Agro Tech Foods Limited has informed the Exchange about Investor Presentation
Agro Tech Foods Limited
23 rd July 2021
The Manager, BSE Limited, Floor 25, Pheroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001. Ph . No . 022- 22721233 / 22721234 Fax No. 022-22723121 /22721072
The Manager Listing Department 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 NSE
Scrip code 500215. Co. code 1311 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 12th July, 2021 regarding hosting of an analyst call on the financial results for Q1 ended June 30, 2021 on Friday 23rd July, 2021, 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.
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, Saroj ini Devi Road, Secu nd e rabad - 500 003, India . Tel: 91· 40· 66650240, Fax: 91·40· 27800947 We b: www.atfoods.com
CIN: L15142TG1986PLC006957
ATFL an affiliate of
~~ S~ ~~ "- CONAGRA
- BRANDS -
ATFL Business Update
Q1, FY’22 Results July 23rd, 2021
Company Strategic Vision
The Best Performing Most Respected Foods Company in India
2
Quarter 1 – Key Performance Highlights Strong Foods Growth drives Momentum
• Strong Growth of 31% in Foods drives the business to Rs. 85 crore. • Clear impact of second wave – higher in home consumption of RTC offsets lower out of home consumption of RTE Snacks & Cereals. • Foods GM up from Rs. 20 crore to Rs.22 crore driven by Volume
Growth. Pricing Actions underway and softening of Palm Oil to help address commodity headwinds.
• Oils GM at Rs. 20 crore lower than PY of Rs. 27 crore (significant elevated demand in Q1, FY’21). However, on running rate basis a strong comparison to FY’21 GM of Rs. 72 crore.
• SG&A flat to PY except CSR provisioning & Royalty (+Rs. 90 lacs). • PBT/PAT are 38%/40% lower than PY given high base effect of
Quarter 1 in FY’21.
• Overall a strong start to FY’22.
3
Performance Highlights by Category
1. Ready to Cook Snacks
(Rs. 10,000 crore)
2. Ready to Eat Snacks (Rs. 35,000 crore)
3. Spreads (Rs. 2300 crore)
4. Breakfast Cereals (Rs. 2900 crore)
5. Chocolate Confectionery (Rs.15,000 crore)
6. Edible Oils (Rs. 194,000 crore)
* Category Sizes in Brackets
4
Ready to Cook Snacks
Ready To Cook
Q1
YTD FY’22
Volume
Value
+36%
+39%
+36%
+39%
• Stronger than expected Growth in Ready to Cook Popcorn
driven by elevated in home consumption (2nd Wave). • Pricing on Premium Range increased to offset higher
commodity prices – Palm Oil, Kernels (visible in Value vs Volume).
• Boosting of Growth rate with steady growth of Sweet Corn. • Commercial production & Shipments of Pasta & Sauce kit commence in June. Sell in’s currently underway and initial feedback to concept positive.
• Pad Thai Kit production scheduled for Q2. Chow Mein
Hakka Kit also in an advanced stage.
5
Ready to Eat Snacks
Ready to Eat
Q1
YTD FY’22
Volume
Value
+1%
+9%
+1%
+9%
• Second wave and consequent lockdowns have a clear negative impact on the
business with lower than expected Growth.
• Value Growth reflects stronger performance of Popcorn with higher Net Sales
realization and changes in Go To Market in July 2020.
• Higher Palm Oil prices impact Category Margins. Margin challenges being addressed through increased focus on higher end products (e.g. Caramel Bliss) & Packaging Cost Reduction.
• Accelerated development of Value Added offerings for Margin Improvement. • Learning continues on Potato Chips – business model being developed.
6
Spreads & Dips
Spreads & Dips
Q1
YTD FY’22
Volume
Value
+12%
+12%
+15%
+15%
• Growth in Peanut Butter less than expected -softness
post discontinuation of promotion.
• Lockdowns a likely factor but also some share loss is
possible with significant competitive activity between Rs. 100 and Rs 200 packs.
• Actions underway to address this threat – execution starting July. • Total Category Value Growth ahead of Volume due to higher price
realization of Chocolate Spreads & Dips.
• Differentiated Hummus offering well accepted and roll out
continues.
7
Breakfast Cereals
Cereals
Volume
Value
Q1
YTD FY’22
+82%
+82%
+60%
+60%
• Some impact of lockdowns due to Covid19 visible –
growth figures are off a small base.
• Value lags Volume due to introduction of Rs. 5 Shells
and O’s & X’s.
• Opportunity of low plant volumes leveraged to refine
portfolio in terms of SKU offerings.
• With re-opening of economy we will once again drive distribution of the
full range of Cereal offerings.
• Centre Filled Cereals Margin Profile certainly A&P grade and candidate for
future A&P support.
8
Chocolate
Chocolates
Volume
Value
Q1
YTD FY’22
+105%
+105%
+149%
+149%
• Roll out of revised Product Price Architecture underway. Trade acceptance of lower weight Rs. 10 offering (23.5 gm vs 28.6 gm).
• Early signs positive for Rs. 5 offering (9.5 gm). • Revised architecture of Rs.5/Rs.10 ensures that
products are/will be A&P grade.
• Focus now on Scaling Up - Distribution Expansion &
Production Streamlining.
• Advertising support dependent on speed of scaling up and
overall Company P&L progression.
9
Edible Oils
Premium Oils
Volume
Value
Mass Oils
Volume
Value
Q1
-12%
+20%
Q1
-71%
-50%
FY’22
-12%
+20%
FY’22
-71%
-50%
• Premium Oils Volume performance to be viewed in context of extremely
elevated demand in Q1 of FY’21 (+16% in a declining trend).
• Total Oils absolute GM in Q1 of Rs. 20 crore a strong start relative to FY’21 GM
of c Rs. 72 crore.
• Reduction of Mass Oils volume in line with overall planning. However, in Q1
driven more by lower Out of Home than specific Management actions.
10
Competitive Update
Snacks: Competition Spends
Rs. Million
F-17
F-18
F-19
FY20 Q1-21 Q2-21 Q3-21 Q4-21 FY21 Apr’21 May’21
Jun’21
Q1-22
ACT II
Lays
Kurkure
Doritos
Cheetos
Bingo
Parle
Crax
110
148
196
0
0
683
0
58
74
374
260
128
0
965
0
55
Yellow D
248
145
65
10
0
0
0
1
146
0
Mexitos
Cornitos
Too Yumm
Balaji
Pipo
Total Tracked Brands
38
252
396
150
46
815
0
106
256
0
0
470
21
45
491
321
252
34
954
0
139
139
0
0
312
201
13
28
0
0
0
32
83
61
0
0
20
79
111
0
0
30
145
64
0
0
95
335
237
0
0
3
72
40
0
0
163
260
680
149
1252
124
2
0
0
0
0
0
7
13
38
17
0
0
47
29
3
39
23
0
0
78
1
0
1
62
22
0
0
36
56
1
20
138
61
0
0
161
93
1
0
18
5
0
0
14
2
0
5
107
38
0
0
33
0
1
6
0
0
0
0
0
10
59
21
85
2
1
3
18
238
98
242
2
20
14
14
2
1517
2147
2549
2888
214
580
1033
573
2394
279
189
181
648
Category Investments significantly higher than PY. Consistent ATFL presence.
12
Spreads: Competition Spends
Rs Million
F-13 F-14 F-15 F-16 F-17
F18
F-19
FY-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21
Apr’ 21
May’ 21
Jun’ 21
Q1-22
Kissan Jam-
254
207
304
381
357
512
704
752
218
218
110
134
679
Kissan PB
101
Sundrop PB
0
0
42
64
56
30
16
20
8
18
13
95
18
54
79
46
80
6
2
38
196
58
54
196
62
364
29
7
60
50
28
3
1
10
11
11
0
0
0
55
36
3
0
1
9
51
45
6
0
1
0
18
18
7
4
0
3
7
2
0
0
156
109
12
1
0
19
47
24
6
0
3
Veeba PB
Amul Peanut Spread
Saffola Honey
Patanjali Honey
0
44
25
0
0
Dabur Honey
Lion Honey
Apis Honey
Hershey’s Spreads Tracked Brands Total
0
69
18
0
0
0
102
317
182
95
7
69
18
0
0
203
134
180
206
131
15
2
0
9
16
54
7
65
8
25
159
166
20
8
59
0
23
5
0
0
1
34
6
0
0
117
14
228
12
4
22
323
294
433
767
943 1135 1220
996
255
277
621
552
1703
113
136
130
377
Honey sees significant increase in Spends vs PY. Unilever continues PB. Steady ATFL presence.
13
Breakfast Cereals: Competition Spends
Rs Million
FY-17 FY-18 FY-19 FY-20 Q1-21 Q2-20 Q3-21 Q4-21 FY-21
Apr’ 21
May’ 21
Jun’ 21
Q1-22
Kelloggs Cornflakes - Total
202
265
390
230
Kelloggs Chocos Fills
0
125
203
17
Kelloggs Chocos - Total
Kellogs Muesli
Kelloggs Granola
Nestle Koko Krunch
Saffola Oats - Total
Quaker Oats- Total
Cadbury's bournvita fills
Soulfull
310
362
509
329
118
239
147
0
0
0
0
0
322
102
283
164
0
0
0
0
1
193
268
110
0
0
14
60
448
269
0
17
7
0
38
30
14
52
118
0
122
65
30
39
88
9
76
43
28
24
121
125
101
0
0
0
98
2
0
65
10
0
142
355
0
9
110
344
40
18
7
78
21
9
0
177
89
121
424
184
20
0
33
0
22
20
10
0
22
30
4
0
46
0
43
21
8
0
63
58
1
0
45
0
45
11
4
0
60
42
0
0
124
0
111
52
22
0
145
130
5
0
Tracked Brands Total
975
1,317 1,979 1,530
260
598
442
424
1,724
141
241
207
589
Kellogg, Saffola & Quaker continue investments.
14
Final Brand ( In Million)
FY- 18 FY- 19 FY-20 Q1 Q2
Q3
FY-21
Apr’21
May’21
Jun’21
Q1-22
Chocolates: Competition Spends
Cadbury 5 Star Cadburys Celebration Dairy Milk Cadburys Fuse Cadbury Dark Milk 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 Priyagold Fabelle CandyMan Choco bar XL Total tracked brands
744 138 2229 598 0 416 321 484 0 0 7 0
217 0 187 414 597 8 0
727 277
102 192 79
217 76 142 84 0
477 375 389 598 1193 0 0 139 235
482 385 212 0 320 2166 2362 209 915 1082 46 407 126 0 0 83 26 285 145 55 231 105 837 0 358 0 85 0 144 61 23 42 94 51 6 6 42 131 207 14 35
25 0 6 0 97 20 178 87 137 294 13 8
201 23 368 626 841 209 69
259 0 146 604 712 176 23
26 82
4 3
8 0
Q4
281 0 771 120 245 126 226 250 47 34 56 134 3 33 9 47 151 305 13 10
960 399 2978 509 404 438 470 608 132 179 109 314 54 65 21 206 547 943 48 53
6520
6898 9261 697 2530 3483 2905
9615
Mondelez, Nestle, Ferrero remain steady. ITC shifts focus.
66
537 39
39 71 17 8 5 26 10 36 5 6 18 29 81 7 0 1 1000
50
237 2
45 39 100 16 39
4 5
1 4 1 18 5
12 576
35
90
31 20
23 51 4
5 259
150
864 41
115 129 117 24 44 26 14 41 5 7 22 53 150 15
17 1835
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 Q1-21 Q2-21 Q3-21 Q4-21 FY-21
Apr’ 21
May’ 21
Jun’ 21
Q1-22
Sundrop Heart
88
94
50
65
46
34
21
0
0
0
0
0
0
0
0
121
212
356
291
338
320
588
544
527
114
145
61
81
400
47
0
203
356
148
319
828
666
543
495
37
208
198
68
510
59
156
137
1214
647
626
13
371
174
241
799
54
27
41
30
103
354
966
170
26
20
4
0
12
0.7
46
29
13
12
55
11
36
40
49
9
10
98
228
10
0
34
75
68
11
11
35
0
0
34
116
32
166
28
150
11
11
8
31
31
52
209
509
762
504
961 1700 3576
1936
1694
168
643
512
534
2024
188
234
124
546
722
915
815 1280 1876 2153 1672
1652
2096
362
531
1005
867
2597
177
264
96
537
931 1424 1577 1784 2837 3853 5248
3588
3790
529
1174
1517
1401
4621
366
498
219
1083
Emami & Adani remain dominant spenders.
16
Saffola
Fortune
Emami Ltd.
Oleev
Patanjali
Gemini
Tracked Brands Total
Others
Category Total
Noodles: Competition Spends
Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Apr’21 May’21
Tracked Brands (in Million) 20 Chings Noodles 1 Wai Wai 0 Knorr Soupy Noodles 336 Sunfeast Yippee noodles 0 Sunfeast Yippee Saucy Masala 0 Saffola Oodles 4 A&M Twisty Noodles 0 Maggi Chatpata Tomato Noodles 0 Maggi Fusian 85 Maggi Masala Veg Atta 282 Maggi Noodles 6 Maggi Special Masala 9 Pran Mr Noodles 4 1 to 3 Chatpat noodles 0 Goldiee Noodles 0 Trdp Mario Masala Noodles 749 Total Maggi dominant Spender followed by Sunfeast. Saffola Spends also significant.
Jun’21 0 0 0 41 0 47 0 0 0 62 165 0 4 0 0 0 320
40 19 140 647 144 0 13 11 0 190 648 131 43 6 17 11 2064
19 0 140 85 0 0 5 0 0 5 141 115 12 0 3 3 528
17 0 0 81 0 0 4 0 11 123 135 5 4 0 0 0 382
0 17 0 57 144 0 5 11 0 62 178 9 14 2 0 0 504
2 0 0 168 0 0 0 0 0 38 46 0 7 0 13 8 284
0 2 0 37 0 38 0 0 0 0 73 0 2 0 0 0 156
0 4 0 107 2 51 0 0 0 0 5 0 0 0 0 0 172
Q1- 22 0 6 0 185 3 135 0 0 0 62 243 0 6 0 0 0 648
17
Pasta: Competition Spends
Tracked Brands (in Million) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Apr’21 May’21 Jun’21 Q1- 22
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
24
47
2
0
90
75
0
1
0
26
30
0
24
83
1
93
0
50
77
14
24
259
0
0
0
1
2
0
0
3
0
0
0
0
0
0
0
0
Category sees almost no spending in Q1, FY’22.
0
0
0
0
0
0
0
0
0
0
0
1
2
0
0
3
18
Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Apr’21 May’21 Jun’21 Q1-22
Soups: Competition Spends
Tracked Brands (in Million)
Chings Instant Soups
Eastern Instant Rasam
Knorr Chicken Delite Soup
Knorr Chinese Manchurian
Knorr 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
23
0
0
0
66
9
107
51
0
0
0
0
0
0
0
0
Knorr Hot & Sour Veg Soup 192
65
231
244
191
731
18
49
B Natural Soups
Mtr Minute Rasam
0
0
0
0
0
0
0
24
2
0
2
24
0
0
8
33
8
33
67
Total
228
85
350
338
218
989
18
49
41
108
Knorr dominates Category Spends.
19
Summary & Way Forward
• Strong start to FY’22 with c 30% growth in the Foods business.
• Edible Oils starting to show stability in Gross Margin.
• Robust Snack Foods portfolio significantly improving Go To Market
capabilities and attractiveness of business to High Quality Distributors.
• Address Margin Headwinds through careful monitoring of Palm Oil
costs, A&P and SG&A.
• Overall, continued steady transformation of the business – in line with Vision – “Best Performing Most Respected Foods Company”.
20