Avanti Feeds

I used to do a comparative analysis of Avanti with peers sometime back and had a very detailed sheet. I tried updating the same recently:

Here is how the things look like for the feed segment.

Avanti has been able to grow vs the peak in 2018. While every other company in the feed business has de-grown a lot. Infact if one goes deeper, one will see that others are bleeding and everyone is making losses or just breaking even…while Avanti continues to generate superb cash flows!!
This is the quality and brand power of the feed business of Avanti. They have added more capacity over last 2 years.
Just read the credit rating report of CP feeds and one will realise that they are making big losses.

Now coming to the processing division:

Similar story here. Avanti is perhaps the only one which has grown and making money. Others have de-grown and are either making losses or just breaking even.
When one talks to people in the industry then everyone says, don’t compare us to Avanti, they are way ahead and leaders in what they do!

I think in Avanti, the business quality is superb but this has become a problem for them…lol. They don’t know what to do with the free cash flows they keep generating. And this has impacted the wonderful ratios we used to see earlier.

Last 5 years have been really bad for the industry and this highlights the difference in business quality of various cos.

Ayush