In This Article:
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Consolidated Revenue: INR 161.4 crore, up 29.5% YoY.
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Standalone Revenue: INR 125.6 crore, up 29.1% YoY.
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EBITDA: INR 50.5 crore for H1 FY25, up 15.3% YoY.
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EBITDA Margin: 22.7% for H1 FY25, a decrease of 140 basis points YoY.
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Net Profit (PAT): INR 21.4 crore for Q2 FY25, up 20.6% YoY.
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PAT Margin: 17% for Q2 FY25.
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Distribution Business Sales: INR 31.2 crore for the quarter.
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Capex Plan: INR 15 crore for H1 FY25.
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Cash Balance: INR 138 crore, debt-free balance sheet.
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Interim Dividend: 30% declared by the Board.
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Capacity Utilization: 70% to 75% overall, with some products at 90%.
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Brand Promotion Expense: 7% of topline, up from 6% YoY.
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Freight Cost Impact: Increased by 2.5% of topline in Q2 FY25.
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Greenfield Project: Expected to be commissioned by September 2025.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ADF Foods Ltd (BOM:519183) reported a 29.5% increase in consolidated revenues year-over-year, driven by strong demand across all brands.
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The company's flagship brand, Ashoka, achieved deeper market penetration, contributing to the revenue growth.
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The Truly Indian brand has successfully expanded into the US market, securing listings in prestigious stores like Whole Foods and Stop and Shop.
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ADF Foods Ltd is committed to doubling its revenue by FY27 and maintaining high margins in the long term.
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The company remains debt-free with a cash balance of INR 138 crores, indicating strong financial health.
Negative Points
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There was a slight decline in margins due to increased investments in brand building and higher freight costs.
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Freight costs increased by 2.5% of the top line in the quarter, impacting overall profitability.
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The company's EBITDA margin decreased by 30 basis points year-over-year, reflecting cost pressures.
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Capacity utilization is at 70-75%, indicating limited room for growth without further expansion.
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The company faces challenges in shipping and container availability, although these issues are being addressed.
Q & A Highlights
Q: Can you provide an update on the penetration of the Truly Indian and Ashoka brands in overseas markets, and how is the global demand given the current challenges? A: Truly Indian has secured new listings in the US, including Whole Foods, Stop and Shop, and Trader's, totaling about 1,300 stores. Ashoka continues to deepen its market presence by selling more products in existing stores. Demand remains robust despite some shipping challenges, which have started to streamline. Freight costs increased by 2.5% of the topline this quarter but have begun to decrease in October.