91 9930147479 Devansh.dedhia@linkintime.co.in