ADF Foods Q4 PAT climbs 12% YoY to Rs 15 cr

On a consolidated basis, ADF Foods reported 12.2% rise in net profit to Rs 14.9 crore on 21.8% jump in total income to Rs 104.5 crore in Q4 FY21 over Q4 FY20.

The income growth was driven by the export business as well as agency distribution business.

EBITDA increased 13.3% to Rs 22.1 crore in Q4 FY21 as against Rs 19.5 crore in Q4 FY20. EBITDA margin stood at 21.2% as on 31 March 2021 as against 22.8% as on 31 March 2020.

Profit before tax in in the fourth quarter stood at Rs 20.4 crore, up by 17.6% from Rs 17.3 crore in Q4 FY20.

The company posted 17.1% increase in consolidated net profit to Rs 50.1 crore on 27.4% rise in total income to Rs 375.3 crore in the year ended 31 March 2021 over the year ended 31 March 2020.

The company enjoys zero total debt as on 31 March 2021. Total cash and cash equivalents stood at Rs 81.3 crore.

The agency distribution segment where the company acts as distribution agent of food products for a Fortune 500 FMCG global major across the US and UK markets, contributed Rs 18.4 crore to revenues in Q4FY21 and Rs 76.2 crore in FY21. The company also expanded the product offerings in this business segment by adding wheat flour and soup brands in the mix, thereby enhancing the product basket.

Bimal Thakkar, Chairman, managing director & CEO, ADF Foods said, "We continue to see robust demand across our product categories and to cater to that we have started investing in increasing our capacities and strengthening distribution. Our new leased facility in Gujarat started commercial production towards the end of the quarter and would see full operations in the coming year.

We are pleased to announce a greenfield expansion plan for a total estimated capex of Rs 60 crores and have acquired land in Gujarat for the same; we hope to complete and start commercial production in 18 to 24 months.

We have also made our distribution network stronger by taking a warehouse in the US to which will help us to ensure uninterrupted supply to customers. We are also delighted with the way our agency distribution business is shaping-up, during the year we added additional products in our product basket and aim to continue growing this segment.

We believe that we are at an inflexion point. With our strong balance sheet and cash flow position, we are rightly positioned to tap the growth opportunities in the sector."

The company's existing capacity is 28,000 metric tonnes per annum, with capacity utilization at 56% of installed capacity. The company proposes to add 9,840 metric tonnes per annum during Phase-I within 18 to 24 months at an approximate investment of Rs 60 crore. The proposed greenfield project will help the company to scale up its production in its core verticals i.e. frozen bread, snacks, ready-to-eat products & chutneys.

The company's board has recommended a final dividend of Rs 3 per share and the amount shall be considered total dividend for the year.

ADF is a consumer-focused company and a leader in prepared ethnic food offering ready-to-eat (RTE) items, ready-to-cook (RTC) items, sauces, pickles, pastes, dips and frozen foods under its seven flagship brands. It manufactures, distributes, and markets Indian food along with organic Mexican and natural meat alternative foods. The company's products are available in over 55+ countries through a strong distribution network across US, Canada, Europe, Australia, Asia and Middle East.

The scrip fell 1.95% to currently trade at Rs 1018.70 on the BSE.

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