Packaged Foods company Hindustan Foods announced H1FY25 & Q2FY25 results Q2FY25 Financial Highlights: Total Income increased by 30.9% to Rs 886.0 crore in Q2FY25 from Rs 677.0 crore in Q2FY24. EBITDA increased by 30.7% to Rs 72.6 crore in Q2FY25 from Rs 55.6 crore in Q2FY24. PBT increased by 1.8% to Rs 31.8 crore in Q2FY25 from Rs 31.2 crore in Q2FY24. PAT decreased by 7.1% to Rs 22.9 crore in Q2FY25 from Rs 24.7 crore in Q2FY24. H1FY25 Financial Highlights: Total Income increased by 35.4% to Rs 1,756.9 crore in H1FY25 from Rs 1,297.1 crore in H1FY24. EBITDA increased by 38.6% to Rs 148.2 crore in H1FY25 from Rs 106.9 crore in H1FY24. PBT increased by 12.0% to Rs 68.0 crore in H1FY25 from Rs 60.7 crore in H1FY24. PAT increased by 4.4% to Rs 50.2 crore in H1FY25 from Rs 48.0 crore in H1FY24 Sameer R. Kothari, Managing Director said: “The strength of the company’s business model ensured that the company was able to post a satisfactory financial performance even in an environment which saw a continuing slowdown in the FMCG sector. We had taken steps to deal with this continuing slowdown and had identified certain sectors that we believe will continue to outgrow the sector. These include Ice-Cream, Beverages and Footwear and I am pleased to see us grow in each of these categories. We have signed up 2 new customers in the ice cream business in the last 6 months which will make us one of the largest contract manufacturers of ice creams in the country. In beverages, after the acquisition of the Mysuru factory, we extended our footprint to Assam and have now agreed to acquire a beverage unit in Orissa. This gives us confidence in being able to grow our footprint further in this segment. And as far as the shoe business is concerned, we have expanded capacities in South under the leadership of Carsten Braun who joined us as the head of business at the beginning of this quarter and are confident of making KNS Shoetech a premier partner for the leading global shoe brands. We now have clear visibility of the new capex which shall increase our gross block to more than Rs. 1,800 crore by FY26.” Mayank Samdani, Group CFO said: “The company’s revenues were bolstered by the ramping up of the shoe business and the OTC and Wellness factory at Baddi. We achieved the highest semi-annual turnover on a consolidated basis at Rs. 1,756.9 crore having grown at 35.4% YoY. EBITDA for H1FY25 grew by 38.6% YoY to Rs. 148.2 crore. PAT for H1FY25 increased by 4.4% to Rs 50.2 crore. Our dedicated manufacturing factories continued to contribute to the profitability numbers as per expectations, but the Integration of shoe business resulted in an additional cost which has impacted overall EBITDA and profitability during the period. As far as Cash flows are concerned, the existing business managed to convert a large proportion of the operating profits to cash which was partially offset by investment in working capital for the shoe business and the Baddi factory. Net operating cash flow for H1FY25 stood at around Rs. 74 crore as compared to ~Rs. 24 crore for the corresponding period of last year. As the shoe business pivots to profitability and new projects ramp up across the company in the second half of this year, the profitability trajectory will trend upwards.” Carsten Braun, Head, Footwear Division said: “The Indian sports shoe market has experienced impressive growth in recent years, driven by a growing consumer focus on fitness and sports, coupled with rising demand for footwear that combines comfort with style. As the market expands and transforms, there are substantial opportunities for both established brands and newcomers to innovate and capture a larger share of the expanding consumer base. We have been able to stabilize the operations at the various factories and are now delivering production in line with the expectations of our customers. We do expect to turnaround the profitability numbers in the next couple of quarters on the back of increased production efficiency and ramping up of the south factories.” Result PDF