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Tasty Bite Eatables Ltd.

BSE: 519091 Sector: Agri and agri inputs
NSE: TASTYBITE ISIN Code: INE488B01017
BSE 00:00 | 17 Aug 12693.75 -154.30
(-1.20%)
OPEN

13200.00

HIGH

13206.60

LOW

12460.00

NSE 16:04 | 17 Aug 12633.95 -241.25
(-1.87%)
OPEN

13016.85

HIGH

13196.30

LOW

12429.00

OPEN 13200.00
PREVIOUS CLOSE 12848.05
VOLUME 365
52-Week high 19816.65
52-Week low 8012.60
P/E 297.21
Mkt Cap.(Rs cr) 3,262
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 13200.00
CLOSE 12848.05
VOLUME 365
52-Week high 19816.65
52-Week low 8012.60
P/E 297.21
Mkt Cap.(Rs cr) 3,262
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Tasty Bite Eatables Ltd. (TASTYBITE) - Chairman Speech

Company chairman speech

Dear Shareholders

LAST YEAR MY NOTE TO YOU WAS TITLED "GROWTH & INNOVATION

IN A POST-COVID WORLD."

THE UNDERLYING ASSUMPTION WAS WE'D BE LOOKING AT

THE PANDEMIC IN THE

REARVIEW MIRROR EVEN

AS WE ACKNOWLEDGED

SOME PERMANENT

BEHAVIORAL CHANGES FOR A NEW TOMORROW.

Instead we have seen a global spike from 7 million cases I mentioned in the AnnualReport last year to an alarming 173 million cases a year later. Tragically almost 4million people have died and even this is acknowledged to be vastly under-reported. Thecases in India skyrocketed recently and today we stand 2nd only to the US inCovid cases and fatalities.

This has been a very difficult year for the families of our employees contractorssuppliers and farmers. I know you too dear shareholders are dealing with more than youplanned for. I wish you a safe return to normalcy from this long period of turbulence.

As a company we have been agile and responsible in dealing with this situation thebest we can. We have and will be contemplating further measures to deal with thisuncertainty but before I get into that let's take stock of the difficult year gone by:

After a 5-year annual growth rate (CAGR) of over 20% your company saw net revenuesdecline for the first time ever by 11% to INR 4.04 billion from INR 4.55 billion.

Our Consumer business though represented by exports managed to grow 9% for the yearfrom INR 2.76 billion to INR 3.01 billion. The US continued to reel under Covid most ofthe year but Tasty Bite sales were up in all channels (grocery club & private label).Not surprisingly online sales continued to grow the fastest yet another year. OrganicMadras Lentils and the range of Organic Grains was followed by the introduction of severalnew SKUs and today with 60+ organic SKUs Tasty Bite has become a largely organic brandin North America.

The TFS (Tasty Bite Food Service) business which is essentially domestic dropped 44%from INR 1502 million to INR 842 million as our QSR customers were hit hard.

‘TastyBite Xclusive' launched last year targeting HoReCa has been abortedas restaurants and catering establishments struggled to keep their doors open across ourtest markets. We are in the process of redesigning this initiative. These setbacks did notstop us from continuing our capacity expansion plan through the year despite the physicalchallenges posed by Covid adding INR 371 million to our asset base to prepare for thegrowth ahead. It's a tribute to our resilience and discipline that profits after tax (INR393 million) managed to remain at 96% of last year (INR 409 million) enhancingprofitability to 9.7% of revenues up from 9%. This was driven by across-the-boardimprovements in operating efficiencies cost discipline and incredible dedication of teamTasty Bite.

Is Covid here to stay?

Every day we wake up to news of increased infections new variants vaccine shortagespoor infrastructure and inadequate preparedness. To a lesser or greater extent this seemsto be the situation everywhere in the world. There is a widening acknowledgement that thisvirus is now endemic - here to stay permanently as our unwelcome guest. How we deal withit as individuals as a community and as a business will set us apart and determine ourfuture. So far there are no global or corporate role models - only temporary heroesshifting fortunes and the lucky or unlucky ones. The only common denominator the wholeworld seems to be dealing with is the terrible duo: unpredictability & uncertainty.For a business that is unprepared this can translate to fuzzy forecasting poor planningtentative execution and a faulty review. Fortunately I believe your company is acutelyaware of its environment and dealing with crisis of today without losing its focus on thefuture.

Here is how we are looking at the changed environment.

Necessarily Natural Preferably Organic:

Consumers globally have a heightened awareness of food and its role in wellness. Thishas been a megatrend Tasty Bite has championed for more than 25 years. Our commitment tokeeping products all natural without the need for chemicals artificial colors flavors orpreservatives is well documented. This is a very high bar for most food companies. For usit's a way of life.

This year however we raised this bar further. You will recall my earlier message thaton the back of our organic rice and grains line we launched our bestseller SKU MadrasLentils across all channels. The results were so encouraging that we currently have nearly60 organic SKUs and more than 20 variants across Canada and United States.

Growth of the Tasty Bite organic range has been nothing short of spectacular. Just 3years ago only 10% of our branded volume or revenue was organic. Last year it was abouthalf. This year 70% of the Tasty Bite branded business is organic.

This is truly mission aligned as we continue to build a socially responsible businessthat will continue to provide consumer delight.

Food Service industry pivots globally - expect new winners and losers:

Lockdowns came in different flavors through the year creating new problems unfamiliarto the Food Service industry. Partial store openings restricted hours new safetyprotocols ageing perishable commodities cost escalations and an uncertain consumerturnout in the dine in takeout and delivery segments are just a sample what the industryis dealing with. No one was spared-fast food chains restaurants catering establishmentshotels. The effect on our customers impacted us quickly.

The ramifications to the nearly USD 4 trillion global industry are widespread and longlasting. But it has also opened up opportunities for innovators. Our customers are lookingat new technology enabled business models. Everything from precision farming emergingcell-based foods plant-based meats new processing technologies customized nutritioncloud kitchens driverless and drone deliveries are each examples of multi-billionindustries in the making.

We are witnessing green shoots in our local and regional markets of these emergingtechnologies and we will be exploring new business options with our customers. If we areto stay mission aligned with our TFS purpose of being the natural partner of choice toleaders in the Food service industry then I am persuaded we can do nothing less.

Tasty Bite Foundation repurposed for Covid Relief:

I am extremely grateful to our parent company Mars and to our Board of Directors forhaving repurposed the Tasty Bite Foundation during the year from "integrated ruraldevelopment" to Covid relief. The work and the speed at which programs wereimplemented these last few months by the Foundation and the employees of TBEL insupporting our local communities will forever inspire.

It is true this was one of the more difficult years in our history as the largest Covidcases happen to be the US and India our 2 most important markets. But the measures wehave in place now to tide over the short-term impediments and the strategic plans we haveacross product segments geographies and channels allows us to face the future not withanxiety but with renewed energy.

It is difficult and probably unwise to describe a company in one word. But there is onethat best portrays Tasty Bite and one that has been repeatedly demonstrated over theyears.

Resilience.

Ashok Vasudevan

Chairman

DIN: 00575574

.