DFM Foods — Q2 FY2023 Earnings Presentation
16 slides from DFM Foods's earnings presentation, Nov 14, 2022
Slide 1: Cover letter to BSE and NSE: Quarterly Update
DFM Corporate Office: 1401-1411, 14th Floor, Logix City Center, Sector-32, Noida-201301 (U.P.) FOODS LTD. Tel.: 0120- 6013232 DFM BSE Limited 14th November, 2022 National Stock Exchange of India Ltd. (NSE) Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Bandra (E
Slide 2: DFM Foods Quarterly Update – Q2FY23
DFM Foods Quarterly Update – Q2FY23 14th Nov 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 in Core INR ~60 B1 #1 geography for Extruded Snacks2 ~25% CAGR in Extruded Snacks2 1.4M Retailers2 Negative Working Capital Professional Management Attractive Material Margin Cy
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 : 25% Launched at price points of 21% Rs. 65, 100, and 200 20% 15% Potato Chips : Launched in Uttar 11% Bowls and Noodles Pradesh, Har
Slide 6: Key Brand Campaigns
Key Brand Campaigns Crax Fritts: Integrated campaign in Cinema theatres Large Packs – 100% Cashback Consumer Promo Crax Fritts - Smart Integration with Cricket Crax Rings: Collaboration with Little Singham
Slide 7: 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 8: 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 9: 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 8
Slide 10: Q2'23: Key Highlights
Q2’23: Key Highlights 1 13.1% QoQ revenue growth; 20 bps QoQ share gain in the extruded category in focus geographies 2 Material margin (excluding portfolio expansion) improved to 40.2% in Q2 FY23 vs 36.1% in Q1 FY23 3 Invested 13.2% of revenue in brand building and Go-to-Market initiatives vs. 11.5
Slide 11: Commentary for the quarter
Commentary for the quarter DFM net sales grew 13.1% QoQ, while the extruded snacks market grew 3.7% over the same period. Gained 20 bps of share in focus geographies supported by significant investments in brand building, Go-to-Market initiatives, talent augmentation and technology investments. Mate
Slide 12: Q2'23: Financial Update – Quarterly P&L
Q2’23: Financial Update – Quarterly P&L Abridged Quarterly Financials Key Highlights INR M Sep-21 Sep-22 YoY Gr. Jun-22 • Continued emphasis on sales and marketing helped Net Sales 1,471.2 1,649.7 12.1% 1,459.0 grow Net Sales 12.1% YoY. Less: COGS 922.0 1,015.9 10.2% 959.0 Material Margin 549.2 633.
Slide 13: Q2'23: Financial Update – YTD P&L
Q2’23: Financial Update – YTD P&L Abridged YTD Financials Key Highlights INR M YTD FY22 YTD FY23 YoY Gr. FY22 • Net Sales grew 20.7% YoY on the back of post Covid Net Sales 2,575.7 3,108.7 20.7% 5,544.5 recovery, aided by our sales & marketing investments. Less: COGS 1,607.6 1,974.9 22.8% 3,489.0 Ma
Slide 14: Q2'23: Financial Update – Balance Sheet
Q2’23: Financial Update – Balance Sheet Balance Sheet Key Highlights INR M Sep-21 Jun-22 Sep-22 • Negative working capital* continues Bank balances and investments 1,018 752 562 Inventory 279 332 438 Receivables 18 61 139 Other current assets 143 155 143 Total Current Assets 1,458 1,300 1,283 Fixed
Slide 15: Q2'23: Financial Update – Cash Flow
Q2’23: Financial Update – Cash Flow Cash Flow QUARTER YTD INR M Sep-21 Sep-22 Sep-21 Sep-22 Reported EBITDA (0) (111) 12 (255) Change in WC 139 (3) 148 (5) Income tax paid (1) (0) (2) (1) Capex (164) (9) (181) (42) Interest paid (17) (17) (30) (34) Interest received 12 6 20 11 Others (0) 3 17 15 FCF
Slide 16: Thank you
Thank you 15