Saturday, May 21, 2022

Prataap Snacks Limited (Reports Robust Performance In FY22 Revenue Grows 19% On A YoY Basis


Prataap Snacks Ltd. (PSL), (BSE- 540724), (NSE- DIAMONDYD) a leading Indian snacks food company has announced its financial results for the quarter and full year ended 31st March 2022:

In Q4 FY22, PSL reported:

o   Revenue of Rs. 3,614.6 million, registering growth of 17% yoy

o   Operating EBITDA of Rs. 49.4 million, translating to a margin of 1.4%

o   PAT stood at Rs. (29.5) million

o   EPS (Diluted) stood at Rs. (1.26) per share

In FY22, PSL reported:

o   Revenue of Rs. 13,966.2 million, registering growth of 19% yoy

o   Operating EBITDA of Rs. 583.1 million, translating to a margin of 4.2%

o   PAT* stood at Rs. 169.1 million with margins at 1.2%

o   EPS* (Diluted) stood at Rs. 7.21 per share

o   The Board of Directors have recommended a dividend of Rs. 0.50 per share (face value of Rs. 5.00 per share)

* Excluding exceptional item due to loss by fire at Kolkata plant

Commenting on the Q4 & FY22 performance, Mr. Amit Kumat – MD, Prataap Snacks Limited said.

“We have delivered a robust performance in a challenging macro environment. Revenues during the quarter grew by 17%, significantly outgrowing the industry. This was led by an uptick in consumption and expansion in distribution network. The growth in volumes is sustainable as existing retail touchpoints are witnessing normalcy in demand even as we have added new retail outlets in our network.

During the quarter, a sharp rise in prices of palm oil and other commodities was witnessed across the landscape. We were able to partially mitigate the impact by our ongoing cost optimization initiatives, gradual implementation of the direct distribution model, grammage rationalization and higher price realisation. The initial benefit from these initiatives has accrued during the year and we anticipate further benefit in the quarters to come. Further, we have implemented our direct distribution model in all regions ahead of schedule. This, along with other structural changes, positions us towards an elevated margin profile, once the unusual rise in input prices normalizes.

Over the past few quarters, despite unfavourable market conditions and inflationary pressures, we continued undertaking initiatives to enhance our business model and transform our distribution network. The enhanced retail touchpoints have enabled higher sales volume growth and increased topline. We will look to build on this momentum through further expansion in the distribution network. With Covid restrictions being lifted and normalised activity across new and existing retail touchpoints, we are confident of accelerated growth going ahead.”

About Prataap Snacks Ltd

Prataap Snacks Limited (PSL) is a leading Indian Snacks Food Company. It offers multiple variants of products across categories of Potato Chips, Extruded Snacks, Namkeen (traditional Indian snacks) under the popular and vibrant Yellow Diamond and Avadh brands. It has recently launched a range of sweet snacks under the distinctive Rich Feast brand. PSL is focused on offering deep value to consumers through a variety of pack sizes at attractive price points. Its products are present across 27 states and 4 union territories in India, and it is one of the fastest growing companies in the organized snacks industry.

Headquartered in Indore, India; PSL operates 13 manufacturing facilities of which 6 facilities (Indore 1&2, Assam 1&2, Bengaluru and Rajkot) are owned and 7 facilities (Kolkata, Bengaluru (2), Kanpur, Karnal, Patna and Hissar) are on contract manufacturing basis. Its distribution network includes more than 1,500 super distributor and more than 3,700 sub-distributors allowing it extensive reach across the country. PSL has a wide presence that is equally spread in metro cities and urban clusters as well as in rural areas and Tier 2 and 3 cities and towns. Its products are available at independent grocers and small retail stores in the lanes and bylanes of its key markets and it is now building up its presence in supermarkets, hypermarkets and modern trade outlets.

Led by an able and experienced leadership and guided by an accomplished Board of Directors, PSL is a socially responsible corporate citizen with a strong focus on Corporate Governance and Internal controls. PSL is listed on the Bombay Stock Exchange (BSE:540724) and National Stock Exchange (NSE:DIAMONDYD) in India.

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