Conference Call with Hindustan Foods Management and Analysts on Q4FY24 Performance and Outlook. Listen to the full earnings transcript.
Packaged Foods company Hindustan Foods announced consolidated Q4FY24 & FY24 results: Q4FY24 Financial Highlights: Revenues increased by 11% to Rs 734.4 crore in Q4FY24 from Rs 660.7 crore in Q4FY23 EBITDA grew by 28% to Rs 64.0 crore in Q4FY24 from Rs 50.0 crore in Q4FY23 PAT increased by 13% to Rs 22.9 crore in Q4FY24 from Rs 20.2 crore in Q4FY23 FY24 Financial Highlights: Revenues increased by 6% to Rs 2,761.9 crore in FY24 from Rs 2,602.6 crore in FY23 EBITDA grew by 29% to Rs 228.9 crore in FY24 from Rs 177.7 crore in FY23 PAT increased by 31% to Rs 93.0 crore in FY24 from Rs 71.1 crore in FY23 Commenting on the results, Sameer R. Kothari, Managing Director said, “We posted a decent set of numbers in spite of the quarter being affected by the integration of the two of the largest acquisitions done by the company so far. This quarter has been a testament to the fact that the hard work for M&A; starts after the transaction is completed. This quarter saw us integrating the Baddi unit, a factory with complicated regulatory requirements and KNS Shoetech, a business with nearly 5000+ people. The integration is progressing well and I am confident that we should be able to start seeing the benefits of the integration within the next quarter or so. In terms of overall numbers, while the slowdown in consumption continues to affect our growth plans, I am confident that the steps that we have taken in terms of diversifying our product base into newer areas should help us continue our growth journey ahead. We remain committed to achieving our revenue target of Rs 4,000 crore for FY25.” Commenting on the Financial Performance, Mayank Samdani, Group CFO said, “The company has posted a record EBITDA of Rs 64.0 crore for the quarter and Rs 228.9 crore for the financial year 2024. The company had an additional expense of nearly Rs 8 crore on depreciation and interest as compared to the previous quarter mainly due to the acquisitions of Baddi and shoe units. However, the slow ramp up of Baddi factory due to the licensing and other regulatory issues did not result in commensurate revenues, thereby impacting the PBT and the PAT for the quarter. The Company had to invest in working capital in the form of raw material, packaging material and finished goods due to the acquisition of the Baddi and the shoe units. In spite of that, the company generated a healthy cash flow from operations of Rs 87 crore.” Result PDF
Hindustan Foods announced Q3FY24 & 9MFY24 results: Consolidated Q3FY24: Revenues: Grew by 7%, totaling Rs 730.3 crore as compared to Rs 679.6 crore in Q3FY23. EBITDA: Enhanced by 29%, reported at Rs 57.9 crore against Rs 45.0 crore in Q3FY23. Profit After Tax (PAT): Saw an increase of 29%, standing at Rs 22.0 crore compared with Rs 17.1 crore in Q3FY23. Consolidated 9MFY24: Revenues: Remained stable at Rs 2,027.4 crore, compared to Rs 1,941.9 crore in 9MFY23. EBITDA: Increased by 29%, reaching Rs 164.8 crore, up from Rs 127.7 crore in 9MFY23. Profit After Tax (PAT): Improved by 38%, amounting to Rs 70.1 crore, versus Rs 50.9 crore in 9MFY23. Operational Updates Completed the acquisition of the Baddi plant with an investment of Rs 128 crore, marking expansion into pharmaceuticals and OTC health products. Subsidiary KNS Shoetech Pvt. Ltd. finalized the acquisition of a sports shoe manufacturing unit in Kundli, Haryana for Rs 31 crore. Proposed acquisition of another sports shoe manufacturing facility with an expected investment of around Rs 100 crore. Successfully concluded a preferential issue of warrants amounting to Rs 400 crore. Guwahati, Assam juice manufacturing factory is on track to commence production by Q4FY24. The Greenfield Ice Cream facility in Haryana is underway, with a planned capex of Rs 100 crore, aiming for partial production by Q3FY25 and full-scale operation by Q4FY25. Sameer R. Kothari, Managing Director, said: "While the overall consumer market seems to be subdued, we believe that the investments done by your company place it well to set the tone for the future growth of the company over the next few years. This quarter HFL has seen the closure of the Baddi transaction and I expect the complete integration of this factory within the next 3-6 months. We are very optimistic about this acquisition as it opens up a whole new sector of OTC Pharma for us. The market opportunity is immense and we see HFL placed well to capitalize on future growth in this space. Additionally, the acquisition of KNS Shoetech and the manufacturing assets of KNS Trading has opened up the sector of Sports shoe manufacturing for HFL. We are in advanced discussions to invest the further amount of Rs 100 crore in this sector and expect to close the transaction in this Quarter. We are confident that, these two sectors will allow us to propel the growth for the company, while we remain steadfast in the FMCG & staples markets." Mayank Samdani, Group CFO, said: "The company posted a healthy 29% growth in the Quarterly PAT numbers over the last year and a 38% growth in the 9 monthly PAT numbers over the last year. This has been achieved as most of the projects have commercialized and are ramping up satisfactorily. This quarter has also seen the impact of the integration of the new units (both Baddi and KNS Shoetech) and the seasonal effect of the ice cream and beverages business. We believe that the financial numbers may be affected by this integration for one quarter and both the new acquisitions should start normalizing by Q1FY25. Accordingly, we do believe that we are well on track to meet our guidance of achieving a 4000 crore+ top line by FY25." Result PDF
Conference Call with Hindustan Foods Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.
Packaged Foods company Hindustan Foods announced Q2FY24 & H1FY24 results: 1. Revenue Stability: - Revenues remained flat at Rs 1,297.1 crore in H1FY24 compared to Rs 1,262.3 crore in H1FY23. - Revenues also remained flat at Rs 677.0 crore in Q2FY24 compared to Rs 663.7 crore in Q2FY23. 2. Profit Growth: - EBITDA grew by 29% to Rs 106.9 crore in H1FY24 from Rs 82.7 crore in H1FY23. - EBITDA grew by 26% to Rs 55.6 crore in Q2FY24 from Rs 44.0 crore in Q2FY23. - PAT increased by 42% to Rs 48.0 crore in H1FY24 from Rs 33.8 crore in H1FY23. - PAT increased by 31% to Rs 24.7 crore in Q2FY24 from Rs 18.9 crore in Q2FY23. 3. Progress in New Facility: - The factory being set up in Guwahati, Assam for the manufacture of juices is progressing well and is expected to start commercial production by Q4FY24. - The Company's capex plans for setting up the Soap & Bars project were commercialized in Q1FY24 and continue to ramp up satisfactorily. - The upgradation capex in the beverage facility in Mysuru for the new MNC customer was completed and commercial production started in October. 4. Fundraising: - The company is raising funds to the tune of Rs 400 crore in the form of preferential warrants to be used as growth capital. 5. Expansion Plans: - The Company plans to invest up to Rs 100 crore to set up, acquire, and invest in the area of sports shoe manufacturing. A share purchase agreement to acquire 100% share capital of KNS Shoetech Pvt. Ltd. has been executed. - The Board has authorized an investment of Rs 75 crore for setting up a Greenfield Ice Cream facility. Commenting on the results, Sameer R. Kothari, Managing Director said, “The overall slowdown in the FMCG demand and the deflation in the commodity prices continues to affect the short-term performance of the company. Additionally, the delay in getting the approvals for our Baddi acquisition has also hurt our plans for this financial year. However, we do believe that this phase is temporary and that this environment will lead to further consolidation of the industry and offer interesting opportunities for M&A.; We have accordingly, decided to raise some capital in the form of warrants which will not only give us access to the capital but will also allow us the luxury of drawing down this capital as and when these opportunities manifest. One such opportunity identified by the company is in the sports shoe manufacturing sector where the company has agreed to invest up to Rs 100 crore. We do believe that this sector will see some unprecedented growth aided by the tailwinds of government policies and global realignment of supply chains. Another sector is ice cream manufacturing where we have further authorized an investment of Rs. 75 crore as we believe that per capita consumption and increasing reach of e-commerce will lead to a further decentralization of the supply chain and require more capex for setting up manufacturing facilities. We continue to be bullish about the Indian consumption story and are still confident of reaching our stated target by FY25.” Mayank Samdani, Group CFO, said, "While our turnover for the quarter on a consolidated basis was flat with a growth of only 2% YoY, the PAT rose by 31% YoY. Our PAT for the quarter surpassed its previous high owing to the commercialization of the new facilities, and thus for the half year also, we have posted our highest-ever PAT of Rs 48.0 crore. We were able to achieve 21% ROE which we expect to sustain. Our consolidated cash flow from operations was stable in spite of the increase in the inventory levels due to the commencement and ramping up of the new facilities." Result PDF
Conference Call with Hindustan Foods Management and Analysts on Q1FY24 Performance and Outlook. Listen to the <a href="https://youtu.be/s6eeohc1YkA>full earnings transcript.
Packaged foods company Hindustan Foods announced Q1FY24 results: Revenues increased by 4% to Rs 620.2 crore in Q1FY24 from Rs 598.6 crore in Q1FY23 EBITDA grew by 33% to Rs 51.4 crore in Q1FY24 from Rs 38.6 crore in Q1FY23 PAT increased by 57% to Rs 23.4 crore in Q1FY24 from Rs 14.9 crore in Q1FY23 Commenting on the results, Sameer R. Kothari, Managing Director said, “While the overall slowdown in the FMCG demand has affected the growth plans of the company, the existing factories continue to deliver steady performance. Our top line was affected by the continuing fall in the commodity prices which offset the gains of the ramping up of the new factories. Additionally, our bottom line was affected by the lesser-than-expected off-take of our summer products due to the unseasonal rains. However, the nature of our business model enables us to deal with these variations and protects our bottom line. We continue to be bullish about the Indian consumption story despite the short-term hiccups and are beginning to see some green shoots.” Commenting on the Financial Performance, Mayank Samdani, Group CFO said, “While our turnover for the quarter on a consolidated basis was flat YoY and QoQ, the PAT rose by 16% QoQ and 57% YoY. Our PAT numbers for the quarter were the highest ever, aided by the commercialization of the new facilities and the change in the tax regime. The integration of the Baddi factory has been held up for the lack of the statutory approvals but we do believe that the ramp-up of the new facilities and the Baddi facility integration which is expected in Q3FY24 should help improve our performance.” Result PDF