2 Min Read
Bikaji Foods raises prices, plans more hikes this year
Manoj Verma, Chief Operating Officer, Bikaji Foods International, expects low double digit volume growth for 2024-25.
Bikaji Foods International, a key player in India’s ethnic snacks market, increased product prices by 2–3% at the start of the October-December 2024 quarter and plans another 2% hike soon.
Chief Operating Officer Manoj Verma said the surge in palm oil prices exceeded expectations, creating pressure on margins. But input prices may have now peaked.
Bikaji Foods International expects low double digit volume growth for 2024-25 (FY25).
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin could be affected by about 100 basis points, as input cost increases may not be fully passed on to consumers.
In the sweets segment, which contributes around 13% of the total product mix, growth for the July to December period is expected at around 10% over the previous year.
The July-September quarter saw robust growth in the mid-20% range, reflecting strong seasonal demand, while growth in the October-December quarter is expected to be lower. Despite this, the overall performance of the sweets category is expected to remain solid for the combined period.
The company has set a goal to achieve direct coverage of 3 lakh outlets and a total reach of 1.1 million outlets by the end of 2024-25.
The company, which has a market capitalisation of ₹21,433 crore, has seen its shares rise 60% over the last year.
Chief Operating Officer Manoj Verma said the surge in palm oil prices exceeded expectations, creating pressure on margins. But input prices may have now peaked.
Bikaji Foods International expects low double digit volume growth for 2024-25 (FY25).
The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin could be affected by about 100 basis points, as input cost increases may not be fully passed on to consumers.
In the sweets segment, which contributes around 13% of the total product mix, growth for the July to December period is expected at around 10% over the previous year.
The July-September quarter saw robust growth in the mid-20% range, reflecting strong seasonal demand, while growth in the October-December quarter is expected to be lower. Despite this, the overall performance of the sweets category is expected to remain solid for the combined period.
The company has set a goal to achieve direct coverage of 3 lakh outlets and a total reach of 1.1 million outlets by the end of 2024-25.
The company, which has a market capitalisation of ₹21,433 crore, has seen its shares rise 60% over the last year.
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