DFM Foods — Q3 FY2022 Earnings Presentation
16 slides from DFM Foods's earnings presentation, Feb 4, 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 4" February, 2022 BSE Limited National Stock Exchange of India Ltd. (NSE) Phiroze Jeejeebhoy Towers, ExchangePlaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E), Mumbai — 400 001
Slide 2: DFM Foods Quarterly Update – Q3FY22
DFM Foods Quarterly Update – Q3FY22 4th Feb 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 RoCE Cycle Team 20+ ~ 30%3
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: New Launches – Last 12 months
New Launches – Last 12 months New Segment New Festive Pack Potato Chips : Launched in Uttar Pradesh, Haryana, and Uttarakhand Festive Gift Packs : Launched at price points of Rs. 65, 100, and 200 New Price Points Rs. 10 Rs. 20 Rs. 25 4
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 • 22 years of experience in FMCG Industry Paints • MBA, IIM Bangalore • 28 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: Q3'22: Key Highlights
Q3’22: Key Highlights 1 14.7% YoY revenue growth; 360 bps YoY share gain in the extruded category in our focus geographies 2 Material margin (excluding portfolio expansion) at 38.1%, despite sustained commodity inflation 3 Invested 10.9% of revenue in brand building, Go-to-Market initiatives, talent
Slide 10: Commentary for the quarter
Commentary for the quarter DFM grew 14.7% YoY, while the savoury snacks market grew 10.6% over the same period. Over 360 bps of YoY share gain in extruded market of focus geographies supported by significant investments in brand building, Go-to-Market initiatives, talent augmentation and technology.
Slide 11: Financial Update – Quarterly P&L
Q3’22: Financial Update – Quarterly P&L Abridged Quarterly Financials Key Highlights INR M Dec-20 Dec-21 YoY Gr. Sep-21 • With our sales and marketing efforts, Net Net Sales 1,353.8 1,553.3 14.7% 1,471.2 Sales grew 14.7% YoY and 5.6% QoQ Less: COGS 801.6 988.4 23.3% 922.0 Material Margin 552.2 564.9
Slide 12: Financial Update – YTD P&L
Q3’22: Financial Update – YTD P&L Abridged Quarterly Financials Key Highlights INR M YTD FY21 YTD FY22 YoY Gr. FY21 Net Sales 3,915.8 4,129.0 5.4% 5,240.6 • Despite 2nd wave of Covid and ensuing Less: COGS 2,337.9 2,596.0 11.0% 3,118.8 lockdowns substantially impacting the category and the company,
Slide 13: Financial Update – Balance Sheet
Q3’22: Financial Update – Balance Sheet Balance Sheet Key Highlights INR M Dec-20 Sep-21 Dec-21 • Negative working capital* continues Bank balances and investments 1,089 1,018 1,072 Inventory 238 279 337 Receivables - 18 25 • Company’s cash position continues to Other current assets 66 143 126 remai
Slide 14: Financial Update – Cash Flow
Q3’22: Financial Update – Cash Flow Cash Flow Key Highlights QUARTER YTD • Company’s cash position continues to INR M Dec-20 Dec-21 Dec-20 Dec-21 remain healthy Reported EBITDA 165 (27) 492 (15) Change in WC (111) 79 (52) 226 Income tax paid (30) (1) (88) (3) • Capex of INR 45M in Q3FY22 for investm
Slide 15: Financial Update – Key Ratios
Q3’22: Financial Update – Key Ratios Material Margin1 Adjusted EBITDA Margin2 Adjusted PAT Margin3 70.0% 25.0% 12.0% 60.0% 20.0% 7.0% 50.0% 7.0% 40.8% 37.3% 15.0% 12.1% 40.0% 36.4% 30.0% 10.0% 2.0% 20.0% 5.0% -0.2% -3.0% Dec-20 Sep-21 Dec-21 10.0% -0.5% 0.0% -2.3% -2.4% 0.0% Dec-20 Sep-21 Dec-21 Dec
Slide 16: Thank you
Thank you 15