Image Credits: TwitterIn comparison to the same period last year, Patanjali Foods, an FMCG company, reported a 31.6% decline in net profit to Rs 112.2 crore in the second quarter that ended September 30, 2022 (Q2 FY23) (Q2 FY22).
According to the company’s exchange statement, its operating revenue increased 42% to Rs 8,514 crore from Rs 5,995 crore in the same quarter last year.
Total income for the quarter was Rs 8,524 crore, up 41.82% from Rs 6,010 crore in Q2 FY22.
The FMCG company’s EBITDA for the three months ending September 30 was Rs 205.15 crores, with Rs 153.63 crores of Profit Before Tax.
The foods division generated revenue of Rs 2,399.66 crores, or 37.18% of the company’s total branded sales. Branded sales, which include the institutional segment, generated sales of Rs 6,453.45 crores, accounting for 77.02% of the company’s overall product sales during that time.
In terms of profitability, Patanjali Foods reported that the edible oil market faced numerous challenges during the quarter. Edible oil prices fell significantly during the quarter as a result of macro factors affecting the demand-supply dynamic in the industry.
Commenting on its performance during the quarter, it claimed that despite operating in a difficult consumer environment with a volatile, downward price regime, the company showed a steady performance.
In addition, the company’s statement noted that the overall performance continues to demonstrate an upward trend as a result of the strong execution of its strategy to expand the Food & FMCG business by boosting its penetration through the distribution power of the Edible Oil Business and introduction of a “Food portfolio” from PAL.
In comparison to the same quarter last year, the edible oil and food businesses improved throughout the quarter, rising to 74.66% and 28.18%, respectively.
In its regulatory filing, Patanjali Foods stated that the impact on margins experienced by the edible oil industry during the quarter was mostly attributable to the volatility in the global prices of different edible oils, which plummeted by around USD 400-500 per tonne in these 3 months.
The business has an optimistic view for the future.
“Our focus for the next few quarters is to continue the accelerating growth of the highly profitable food vertical which shall ensure overall growth of the EBIDTA margin of the Company. Patanjali Ayurved Limited (PFL) is confident of maintaining its growth momentum with the complete reflection of the acquired foods business in the coming quarters,” the company’s statement read.
“The Company firmly believes that the food business with a large portfolio of products and robust brands across categories such as Ghee, Chywanprash, Honey, Juices, etc shall continue to grow at a higher pace keeping in mind the growing distribution network and wider availability across the retail shelf,” it added.
