Conference Call with ADF Foods Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Packaged Foods company ADF Foods announced Q1FY24 results: Standalone revenue for Q1FY24 was Rs 84.6 crore registering a growth of 17.2% on a YoY basis. EBITDA stood at Rs 21.1 crore, with a margin of 24.9% - increasing by 189.3% YoY. PAT grew on a yearly basis by 121% to reach Rs 16.4 crore, at a margin of 19.3% In Q1FY24, consolidated revenue grew by 15.7% to Rs 112.4 crore YoY, while EBITDA and PAT grew by 141.4% to Rs 21.9 crore and 92.7% YoY to Rs 14.7 crore respectively The company's core business of processed and preserved foods saw margin improvement on both YoY and QoQ basis. Revenue from the distribution business saw a 29% and 40% growth on a quarterly and yearly basis respectively. Ashoka brand continues to grow at very high double digits. It crossed Rs 200 crore in revenue in the last financial year and has also grown well in the current quarter The company has created a large freezer capacity at its New Jersey warehouse, which will help with faster fulfilment of frozen category products in the market 3 SKUs received a listing in a large discounter and 15 SKUs received a listing in a supermarket chain in the UK – and is optimistic about their listings’ revenue potential Commenting on the results, Bimal Thakkar, Chairman & Managing Director said, “We have delivered yet another remarkable first quarter result – posting higher revenues and improving our operational metrics year on year. Historically we see that the quarters in the later part of the year contribute significantly to the top line; flowing subsequently to our bottom line. However, given we have achieved the run rate of last financial year in this year’s first quarter itself – it makes us very excited about our prospects for this year. We try to consistently introduce new delectables in our product portfolio since we serve a wide palate of global consumers. This quarter saw the introduction of new products under Ashoka. We also started working on improving our capabilities towards the introduction of frozen products in the third quarter under our Truly Indian Brand. Some of our SKUs received listing nods with a large discounter and a supermarket chain – a testament that at ADF we not only try to serve people with the authentic Indian experience when it comes to food but do so while holding ourselves to the highest standards of quality. We continue to strive harder to increase our product basket and enhance value for our shareholders with consistent performance." Result PDF
Packaged foods company ADF Foods announced Q4FY23 & FY23 results: Highest-ever standalone annual revenue, EBITDA, and PAT coupled with robust expansion in EBITDA and PAT margin. It is the highest standalone PAT margin in the history of the company on a quarterly as well as yearly basis In Q4FY23, consolidated revenue grew by 13.8% to Rs 123.1 crore YoY EBITDA and PAT grew by 73.2% to Rs 26.5 crore and 42.6% YoY Rs 16.1 crore respectively Our flagship brand ‘Ashoka’ has now crossed Rs 200 crore in Revenue, growing at a CAGR of 33.2% over the past 2 years The board has recommended a dividend of Rs 5 per share The board has approved a sub-division of the equity shares of the company having a face value of Rs 10 each into shares having a face value of Rs 2 each Commenting on the Results, Bimal Thakkar, Chairman & Managing Director, said, “ADF Foods has delivered a strong Q4 performance, with robust revenue and PAT on a standalone and consolidated basis. Our flagship brand ‘Ashoka’ remains a top Indian food brand in stores across the US, UK, and Asia Pacific, thanks to our dedication towards traditional recipes and high-quality ingredients. We have completed debottlenecking efforts in our existing plants to meet growing demand, and our planned expansion in Surat and infrastructure in existing plants will unlock further frozen food production capacity. Our commitment to sustainable manufacturing processes and adherence to global standards of quality have helped us become one of India’s leading exporters in the processed foods business. Investments are being made towards sales and distribution for our Soul brand in India due to the encouraging response we've received. On overseas operations, we have made significant investments in our US subsidiaries in creating infrastructure and improving the supply chain the results of which are expected to yield in the future. Also, ADF USA did not contribute due to supply chain issues which led to an adverse effect of Rs 7 crore in profitability. We are closely working on the situation to mitigate these costs. We remain focused on leveraging our expertise to drive growth and profitability in the future.” Result PDF