Heritage Foods Limited · NSE:HERITGFOOD
Heritage Foods — Q2 FY2021 Earnings Presentation
41 slides from Heritage Foods's earnings presentation, Oct 29, 2020
Slide 1: Cover letter to stock exchanges on quarterly updates
Ref: SECT: STOC: 91 - 20 October 29, 2020 To To The Secretary The Manager, BSE Limited Listing Department, Phiroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, C-1, G Block, Bandra-Kurla Mumbai - 400 001 Complex, Bandra (East), Mumbai - 400 051 Through: B
Slide 2: Corporate Presentation September 2020 (Q2FY21)
Corporate Presentation September – 2020 (Q2FY21)
Slide 3: Disclaimer Clause
Disclaimer Clause The Release contains forward looking statements identified by words like "plans", "expects", "will", "anticipates", "believes", "intends", "projects", "estimates", and so on. All statements that address expectations or projections about future, but not limited to Company's strategy
Slide 4: Index
INDEX 1. Vision & Mission 12. Procurement & Sales 23. Consolidated Notes Q2 FY21 2. Company Overview 13. Heritage Nutrivet Limited 24. Five years Highlights 3. Impact of Covid-19 14. Standalone Financial Results Q2FY21 25. Balance Sheet Figures – 5 Years 4. Our Journey 15. Standalone Balance Sheet Q
Slide 5: Vision & Mission
1. Vision & Mission Vision Delighting every home with fresh and healthy products and empowering the farmer Mission To be a nationally recognized brand for healthy and fresh products with a revenue of INR 6000 Crore by 2024 We anticipate, understand and respond to our customer’s needs by creating hig
Slide 6: Company Overview
2. Company Overview Core Business Key Strengths Financial Strength 28 Years rich experience in Strong relationships with over 3 High Return on Capital dairy business that includes, lakh dairy farmers. Employed (ROCE) procurement of milk from dairy farmers at village level, and Supplying milk and mil
Slide 7: Impact of Covid-19
3. Impact of Covid-19 • Procured milk from all our farmers • Ensured uninterrupted supplies to consumers • Taken all steps to contain spread of Virus • Maintenance of Social Distancing from Procurement to point of sale and at all work places • Sanitizing the premises and vehicles on regular basis •
Slide 8: Our Journey
4. Our Journey MILK + VAP + VARIANTS MILK + VAP VALUE MILK 5 Yrs 15 Yrs 25 Yrs + YEARS
Slide 9: Activities Segmentation
5. Activities Segmentation FOCUS MARKET COSUMER CONNECTIVITY BRANDING BRANDING CONSUMER CONNECTIVITY FOCUS MARKETS • Bus & Bus Shelter Branding • Leaflet Distribution • Delhi • Dealer Board Branding • Poster & Banner • Mumbai • Dealer Board Signage- Lit/ Non Lit • Door to Door Activity • Chennai • W
Slide 10: Branding
6. Branding AEALTH AND HAPPINES?
Slide 11: Consumer Connect
7. Consumer Connect AEALTH AND HAPPINES?
Slide 12: Focus Markets
8. Focus Markets DELHI NCR MUMBAI CHENNAI • Retailer Board and Flange • Opened new HDCs in • Roadshow under HDC’s to create awareness, installation Koparkhairane & Kharghar increase width & depth of • In Shop promotion • Vizi-cooler deployment distribution & range selling • Community connect • Digit
Slide 13: Consolidated Financial Highlights Q2FY21
9. Consolidated Financial Highlights – Q2FY21 Rupees Growth % Revenue 610.03 Cr -10.24 % EBITDA 88.99 Cr 257.68 % PBT 22.01 Cr 222.25 % PAT 2.70 Cr -74.67 %
Slide 14: Standalone Financials Q2FY21, Q2FY20
10. Standalone Financials –Q2FY21, Q2FY20 Financial Highlights Q2FYY21 Q2FY20 (Rs in crores) Net Turnover Dairy 593.20 665.38 RE 1.98 3.00 EBITDA Dairy 84.34 24.71 RE 1.57 2.70 PBT Dairy 70.83 9.09 RE 0.30 1.27 Dairy Margins EBITDA 14.22% 3.71% PBT 11.94% 1.37%
Slide 15: Growth in VAP
11. Growth in VAP 163.29 250 142.63 200 128.88 126.24 150 101.19 Rs in Crore 100 50 Q2FY17 Q2FY18 Q2FY19 Q2FY20 Q2FY21
Slide 16: Procurement & Sales
12. Procurement & Sales Milk Procurement (LLPD)* Milk Sales (LLPD) Curd Sales (MTPD)* 500 327.71 400 12.01 13.86 15 15 300 214.96 12.09 9.63 10 10 200 5 5 100 0 0 0 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Cost per Milk Selling Curd Selling Litre Rs. 32.54 Rs. 35.05 Price Rs. 46.41 Rs. 40.97 Price
Slide 17: Heritage Nutrivet Limited
13. Heritage Nutrivet Limited (A Wholly Owned Subsidiary Company) (Rs in Lakh) Particulars Q2FY21 Q2FY20 Turnover 3064 3071 EBITDA 352 137 PBT 253 34
Slide 18: Standalone Financial Results Q2 FY21
14. Standalone Financial Results Q2 FY21 Amount in lakhs of ₹ unless otherwise stated Sl. Particulars Quarter ended Six months ended Year ended No 30.09.2020 30.06.2020 30.09.2019 30.09.2020 30.09.2019 31.03.2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 1 Revenue a. Reve
Slide 19: Standalone Balance Sheet Q2FY21 (Assets)
15. Standalone Balance Sheet Q2FY21 Amount in lakhs of ₹ unless otherwise stated As at Particulars 30 September 2020 31 March 2020 (Unaudited) (Audited) ASSETS Non-current assets (a) Property, plant and equipment 41,624.21 42,650.55 (b) Capital work-in-progress 9,189.34 7,551.23 (c) Investment prope
Slide 20: Standalone Balance Sheet Q2FY21 (Liabilities)
15. Standalone Balance Sheet Q2FY21 Amount in lakhs of ₹ unless otherwise stated As at Particulars 30 September 2020 31 March 2020 (Unaudited) (Audited) LIABILITIES Non-current liabilities (a) Financial liabilities (i) Borrowings 14,267.11 16,013.14 (ii) Other financial liabilities 383.58 433.22 (b)
Slide 21: Standalone Cash Flow Statement Q2FY21
16. Standalone Cash Flow Statement Q2FY21 Amount in lakhs of ₹ unless otherwise stated For six months ended For the year ended Particulars 30 September 2020 30 September 2019 31 March 2020 (Unaudited) (Unaudited) (Audited) Cash flows from operating activities Profit/(loss) before tax 12,276.42 4,363
Slide 22: Standalone Cash Flow Statement Q2FY21 (cont.)
16. Standalone Cash Flow Statement Q2FY21 Amount in lakhs of ₹ unless otherwise stated For six months ended For the year ended Particulars 30 September 2020 30 September 2019 31 March 2020 (Unaudited) (Unaudited) (Audited) Cash flows from investing activities Purchase of PPE and other intangible ass
Slide 23: Standalone Segment Information Q2 FY21
17. Standalone Segment Information Q2 FY21 Amount in lakhs of ₹ unless otherwise stated Sl. Particulars Quarter ended Six months ended Year ended No 30.09.2020 30.06.2020 30.09.2019 30.09.2020 30.09.2019 31.03.2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 1 Segment reven
Slide 24: Standalone Notes Q2 FY21
18. Standalone Notes Q2 FY21 Amount in lakhs of ₹ unless otherwise stated 1. The unaudited standalone financial results for the quarter and six months ended 30 September 2020 were reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on 28 Octob
Slide 25: Consolidated Financial Results Q2FY21
19. Consolidated Financial Results Q2FY21 Amount in lakhs of ₹ unless otherwise stated Sl. Particulars Quarter ended Six months ended Year ended No 30.09.2020 30.06.2020 30.09.2019 30.09.2020 30.09.2019 31.03.2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 1 Revenue a. Rev
Slide 26: Consolidated Financial Results Q2FY21 (cont.)
19. Consolidated Financial Results Q2FY21 Amount in lakhs of ₹ unless otherwise stated Sl. Particulars Quarter ended Six months ended Year ended No 30.09.2020 30.06.2020 30.09.2019 30.09.2020 30.09.2019 31.03.2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 11 Other compreh
Slide 27: Consolidated Balance Sheet Q2FY21 (Assets)
20. Consolidated Balance Sheet Q2FY21 Amount in lakhs of ₹ unless otherwise stated As at Particulars 30 September 2020 31 March 2020 ASSETS Non-current assets (a) Property, plant and equipment 45,790.70 46,912.67 (b) Capital work-in-progress 9,212.25 7,571.61 (c) Investment property 458.08 585.05 (d
Slide 28: Consolidated Balance Sheet Q2FY21 (Liabilities)
20. Consolidated Balance Sheet Q2FY21 Amount in lakhs of ₹ unless otherwise stated As at Particulars 30 September 2020 31 March 2020 LIABILITIES Non-current liabilities (a) Financial liabilities (i) Borrowings 15,320.24 17,222.52 (ii) Other financial liabilities 349.52 393.29 (b) Provisions 968.33 8
Slide 29: Consolidated Cash Flow Statement Q2FY21
21. Consolidated Cash Flow Statement Q2FY21 Amount in lakhs of ₹ unless otherwise stated For six months ended For the year ended 30 September 2020 30 September 2019 31 March 2020 (Unaudited) (Unaudited) (Audited) Cash flows from operating activities Profit/(loss) before tax from continuing operation
Slide 30: Consolidated Cash Flow Statement Q2FY21 (cont.)
21. Consolidated Cash Flow Statement Q2FY21 Amount in lakhs of ₹ unless otherwise stated For six months ended For the year ended 30 September 2020 30 September 2019 31 March 2020 (Unaudited) (Unaudited) (Audited) Cash flows from investing activities Purchase of PPE and other intangible assets, inclu
Slide 31: Consolidated Segment Information Q2 FY21
22. Consolidated Segment Information Q2 FY21 Amount in lakhs of ₹ unless otherwise stated Quarter ended Six months ended Year ended Sl. Particulars 30.09.2020 30.06.2020 30.09.2019 30.09.2020 30.09.2019 31.03.2020 No (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 1 Segment rev
Slide 32: Consolidated Notes Q2 FY21
23. Consolidated Notes Q2 FY21 Amount in lakhs of ₹ unless otherwise stated 1. The unaudited consolidated financial results for the quarter and six months ended 30 September 2020 were reviewed by the Audit Committee and approved by the Board of Directors of the Company at their meetings held on 28 O
Slide 33: Five years Highlights
24. Five years Highlights Financial Highlights FY 20 FY 19 FY 18 FY 17 FY 16 (Rs in crores) Net Turnover 2681.11 2482.35 2344.01 2642.89 2380.58 Dairy 2679.44 2479.18 2343.68 1870.72 1768.80 RE 9.39 11.37 6.87 5.21 3.04 EBITDA 140.37 192.43 133.32 146.61 136.47 Dairy 132.61 182.56 127.32 144.82 137.
Slide 34: Balance Sheet Figures – 5 Years
25. Balance Sheet Figures – 5 Years Particulars FY20 FY19 FY18 FY17 FY16 (Rs in crore) (As per Ind-As) Equity Share Capital 23.20 23.20 23.20 23.20 23.20 Other Equity (Reserves & Surplus) 439.13 781.76 754.81 570.02 216.80 Networth 462.33 804.96 778.01 593.22 240.00 Gross Fixed Assets 630.53 555.10
Slide 35: Winning Farmers' Trust
26. Winning Farmers’ Trust Providing Punctual Facilitating loans Accuracy in Deployed mobile nutritional feed payments cattle insurance Measurement veterinary clinics at subsidised to farmers rates
Slide 36: Achieving Operational Excellence
17. Achieving Operational Excellence Bulk Coolers Chilling plants Processing plants Vehicles 111 1863 72 17 No. of Milk Procurement Number Representatives of 11910 6333 Distributors
Slide 37: Innovations
28. Innovations Launched immunity boosting Ginger, Tulsi, Turmeric milk variants in pet bottles. INTRODUCED Accessibility
Slide 38: UHT Plant
29. UHT Plant Commissioned an UHT Plant with capacity of 1 Lakh Litres Per Day UHT processed milk shelf life 90 days. No refrigeration required No need to boil Variants: Double Toned Milk & Toned Milk. UHT Milk sales: 61,904 Litres Per Day (July’ 20 - Sept’ 20)
Slide 39: Parlour as branded outlets
30. Parlour as branded outlets Exclusive Product Outlets 944 Outlets managed by franchises Helps in recognition branding Flexibility of the product mix Products availability and Accessibility to customers
Slide 40: Heritage Distribution Centre (HDC)
31. Heritage Distribution Centre (HDC) Exclusive Product Distribution centre managed by franchises 35 HDC’s in Operation 14 at Bangalore, 14 at Chennai, 3 at Mumbai, 2 at Hyderabad, 1 at Rajahmundry and 1 at Vijayawada. Each HDC Covering 100 retail and 100 households of the locality A big le
Slide 41: Thank You
Thank You Umakanta Barik | hfl@heritagefoods.in