The FMCG company informed that it has recorded a steady quarterly performance led by consistent result in both the edible oil segment and the food & FMCG segment.
During the quarter, the prices of edible oils in India remained stable and rebounded from the low levels witnessed in the previous quarter.
Revenue from the edible oil segment in Q4 showed modest single-digit growth compared to the previous quarter, accompanied by a favorable EBITDA margin. Furthermore, the segmental volume in Q4 experienced mid-single-digit growth year on year, while FY24 witnessed double-digit growth.
In Q4 FY24, branded sales continued to account for over 77% of the total edible oil sales value. During the quarter, Premium Nutrela Oils experienced a notable double digit volume growth over the previous year, showcasing the effectiveness of the product offerings in meeting consumer preferences and market demands, said the company.
The company exported its products to more than 20 countries, maintaining its export sales trend in line with the previous quarter.
For FY24, the cumulative area under cultivation in the oil palm plantation business reached 74,376 hectares. As of 31 March 2024, the plantation area under three years old stood at approximately 33%, compared to around 19% as of March 2023, indicating rapid plantation expansion.
In the March quarter, the revenue of the Food & FMCG segment remained resilient, demonstrating high single-digit revenue growth while maintaining stable EBITDA margins.
The Food & FMCG segment accounted for more than 30% of revenue from operations, compared to around 23% in Q4FY23. The segments contribution remained consistent with Q3FY24 and Q2FY24 at around 32% and notably higher than Q1FY24 of about 25%.
This increase is in line with Patanjalis strategic efforts to make a tactical shift in the revenue mix, margin profile and expansion of food product portfolio. In February, the company launched new products in the tea category, and the initial market response showed promising performance metrics.
The biscuits portfolio continued to demonstrate strong growth momentum, with the flagship brand Doodh biscuits achieving the milestone of becoming an Rs 1,000 crore brand this year. Doodh, Nariyal and Crunchy Coconut biscuits have received tremendous consumer response and registered double-digit year on year growth. Additionally, the recently launched premium biscuit range continued to garner positive traction among consumers, the company stated in the press release.
In Q4FY24, sales of ghee and dry fruits remained steady while the sales of kesar and beverages registered strong growth sequentially.
The company is strategically realigning its product portfolio within the Food & FMCG sector to cater to the evolving consumer preferences towards healthier options. In the Nutraceuticals segment, a double-digit year on year growth has been achieved, with the ecommerce channel demonstrating a remarkable upsurge, it added.
Overall, the growth in the Food & FMCG segment is primarily driven by the urban demand. However, rural demand is also expected to pick up in the upcoming quarters, fuelled by factors such as a promising monsoon season, potential rise in real rural wages, and other macroeconomic factors stimulating growth.
Patanjali Foods (formerly known as Ruchi Soya Industries) is one of India's top FMCG player in India. The company is present in Edible Oils, Food & FMCG and Wind Power Generation segments via a bouquet of brands like Patanjali, Ruchi Gold, Nutrela, etc.
The FMCG companys standalone net profit fell 19.56% to Rs 216.54 crore in Q3 FY24 as compared with Rs 269.19 crore posted in Q3 FY23. Revenue from operations declined marginally to Rs 7,910.70 crore in the third quarter of FY24 as against 7,926.64 crore posted in Q3 FY23.
The scrip fell 1.70% to trade at Rs 1,322.35 on the BSE.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
