ADF Foods Q4 Review - Confident Towards The Growth Prospects In Coming Quarters, Profitability: Anand Rathi

Anand Rathi Report

On a consolidated basis, ADF Foods Ltd. topline increased by 24.8% YoY and 18.5% QoQ to Rs 1,536 million led by higher sales volume and better product mix.

Ebitda grew by 29.6% YoY and 27.2% QoQ to Rs 343 million. Ebitda margin increased by 82 bps YoY and 153 bps QoQ to 22.3%.

Profit before tax grew by 35.9% YoY and 18.8% QoQ to Rs 311 million. Net profit was up by 55.7% YoY and 31.1% QoQ to Rs250 million. Overall Q4 FY24 performance was above our estimates.

The company continued to witness strong demand across all brands. The flagship ‘Ashoka’ brand saw continued addition of new products and launch in new markets as well as increased penetration in existing markets.

Under the ‘SOUL’ brand, the company added leading e-commerce platformsincluding Swiggy Instamart for wider reach.

The distribution business issues is getting resolved at a gradual pace. Although, the supply chain challenging pertains.

The management is aiming to generate for Rs 1 billion sales through ADF Soul (pickels and chutneys) over next three years via General and Modern trade in domestic markets.

During the year, company got listed in two more chains in U.S. (300 Stores) for truly Indian and in Germany (1000-1500 stores), UK (500-600 stores). Going ahead, company is expecting $1 million of revenue in FY25.

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