Sundrop Brands Limited Shs Dematerialised · NSE:SUNDROP
Sundrop Brands Limited Shs Dematerialised — Agro Tech Foods — FY2021 Earnings Presentation
20 slides from Sundrop Brands Limited Shs Dematerialised's earnings presentation, Apr 30, 2021
Slide 1: Regulation 30 disclosure letter to BSE and NSE
30th April, 2021 The Manager, The Manager BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai - 400 001. Bandra (E), Mumbai – 400 051. Ph. No. 022- 22721233 / 22721234 Ph.No. 022- 265
Slide 2: ATFL an affiliate of Corp. Office: 15 th Floor, Tower ‘C’, Bldg # 10,
ATFL an affiliate of Corp. Office: 15th Floor, Tower ‘C’, Bldg # 10, Phase II, DLF Cyber City, Gurgaon-122002. Tel: 91-124-4593700, Fax: 91-124-4593799 Regd. Office: 31, Sarojini Devi Road, Secunderabad – 500 003, India. Tel: 91-40-66650240, Fax: 91-40-27800947 Web: www.atfoods.com CIN: L15142TG1986
Slide 3: ATFL Business Update FY'21 Results
ATFL Business Update FY’21 Results April 30th, 2021
Slide 4: Company Strategic Vision
Company Strategic Vision The Best Performing Most Respected Foods Company in India 2
Slide 5: FY'21 – Key Performance Highlights
FY’21 – Key Performance Highlights Strong Foods Growth drives Total P&L • Robust 35% Growth in Foods – Revenues of Rs. 349 crore, Gross Margin up 400 bps - with a structural EBITDA margin of 15%+. • New Products deliver 500bps+ of Foods Growth. • Media investments more than doubled up to c Rs. 16 cr
Slide 6: Performance Highlights by Category
Performance Highlights by Category 1. Ready to Cook Snacks 2. Ready to Eat Snacks 3. Spreads (Rs. 10,000 crore) (Rs. 35,000 crore) (Rs. 2300 crore) 4. Breakfast Cereals 5. Chocolate Confectionery 6. Edible Oils (Rs. 2900 crore) (Rs.15,000 crore) (Rs. 194,000 crore) 4 * Category Sizes in Brackets
Slide 7: Ready to Cook Snacks
Ready to Cook Snacks RTC (FY’21 Revenue Q1 Q2 Q3 Q4 FY 21 Rs. 216 crore) Volume +42% +64% +59% +52% +55% Value +37% +60% +55% +48% +51% • A record 50%+ growth in FY’21 – First Category to cross Rs. 200 crores in Revenue. • Enhanced media spends helped to protect share and drive sustainable growth. •
Slide 8: Ready to Eat Snacks
Ready to Eat Snacks RTE (FY’21 Revenues Q1 Q2 Q3 Q4 FY'21 Rs.43 crore) Volume -37% -14% -8% +9% -13% Value -36% - 8% -1% +17% -8% • Strong Recovery Post Covid-19. Both RTE Popcorn and Nachoz close at c 100 Volume Index. • Change in Go To Market and improved Supply Chain with Chittoor and Unnao drive
Slide 9: Spreads & Dips
Spreads & Dips Spreads(FY’21 Revenue Q1 Q2 Q3 Q4 FY'21 Rs.79 crore) Volume +16% +28% +36% +38% +30% Value +16% +30% +40% +42% +33% • Base Peanut Butter drives continued strong growth. • Growth further accelerated by successful launch of Chocolate Spreads & Nut Butters. • Entry into Dips with launch
Slide 10: Breakfast Cereals
Breakfast Cereals Cereals (FY’21 Revenue Q1 Q2 Q3 Q4 FY'21 Rs. 9 crore) Cont. Foods Growth-bps +210 +120 +160 +200 +170 • Significantly superior product offerings/value proposition in both Granola and Extruded Snacks relative to Competition. • Shells and O’s & X’s (Fruity) introduced as per Plan in
Slide 11: Chocolate
Chocolate Chocolates (FY’21 Q1 Q2 Q3 Q4 FY'21 Revenue Rs. 3 crore) Cont. Foods Growth-bps +60 +40 +70 - +40 • Category a Key Growth Driver for Foods in FY’22 – Coconut Filled Centers are amongst the Top 5 Candies in the UK and Top 10 in the US. • Product Price Architecture work on Coconut Filled Cen
Slide 12: Edible Oils
Edible Oils Premium Oils(FY’21 Q1 Q2 Q3 Q4 FY'21 Revenue Rs.303 cr) Volume +16% +6% +1% +6% +7% Value +14% +2% +9% +20% +11% Mass Oils (FY’21 Q1 Q2 Q3 Q4 FY'21 Revenue Rs.238 cr) Volume -23% -19% -37% -57% -34% Value -15% -9% -20% -41% -21% • With more competitive pricing, Premium Edible Oils start
Slide 13: Competitive Update
Competitive Update
Slide 14: Snacks: Competition Spends
Snacks: Competition Spends Rs. Million F-17 F-18 F-19 Q1-20 Q2-20 Q3-20 Q4-20 FY20 Q1-21 Q2-21 Q3-21 Q4-21 FY21 ACT II 110 74 38 13 17 15 0 45 13 32 20 30 95 Lays 148 374 252 84 162 189 56 491 28 83 79 145 335 Kurkure 196 260 396 74 90 85 72 321 0 61 111 64 237 Doritos 0 128 150 51 90 78 33 252 0 0
Slide 15: Spreads: Competition Spends
Spreads: Competition Spends Q1- Q2- Q3- Q4- Rs Million F-13 F-14 F-15 F-16 F-17 F18 F-19 FY-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 20 20 20 20 Kissan Jam- 254 207 304 381 357 512 704 201 235 184 133 752 218 218 110 134 679 Kissan PB 101 95 196 Sundrop PB 0 0 42 64 56 30 16 5 8 7 0 20 8 18 13 18 58 Veeba P
Slide 16: Breakfast Cereals: Competition Spends
Breakfast Cereals: Competition Spends Rs Million FY-17 FY-18 FY-19 Q1-20 Q2-20 Q3-20 Q4-20 FY-20 Q1-21 Q2-20 Q3-21 Q4-21 FY-21 Kelloggs Cornflakes 202 265 390 66 31 4 128 230 7 118 88 142 355 Kelloggs Chocos Fills 0 125 203 17 0 0 0 17 0 0 9 0 9 Kelloggs Chocos 310 362 509 104 112 31 82 329 38 122 7
Slide 17: Chocolates: Competition Spends
Chocolates: Competition Spends Final Brand ( In Million) FY-17 FY- 18 FY- 19 Q1 Q2 Q3 Q4 FY-20 Q1 Q2 Q3 Q4 FY-21 Cadbury 5 Star 642 744 482 91 189 227 220 727 102 192 385 281 960 Cadburys Celebration 142 138 212 12 135 129 0 277 0 79 320 0 399 Dairy Milk 1599 2229 2166 586 844 363 568 2362 209 915 1
Slide 18: Edible Oils: Competition Spends
Edible Oils: Competition Spends Rs Million F-12 F-13 F-14 F-15 F-16 F-17 F-18 F-19 Q1-20 Q2-20 Q3-20 Q4-20 FY-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Sundrop Heart 88 94 50 65 46 34 21 0 0 0 0 0 0 0 0 0 0 0 Saffola 121 212 356 291 338 320 588 544 248 123 109 48 527 114 145 61 81 400 Fortune 0 203 356 148 3
Slide 19: Using Media Spends to Explain Why the ATFL Way is Right
Using Media Spends to Explain Why the “ATFL” Way is today the “Right” way to build a High Quality Foods Business Management Reporting & Estimates ATFL Foods • Questions Often Raised: (Rs. Crore) (Current Structural) • Why not use 3 P for greater speed ? Net Sales 349 • Why not have a higher A&P ? Gr
Slide 20: Summary & Way Forward
Summary & Way Forward • Transformational Year for ATFL – Foods business close to Rs 350 crore with a structural EBITDA Margin of 15%+: – Ready to Cook crosses Rs. 200 crore; Spreads close to Rs. 80 crore. • Premium Edible Oils price realignment undertaken and margin impact digested – clear Volume Gr