Good results by ADF foods. Some selected excerpts from the concall. Overall the business is growing steadily and management seems confident about the future backed by financial numbers
Best ever quarter in terms of revenue as well as profitability matrix on a standalone and consolidated basis led by increasing volumes and better product mix.
Revenues surpassed the 500 crore milestone in financial year 24 on a consolidated basis.
Consolidated EBITDA margin was at 20.2%, which is well above our target of high teens.
Consolidated revenues increased by 24.8% to 153.6 crores on a year on year basis back of demand backed by demand let growth.
We are seeing a marked improvement in this growth, hence expect it to be sustainable in the future as well.
We continue to witness strong demand across all our brands. Our flagship brand, Ashoka saw continued addition of new products and launched in new markets as well as increase penetration in existing markets.
Our India focused brand Soul has seen an initial good response. We are finalizing new product launches and we expect to launch Soul in the modern trade in the last quarter Financial year 25. We’ve committed an investment of 13 crores for Soul in financial year 25.
We are aspiring to achieve 100 crore revenue within the next three to four years in the domestic business.
Our truly Indian brand has been launched in the US and we’ve seen a good response by by way of listings in various supermarkets. This brand too is currently in an investment mode.
We have a new team in the US and will be investing in this brand to target the mainstream audience.
Our agency distribution business has not grown the way I would have liked. However, I would like to state that the same is not due to any demand issues. Rather, it has been tampered by supply chain issues. Our principles are working hard to sort the supply chain issues and we are optimistic that these issues will be sorted out, resulting in a good growth in financial year 25.
We continue to be bullish in terms of our outlook for 25 and expect revenue growth to be upwards of 20%.
Margins at high teen margins on a consolidated basis.
Broken ground in our Surat Greenfield projects and have committed 75 crores for phase one expansion. (Expansion will cater to both new as well as existing lines for our frozen foods.)
got listed in two more chains in the US which will give us for the truly Indian brand
spending of almost 75 crores in the Surat Greenfield Project It will give us almost a top line of 250 to 275 crores. So that’s our expected top line.
continue to increase our advertising and marketing spend, in fact, so we are very committed in growing our brands, which is why even on truly Indian and soul, we are making investments in the brand.
Truly Indian is for the mainstream market now. The mainstream market like in the US for us is new. So we’ve got a huge runway there. It’s a much larger audience that you’re catering to. Indian food overall is getting more and more popular in, in the United States
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