Parag Milk Foods Ltd. · NSE:PARAGMILK
Parag Milk Foods — Q2 FY2023 Earnings Presentation
34 slides from Parag Milk Foods's earnings presentation, Nov 17, 2022
Slide 1: Exchange filing cover letter for Q2 FY23 investor presentation
November 17, 2022 Compliance Department, Compliance Department, BSE Limited, National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Tower, Exchange Plaza, Plot No. C/1, G-Block, Dalal Street, Fort, Bandra Kurla Complex Mumbai – 400 001 Bandra - (E), Mumbai – 400 051 Scrip Code:- 539889 Scrip Symbo
Slide 2: Q2 FY23 Investor Presentation
RY / Ot AY, PARAG Ideas for a new day a = wht, SR a GO = ¢ Q2 FY23 INVESTOR PRESENTATION
Slide 3: Safe Harbor
SAFE HARBOR BY Ta PARAG Ideas for a new day This presentation and the accompanying slides (the “Presentation”), which have been prepared by Parag Milk Foods Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to pu
Slide 4: Chairman's Message
CHAIRMAN'S MESSAGE Mr. Devendra Shah, Chairman A journey that began with farmers is now aiming to provide complete nutrition to consumers across the globe. The strength of our developed infrastructure, food technology expertise supported by a strong farmer network, and powerful distribution channels
Slide 5: Table of Contents
TABLE OF CONTENTS A) PARAG Ideas for a new day EXECUTIVE SUMMARY PARAG AT GLANCE FINANCIAL HIGHLIGHTS OPPORTUNITY MARKET OUR STRATEGIC PRIORITIES ADDITIONAL INFORMATION
Slide 6: Executive Summary: Q2 FY23
EXECUTIVE SUMMARY: Q2 FY 23 54 PARAG Ideas for a new day Consolidated W/W ite gre category Avvatar has posted Pride of Cows (POC) | like Ghee, Cheese —_;: strong growth ; Spandecalne enter Revenue grewby | Ig Ahmedabad! 24.9%YOY : 47 ALYOY 143%YOY : Strong growth seen in | i the value added segment
Slide 7: Parag at a Glance
PARAG AT A GLANCE
Slide 8: Parag Milk Foods: A Complete, Integrated Business Model
PARAG MILK FOODS: A COMPLETE, INTEGRATED BUSINESS 3.5 lakh pan India Retail Touch Points 3,000+ Distributors 300+ Super Stockists 29 Depots om MODEL 3 State-of-the-Art Manufacturing Facilities 3.4 million litres/day Milk Processing Capacity 100% 41 million Cow Milk from key milk belts litres/day Whe
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 10: Q2 FY23 Financial Performance
Q2 FY23 FINANCIAL NO PERFORMANCE a. Ideas for a new day Revenues (Rs. Min) Gross Profit (Rs. Mn) EBIDTA (Rs. Mn) PAT (Rs. Mn) 6,648.4 5,323.2 | 1,492.3 530.2 2277 113.9 379.4 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 e Revenue from Operations grew at 24.9% YoY at INR 6648.4 million © P
Slide 11: Product Mix of Q2 FY23
PRODUCT MIX OF Q2FY23 4 PARAG Ideas for a new day rae Milk : Value Added Milk Products
Slide 12: Inflation of Milk Prices
) INFLATION OF MILK PRICES ae Ideas for a new day Milk Rate (INF/litre) Q222 Q1-23 2-23 The milk prices have seen a tremendous inflation ; The prices have increased by ~37% over last 6 Quarters
Slide 13: The Industry Was in Turmoil, Parag Stood Strong
THE INDUSTRY WAS IN TURMOIL, ay PARAG STOOD STRONG PARAG Ideas for a new day Reasons for turmoil in the Dairy industries: ¢ 4 times rise in exports of butter- 19,954 tonnes in FY22 as compared to 4,449 tonnes in FY21 ¢ Exports of skimmed milk power increased to 46,285 tonnes in FY22 a nearly three t
Slide 14: Building Cost Efficiencies Through Competitiveness
BUILDING COST EFFICIENCIES AV THROUGH COMPETITIVENESS ae. Ideas for a new day Asan example Despite rise in milk inflation, the Company hada MRP of 1 LTR Pack healthy volume growth. cone ences 25730 ¢ Asa market leader, the Company actioned price on ED increase ahead of the market. [esreconpenens Rs
Slide 15: Opportunity Market: High Potential Runway
OPPORTUNITY MARKET: HIGH POTENTIAL RUNWAY
Slide 16: Our Core Categories Have an Exciting Future
OUR CORE CATEGORIES uy HAS AN EXCITING FUTURE Te Ideas for a new day Cheese Market size (Rs. bn) Cow Ghee Market size (Rs. bn) 23% 200.9 110.1 56.7 o fl FY19 FY 22 FY 24E FY 27E FY19 FY22 FY 24E FY27E The cow ghee market size is ~INR 700 Total market size of Cheese is INR 56.7 billion, and is expect
Slide 17: Our Strategic Priorities
OUR STRATEGIC PRIORITIES
Slide 18: Our Strategic Priorities
OUR STRATEGIC PRIORITIES To be one of the best performing, most trusted and respected dairy FMCG companies across stakeholders OUR STRATEGIC PRIORITIES 5 Optimizing productivity to drive growth Strengthening! & accelerating core categorie 4 Brand building Strengthening} and innovation new age a busi
Slide 19: 1. Strengthening & Accelerating Categories
1. STRENGTHENING & uy ACCELERATING CATEGORIES Te Ideas for a new day Ghee, Cheese Growing By 47.4%YOY ° roy ‘O- GOWARDHAN GHEE H GO CHEESE ' AVVATAR leaders and pioneers of cow ghee dominant player in cheese category in India’s only manufacturer of category with 2 0° Y India with 3 5° Ye ' Whey Prot
Slide 20: 2. Consistent Media Support
2.CONSISTENT MEDIA SUPPORT 54 PARAG Ideas for a new day e | vax Investing 80% Consistent media of media spends support to onAIR our brands Xx 2019 2020 2021 2022 H1-2023 Building brands over new age influencers content strategy Media spends for last 6 years*
Slide 21: (https://www.instagram.com/reel/CgMG cqOpTsR/?igshid=MDJmNzVkMjY=) (https://www.youtube.com/watch?v=piJ
(https://www.instagram.com/reel/CgMG cqOpTsR/?igshid=MDJmNzVkMjY=) (https://www.youtube.com/watch?v=piJ FaBTNLiU)
Slide 22: 3. Built on the Backbone of a Robust Network
3. BUILT ON THE BACKBONE OF A uv ROBUST NETWORK i. Ideas for a new day 29 Depots 300 Super Stockists 3000+ Distributors 3.5 Lakh Retail Touch Points
Slide 23: Evolving a Route to Market
EVOLVING A ROUTE TO MARKET 4 PARAG Ideas for a new day Opportunity cA | Distribution and increasing iB iene we have seen significant markets have grown by : depth in weighted outlets | a to) 4 1 9% YoY : has been our key focus & 28% YoY ' have grown by i 4 A ' 16% YoY airal Distribution & infrastruc
Slide 24: 4. Protein - The Global Opportunity
4. PROTEIN - THE GLOBAL , OPPORTUNITY Le Ideas for @ new day Total whey market size is INR 6.6 billion and is expected to reach INR 19.9 billion by FY27, Growing ata of Brand Awatar reaches its consumer in the freshest form. The quality of the Whey Protein sets Awatar apart from the competition over
Slide 25: Strong Thrust on Protein Business
STRONG THRUST ON PROTEIN BUSINESS Entered the protein consumer category in 2017; now contributes around 6% to sales Q1-22 02-22 03-22 04-22 Q1-23 Q2-23 Sales growth over the last six quarters Our protein portfolio is witnessing strong growth momentum Brand “Awatar” has grown manifold over the years
Slide 26: Strengthening New Business: Pride of Cows
STRENGTHENING NEW BUSINESS: NO PRIDE OF COWS a. Ideas for a new day °Growth strategy: More point of sale; More products o ROUTE TO MARKET INCREASING PRODUCT PORTFOLIO Y j aneer Wholanmllio yeas, _/O Fat free milk Direct to consumers i . =. Ecommerce aro ‘ =°o2 } Organized trade channels oy Farm fres
Slide 27: 5. Optimizing Productivity to Drive Growth
5. OPTIMIZING PRODUCTIVITY NO TO DRIVE GROWTH iM Ideas for a new day PLANNING STAGE FOR SAP HANA IMPLEMENTATION DIGITIZATION/ IT: MORE THAN 70% OF GT BUSINESS HAS BEEN COVERED IN SFA* LEVERAGING VENDORS, RE- NEGOTIATION, REVERSE AUCTIONS OFFICE CONSOLIDATION OVERHEADS: (i DEPOT & COLD STORAGE RESTRU
Slide 28: Additional Information
ADDITIONAL INFORMATION
Slide 29: Our ESG Initiatives
OUR ESG INITIATIVES "9 PARAG Ideas for a new day LAYING A SOLID FOUNDATION BY FOCUS AREAS ADOPTING ESG POLICIES o O- oO ° © o ° ENVIRONMENTAL | SOCIAL i GOVERNANCE ; : BestPractices of | Adoption of practices focus centers around reducing | — focusonthewell-being | _ framework includes business Adop
Slide 30: Water, Climate and Energy Performance
() WATER REDUCE | REUSE | RECYCLE * Water consumption optimization. * Our water consumption per liter of milk handled has reduced over a period of time * Around 55% of water consumption at our units is frorn recycled water. PERFORMANCE WATER USAGE (LITRES) PER LITRE OF MILK 1.75 @r2 4.20 PALAMANER =
Slide 31: Parag Milk Foods Limited Milestones
1992 2010 2016 2021 2005 2014 2018 Investment by International Finance Corporation (IFC) and prominent consumer fund Sixth Sense Venture Parag Milk Foods was Launched Palamaner plant Realizing the need Parag Milk Advisors LLP founded by Mr. Bhagyalakshmi Dairy was established of market & to add Food
Slide 32: Strengthening the Board - Induction of Independent Director
STRENGTHENING THE BOARD- INDUCTION OF INDEPENDENT DIRECTOR somes On this association, Dr. Dnyanesh Darshane commented , “There is a tremendous potential in Parag Milk Foods Ltd. (PMFL), as the company has built its business with vision, knowledge and expertise. The strong reason to believe in the fu
Slide 33: Board of Directors
The overall execution strategy of the company and consolidation of company's market presence, fall under the purview of Mr. Pritam Shah. His extensive knowledge and robust understanding of procurement and production process BOARD OF DIRECTORS Mr. Devendra Shah | Chairman PMIFL has grown consistently
Slide 34: Thank You
THANK YOU * PARAG Ideas for a new day