Conference Call with Hindustan Foods Management and Analysts on Q1FY26 Performance and Outlook. Listen to the full earnings transcript.
Packaged Foods company Hindustan Foods announced Q1FY26 results Total Income increased by 15% to Rs 998 crore in Q1FY26 from Rs 871 crore in Q1FY25. EBITDA increased by 10% to Rs 84 crore in Q1FY26 from Rs 76 crore in Q1FY25. PBT increased by 16% to Rs 42 crore in Q1FY26 from Rs 36 crore in Q1FY25. PAT increased by 17% to Rs 32 crore in Q1FY26 from Rs 27 crore in Q1FY25. Sameer R. Kothari, Managing Director, said: “HFL was able to achieve its highest ever quarterly profit despite the unseasonal rains that affected the off take of our seasonal offerings like ice creams and beverages. The ramp-up in our new plant in Nashik and the stabilization of the shoe business led to a satisfactory performance in this quarter. The last year was the year of ‘Audacious, Agile and Ambitious’ bets, this year is going to be all about scaling with intent and executing with discipline. We will continue to focus on acquisitions which are value accretive in an external environment that continues to be challenging and more so with the Tariff War. Our diversified product mix and differentiated business model gives us confidence of being able to successfully maneuver the turbulent times and we remain confident of being able to achieve the targets that we have set for ourselves.” Result PDF
Packaged Foods company Hindustan Foods announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Total Income increased by 27% to Rs 936 crore in Q4FY25 from Rs 734 crore in Q4FY24 EBITDA increased by 25% to Rs 80 crore in Q4FY25 from Rs 64 crore in Q4FY24 PBT increased by 47% to Rs 41 crore in Q4FY25 from Rs 28 crore in Q4FY24 PAT increased by 34% to Rs 31 crore in Q4FY25 from Rs 23 crore in Q4FY24 FY25 Financial Highlights: Total Income increased by 30% to Rs 3,579 crore in FY25 from Rs 2,762 crore in FY24 EBITDA increased by 34% to Rs 308 crore in FY25 from Rs 229 crore in FY24 PBT increased by 26% to Rs 148 crore in FY25 from Rs 117 crore in FY24 PAT increased by 18% to Rs 110 crore in FY25 from Rs 93 crore in FY24 Commenting on the results, Sameer R. Kothari, Managing Director said, “HFL achieved a major milestone this financial year with a Profit After Tax (PAT) exceeding Rs 100 crore. This milestone brings a sense of pride and celebration within the organization but also demonstrates our ability to identify and capitalize on growth opportunities, even amidst a broader slowdown in consumer demand. We remain focused on building on this momentum and are now setting our sights on the next phase of growth in the coming years. The driving force behind this achievement has been our dedicated team of nearly 7,000 employees. As a gesture of gratitude and to foster long-term value creation, we completed a preferential allotment of shares in our footwear subsidiary to our employees and also rolled out an ESOP scheme at HFL. Through these initiatives, we aim not only to reward and retain top talent but also to attract the leadership needed for our next leap forward. Our association with The Kabadiwala promises to be a significant commitment towards sustainability and the circular economy. We are confident that in the coming years, this association will prove to be of major value to us and also to our customers in meeting their obligations under the EPR regulations.” Commenting on the Operational Performance, Ganesh Argekar, Executive Director said, “From an operational standpoint, we delivered our highest-ever volumes across our beverages, ice creams, and footwear segments. This was achieved despite ongoing deflationary pressures and persistent volume softness in other categories. Our supply chain teams worked tirelessly to ensure efficiency and output even under challenging conditions. Specifically, the shoe business had a good quarter, and we are cautiously optimistic that we should be out of the woods now. While the division had the highest ever turnover in this FY, importantly, the new investments have started yielding results and we are confident that with the support of our customers, we should be able to turn around the business completely in FY26. Our bet on the beverage segment is finally paying off with Mysuru recording its highest ever output. We are eager to expand in this segment and continue to look for new opportunities. We have some interesting developments in the OTC Pharma division and are eager to scale this up. Our Home and Personal Care categories continue to perform resiliently in the face of the headwinds of slowing consumption” Commenting on the Financial Performance, Mayank Samdani, Group CFO said, “This quarter was a record-breaking one across all key metrics—revenues, EBITDA, and Profit Before Tax (PBT). These results were driven by seasonal highs in our ice cream and beverage businesses, as well as the longanticipated breakeven of our footwear segment. The footwear business finally achieved operational profitability in this quarter and with this, all our businesses are performing as per expectations. As far as the annual profits are concerned, despite higher tax provisioning compared to the previous year, we posted the highest ever annual profits. This was aided by the ramping up of the Baddi factory and the new investments in the beverage and ice cream plants. Our PAT for FY25 includes the losses suffered by the shoe business (~Rs. 11 crores) which were a result of the integration issues that we faced with the acquisition and also the accounting impact of the ESOP scheme. The year also saw an increase in the working capital requirements of the company, especially in the shoe business but despite this increase, the company was able to generate a satisfactory cash from operations of around Rs 113.00 crore. This strong operating cash flows along with the proceeds from the Warrants issue, positions us to leverage upcoming growth opportunities. We continue to work towards our goal of doubling our gross block to Rs 1,800 crore by the end of this financial year.” Result PDF
Packaged Foods company Hindustan Foods announced Q3FY25 results Total Income increased by 21% to Rs 886 crore in Q3FY25 from Rs 730 crore in Q3FY24. EBITDA increased by 37% to Rs 79 crore in Q3FY25 from Rs 58 crore in Q3FY24. PBT increased by 35% to Rs 39 crore in Q3FY25 from Rs 29 crore in Q3FY24. PAT increased by 30% to Rs 29 crore in Q3FY25 from Rs 22 crore in Q3FY24. Sameer R. Kothari, Managing Director said: “Our strategic diversification in specific growth segments like the ice cream, OTC Pharma, Beverages and footwear has started yielding some encouraging results despite the persistent slowdown in FMCG sector. I am encouraged by the performance of our OTC division in Baddi which has resumed normal production. Additionally, we have identified one more customer for the site and expect to start production by Q1FY26. In terms of our ice cream business, we continue to remain optimistic and are confident that under the leadership of Mr. Manoj Patani, our new head of business, we should be able to grow this division substantially in the next 2-3 years. Manoj, a chemical engineer from ICT, Mumbai has completed his post-graduation in marketing from ISB, Hyderabad and has more than 19 years of experience. We continue to see improvement in our shoe business. While it is not completely out of the woods yet, we do believe that we are on the right path. With the Government announcing in the recent Budget that the footwear industry is a key focus area and with the stabilizing of the North factories and the ramping up of the South factories, we believe that the time is right to further expand our presence in this industry. As far as beverages is concerned, we have further solidified our presence by commencing the production of DOY packs for an existing beverage customer. Additionally, we have successfully integrated our newly acquired bottled water plant located in Orissa. We are witnessing a seasonal uptick in demand, particularly in the Beverages and Ice Creams segment, which should help drive strong growth in the next two quarters. These initiatives reflect our proactive approach to driving growth amidst market headwinds, and we remain confident to increase our gross block to more than Rs. 1,800 crore by FY26.” Mayank Samdani, Group CFO said: “The revenue for Q3FY25 was stable on QoQ basis but showed an increase on YoY basis owing to the revenue generated by the Baddi factory and the shoe business which was not a part of the FY24 numbers. However, the profit for the quarter showed a substantial improvement on a QoQ basis and YoY basis since the Baddi factory has now started contributing positively and the integration of the shoe factory is progressing as per expectations. On the capital front, the company has converted the warrants totaling INR 120 crore at the end of December which we expect to deploy in the new projects in the coming quarters. With the shoe business nearing profitability and new projects ramping up across the company we are confident of growth and delivering profits as we go ahead.” Manoj Patani, President, Ice Cream Division said: “We are thrilled with the momentum in our Ice Cream business as we gear up for the upcoming season. The Indian Ice Cream industry is experiencing remarkable growth, with the market valued at Rs. 228.6 billion in 2023 and projected to expand at a CAGR of 17.23%, reaching Rs. 956 billion by 2032. This growth is driven by rising disposable incomes, evolving consumer preferences, expanding modern retail, increasing urbanization, and the impact of heat wavesthat have significantly boosted Ice Cream consumption. With a strong focus on expansion and capacity enhancement, we are confident in our ability to capitalize on this thriving market and further strengthen our position. As part of our growth strategy, we had started a greenfield project in Nashik and I am confident that the Rs. 185 crore project is set for commercialization in April 2025. Result PDF
Conference Call with Hindustan Foods Management and Analysts on Q2FY25 Performance and Outlook. Listen to the full earnings transcript.
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
Conference Call with Hindustan Foods Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Packaged Foods company Hindustan Foods announced Q1FY25 results: Total Income increased by 40.4% to Rs 870.9 crore in Q1FY25 from Rs 620.2 crore in Q1FY24 EBITDA increased by 47.4% to Rs 75.5 crore in Q1FY25 from Rs 51.3 crore in Q1FY24 PBT increased by 23.5% to Rs 36.2 crore in Q1FY25 from Rs 29.4 crore in Q1FY24 PAT increased by 16.5% to Rs 27.2 crore in Q1FY25 from Rs 23.4 crore in Q1FY24 Commenting on the results, Sameer R. Kothari, Managing Director said, "As we navigate the evolving market landscape, we are becoming cautiously optimistic about the return of volume growth in the FMCG sector. We anticipate a gradual recovery in this sector, driven by renewed consumer demand and demand for enhanced supply chain efficiencies. However, we are decidedly bullish about the growth prospects in the footwear industry. Our strategic initiatives are focused on capturing these growth opportunities and we continue to see tailwinds in this sector for the foreseeable future. The macroeconomic inflation scenario continues to be baffling as we see some deflation in some commodities but in some cases, inflation is returning. While this may affect our top lines, our expectation is that it will not affect our overall profitability for the year and we continue to remain optimistic about the future.” Commenting on the Financial Performance, Mayank Samdani, Group CFO said, “We achieved the highest quarterly turnover on a consolidated basis at Rs 870.9 crore having grown at 40.4%. This did fall short of our expectations as we saw some fall in commodity prices in this quarter. Our PBT was affected by the continuing integration of the Baddi factory and the shoe units but the seasonal tailwinds of our ice cream business and beverages business helped us post a 23.5 % growth in the PBT taking it to a highest ever figure of Rs 36.2 crore. Our PAT for the quarter was also at an historical high of Rs 27.2 crore having grown at 16.5% despite being affected by a higher tax incidence in this quarter.” Result PDF