ADF Foods reported a net profit after tax of Rs14.9cr for Q4FY21 as compared to Rs.13.3cr in the corresponding quarter of last year. PAT margin for the quarter stood at 14.3%.
Total income for quarter ended March 31, 2021 stood at Rs104.5cr as compared to Rs85.8cr in Q4FY20, a growth of 22% yoy; the growth was driven by the export business as well as agency distribution business.
The stock is currently trading at Rs1,016 down by Rs23 or 2.21% from its previous closing of Rs1,039 on the BSE.
EBITDA for the quarter was at Rs22.1cr with an EBITDA margin of 21.2% and PBT for the quarter stood at Rs20.4cr, up 17.6% you.
The Company enjoys Zero total debt as of 31st March 2021. Total cash and cash equivalents stood at Rs81.3cr.
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 Rs18.4cr to revenues in Q4FY21 and Rs76.2cr 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.
Mr. Bimal Thakkar, Chairman, Managing Director & CEO, ADF Foods Limited 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.”
Capex Update:
During the year, the company setup a manufacturing facility in Surat, Gujarat on lease. The facility is expected to increase the production capacity by 1,950 MTPA. The capex of this project was Rs 2 crores. The facility was established in response to the increased demand for the company’s core products- frozen bread, snacks and ready-to-eat products. The facility started commercial production of frozen breads wef. 25th March, 2021.
The Company recently has acquired a land parcel of around 7 acres in Gujarat for a greenfield expansion. A Capex outlay of Rs 60 crores has been announced for Phase 1 which would see an increase in capacity of Frozen Foods, Ready to Eat and Condiment categories, this expansion would bring a potential ~10,000 MTPA addition to the overall manufacturing capacity.
The company additionally acquired 66,000 Sq. Ft of warehouse space on leasehold basis at New Jersey, USA as a dedicated distribution center. This is in line with the company’s goal of expanding the distribution network to ensure uninterrupted product supply with direct reach to the retailers.
During the year, the Company has launched new product variants under the Ashoka brand like new frozen vegetables - red chilli, chopped methi leaves, coconut slices and amla (gooseberry) slices, additionally three new variants of Kathi rolls - Gobi 65, Hot & Sour and Soya Chaap in the frozen snacks category. It also extended its current product line of Dipping Sauces with a new variant under the ambient range.