Hindustan Foods Limited, a leading contract manufacturer for FMCG products, has reported a strong financial performance for the first quarter, marking its highest ever quarterly profit despite challenging weather conditions affecting seasonal categories.

Financial Highlights

Operational Performance

The company achieved record production across several segments:

• Beverage, OTC Pharma, and Home Care units hit peak production levels
• Lucknow Ice Cream facility reached full capacity utilization
• New Nashik Ice Cream plant commenced production in May
• Footwear business posted its highest ever monthly sales in June

Strategic Developments

• Investing ₹200.00 crores in North Ice Cream facility expansion
• Allocating ₹50.00 crores for Shoe business expansion
• Targeting ₹2,000.00 crore gross block

Management Commentary

Sameer Kothari, Managing Director of Hindustan Foods Limited, stated, "HFL achieved its highest ever quarterly profit this quarter, a milestone made even more remarkable by the challenges posed by the unseasonal rains that impacted demand in key seasonal categories like Ice Creams and Beverages."

Kothari added, "We remain optimistic of achieving the targets that we have set for ourselves."

Segment-wise Performance

Ice Cream Business

The company's ice cream segment showed strong growth despite weather-related challenges. The Lucknow facility reached peak capacity, while the new Nashik plant, with a capacity of nearly 15,000 KL, started production in May. Hindustan Foods aims to become the largest contract manufacturer of ice creams in India within the next two years.

Footwear Segment

The footwear business demonstrated significant improvement, posting its highest ever monthly sales in June. The South facility continues to ramp up in line with expectations.

FMCG Segment

The company reported that consumption in the FMCG sector is beginning to show traction, with hopes for further improvement during the festive season.

Future Outlook

While the company remains confident about achieving its targets, it acknowledges potential challenges from global trade tensions affecting the Footwear segment and seasonal variations impacting Ice Cream and Beverage demand.

Hindustan Foods continues to focus on strategic value-accretive acquisitions and operational efficiency to navigate the challenging macroeconomic environment. The company's diversified product mix and differentiated business model are expected to provide resilience against external headwinds.

As Hindustan Foods Limited moves forward with its expansion plans and strategic initiatives, it remains well-positioned to capitalize on growth opportunities in the contract manufacturing space across various FMCG categories.

Hindustan Foods Limited , a leading contract manufacturer in India, has announced its financial results for the fourth quarter, showcasing impressive growth in both profit and revenue.

Profit Surge

The company reported a significant increase in its consolidated net profit for Q4, reaching ₹30.80 crore. This represents a substantial year-over-year growth of 33.90% from the same quarter of the previous year.

Revenue Boost

Hindustan Foods' revenue for the fourth quarter also demonstrated strong performance. The company recorded revenue of ₹933.00 crore, marking a notable year-over-year increase of 27.70% compared to the corresponding quarter of the previous year.

Business Performance Highlights

• Strong demand in seasonal categories drove the revenue growth.
• The shoe business achieved operational profitability for the first time, marking a significant milestone for the company.
• Hindustan Foods approved the acquisition of a minority stake in The Kabadiwala, a plastic scrap recycling firm, indicating a strategic move towards sustainability and diversification.

Financial Performance Overview

To better illustrate Hindustan Foods' Q4 financial performance, here's a summary of the key figures:

The robust financial results reflect Hindustan Foods' strong market position and operational efficiency. The company's ability to grow both its top line and bottom line demonstrates its resilience and effective business strategies.

As a leading contract manufacturer, Hindustan Foods' performance is often seen as an indicator of the broader FMCG sector's health. The company's growth suggests a positive trend in consumer demand and manufacturing activities in India.

Investors and market analysts will likely keep a close watch on Hindustan Foods' future performance. The company's strategic moves, such as the investment in The Kabadiwala, also indicate its focus on long-term sustainability and growth.