ADF Foods Ltd Investor Presentation Q2 FY 2024-25 PDF

28th October, 2024 AtJr F O ODS...

28th October, 2024 AtJr F O ODS 'Jeedi_,Uf dw LT D. wodd.. National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Department of Corporate Services, Bandra Kurla Complex, Phiroze Jeejeebhoy Towers , Bandra (East), Dalal Street, Mumbai - 400 051. Mumbai - 400 001. Symbol: ADFFOODS Scrip Code: 519183 Dear Sir/Madam, Sub: Investor Presentation of Q2 FY 2024-25. Please find enclosed herewith the Corporate Presentation of the Company for the Quarter ended 30th September, 2024. The aforementioned Presentation has been uploaded on the Company’s website viz., www.adf-foods.com You are requested to the take the above on your records. Thanking You, Yours faithfully, For ADF Foods Limited SHALAKA Digitally signed by SHALAKA SWAPNIL SWAPNIL OVALEKAR Date: 2024.10.28 OVALEKAR 19:25:06 +05'30' Shalaka Ovalekar Company Secretary Encl: As Above Regd Off: 83/86, G.I.D.C Industrial Estate, Nadiad - 387 001, India. Tel.: +91 268 2551381/82 Fax: +91 268 2565068 Email: [email protected] CIN: L15400GJ1990PLC014265 Corp. Off: Marathon Innova, B2, G01, Ground Floor, G. K. Road, Lower Parel, Mumbai 400 013. INDIA. Tel.: +91 22 6141 5555, Fax: +91 22 6141 5577, Email: [email protected], Web: www.adf-foods.com ABf FOODS LTD. ADF Foods Ltd 9eedinfSOl.llMln9(!Chl'UICID ,.._IOUndl Olive Oil [!] ~ Following Message Email.t. a Gel it for ,104.751 HMM !Ill ~ PRIYA ~ )In Pickle - Mixed Explore Sa uces & D ressi ngs Vegetable With Garlic For your subs & salads 300 g Bottle Your favourite AOr Soul pickles & t ,10s ~ chutneys are waiting for you! S&UL -..._:_;;;, As it's been some ime since your las Q chutney India's OQV first pickles in purchase, we wanted to give you a friendly reminder to res ock. Here is a delicious offer only for you! -- _.._.W.'IP"l'O'l lwillPlckiff~t....... CMyou............. , Mother's Recipe Ask Foods Dabur GE ETA olive oil mmm 53 Items supersaver ~ Filter Pickle - Mix Vegetable 4 ♦ 276 Ratings flat 15% Off on purchase of any 2 f 54..0 products along with an extra 10% Off soog Jar on prepaid orders. f155 It's time to Restock! 16:48 C Order Now Instant Coconut (ri) ,,.... Chutney - No Preserv... wtsou1 / A Who'11..o,,1o--w,o,,oc,oc11Wa? 3.4 * 140 Rat,ngs 22 0.,,C.IOl~..,_it,.. IO l>PIQtlhn9'1/P1 WhlT,joOllfllf>'Oditt\top.alr..W,1.. fiay. - Truly Indian: Unlocking Global Markets With Authentic Indian Flavours ~ I Bridging Cultures with Authentic Indian Taste FOODS LTD. t..Jl119 th,wodd.. Presence: Target Audience:  Strong presence across Germany, now launched in USA  Exclusively targeted at the global mainstream population, specifically non-Indian diaspora seeking traditional Indian flavours. Sales & Distribution Channels: Product Features: ~ HYGIENlCALIY TRADITIONAL  Soldthrough mainstream/modern trade stores, bolstering its presence across large supermarkets, club stores, and food service markets. PREPARED FLAVOURS  Deliversthe REAL taste of India with fresh, shelf-stable ready-to-heat foods, offering vegan & vegetarian options.  Available on Amazon with Retail Expansion to 1,300 Outlets  Wideproduct range includes ready-to-eat meals, pastes and sauces, rnfTEj' meal accompaniments,, carefully crafted for a milder palate. WHOLE FOODS amazon ~ Product Range: M A RKET om e, EEIEEB Existing Range: Regular Meal Assortments New Category Range Expansion 1?aeeys l sro1 P&SHOP I GREENAcREs MARKET Thar healthy focxL experr.s  Poppadum  Condiment boxes pastes  Frozen  Frozen Breads Snacks HEtt~DS GtiiNt ~ ffi ' ~. I.... I  Cooking sauces  Frozen Wraps  Chutneys  RTE curries & rice Update & Outlook:  Dedicated sales team hired in USA focused on brand expansion  Expandedrange and new offerings to drive deeper penetration and enhance shelf space 23 Truly Indian: Marketing Initiatives FOODS LTD. Ml119 th,wodd.. Introduction of Truly Indian in Whole Foods & Increased shelf visibility 24 Camel & Aeroplane: Our Other Esteemed Brands ~ I F OO DS LTD. Ml119 th,wodd.. Delighting Arabic Consumers for over 5 decades For the Value seeking Middle East Consumers Premium brand targeted at Arabic diaspora  Valuefor money brand targeted at Target Audience quality - conscious expat audiences in Middle East Strong consumer base across GCC markets – UAE, Iraq, Oman, Bahrain, Kuwait, Qatar & Saudi Arabia ~ Presence  Enjoys patronage across all Middle Eastern markets Special focus on Middle Eastern recipes like Biryani, rnf'i'n'  Recently launched Frozen Indian Breads & Indian Snacks Kebsa, Mabouch, Majboos & Mandi nrr, Pi EEIFEB Product Range 11,J,,il~,~l~ ~~i2  Pickles  Curry Powder l{Ooq l31,i 1! ,,,111-::1~ il.,;&1~~ -  Condiments  Dips 0~ - ~ ~ ---= ~ ' -- TRUSTED.::_ !~ :ii,;i~::-..,r :-=- i;;,.r  Pastes  Tamarin CAREFULLY MARKET s ,J :K r,,ii~~~,.o~1~_,~~ SELECTED  Sauces  Flavours LEADER -ij.ji! ~ !Ul IPJ,1~,.;,-Ii~~ ~-~s INGREDIENTS  Marinades  Essences ~ ~ ~ - 11:'.- lr'l l!l:::'_- _ _e '~ ~ l "'"'!fSll\1~~~~1:; '- c· ,, ~s~ · ,;w. ll " !"l-"!!'·11... , :-:~-:>"! 1: m '11,.. SOURCED & HYGIENICALLY J} PREMIUM ® QUALITY YOU FROM INDIAN PROCESSED SPICES CAN TRUST FARMS & PACKED 25 Product Portfolio ~ I Select Key Products FOODS LTD. Ml119 th,wodd.. Ready-to-eat & Ready- Frozen Products Food Accompaniments Spices & Others to-cook  Frozen snacks, Baked snacks  Ready to eat vegetables & curries  Pickles  Spices- madras curry powder,  Frozen Parathas & samosas  Ready to eat vegan  Chutneys tamarind, etc  Mango pulp  Frozen gravies  Plant Based range  Dipping sauces  Indo Thai & Chinese Range  Frozen Indian breads  Cooking & condiment pastes  Canned sweets  IQF fruits & vegetables  Cooking sauces & cubes  Frozen sweets, puffs  Murabba 400+ SKUs 26 Manufacturing Facilities I FOODS LTD. Ml119 th,wodd.. Plant 1 Nadiad, Gujarat Plant 2 Nasik, Maharashtra  Total Built up area - ~26,000 Sqm*  Total Built up area – ~12,000 Sqm*  Frozen foods (Samosas, vegetables, snacks, parathas,  Totally automated spice processing unit by Buhler, etc.); Meal accompaniments (Pickles, chutneys, pastes, Germany sauces); Ready to eat curries & canned vegetables  Ready to eat curries and spices; meal accompaniments 28,000 MT Annual food processing capacity Incremental CAPEX Initiatives & Outlook Benefits ✓ Brownfield and debottlenecking efforts at existing plants Incremental revenue Unlocking capacities in in Nadiad & Nasik Rs. 180 - 200 crores existing & new facilities ✓ Surat Greenfield expansion (~Rs. 75 crores – Phase 1) in existing and new lines for frozen foods.. Incremental revenue Rs. 250 - 275 crores ✓ Substantial progress on the upcoming Cold storage Higher operational Cold storage upgrade upgrade in Nadiad worth ~Rs. 15 crore, to further efficiency enhance throughput 27 Quality Control & Certifications ~ I Quality control certifications and processes ensure high standards and excellence in our industry FOODS LTD. Ml119 th,wodd.. Sede~ ssat SMETA~ 0 UKAS PRODUCT Food Safety CERTIFICATION CERTIFICATED ODDS 28  Warehousing Facilities Available For Distribution Business Warehousing and Distribution Facilities Atlanta, USA (34,000 sq.ft.) New Jersey, USA (66,000 sq.ft.) Cold storage facility in New Jersey, USA Combined 100,000 sq. ft of area for warehousing and distributing operations shared among two warehouses in Atlanta and New Jersey (NJ). Enhanced capabilities through the establishment of a new cold storage facility (large freezer capacity) to enhance the handling of our frozen product range, elevating service levels and boosting margins. 29 Distribution Business I FOODS LTD. Ml119 th,wodd.. Distribution Business Alongside the processed food business, ADF has undertaken the agency distribution for a select FMCG company products whose ROCE is in line with own brands, broadening the overall portfolio Serving as a distribution partner for a for renowned packaged tea brands Marketing Initiatives: such as Lipton, Brooke Bond Red Label, Taj Mahal as well as for bolstering Product sampling of distributed brands @ retail stores brand associations. Strengthening distribution business allows for deeper network penetration, allowing for the dilution of distribution expenses and enhanced shelf space visibility. This business operates on a pull and push effect proving beneficial for both ADF Foods Ltd and the FMCG company. 30  FOODS LTD. Ml119 th,wodd.. Environmental, Social & Governance (ESG) 31  ESG Initiatives in FY24 FOODS LTD. Responsible sourcing Technology for good Business with a heart We source the best ingredients and ensure the We utilize technology smartly to create products Taste and convenience are at the heart of what people who supply them get a fair price. that are good for you and the planet. we do – but so is integrity Renewable Energy Usage Emission Intensity Decrease Energy Intensity Reduction Grid electricity (renewable sources) 133% YoY Related to revenue (0.0027 TCO2e/1000 INR in 2022-23) 0.0024 TCO2e/1000 INR --------------------------------------------------------- In terms of revenue (0.02 MJ/INR in 2022-23) 0.019 MJ/INR ------------------------------------------------· Renewable energy mix Related to output 0.000523 In terms of output 4.15 (0.8% in 2022-23) 1.67% 2023-24 (0.000604 TCO2e/Kg in 2022-23) Kg/1000 INR (4.62MJ/Kg in 2022-23) MJ/Kg ------------------------------------------------· Empowering Social Growth Focus Areas Education Healthcare Hunger Women empowerment Poverty eradication CSR Expenditure 29% YoY Safety & Health Training & Other 24/7 emergency vehicle Safety and material handling training Local healthcare partnerships Safety week for culture enhancement Frequent health screenings for staff Strategic CCTV placement for security Advanced fire-fighting infrastructure NH3 gas leakage kits Regular fire safety drills. Protective jackets for cold work areas 32  Governed by experienced Board Of Directors ~ I FOODS LTD. Ml119 th,wodd.. Bimal Thakkar Viren Merchant Jay Mehta Arjuun Guuha Chairman, Managing Director and CEO Non-Executive Director Whole Time Director Non-Executive Director 37+ years of experience in domestic and export 35+ years of rich industrial experience group and is the A senior food industry professional, with 29+ 30+ years of experience and expertise in food industry director of Indian operations at Mehta Group, that years of experience. business management and pharmaceutical and healthcare industry spans 4 continents and has business interests in cement He has held several senior management roles, Instrumental role in developing brands and new & building materials, horticulture, consultancy, etc. products, tapping new markets, international including Head of Operations & CEO positions, Currently CEO of Encore Healthcare Pvt Ltd. acquisitions, setting up of subsidiary companies in Executive Vice Chairman of Saurashtra Cement Ltd. both in India and overseas, with leading Indian U.K. and U.S.A. Corporations and MNCs. Deepa Harris Chandir Gidwani Pheroze Mistry M. M. Srivastava Independent Director Independent Director Independent Director Additional Director (Independent) 30+ years of expertise in high end luxury hospitality 45+ years of experience in financial services 40+ years of experience in business administration. A science graduate, master in physics IAS (Retd) category Chairman Emeritus & Founder of Centrum He is associated with companies across the areas of & MBA with 40+ years administrative & Independent Director of PVR Limited, Jubilant Capital Ltd; Member of industry associations e.g. logistics, industrial coating and painting, shipping, corporate experience Foodworks, Prozone Intu Properties, Taj Safaris, FICCI, CII, etc. dredging, general and Life Insurance, Investments Held positions such as Member (Fin) - Gujarat Concept Hospitality and TCPL Packaging. Immovable Property etc. Electricity Board, MD - Gujarat Agro Industries, Secretary - Finance Department, Commissioner of Commercial Tax Department, Principal Secretary - Energy Petrochemicals. 33 Organisation Chart I CMD Sales and Manufacturing India Support Marketing operations Business Functions Senior Vice 9 President USA Business Country Managers Director Operations President CFO l GM – Business & Strategy Vice President Marketing Head Manufacturing CS, VP - Legal & HR VP Sales Head Intl. Ops. & Supply Chain Procurement Head Supply Chain Head Intl. Marketing Head IT Head 34  FOODS LTD. t..Jl119 th,wodd.. Industry trends & ADF Growth Aspirations 35 I Culinary Horizons: Key Drivers Shaping the Ethnic Food Landscape " - - - - - - - - - - - - - - - - - - - - - - - - - ~ FOODS LTD. Ml119th,wodd.. Ethnic Food Trends Demographic factors & Macro Economic Trends Surge in health-conscious ethnic options: plant-based, Rise in Immigration Increase in nuclear vegetarian, vegan. families fth Growing fascination with diverse culinary cultures. Convenience driving ready-to-eat ethnic food market. Post-COVID-19 shift e Globalization & International travel ~ Increasing Rapid urbanization 1\I Millennials & Gen Z's fttl Rise of fusion cuisine and street-food inspired dishes. Increasing per capita income* across the globe Per capita income - USA Per capita income - India Increased consumer experimentation with global flavours. ₹ 2,01,431 $76,329 $62,823 $63,528 ₹ 1,64,961 ₹ 1,59,848 $57,867 ₹ 1,43,230 Social media and technology enhancing access to and interest in ethnic cuisines. 2016 2018 2020 2022 2016 2018 2020 2022 *Source: World Bank Open Data, For India Conversion rate (US$ 1 = Rs. 83.55) 36 ADF Foods – Our Aspirations ~ I Aspirational Revenue growth potential (Rs. Cr.). ------- Brownfield FOODS LTD. Ml119 th,wodd.. and debottlenecking initiatives to boost revenue potential at current capacities by Rs. 180 – 200 crores I I I r---------------- ~I ------- ♦ Upcoming Greenfield expansion to further boost revenue potential by I I I ___ 1,000 - 1,100 I Rs. 250 – 275 crores ~-----1 I I I I I I + I Scale up in Distribution business and potential outsourcing ~950 :I 150+ ------ ~ --------►opportunities supported by newer markets & products and optimized ---- -1- ------ 1 operations to drive continued expansion. I ___.I + Key Growth drivers ~ 700 ~250 Ashoka to propel ADF Foods with a steady 20-25% annual growth 520 + ~180 --------' SOUL projected to hit Rs. 100 crores in domestic revenue within ,,..-..-.-..--.-, ------------ ----- three years through an aggressive growth strategy +250 Truly Indian poised to mirror Germany’s success in USA market Strategic ambitions to enter newer markets Opportunity in inorganic growth to further boost momentum Ongoing efforts to increase penetration and shelf space FY24 + Brownfield & + Greenfield + Distribution & Continuous innovation committed in extending existing products debottlenecking other and exploring new categories. Potential to reach Rs. 900 – 1,000 crores in FY27 37  FOODS LTD. Ml119 th,wodd.. Annual Performance Highlights 38 IConsolidated 3-year Financial Highlights ~ - - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. t..Jl119th,wodd.. Particulars (INR crores unless stated) FY22 FY23 FY24 Profit & Loss Highlights Revenue from Operations 421.2 450.3 520.3 Gross Profit 211.5 235.9 276.2 Gross Profit (%) 50.2% 52.4% 53.1% EBITDA 66.6 80.6 104.9 EBITDA Margin (%) 15.8% 17.9% 20.2% PAT 48.5 55.9 73.8 PAT Margin (%) 11.5% 12.4% 14.2% Balance Sheet Highlights Equity 345.6 421.6 442.0 Net Debt* (101.3) (143.4) (144.5) Tangible & Intangible Assets** 137.1 157.2 165.6 ROCE 18.1% 18.1% 22.2% ROE 14.0% 17.7% 17.1% Working Capital 115.6 134.9 137.5 * Negative figure represents surplus cash, bank and short-term investments **Excluding goodwill 39 39 IConsistent Shareholder Returns ~ - - - - - - - - - - - - - - - - - - - - ~ ~ OS LTD. Ml119th,wodd.. Value creation for Consistent shareholder value creation through dividend payouts and buyback of shares shareholders Rs. ~125 Cr. returned to our shareholders since FY 19 43.9 30.0 13.2 8.8 11.0 6.6* 6.0 6.0 FY19 FY20 FY21 FY22 FY23 FY24 FY24 FY25 Share Buyback Amount (Rs. Cr) Regular Dividend (Rs. Cr) Special Dividend (Rs. Cr) *Interim Dividend (Rs. Cr) 40  f ADF Foods Limited Ernst & Young LLP CIN: L15400GJ1990PLC014265 Investor Relations Advisory Mr. Shardul Doshi, CFO Ravi Udeshi Sumedh Desai [email protected] [email protected] [email protected] I 41