Mrs. Bectors Food , a leading player in the premium and mid-premium biscuits segment in North India and a prominent premium bakery player in India, has announced its financial results for the first quarter. The company reported a 7.6% year-on-year growth in revenue, reaching Rs. 473.00 crores, up from Rs. 439.40 crores in the same quarter of the previous year.

Segment Performance

The company's performance was marked by contrasting results across its two main segments:

1. Bakery Segment: This segment emerged as the star performer, registering a robust 19% year-on-year growth. Revenue from the bakery segment, which includes retail and institutional sales, increased to Rs. 183.00 crores from Rs. 154.00 crores in the same quarter of the previous year.

2. Biscuit Segment: The biscuit segment, which includes domestic and export sales, showed modest growth of 3%, with revenue increasing to Rs. 281.00 crores from Rs. 273.00 crores in the same quarter last year.

Profitability Metrics

Despite the revenue growth, the company experienced a decline in profitability:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell by 9% to Rs. 58.20 crores from Rs. 64.00 crores in the same quarter of the previous year.
• EBITDA margin compressed to 12.3% from 14.6% in the previous year.
• Profit After Tax (PAT) decreased by 12.8% to Rs. 30.90 crores, compared to Rs. 35.40 crores in the same quarter of the previous year.
• PAT margin declined to 6.5% from 8.1% in the same quarter last year.

Management Commentary

Anoop Bector, Managing Director of Mrs. Bectors Food Specialities, commented on the results: "The Company delivered revenue growth of 7.6% year-on-year, driven by our bakery segment which recorded a robust 19% year-on-year growth, on the back of strategic product innovations and market-leading brand equity."

He also noted challenges in the biscuit category, stating, "The biscuits category posted a topline growth of 3%, ailed by the impact of tariff uncertainty and supply chain disruptions due to geopolitical tensions."

Market Outlook

Mr. Bector expressed optimism about future prospects, noting that while input costs remained elevated compared to last year, there are early signs of price stabilization. He believes this should result in steady end-consumer pricing and fuel further demand recovery.

The company's domestic business continued to improve its growth momentum, even in the face of sharp price hikes, indicating resilience in consumer demand.

About Mrs. Bectors Food Specialities

Mrs. Bectors Food Specialities is known for its 'Cremica' brand in the biscuits segment and 'English Oven' brand in the premium bakery segment. The company is a preferred supplier to major QSR franchises, cloud kitchens, and multiplexes in India. With a diversified product portfolio and a strong multi-channel distribution network, Mrs. Bectors Food Specialities exports biscuits to 75 countries across 6 continents.

As the company navigates through challenges in input costs and geopolitical uncertainties, its focus on strategic product innovations and strong brand equity positions it to capitalize on the anticipated demand recovery in the Indian FMCG sector.

Mrs. Bectors Food Specialities Limited , a prominent player in the food industry, has made significant announcements that are likely to impact its shareholders and market position.

Stock Split Approval

The company's board has approved a stock split in the ratio of 1:5. This means that each existing share with a face value of Rs. 10 will be split into five shares with a face value of Rs. 2 each. The move aims to enhance the liquidity of the company's equity shares in the capital market and encourage wider participation of investors by making the shares more affordable.

Q1 Financial Results

Alongside the stock split announcement, Mrs. Bectors Food Specialities has released its Q1 consolidated financial results, showing a mixed performance:

The company witnessed a 6.80% year-over-year increase in revenue, reaching 4,700.00 million rupees. However, profitability metrics showed a decline. Net profit decreased by 12.70% to 309.00 million rupees, compared to 354.00 million rupees in the same quarter last year.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a reduction, falling from 640.00 million rupees to 582.00 million rupees. Consequently, the EBITDA margin contracted from 14.57% to 12.30%, indicating pressure on the company's operational efficiency.

QIP Fund Utilization

Mrs. Bectors Food Specialities Limited has submitted a monitoring agency report detailing the utilization of proceeds from their Qualified Institutional Placement (QIP). The company raised INR 400 crore through the QIP, with net proceeds of INR 388.062 crore. ICRA Limited, the monitoring agency, reported no deviation from the stated objects of the issue.

The funds were allocated across four main areas:

1. INR 155 crore for repayment of outstanding borrowings (completed)
2. INR 130 crore for investment in subsidiary Bakebest Foods Private Limited for Khopoli Expansion Project (on schedule with INR 70.089 crore utilized)
3. INR 20 crore for Madhya Pradesh Project (completed)
4. INR 83.062 crore for general corporate purposes (INR 81.011 crore utilized)

Total utilization reached INR 337.427 crore, leaving INR 62.573 crore unutilized. The unutilized funds of INR 73.683 crore are deployed in fixed deposits with Punjab National Bank, earning returns between 3.25% to 7.90%. All projects remain on schedule with no delays reported.

Implications and Outlook

The stock split decision is likely to be viewed positively by retail investors, as it will make the shares more accessible and potentially increase trading volume. However, the mixed financial results may raise questions about the company's ability to maintain profitability in the face of rising costs or competitive pressures.

Investors and analysts will be keenly watching how Mrs. Bectors Food Specialities addresses the challenges reflected in its Q1 performance, particularly the decline in profitability despite revenue growth. The company's strategies to improve operational efficiency and maintain market share in the competitive food industry will be crucial in the coming quarters.

The efficient utilization of QIP funds and the progress of ongoing projects demonstrate the company's commitment to growth and expansion. This may provide some reassurance to investors regarding the company's long-term prospects.

As the stock split is subject to regulatory and shareholder approvals, the company will announce the record date for this corporate action in due course. Shareholders and potential investors should keep an eye on further announcements from the company regarding the implementation of the stock split and any strategic initiatives to boost performance.