Kohinoor Foods nets sales of Rs 589 crore

PAT at Rs 22 crore

Highlights of the year (FY07 v/s FY06)

#Revenues at Rs 589.23, an increase of 9% on Y-o-Y basis 

#EBITDA at Rs 61 crore, an increase of 26% on Y-o-Y basis

#PBT at Rs 30.82 crore, up by 11% on Y-o-Y basis

#PAT at Rs 22.07 crore, up by 6% on Y-o-Y basis

#EPS of Rs 11.26

#Launch of food service division in Q4FY07, to service Indian and foreign markets.

#Set up first ever vending solution in IBM-Daksh and several tie-ups with international food chains

Mumbai, June 30, 2007: Kohinoor Foods Ltd., India's largest exporter of branded basmati rice and India's leading company in ready-to-eat food segment, today announced its results for the fiscal ended March 31, 2007. The company recorded sales worth Rs 589.23 crore, an increase of 9% from Rs 540.77 crore in the last fiscal. The net profit recorded a 6% increase to Rs 22.07 crore. The EBITDA margins increased to 10.36% from 8.93% in the previous year. The branded sales grew by 24% while commodity sales declined by 9%.

In Q4FY07, sales stood at Rs 175.04 crore as against Rs 206.37 crore, essentially because of reduced emphasis on commodity business. This resulted in higher operating margin in the quarter on account of higher share of branded business, which grew by 21%.

The boards of directors have recommended a dividend of 10%, subject to the approval of shareholders.

For the year as a whole, the branded basmati domestic turnover went up by 22%, branded basmati export business went up by 18%, foods division turnover went up by 67%, while basmati private label business declined by 30%.  This helped the operating margins to be higher at 10.36% as against 8.93% in the previous year.

The company showed excellent realizations from increased share of branded product sales and thrust on high margin Ready-to-eat segment. The company's exports have also shown significant growth.

Kohinoor Foods continues to be a strong player in the global market, both for its Branded Basmati rice and Ready-to-Eat food business. After entering into frozen foods category in Q3FY07, the company continued to march ahead with an encouraging response. It completed shipments to US, where it is getting tremendous response. In addition, the shipments were made to New Zealand, Mauritius, and Switzerland. In the domestic market, the frozen products have already been launched in Delhi and going to other metros.

Strengthening International operations

Establishing 5 warehouses in US has given Kohinoor Foods and unbeatable advantage in terms of distribution strengths. The company has strengthened mainstream penetration in UK market and is now ranked as fourth largest Indian brand in the UK, a feat achieved in less than 3 years. The company has also made a successful entry into Saudi Arabia by launching Kohinoor Basmati amidst an extremely competitive environment. The company has also started its operations in Bahrain and Kuwait. The company has tied up with ASDA Walmart, UK's second largest retailer for Indian and Oriental sauces.

New Division

A significant highlight for the last quarter was setting up of new division to cater to high potential market of food service in India and abroad. The company has entered into tie-ups with Pizza Hut, Papa John's, Pulse Foods in the domestic market and with Gazebo Foods, UK for international markets. Kohinoor Foods started its first ever vending solution set-up in IBM Daksh, one of the leading BPOs in the country.

Commenting on the results, Mr. Gurnam Arora, Jt. Managing Director, Kohinoor Foods Limited, said, "Kohinoor Foods intends to consolidate and emerge as a strong player in the global arena. The capacity for foods division is being increased to 1,20,000 meals per day from existing 50,000 In the domestic market, the company intends to launch its whole range of food products in a phased manner with the evolution of the market."