Agro Tech Foods Limited has informed the Exchange about Investor Presentation
20th October 2022
The Manager
The Manager, BSE Limited, Listing Department Floor 25, Pheroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001. Ph. No. 022- 22721233 / 22721234 Fax No. 022-22723121 / 22721072
National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051. Ph.No. 022- 26598100 / 26598101 Fax No. 022-26598237 / 26598238
Codes:
BSE Scrip code 500215, Co. code 1311 NSE Symbol ATFL, Series EQ-Rolling Settlement
Dear Sirs,
Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015
Further to our earlier letter dated 10th October, 2022 regarding hosting of an analyst call on the unaudited financial results for Q2 and half year ended September 30, 2022 on Thursday, 20th October, 2022, we are enclosing a copy of the presentation proposed to be shared to analysts and investors at the said Call. The presentation would also be placed on the website of the Company.
You are requested to take this on record.
Thanking you,
Yours faithfully For Agro Tech Foods Limited
Jyoti Chawla Company Secretary and Compliance Officer Encl. a/a.
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: L15142TG1986PLC006957
Agro Tech Foods Limited FY’23 Quarter 2 Update
October 20th, 2022
Company Strategic Vision
The Best Performing Most Respected Foods Company in India
2
Quarter 2 – Key Performance Highlights Steady Foods Growth – Improving Margins
• Foods Revenues of Rs. 124 crore - growth of 13% vs PY. First time
ever to track close to annualized sales of Rs. 500 crore.
• Non RTC businesses drive Total Foods with a 33% revenue growth. • Foods Gross Margin improves from Q1 Low reflecting softening of commodity prices, impact of Pricing Actions and Volume growth in non RTC business.
• Edible Oils GM of c Rs. 16 cr. within range of desired Rs. 70 cr. (+/-). Continue to balance Volume with Gross Margin in a volatile market.
• Q2 Media marginally below PY. Needs correction going forward. • Q2 SG&A higher than PY by Rs. 3 crores - largely due to Travel &
Secondary Freight.
• PBT & PAT are Rs. 4 crore & Rs. 3 crore respectively.
3
Performance Highlights by Category
1. Ready to Cook (Rs. 18,000 crore)
2. Ready to Eat -Western (Rs. 28,500 crore)
3. Spreads (Rs. 3400 crore)
4. Breakfast Cereals (Rs. 3500 crore)
5. Chocolate Confectionery (Rs.13,600 crore)
6. Staples (N.A.)
* Category Sizes in Brackets – At Retail Price
4
Ready to Cook Snacks
RTC
Volume Value
Q1, FY’23
Q2 FY’23
YTD, FY’23
-5% -4%
-4% +1%
-4% -1%
• Impact of price increases in Popcorn/Sweet Corn visible in
Value vs Volume – Value moves into positive space. • Non RTC Popcorn business led by Pasta shows steady
progression.
• Volume gap vs PY due to Covid19 in base. Greater focus
underway to address the gap.
• Commercial production of Pizza and Pasta Sauce
underway.
• Development of Plant Meat continues – work underway
on texture for the right sensorial experience.
5
Ready to Eat Snacks
RTE
Volume Value
Q1 FY’23 Q2 FY’23 YTD FY’23
+65% +79%
+32% +50%
+44% +61%
• Strong growth continues with steady strengthening of the RTE
Popcorn Business.
• Clear improvement in Margin driven by Price Increases, Grammage Reduction and Packaging Footprint changes. • Sweet Snacks start to gain momentum – Caramel Bliss/Duo
Cruncheez.
• Work underway on Value Added RTE (including Protein). • Going forward drive increasing share of Sweet & Value Added Snacks to drive Margin Improvement for sustainable growth.
6
Spreads & Dips
Spreads
Volume Value
Q1 FY’23
Q2 FY’23
YTD FY’23
+28% +10%
+30% +14%
+29% +12%
• Return to strong growth with price realignment in
FY’22. Capacity increase work underway.
• Competition forced to replace stock in trade. Impact of
ATFL strategy visible in terms of freshness of stock.
• New High Protein Variant “PeAq” introduced in Quarter 2 –
Roll Out underway.
• Choco Peanut Spread launched in Q2 to complete the Nut based Chocolate Spreads range – Hazelnut, Almond and Peanuts.
• Commercial production of Salsa underway.
7
Breakfast Cereals
Cereals
Volume
Value
Q1 FY’23
Q2 FY’23
YTD FY’23
+54%
+58%
+40%
+46%
+45%
+51%
• Steady growth driven by Distribution – Category now
nudging the 100,000 store mark.
• Company in a very strong position in “Cereal Snacks” – likely highest distribution of center filled cereals.
• Introduction of the Hazelnut Center Filled Popz very well
accepted. Additional variant scheduled for Q3.
• Commercial production started of Value Added Oats. • Game Plan under development for a bigger and stronger
position in the “Breakfast” category:
• Executing Shelf Presence in the Category. • Finding and addressing Unmet Consumer Needs.
8
Chocolates
Chocolates
Q1 FY’23
Q2 FY’23
YTD FY’23
Volume
Value
+218%
+94%
+129%
+252%
+105%
+144%
• Continued strong growth in the Business driven by Distribution – nudging the 100,000 mark. • Increase in price realization visible in Value vs Volume growth. Consequent improvement in Margin as well.
• First phase of capacity enhancement completed. Work
underway for a Rs. 100 crore+ capacity for FY’24. • Portfolio refinement underway to address multiple
consumption occasions and consumer needs.
• Demand creation options being tested for accelerated
growth to support FY’24 Plans.
9
Staples
Premium Staples
Q1 FY’23 Q2 FY’23
YTD FY’23
Volume Value
-12% -8%
-9% -0%
-11% -4%
Mass Staples
Q1 FY’23 Q2 FY’23
YTD FY’23
Volume Value
-74% -71%
-70% -65%
-72% -67%
• Premium Staples reflects softness in offtake with significantly higher consumer
prices relative to PY. Focus on protecting Margin.
• Execution of strategy underway to make Premium Staples more broad based
while providing procurement scale to Foods:
• Roll out of Oats started. • Additional Staples items under development.
• Mass Staples reflects largely exit from Crystal in FY’22.
10
Competitive Update
Snacks: Competition Spends
Rs. Million ACT II Lays Kurkure Doritos Cheetos Bingo Parle Crax Yellow D Mexitos Cornitos Too Yumm Balaji Pipo
Total Tracked Brands
F-17 110 148 196 0 0 683 0 58 248 65 10 0 0
F-18 74 374 260 128 0 965 0 55 145 0 1 146 0
F-19 38 252 396 150 46 815 0 106 256 0 0 470 21
FY20 45 491 321 252 34 954 0 139 139 0 0 312 201
FY21 Q1-22 Q2-22 Q3-22 Q4-22 FY22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 80 95 742 335 333 237 265 0 0 0 952 1252 2 20 212 138 106 61 0 0 0 0 238 161 53 93 0 1
18 238 98 0 0 242 2 20 14 0 0 14 2 0
11 127 70 55 0 261 0 58 30 0 0 93 21 0
31 202 65 116 0 261 0 63 31 0 0 99 30 0
15 333 78 0 0 262 0 61 28 0 0 119 0 0
20 175 101 94 0 188 0 71 31 0 0 33 0 0
10 6 73 115 0 114 0 33 9 0 0 14 0 0
0 299 0 0 0 44 0 68 8 0 0 0 0 0
21 305 81 157 0 193 0 175 25 0 0 53 0 0
11 0 8 42 0 35 0 74 8 0 0 39 0 0
1517
2147
2549
2888
2394
648
897
725
713
2983
895
374
216
419
1010
Frito-Lay dominates spending. DFM increases Spends. Act II spends lower than PY.
Based on Management Estimates
12
Spreads: Competition Spends
Rs Million
F-13 F-14 F-15 F-16 F-17 F18 F-19 FY-20 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23
0
0
64
42
56
Kissan Jam 254 207 304 381 357 512 704 Kissan PB Sundrop PB Veeba PB Amul PB Pintola PB Saffola Honey Patanjali Honey
102 317 182
95
16
30
0
0
0
752
20
679 196 58 54
196
7
62
69
18 0
0
69 203 134 180 206
131
364
18 0
0
15 2
0
9 16
7 65
8 25
54 159 166
20 8
59
29 7
60
25 0
0
Dabur Honey 44
Lion Honey Apis Honey
Hershey Ch.
Nutralite Tracked Brands Total
156 109 12 1 2
19
47
24
6 0
3
154 129 18 0 3 4 66
33
64
10 0
26
7
138 125 6 0 2 1 82
25
39
18 0
17
11
124 146 13 0 2 0 21
31
13
3 0
33
11
572 508 49 1 9 4 188
133 106 10 0 1 1 0
136
100
140
38 0
79
29
9
0 0
0
0
50 31 6 28 0 0 0
0
4
0 0
1
61 50 6 28 1 0 0
0
5
1 0
30
0
60 31 6 28 0 0 0
0
0
2 0
5
0
172 112 19 84 1 0 0
0
9
2 0
37
0
323 294 433 767 943 1135 1220 996
1703
379
514
463
397
1753
359
121
183
132
435
Unilever Q2 spend in line with PY. Veeba spend of Rs. 8 crore. ATFL spends broadly in line with PY.
Based on Management Estimates
13
Breakfast Cereals: Competition Spends
Rs Million
FY-17 FY-18 FY-19 FY-20 FY-21 Q1-22 Q2- 22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23
Kellogg Cornflakes
202
Kellogg Chocos Fills
Kellogg Chocos
Kellogg Muesli
Kellogg Granola
Nestle Koko Krunch
Saffola Oats - Total
Quaker Oats- Total
0
310
0
0
0
322
102
Cadbury’s Bournvita Fills
0
265
125
362
118
0
0
283
164
0
390
203
509
239
1
193
268
110
0
Tata Soulfull- CHOCOFILLS
Tata soulfull - Muesli
Parle hide n seek fills
230
355
124
124
108
171
526
136
17
329
147
14
60
448
269
9
344
177
89
121
424
184
20
17
0
0
111
52
22
0
145
130
5
0
0
81
40
17
0
83
14
0
44
20
88
34
16
0
103
16
0
26
29
74
62
19
0
142
135
0
62
49
354
187
74
0
474
296
5
131
20
60
86
35
0
125
12
0
91
61
0
33
31
14
0
32
1
0
1
28
48
11
21
30
12
71
0
0
0
0
44
13
26
14
5
0
16
81
0
10
5
0
152
23
79
75
31
0
119
82
0
11
5
28
Tracked Brands Total
975
1,317 1,979 1,530 1,724
589
361
410
693
2,096
564
172
192
209
573
Kellogg continues broad based support. Nestle discontinues support.
Based on Management Estimates
14
Chocolates: Competition Spends
Rs Million Cadbury 5 Star Cadburys Celebration Dairy Milk Cadburys Fuse Cadburys Gems Cadburys Perk Kinder Kinder Creamy Ferrero Rocher Amul Hersheys Kisses Hersheys Exotic dark Snickers Galaxy Nestle Milky Bar Nestle Munch Nestle Kit Kat Fabelle CandyMan Fantastik Total tracked brands
150
276 56 1168 146 143 133 0 80 0 8 87
482 212 2166 407 285 231 837 0 0 61 42
FY- 18 FY- 19 FY-20 FY-21 Q1-22 Q2-22 Q3- 22 Q4-22 744 256 138 11 2229 1083 598 147 416 158 321 154 484 323 0 0 0 22 7 50 0 156 81 0 8 49 149 115 0 44 2806
727 960 277 399 2362 2978 477 509 389 438 598 470 1193 608 0 132 0 179 139 109 235 314 54 65 21 206 547 943 53
377 370 1268 109 131 145 306 0 77 27 166 143 95 231 72 93 137 7 90 3857
864 41 115 129 117 24 44 26 14 41 5 7 22 53 150 0 17
27 3 62 103 175 0 36 2523
217 0 187 414 597 0
259 0 146 604 712 23
201 23 368 626 841 69
9261 9615 1835
6898
6520
153 7
FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23 1058 461 437 106 4384 1300 1654 443 547 547 166 562 171 747 978 104 0 143 0 111 129 423 228 265 314 127 101 250 10 205 76 398 269 577 402 7 12 187 0 5635
88 40 256 198 51 38 114 0 0 0 52 42 0 0 18 75 112 8 0 1094
313 66 979 313 72 87 664 0 0 129 171 263 99 0 41 158 286 4 0 3646
60 0 419 36 44 45 200 0 0 0 5 9 2 10 17 35 4 0 0 886
83 137 102 100 0 0 1 21 0 11 12 20 78 181 8 44
11021 2263
Major players continue spending consistently.
Based on Management Estimates
15
Edible Oils: Competition Spends
Rs Million
F-12 F-13 F-14 F-15 F-16 F-17 F-18 F-19 FY-20 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23
Sundrop Heart
88
94
50
65
46
34
21
0
0
0
0
0
0
0
0
0
Saffola
121 212 356 291 338 320 588 544 527
400
116
86
68
106
375
62
Fortune
0
203 356 148 319 828 666 543 495
510
166
145
102
126
540
121
Emami Ltd.
156 137 1214 647 626
799
150
27
41
30
103 354 966 170
26
20
40
49
228
31
31
52
70
29
27
41
175
183
578
121
22
24
27
9
27
13
91
109
133
0
26
84
0
37
92
22
0
0
0
0
34
39
41
6
0
0
0
82
19
1
0
0
72
212
81
7
0
16
23
40
209 509 762 504 961 1700 3576 1936 1694 2024 546
398
417
464 1825 415
151
136
124
411
Oleev
Patanjali
Gemini
Tracked Brands Total
Others
722 915 815 128018762153 1672 1652 2096 2597 537
637
990
733 2897 601
185
308
251
744
Category Total 931 14241577178428373853 5248 3588 3790 4621 1083 1035 1407 1197 4722 1016 336
444
375
1155
Mass Oils share of spending further increases.
Based on Management Estimates
16
Noodles: Competition Spends
Rs. Million
Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23
Chings Noodles Wai Wai Knorr Soupy Noodles
17 0 0 Sunfeast Yippee noodles 81 0 Sunfeast Yippee- Masala 0 Saffola Oodles 4 A&M Twisty Noodles 0 Maggi Chatpata Tomato 11 Maggi Fusian Maggi Masala Veg Atta 123 135 5
Maggi Noodles Maggi Special Masala Maggi veggie masala Maggi Chicken noodles Patanjali Atta Noodles Pran Mr Noodles 1 to 3 Chatpat noodles Goldiee Noodles Trdp Mario Masala Total
0 4 0 0 0 382
2 0 0 168 0 0 0 0 0 38 46 0 0 0 0 7 0 13 8 284
19 0 140 85 0 0 5 0 0 5 141 115 0 0 0 12 0 3 3 528
20 1 0 336 0 0 4 0 0 85 282 6 0 0 0 9 4 0 0 749
0 17 0 57 144 0 5 11 0 62 178 9 0 0 0 14 2 0 0 504
40 19 140 647 144 0 13 11 0 190 648 131
1 43 6 17 11 2065
0 6 0 185 3 135 0 0 0 62 243 0
0 6 0 0 0 648
0 0 0 155 36 99 0 0 0 47 143 3
0 8 4 0 0 496
0 0 0 120 0 35 5 0 0 37 112 0 34 3 0 5 2 0 42 394
0 0.2 0 105 1.4 6 0 0 0 0 104 0 52 0 0 0 1 0.3 0 269
0 6 0 565 40 275 5 0 0 146 601 4 86 3 0 19 7 1 42 1807
8 20 0 195 9 4 0 0 0 64 219 0 36 0 0 0 3 0 0 561
0 0 0 35 0 0 0 0 0 32 102 0 2 0 0 0 2 0 0 174
0 1 0 11 0 2 0 0 0 0 98 0 0 0 0 0 0 0 0 113
0 0 0 0 0 2 0 0 0 77 98 0 16 0 0 0 0 0 68 261
Nestle dominates spending. Other players seek to leverage price gap.
Based on Management Estimates
0 1 0 46 0 4 0 0 0 109 298 0 18 0 0 0 2 0 68 548
17
Pasta: Competition Spends
Rs.Million
Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY- 21 Q1-22 Q2-22 Q3-22 Q4-22 FY- 22 Q1- 23 Jul-22 Aug-22 Sept-22 Q2-23
Bambino Pasta
Sunfeast Yippee pasta
Keya Italiano Pasta
Maggi Pazzta
Maggi Pazzta Cheese Macaroni
Savorit Pasta
Weikfield Pasta
TOTAL
0
0
2
0
0
4
0
6
0
0
0
0
0
11
0
11
0
90
0
0
0
0
0
0
1
0
0
1
0
24
26
1
93
0
50
47
30
77
2
0
0
24
83
14
24
259
90
75
0
0
0
1
2
0
0
3
0
1
0
0
0
0
4
5
1
4
13
0
0
1
0
18
1
0
0
0
0
0
0
1
2
5
13
1
2
1
4
27
0
1
0
0
0
1
0
2
0
0
0
0
0
4
0
4
0
0
0
0
0
1
0
1
Almost Nil spend on QTD Basis.
Based on Management Estimates
0
1
0
0
0
0
0
1
0
1
0
0
0
5
0
6
18
Soups: Competition Spends
Rs. Million
Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-22 Q1-23 Jul-22 Aug-22 Sep-22 Q2-23
Chings Instant Soups
Eastern Instant Rasam Knorr Chicken Delite Soup Knorr Chinese Manchurian Knorr Classic Sweet Corn Veg Soup
3
1
8
6
5
Knorr Cup-A-Soup
13
0
1
19
0
0
0
37
8
23
51
0
0
29
0
42
0
0
0
1
0
66
9
23
107
0
0
0
51
0
0
0
0
8
0
0
0
5
0
22
0
0
0
31
0
83
0
0
0
Knorr Hot & Sour Veg
192
65
231
244
191
731
100
143
258
Knorr Soup
B Natural Soups
Mtr Minute Rasam
0
0
0
0
0
0
0
24
0
2
0
0
2
24
0
0
0
0
0
0
0
0
0
0
0
36
0
0
0
84
198
77
0
0
0
84
29
0
0
0
0
0
586
29
0
0
71
0
0
0
0
0
0
0
0
25
36
0
0
0
0
30
9
0
0
0
0
26
71
0
0
0
0
81
200
0
0
36
33
29
98
0
0
0
0
0
0
0
0
0
0
0
0
Total
228
85
350
338
216
989
108
171
373
197
849
148
97
72
64
379
Knorr remains dominant spender.
Based on Management Estimates
19
Q2 Summary
• At c Rs. 124 crore of Foods Net Sales, this Quarter is the closest we
have ever come to annualized revenues of Rs. 500 crore.
• Margins improve from Q1 Low. Work underway to drive further
improvement through Operating Leverage, Portfolio Management & Pricing as appropriate by Category.
• Q2 Foods Revenue provides credibility & confidence for our vision – “The Best Performing Most Respected Foods Company in India.
• Building blocks for the next Rs. 500 crore clearly visible with multiple levers of growth based on innovation across several categories.
20