Fauji Foods Limited · PSX:FFL
Fauji Foods — Investor Presentation (July 2023)
20 slides from Fauji Foods's investor presentation, July 2023
Slide 1: FFL Business Overview – H1 2023
FFL Business Overview – H1 2023
Slide 2: Disclosure
DISCLOSURE All forward – looking statements are management’s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward – looking statements. Forward – looking statements shou
Slide 3: Fauji Foods Purpose
Fauji Foods Purpose TASTE CUSTOMERS EMPLOYEES SHAREHOLDERS
Slide 4: Key Strengths – Full Spectrum Portfolio & Shareholder Patronage
Key Strengths – Full Spectrum Portfolio & Shareholder Patronage Extensive Portfolio Strong Shareholder Patronage
Slide 5: H1 2023 Business Performance
H1 2023 Business Performance Variance Revenue- H1 PKR (mn) SPLY 2023 H1 SPLY +105.1% 9,838 +6.8% Revenue (PKR Millions) 4,797 9,838 105.1% 4,493 4,797 2021 2022 2023 Gross Profit (PKR Millions) 179 1,231 588.4% Revenue (PKR mn) QOQ Revenue Growth % 30.2% 9,838 57.5% EBITDA (PKR Millions) (465) 448 9
Slide 6: FFL Turnaround Journey | Consecutive months PAT positive
FFL Turnaround Journey | Consecutive 4 months PAT +ive PAT (Pkr mn) 29 5 7 10 (94) (102) (104) (94) (140) (137) (240) (235) (335) 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 Note: PAT 2022 results are adjusted for sale tax provision on tea whitener
Slide 7: PAT Evolution | 2022 - 2023
PAT Evolution| 2022 - 2023 Quarterly PAT 2022-23 (PKR mn) 22 (169) (225) (499) (499) (511) (531) (628) (690) (754) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Reported PAT Quarterly sales tax adjusted PAT
Slide 8: Turnaround strategy
Turnaround strategy Drive sustainable & profitable growth Fueling Growth COGS Reduction Capability Value led focus Operational excellence People & Processes K e y E n a b l e r s K e y E n a b l e r s K e y E n a b l e r s Portfolio Margin Route to Energy Process Packaging Talent Automation Processe
Slide 9: Turnaround strategy
Turnaround strategy Drive sustainable & profitable growth Fueling Growth COGS Reduction Capability Value led focus Operational excellence People & Processes K e y E n a b l e r s K e y E n a b l e r s K e y E n a b l e r s Portfolio Margin Route to Energy Process Packaging Talent Automation Processe
Slide 10: Continued focus on value added portfolio
Continued focus on value added portfolio 85% 73% 70% 68% 59% 58% 52% 50% Commoditized cont (%) 41% 42% Val Added Cont (%) 48% 30% 32% 27% 15% 2016 2017 2018 2019 2020 2021 2022 2023 H1
Slide 11: Volume Growth | H1'23 v H1'22
Volume Growth | H1’ 23 v H1’ 22 Vol Growth Val Growth 124% 105% 51% 25% 10% 1% -11% -39% Total FFL UHT LTW Butter 113% 55% 59% 44% 2% -2% Cream Cheese (ex Pizza Hut) FM
Slide 12: H1'23 v H1'22 | Value Added Portfolio Growth
H1’ 23 v H1’22 | Value Added Portfolio Growth Vol Growth (H1’23 v H1’ 22) Metro Regions Val Growth (H1’23 v H1’ 22) 183% 109% 113% 65% 131% 60% 30% 79% Lahore Rawalpindi Karachi Non Metro Regions 266% 169% Total Distribution Business 135% 92% 71% 54% Gujranwala Peshawar S&B
Slide 13: Fueling Growth | Geographical focus yielding quick results in distribution expansion
Fueling Growth | Geographical focus yielding quick results in distribution expansion Distribution Optimization Automation Expansion Distribution Pivot from Dostea to Nurpur Implementation of Secondary sales software Outlet mapping & expansion Q4 2021 Jun 2023 40 18,000 33,000 269 91 Distributions Ou
Slide 14: Turnaround strategy
Turnaround strategy Drive sustainable & profitable growth Fueling Growth COGS Reduction Capability Value led focus Operational excellence People & Processes K e y E n a b l e r s K e y E n a b l e r s K e y E n a b l e r s Portfolio Margin Route to Energy Process Packaging Talent Automation Processe
Slide 15: COGS Reduction 2023 exp. savings ~PKR 1bn
COGS Reduction Process Optimization Energy efficiencies Packaging efficiencies - Coal usage eliminated 1MW Solar plant - 100% steam in production production w.e.f Jan’ 23 shifted to biomass w.e.f Jan’ 23 2023 exp. savings ~PKR 1bn
Slide 16: Working Capital Improvement
Working Capital Improvement
Slide 17: Receivables Improvement
Receivables Improvement Receivables % Credit Sales – PKR Mn 131% 100% 65% 50% 54% 42% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23
Slide 18: Efficient Cash Recovery + Effective inventory & Creditor Management
Efficient Cash Recovery + Effective inventory & Creditor Management 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Debtors turnover in Days 59 87 104 121 96 82 49 32 30 37 Inventory turnover in Days 37 59 48 38 29 27 20 24 33 49 Creditors turnover in Days 37 46 39 41 43 51 42 39 37 41 Cash Operating c
Slide 19: Nurpur Relaunch
NURPUR a, RELAUNCH
Slide 20: Thank You
£8 fauji foods Thank You