The company posted revenue of Rs226.4cr in the quarter under review increasing by 12% yoy and 1% QoQ.
Anoop Bector, Managing Director said, "The outbreak of the 2nd wave of COVID-19 impacted our business. Many general trade and modern retail stores were closed in April and May, thereby adversely impacting sales. Overcoming these challenges, the Company recorded a 12% growth in revenues, with accelerated growth in the bakery segment – retail as well as institutional. Business resumed to reasonable level only from early June 2021. Post the relaxation in lockdown restrictions, the Company has been doing good in all segments."
"We continue to focus on sustainable growth in our export markets. The Company targets increasing penetration in select export markets like South, Central and North America, the MENA region and Australasia with focus on premiumization. Our focus is to keep introducing a wide range of premium products with focus on generating higher margins," Bector added.
Further, Bector said, "Gross Profit Margins have taken a hit due to increased prices of palm oil and packaging materials. These increased raw material prices have not been completely passed on and will be passed on during the next couple of quarters. With prices stabilizing, and with focus on premium products, we expect EBITDA Margins of 14%-15% for FY22."
In Q1FY22, the company's EBITDA margin stood at 12.9% versus 17% of Q1FY21 and 13.1% in Q4FY21.
Bector highlighted that the Company had been at the forefront of introducing new and innovative products across different categories. Adding Bector said, "We have seen a change in consumer preferences as CoVID–19 has accelerated the trend of shift towards trusted and branded packaged foods. The Company is strongly positioned to capitalize on the trend of shift in consumer tastes and preferences, having a focus on brand development."
"Going ahead, we believe that with the complement of improving exports, better product mix with high quality products and increased distribution network should further enhance our revenues across segments," Bector said.
On Wednesday, Mrs Bectors stock will be swayed due to June quarter earnings. At around 09.09 am, the stock was trading at Rs408.15 per piece flat compared to the previous closing.
On the previous day, the stock finished at Rs407.70 per piece.