DFM Foods — Q1 FY23 Earnings Presentation
14 slides from DFM Foods's earnings presentation, Jul 29, 2022
Slide 1: Cover letter to stock exchanges: Quarterly update
DEM Corporate Office: 1401-1411, 14"" Floor, Logix City Center, Sector-32, Noida-201301 (U.P.) Tel.: 0120- 6013232 29"July, 2022 BSELimited National Stock Exchangeof India Ltd. (NSE) Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra(E), Mumbai — 400 001 Mumb
Slide 2: DFM Foods Quarterly Update – Q1FY23
DFM Foods Quarterly Update – Q1FY23 29th July 2022
Slide 3: DFM: At a Glance
DFM: At a Glance Large Market with Strong Leading Brand in Extruded Best in Class Reach Growth Snacks #1 in Weighted Reach Pan India INR ~60 B1 #1 for Extruded Snacks2 ~25% CAGR in Extruded Snacks2 1.4M Retailers2 Negative Working Capital Professional Management Attractive Material Margin Cycle Team
Slide 4: Product Portfolio Evolution
Product Portfolio Evolution Launched in 1984 Launched in 2017 Launched in 2018 Launched in 2019 Rings Natkhat Curls Cheese Balls Fritts Pasta Crunch ‒ Extruded ‒ Extruded ‒ Extruded ‒ Extruded ‒ Extruded ‒ Pellets ‒ Corn-based rings; loop ‒ Crunchy wheat ‒ Corn-based soft ‒ Light and crispy ‒ Light
Slide 5: Strong Performance of Latest Product Launches
Strong Performance of Latest Product Launches Higher Price Points* New Festive Pack* Rs. 10 Rs. 20 Rs. 25 Portfolio Mix of Latest launch vs Others Festive Gift Packs : 20% 19% Launched at price points of Rs. 65, 100, and 200 15% Potato Chips : Launched in Uttar 10% Bowls and Noodles Pradesh, Haryana
Slide 6: Management Team
Management Team Lagan Shastri, Managing Director & CEO Nikhil Mathur, CFO • Ex-ED Operations, Hindustan Coca Cola Beverages • Ex-Sales Controller, Nokia; stints at Microsoft & Asian • 24 years of experience in FMCG Industry Paints • MBA, IIM Bangalore • 29 years of experience in Finance, Strategy an
Slide 7: Board of Directors
Board of Directors Hemant Nerurkar, Independent Non-Executive Director, Anil Chanana, Independent Non-Executive Director Chairman of the Board Chairman of the Audit Committee • Ex-MD, Tata Steel India • Ex-CFO, HCL Technologies • 35+ years of experience in Steel Industry • 30+ years of experience in
Slide 8: Strategic Roadmap
Strategic Roadmap Stakeholder Value Creation Brand Portfolio Go To Market Operational Technology People Excellence Excellence Excellence Excellence Excellence Excellence Integrity, Transparency, Empathy Personal Leadership & Courage Execution Excellence 7
Slide 9: Q1’23: Key Highlights
Q1’23: Key Highlights 1 32.1% YoY revenue growth; 90 bps YoY share gain in the extruded category in focus geographies 2 Material margin (excluding portfolio expansion) at 36.1% despite sustained commodity inflation 3 Invested 12.8% of revenue in brand building, Go-to-Market initiatives, talent augme
Slide 10: Commentary for the quarter
Commentary for the quarter DFM net sales grew 32.1% YoY, while the extruded snacks market grew 20.0% over the same period. Gained 90 bps of share in focus geographies, supported by significant investments in brand building, Go-to-Market initiatives, talent augmentation and technology investments. De
Slide 11: Q1’23: Financial Update – Quarterly P&L
Q1’23: Financial Update – Quarterly P&L Abridged Quarterly Financials Key Highlights INR M Jun-21 Jun-22 YoY Gr. Mar-22 • Net Sales grew 32.1% YoY on the back of post Covid Net Sales 1,104.5 1,459.0 32.1% 1,415.5 recovery, aided by our sales & marketing investments. Less: COGS 685.6 959.0 39.9% 893.
Slide 12: Q1’23: Financial Update – Balance Sheet
Q1’23: Financial Update – Balance Sheet Balance Sheet Key Highlights INR M Jun-21 Mar-22 Jun-22 • Negative working capital* continues Bank balances and investments 1,083 890 752 Inventory 308 325 332 Receivables - 65 61 • Company’s cash position continues to Other current assets 124 114 155 remain h
Slide 13: Q1’23: Financial Update – Cash Flow
Q1’23: Financial Update – Cash Flow Cash Flow Key Highlights QUARTER • Company’s cash position continues to remain healthy INR M Jun-21 Jun-22 Reported EBITDA 12 (144) Change in WC 9 (2) Income tax paid (1) (0) Capex (17) (32) Interest paid (12) (16) Interest received 9 5 Others 17 11 FCFF 16 (178)
Slide 14: Thank you
Thank you 13