Patanjali Foods Limited (PFL) has announced its strongest-ever quarterly performance for Q2, with revenue from operations soaring to ₹9,798.84 crore, marking a significant year-on-year growth of 20.95%. The company's financial results, released on October 31, showcase robust growth across key segments, particularly in its newly classified FMCG category.

FMCG Segment Leads Growth

The company's decision to merge its Food & Other FMCG and Home & Personal Care segments into a unified FMCG category has paid off handsomely. This segment posted a combined revenue of ₹2,914.24 crore in Q2, representing a substantial quarter-on-quarter growth of 34.31% and a year-on-year increase of 30.09%. The FMCG segment now accounts for 29.44% of PFL's revenue from operations and 58.96% of its EBITDA.

Financial Highlights

Edible Oil Segment Maintains Momentum

Despite the focus on FMCG, PFL's traditional stronghold in edible oils continued to perform well. The segment achieved quarterly sales of ₹6,971.64 crore, showing a year-on-year growth of 17.17%. Branded edible oils remained the primary growth driver, contributing approximately 76% of total sales.

Product Performance

Several product categories within the FMCG segment showed noteworthy performance:

• Biscuits business recorded its best-ever quarterly revenue of ₹499.91 crore
• Ghee sales hit a record ₹447.51 crore, with a quarter-on-quarter growth of 74.14%
• Honey sales crossed the ₹100 crore milestone
• Textured Soya Products clocked ₹159.42 crore in quarterly sales

Strategic Developments

PFL has made significant strides in expanding its operations and enhancing its market position:

• The company's oil palm plantation area exceeded 1 lakh hectares, a crucial milestone in its expansion strategy
• PFL signed an MoU with the Ministry of Food Processing Industries to invest ₹1,000 crore across six states, potentially creating over 7,000 jobs
• The company was awarded the Authorised Economic Operator (AEO) Tier-2 Certification, recognizing its supply chain security and transparency

Market and Future Outlook

The company navigated through a quarter marked by GST rate rationalization and varying demand patterns between rural and urban markets. PFL expects the second half to be strong, driven by:

• Positive impact of GST reforms on consumption
• Anticipated strengthening of urban demand
• Continued growth in rural demand supported by positive Kharif output and lower inflation

Sustainability Efforts

PFL has also made strides in sustainability:

• Reported a 20% improvement in the use of renewable energy
• Achieved a 7% reduction in Scope 1 emissions and a 4% reduction in Scope 2 emissions
• Continues to use approximately 22% wind energy for captive consumption

Sanjeev Asthana, Chief Executive Officer of Patanjali Foods Limited, commented on the results: "On the back of sound business strategies implemented in the previous few quarters, the company reported best-ever financial performance on various parameters, despite a dynamic operating environment. The quarterly as well as half-year performance reached an all-time high on the revenue and profitability front."

As Patanjali Foods Limited continues to diversify its portfolio and strengthen its market position, the company appears well-positioned to capitalize on the growing demand for FMCG products while maintaining its strong presence in the edible oils segment.

Patanjali Foods Limited (PFL) has announced its strongest-ever quarterly and half-yearly performance for Q2 and H1, showcasing robust growth across key financial metrics.

Record-Breaking Financial Performance

PFL reported a significant increase in revenue from operations for Q2, reaching ₹9,798.84 crores, marking a year-on-year growth of 20.95% and a quarter-on-quarter growth of 11.78%. The company's half-yearly revenue from operations stood at ₹18,564.86 crores.

FMCG Segment Emerges as a Key Growth Driver

The newly classified FMCG segment, which now includes the Home and Personal Care (HPC) portfolio, demonstrated strong performance:

• Q2 FMCG revenue: ₹2,914.24 crores (34.31% QoQ growth)
• Q2 FMCG EBITDA margin: 12.28%
• H1 FMCG contribution: 27.10% of revenue from operations and 60.08% of EBITDA

Edible Oil Segment Maintains Momentum

The Edible Oil segment continued its growth trajectory:

• Q2 revenue: ₹6,971.64 crores (17.17% YoY growth)
• Q2 EBITDA: ₹245.78 crores
• Branded edible oils contributed ~76% of total segment sales

Profitability Highlights

PFL's profitability metrics showed significant improvement:

• Q2 Gross Profit: ₹1,502.65 crores (22.46% YoY growth)
• Q2 Total EBITDA: ₹603.32 crores
• Q2 EBITDA from Operations margin: 6.16%
• Q2 PBT margin: 5.13%

Key Product Performance

Several product categories within the FMCG segment reported strong results:

Strategic Developments

1. Oil Palm Plantation: PFL's area under oil palm cultivation crossed 1 lakh hectares, with 41% in the prime yielding phase.
2. GST Impact: Approximately 55% of the FMCG portfolio is expected to benefit from revised GST rates.
3. Export Growth: The company generated export revenues of ₹51.69 crores in Q2, with a presence in 23 countries.
4. Sustainability Efforts: PFL reported improvements in renewable energy use and reductions in Scope 1 and Scope 2 emissions for the previous fiscal year.

Outlook

Sanjeev Asthana, Chief Executive Officer of Patanjali Foods Limited, commented on the results: "On the back of sound business strategies implemented in the previous few quarters, the company reported best-ever financial performance on various parameters, despite a dynamic operating environment. The quarterly as well as half-year performance reached an all-time high on the revenue and profitability front."

The company expects strong demand in the second half, driven by GST reforms, strengthening urban demand, and continued growth in rural areas.

Patanjali Foods Limited continues to focus on expanding its product portfolio, strengthening its brand presence, and improving operational efficiencies to maintain its growth momentum in the coming quarters.