Foods & Inns Limited

65%

023 Foods & Inns Limited (Investor Note – Q3 FY’23) FNI Standalone Q3 FY’23 Performance Sales 65% YoY in Q3 FY’23 at 195 crs v/s 118 crs Sales 53% YoY in 9M FY’23 at 649 crs v/s 426 crs EBITDA

53%

3) FNI Standalone Q3 FY’23 Performance Sales 65% YoY in Q3 FY’23 at 195 crs v/s 118 crs Sales 53% YoY in 9M FY’23 at 649 crs v/s 426 crs EBITDA 99% YoY in Q3 FY’23 at 20.3 crs v/s 10.2 crs EBIT

99%

YoY in Q3 FY’23 at 195 crs v/s 118 crs Sales 53% YoY in 9M FY’23 at 649 crs v/s 426 crs EBITDA 99% YoY in Q3 FY’23 at 20.3 crs v/s 10.2 crs EBITDA 58% YoY in 9M FY’23 at 66 crs v/s 41.9 crs PAT

58%

Y in 9M FY’23 at 649 crs v/s 426 crs EBITDA 99% YoY in Q3 FY’23 at 20.3 crs v/s 10.2 crs EBITDA 58% YoY in 9M FY’23 at 66 crs v/s 41.9 crs PAT 1129% YoY in Q3 FY’23 at 6.32 crs v/s 0.51 crs PAT 1

1129%

YoY in Q3 FY’23 at 20.3 crs v/s 10.2 crs EBITDA 58% YoY in 9M FY’23 at 66 crs v/s 41.9 crs PAT 1129% YoY in Q3 FY’23 at 6.32 crs v/s 0.51 crs PAT 109% YoY in 9M FY’23 at 27.2 crs v/s 13.04crs (PAT

109%

% YoY in 9M FY’23 at 66 crs v/s 41.9 crs PAT 1129% YoY in Q3 FY’23 at 6.32 crs v/s 0.51 crs PAT 109% YoY in 9M FY’23 at 27.2 crs v/s 13.04crs (PAT before exceptional items considered above) Pulp S

18.8%

’23 at 27.2 crs v/s 13.04crs (PAT before exceptional items considered above) Pulp Sales Tonnage 18.8% YoY in Q3 FY’23 at 16204 Pulp sales Tonnage 35% YoY in 9M FY’23 at 63071 1

35%

al items considered above) Pulp Sales Tonnage 18.8% YoY in Q3 FY’23 at 16204 Pulp sales Tonnage 35% YoY in 9M FY’23 at 63071 1 Performance: Q3 FY’23 A

99.99%

’20 number shown in the table above is the revenue of Kusum spices since Foods & Inns entered as a 99.99% partner i.e. Oct’19. Business Commentary:  We have submitted our first claim under the Product

Rs.2.11

ntegrated Cold Chain & Value addition infrastructure in the month of January 2023 for an amount of Rs.2.11crs. The total entitlement under this scheme is of Rs.8.89crs for our company. The claim for the se

Rs.8.89

e month of January 2023 for an amount of Rs.2.11crs. The total entitlement under this scheme is of Rs.8.89crs for our company. The claim for the second instalment will be filed soon. a. Fruit & Vegetable

Rs.148

nent 1 as well as Component 3 of the scheme and the company stands to receive incentives of around Rs.148crs on a best-case basis between the period FY’22-23 to FY’26-27 based on future growth in sales an

“for the Financial Year FY’22 and it is being reviewed by the Project Management Agency.”

“The claim for the second instalment will be filed soon.”

“Spray Dried powders: The company is witnessing a substantial increase in demand for its spray dried powders with the use cases increasing and we will be able to meet the incremental demand when our brownfield capacity comes onstream which is now scheduled in March of 2023.”

“This got down our export volumes this quarter which we expect to bounce back going forward.”

“As per the scheme guidelines we have to grow our sales at a minimum CAGR of 10% over FY’22 to FY’27 to receive incentives under Component 1 of the PLI Scheme.”

“The incentives will be payable upto a CAGR of 15% on eligible sales.”

“These incentives under both the components will be in the form of direct bank transfers to the company upon achieving yearly milestones as committed under the scheme.”

“3 c) To achieve our ESG goals, we have filed our GHG (Green House Gas) inventories and Carbon Emission data via Carbon Disclosure Project (CDP).”

“f) We have installed the Tetra Recart machinery at our greenfield facility at Vankal (Gujarat) and are currently having test runs and expect the plant to be commercially operative by the end of March 2023.”

“Randeep Kaur, Company Secretary (Email: randeep@foodsandinns.com) Foods and Inns will be conducting an Investor Call on the 9th of February 2023 at 4 PM to discuss the Q3 results and the way forward for the company.”

Business Commentary

1

KRAs being targeted by the company

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Other Facts

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About

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Disclaimer

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Contact

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Join Zoom Meeting Link

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Our Brands

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Business Commentary

 We have submitted our first claim under the Production Linked Incentive (PLI) Scheme of the govt. for the Financial Year FY’22 and it is being reviewed by the Project Management Agency.  We have received our 1st instalment of subsidy under the scheme of Integrated Cold Chain & Value addition infrastructure in the month of January 2023 for an amount of Rs.2.11crs. The total entitlement under this scheme is of Rs.8.89crs for our company. The claim for the second instalment will be filed soon. a. Fruit & Vegetable Pulps: The Indian Beverage market has started communicating through advertisements to ensure that beverages are a yearlong phenomenon rather than just a summer drink. Increased recreational activities have contributed to this change in advertising and consumption on ground. Tomato pulp is witnessing a substantial increase in demand as a lot of business is shifting away from China and India is becoming a promising alternative. Such incremental demand in other categories is aid

KRAs being targeted by the company

The company is working towards improving its ROCE & EBITDA on a sustainable basis by: a) Increasing the share of value added and branded products across its food offerings. b) Increasing its operating leverage by producing allied products during non-peak season c) Converting its waste into Value additive products d) Focussing on the Asset Light model of expansion e) Concentrating on Higher EBITDA margin business

Other Facts

a) Foods & Inns got selected under the Production Linked Incentive (PLI) Scheme of the Govt. of India under Fruits & Vegetables processing category. The selection was under both Component 1 as well as Component 3 of the scheme and the company stands to receive incentives of around Rs.148crs on a best-case basis between the period FY’22-23 to FY’26-27 based on future growth in sales and investment as per committed capex. As per the scheme guidelines we have to grow our sales at a minimum CAGR of 10% over FY’22 to FY’27 to receive incentives under Component 1 of the PLI Scheme. The incentives will be payable upto a CAGR of 15% on eligible sales. Under Component 3 of the scheme, we are expected to get incentives of 50% of our Branding & Marketing expenses incurred abroad over the period FY’22 to FY’26. These incentives under both the components will be in the form of direct bank transfers to the company upon achieving yearly milestones as committed under the scheme. b) The Govt. of India

About

Foods & Inns (FIL) is a manufacturer and exporter of a range of processed tropical fruits pulps, purees, and vegetables with state-of-the-art factories in Chittoor, Valsad, Sinnar and Gonde (Nashik). The company operates in the food processing industry and its principal divisions are Aseptic, Canning, Spray drying, Frozen fruits, IQF (Individually Quick Frozen) vegetables and snacks. Product range includes tropical fruit purees, concentrates of Mango, Guava, Papaya apart from Tomato Paste, Natural Fruit & Vegetable Powders. The company became a 99.99% partner in Kusum spices (Spice brand established in 1972) from the 2nd of October 2019 and has consequently widened its offerings in the foods segment. The Indian spice market is ~ Rs.40,000cr industry (Source: APEDA) The company owns brands/trademarks such as Madhu - (Fruit Pulp), Green Top - (IQF Vegetables & Other RTE Snacks) and Kusum Masala – (Spices). The company as an initiative towards Sustainability and Value addition entered int

Disclaimer

This document may contain some statements on the company’s business or financials which may be construed as forward looking. The actual results may be materially different from these forward- looking statements.

Contact

1) writetous@foodsandinns.com 2) Landline: 022-35110013 / 022-22615032 3) Mr. Anand Krishnan, CFO (Email: anand@foodsandinns.com) 4) Mrs. Randeep Kaur, Company Secretary (Email: randeep@foodsandinns.com) Foods and Inns will be conducting an Investor Call on the 9th of February 2023 at 4 PM to discuss the Q3 results and the way forward for the company. Investor Call Time: Feb 9, 2023 04:00 PM India