Household Appliances company Butterfly Gandhimathi Appliances announced Q2FY24 results: 1. Financial Highlights: - Revenue at Rs 308 crore, a decrease of 16% YoY. - Material Margin at 37.0%, a YoY increase of 170 bps. - EBITDA at Rs 25 crore, with an EBITDA Margin of 8.2%. - PAT at Rs 15 crore, with a PAT Margin of 4.7%. 2. Operational Highlights: - Investments in capability building, brand strengthening, operations optimization, and R&D.; - Retail and Modern Trade channel growth during industry slowdown. - Shift in festive season impacting sales phasing. - Focus on improving distribution reach and customer engagement. - Recognition of the 'Butterfly' brand as an Iconic Brand of India. 3. Update on the Merger Process: - Scheme for merger with Crompton Greaves Consumer Electricals Ltd. is underway. - NOC received from BSE and NSE. - The NCLT approval process is in progress with a shareholders' meeting scheduled. - Favorable voting recommendation by proxy advisory firms. Commenting on the performance, Rangarajan Sriram, Managing Director, of Butterfly Gandhimathi Appliances said, “We continue to focus on balancing and growing our core channels. The sales phasing of online channels has been reorganised across platforms & categories. Despite an industry-wide slowdown, our retail channel continued to grow, and we registered growth in the Kerala region, boosted by Onam festivities. EBITDA Margin stood at 8.2% for the quarter, post investments in marketing and people. With the shift in the festive season this year, we anticipate an uptick in demand in Q3. Premium segments continue to grow across categories as we invest in brand awareness and introducing new products across markets & channels to drive higher sales.” Result PDF
Household Appliances company Butterfly Gandhimathi Appliances announced Q1FY24 results: Revenue at Rs 219 crore (-14% YoY). Continued the strategic restructuring of the channel mix in favour of Trade. This led to strong double-digit growth in B2C channels such as Retail, Modern Trade, and Chain stores across categories while de-risking Corporate channels. Online channels faced subdued growth due to conscious phasing aligned to secondary offtakes. Share of business from new products at 14% of Total Q1 Sales. Material Margin at 42%, expansion of 650 bps YoY. Significant improvement in Material Margins driven by a rebound in Trade channel along with value engineering. EBITDA at Rs 20 crore EBITDA Margin at 9.0% post investments in marketing and people PAT at Rs 15 crore (+11% YoY). PAT Margin at 6.7%, expansion of 150 bps YoY Commenting on the performance, Rangarajan Sriram, Managing Director, Butterfly Gandhimathi Appliances said, “Through our strategic focus on channel restructuring, we continue to drive sustainable growth in B2C channels such as retail outlets, modern trade, chain stores, and e-commerce, while de-risking non-core channels. This led to Revenue of Rs 219 crore for the quarter amidst a challenging demand situation and strong Material Margins of ~42% (+650 bps YoY) on account of improvement in channel mix and value engineering. EBITDA Margin stood at 9.0% for the quarter. With the merger of Butterfly and Crompton underway, there is an opportunity to start realizing Go-to-Market synergies as we endeavor to improve Butterfly’s reach in the Western and Northern markets. Our focus on new premium product launches continues in addition to driving improvements in non-retail channels, especially e-commerce, through product, pricing, and marketing interventions.” Result PDF