Foods & Inns Reports Mixed Q1 Results: Revenue Dips, Margins Improve

Foods & Inns , a leading food processing company, has reported mixed results for the first quarter. While the company experienced a decline in revenue, it saw improvements in gross margins and significant growth in certain business segments.

Revenue and Profitability

The company's total income for Q1 declined by 5% to Rs 239.00 crore, compared to Rs 251.00 crore in the same quarter of the previous year. Revenue from operations fell to Rs 236.00 crore from Rs 247.00 crore year-on-year. Despite the revenue dip, Foods & Inns managed to improve its gross margin to 39.0% from 37.6% in the corresponding quarter last year.

However, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin saw a slight decrease to 11.5% from 12.1%. The company's profit after tax (PAT) remained stable at Rs 7.00 crore, with the PAT margin improving marginally to 3.0% from 2.8% in the same period last year.

Operational Highlights

Foods & Inns reported several positive developments across its business segments:

1. Mango Procurement: The company saw a significant 20% year-on-year increase in mango procurement volumes. This growth was supported by indicative customer orders and lower raw material prices for Totapuri mangoes, which is expected to reduce working capital requirements.

2. Domestic Sales: The company's domestic sales grew by approximately 12%, with positive momentum continuing into subsequent months.

3. Frozen Food Segment: This division experienced robust growth, with volumes rising 50% year-on-year. The company also regained a previously lost tender-based client, with deliveries set to commence in the second half of the fiscal year.

4. Spray Dried Powders: Global demand remained strong, with Q1 volumes up about 50% compared to the same period last year.

5. Sales Tonnage: Overall sales tonnage increased by 10% to 29,964 MT from 27,154 MT in the previous year.

Business Segment Performance

Management Commentary

Moloy Saha, Chief Executive Officer of Foods & Inns, commented on the results: "Despite the challenging market conditions, we've seen significant improvements in our operational efficiency and market penetration. The growth in our frozen food and spray dried powder segments is particularly encouraging, and we're optimistic about the opportunities ahead."

Future Outlook

Foods & Inns is focusing on capitalizing on the growing demand for existing products, improving asset utilization during the mango off-season, and expanding its market presence both domestically and internationally. The company is also committed to sustainability initiatives, including a joint venture to convert fruit waste into pectin, oils, and butter.

As Foods & Inns continues to navigate the dynamic food processing industry, its diverse product portfolio and strategic initiatives position it well for future growth. Investors and stakeholders will be watching closely to see how the company builds on these mixed results in the coming quarters.