ADF Foods income for FY20 at Rs 295 Crores, up 20% YoY EBITDA Margin at 21%

Myequity news |Date: 11-05-2020 21:55:00 IST

ADF Foods Limited (BSE: 519183; NSE:ADFFOODS), a leading player in the prepared ethnic food, has reported results for fourth quarter and financial year ended March 31, 2020.

FY20 performance: 

  • Total income for financial year ended March 31, 2020, stood at Rs. 295 Cr, compared to Rs. 246 Cr in FY19, up 20% YoY 
  • EBITDA for the period was Rs. 62.5 Cr, compared to Rs 53 Cr in FY19, up 18% YoY 
  • EBIDTA margin continued to remain robust at 21% 
  • During the last quarter of the year, the Company took the maintenance shutdown of its Nadiad plant for 7 days. Also, towards the end of the year, operations were impacted due to the COVID-19 Pandemic due to which both manufacturing plants were shut down w.e.f 24th Mar’20. In absence of these events, the revenue and operating profitability growth would have been more robust 
  • Reported Net Profit after Tax for FY20 stood at Rs. 43 Cr, up 69% YoY 
  • PAT margin of 14.5% compared to 10.3% in FY19

Q4FY20 performance: 

  • Total income for quarter ended March 31, 2020 stood at Rs 86 Cr compared to Rs 69 Cr in Q4FY19, up 24% YoY 
  • EBITDA for the quarter was at Rs 19.5 Cr compared to Rs 17.6 Cr in corresponding period last year; EBITDA margin of 22.8% in Q4FY20 
  • Reported Net Profit after Tax of Rs 13.3 Cr for Q4FY20, as compared to Rs. 3.2 Cr in the Q4FY19. Results of Q4FY19 include one-time impairment charge of Rs 9.8 Cr 
  • PAT margin for the quarter stood at 15.5%

Total debt as on 31st Mar 2020 stood at Rs. 23.2 Cr, which constitutes short-term borrowings. Total cash/ cash equivalents and bank balance stood at Rs. 36.7 Cr. 

New business segment “Agency Distribution”: 
During FY20, ADF entered a new business segment under which the Company would act as distribution agents of food products for a Fortune 500 FMCG global major across the US and UK markets. This new vertical gives the Company a wider product portfolio to offer to its distributors as well as enables it to tap the existing network of the FMCG global major for its own products. The vertical contributed Rs. 32.2 Cr to revenues in FY20.

New product launches: 
During the year, the Company has launched new products under Ashoka brand like Frozen Chutneys, Bullet Naan (Masala Naan), Tandoori Lachha Naan, Veg Spring Rolls, Cheese Samosa, Vegetable Samosa and Malaysian style Plain Paratha. It also extended its current product line of Dipping Sauces with a new variant called Chatpata Achari Dipping Sauce under the ambient range.

Covid-19 preparedness: 
As the food products are essential goods, the operations at both the plants of the Company were partially restored with limited manpower w.e.f 1st April 2020. Appropriate norms and guidelines - cleaning/sanitization of the food operations premises, food contact materials, social distancing, and hygiene measures - are being mandatorily followed.

The Board has not recommended any final dividend. The two interim dividends - @ Rs 1.50 (15%) post Q3FY20 results and @ Rs 1.50 (15%) post Q2FY20 results - total Rs 3 per share (30%) on Equity Shares of face value Rs. 10/- each shall be considered total Dividend for the year.

Commenting on the performance, Mr. Bimal Thakkar, Chairman, Managing Director & CEO, ADF Foods Limited said, “In these extraordinary times, I am extremely proud of the performance our team has delivered while ensuring the safety and well-being of each other. We believe that this crisis would bring significant changes in consumer behavior towards health, hygiene and nutrition, which could be an opportunity for us. We will continue to invest and innovate to tap these evolving consumer needs. Our aim would be to deliver growth along with robust profitability through focusing on cost management and balance sheet quality.”

About ADF Foods Ltd:

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 7 Flagship brands. It manufactures, distributes and markets Indian food along with organic Mexican and natural Mediterranean foods. The company’s products are available in over 50+ countries through a strong distribution network across US, Canada, Europe, Australia, Asia and Middle East.For more details please visit: www.adf-foods.com


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