It gives me immense pleasure to present the Annual Report of ADF Foods Limited for thefiscal year 2019. At ADF we are committed to serving the ever-evolving tastes andpreferences of our consumers through a blend of convenient and healthy food and productinnovation.
We look back at the company's performance in 2018-19 with a sense of satisfaction andachievement having reported robust growth both in revenue and profitability.
On a standalone basis for the year total income for the Company grew by 10.5% overthe last year to Rs. 202 crores. During the year under review Operating profit grew by36% over the previous year to Rs. 49 crores. Further the Company reported Profit aftertax (PAT) of Rs. 31 crores up by 37% over the fiscal year 2018.
On a consolidated basis for the financial year 2018-19 total income grew by 12% overthe previous year to reach Rs. 246 crores. During the year under review operating profitgrew by 32% to Rs. 53 crores and PAT stood at Rs. 25 crores reporting an increase of 40%over the previous year. Our consolidated PAT would be higher but for the one-time chargeto the tune of Rs. 10 crore on account of impairment of certain brands in our USsubsidiary. However I am glad to share that our US operations have stabilized and we arepoised to achieve robust growth.
Our growth this year was driven by multiple factors. We continued to strengthen ourbrands and product portfolio across categories and geographies. The food landscape isinherently dynamic with tastes and preferences globally constantly changing and with avisible shift towards healthy products. We already have an array of gluten free and veganproducts under our various brands and are further investing in building capacities forsuch products. This year your company has launched various new products like bakedsnacks a range of flavoured milk drinks called "Badamazaa and a range ofpastes under our Ashoka and Camel brands.
ADF stands committed to investing in Human Capital. This year we strengthened thesenior management team with appointment of Mr. Anish Jhaveri as Chief Financial Officer.Anish has over 30 years of experience in corporate finance function for various companies.We have also appointed a General Manager-Works (Nasik) Mr. Narayan Kadam who has over 15years of industry experience. In addition we have appointed additional Country ManagersMr. Apurva Patel for the US and Mr. Bharat Sareen for the UK as a continuous effort tostrengthen our international sales team. I welcome all of them to the ADF family and lookforward to scaling new heights through our combined efforts.
In line with our strategy to focus on premium products this year we have initiatedcapex of Rs. 20 crore for expansion of product capacities both at the Nadiad and Nasikfacilities. Your company stands committed to the environment and is in the process ofcommissioning an Effluent Treatment Plant with zero-liquid discharge at our Nasik facilityand solar panels at both the plants. The above expansions are expected to be on stream bythe end of the current fiscal year.
We believe in creating value for our shareholders and during the year under review wesuccessfully completed a buyback of 1178742 equity shares through the open market routeat an average price of Rs. 254.43 per equity share utilizing a total of Rs. 29.99 crore(excluding transaction cost) representing 99.97% of maximum buyback size.
Your Company is committed towards its Social Responsibility through its ongoing CSRactivities in the areas of women empowerment sponsoring education of urban and ruralunderprivileged students financial aid for medical treatment of poor people residentialcare expenses of physically challenged youth environment protection etc.
A new generation of millennials and changing consumer preferences are framing industrymega trends globally and I believe we are well poised to adapt to such an environment.
I would like to thank all our stakeholders for their consistent support and trust inour company.
|With best wishes |
|Bimal Thakkar |
|Chairman & Managing Director |