Analyst BriefingAnalyst Briefing
1st Quarter 2014
April 18th, 2014
Key Highlights of 1Q 2014
Launch of
Olper’s
thematic
campaign
Trade Activation
of Olper’s
Tarang
consumer
promotion
continued
Launch of
Tarang’s new
packaging
campaign
Key Highlights of 1Q 2014
Introduction of new variants under
the Omore umbrella.
Campaign launches;
Funties
Vanilla Choco Nuts Cone
Tutti Frutti Bricks
Ice On
Monkey Peel new flavorMonkey Peel new flavor
11 MABROOK Shops operational
10 more under construction
Key Highlights of 1Q 2014
• Sahiwal powder plant started commercial production in Feb 2014
• Highest ever Milk Collection Volume since inception
• Highest ever Milk Production at NARA Farm• Highest ever Milk Production at NARA Farm
• Awarded “Best presented annual report in manufacturing category
‘2012” by South Asian Federation of Accountants (SAFA)
9,161
8,330 8,266
9,481 9,517
7,500
8,500
9,500
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Revenue (Rs. M)
Business Update – Dairy & Beverages
• Volume increase
vs.Q1 ‘13 6%
• UHT Market Share as per Nielsen
data 52%(Feb
2014)
5
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Ambient UHT & Dairy Powder Juices
29%
24%
16%
13%
20%
9%
6%
2%0%
5%
0%
5%
10%
15%
20%
25%
30%
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
GP as a % of revenue
PAT as a % of revenue
QoQ gain in GP%
Price increase in
Olper’s (from Jan
16, 2014)
2%
Better milk prices
due to flush3%
Cost improvement
in various
procurement
2%
Net gain in GP 7%
463
978
825
377
512
0
200
400
600
800
1,000
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Revenue (Rs. M)
Business Update – Ice cream & Frozen Desserts
Ice Cream Market Share
28%
6
(143)
18 (12)
(184)(169)
33%
48%45%
9%
34%
5%
15%
25%
35%
45%
55%
(190)
(140)
(90)
(40)
10
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
GP as % of revenuePAT (Rs. M)
3,512 3,149 3,498 3,787 3,979
28
21
15
34
43
5
15
25
35
45
2,500
3,000
3,500
4,000
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Herd Size
Business Update – Farm
• HIGHEST EVER MILK PRODUCTION IN Q1 ‘2014
7
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Production (thousand litres per day)
(18)
(97)
(14)(8)
(20)
(105)
(85)
(65)
(45)
(25)
(5)
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
PAT (Rs. M)
Revaluation
loss 34M due to PKR
appreciation
2.20
2.80
2.40
1.551.41
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
Revenue (CAD Millions)
Business Update – Al-Safa Halal
8
-0.30-0.41 -0.42
-2.63
-0.31
-3.00
-2.50
-2.00
-1.50
-1.00
-0.50
0.00
1Q'13 2Q'13 3Q'13 4Q'13 1Q'14
PAT (CAD Millions)
Other Matters
SHC judgment on Minimum Tax:
• SHC judgment (May 2013) in case of a textile company - minimum tax is not recoverable if theCompany had taxable loss in that year;
• EFoods recoupable minimum tax of Rs. 607 million;
• As advised by consultants, this decision is against the intention of law; and
• We believe that this will be reversed in Supreme Court• We believe that this will be reversed in Supreme Court
10