Patanjali Foods declares dividend per share for FY2023

Dehradun (Best Hindu News): Patanjali Foods Limited (PFL) has declared its annual results for the financial year 2023. On Tuesday, the board of directors recommended a dividend of Rs 6 per share for FY23. Patanjali Foods Limited (PFL) continued to post strong business and financial performance in FY2023. The total income in FY 2023 stood at Rs 31,821.45 crore, compared to Rs 24,284.38 crore in FY 2021-22. PBT margin to grow by 9.7 per cent to Rs 1,178.96 crore in FY2023 from Rs 1,074.38 crore in FY22. The share of FMCG business in total revenue grew sharply to Rs 6,218.08 crore in FY22 from Rs 1,683.24 crore and reached 19.72 per cent of total revenue as against 6.95 per cent in the previous year. The EBITDA of the company’s food business stood at Rs 1,136.60 crore (18.28% of food revenue) in FY2023, compared to Rs 189.04 crore (11.23% of food revenue) in FY22. In line with the objective of improving the quality and sustainability of profits, the FMCG business contributed 72 per cent to the overall EBITDA of the company.

In volume terms, the company achieved a quantum growth of 21 per cent in edible oil business to 1.91 million metric tonnes and revenue of Rs 25,634.45 crore as against 1.63 million tonnes and revenue of Rs 22,882.76 crore in FY22. The growth in volumes was achieved on account of expanded distribution reach and better offering to consumers. The EBITDA margin on the oil business in FY23 stood at Rs 230.26 crore despite challenges around volatility in the international market. The focus of the company is to expand geographically in the international market by increasing its presence in key markets. The company achieved an export turnover of Rs.530.80 crore by exporting its products to 33 countries during the year. It was informed that the company’s oil palm plantation plans are fully on track as the area under cultivation has increased to 63,816 hectares with an overall land allotment of 6,28,000 hectares during FY2023. The company has signed MoUs with the governments of Assam, Arunachal Pradesh, Mizoram, Nagaland and Tripura and Telangana and Andhra Pradesh in the North East. The first oil mill in the North-East region is being set up at Pasighat in Arunachal Pradesh.

The company has registered strong financial performance for the third consecutive year in FY 2022-23 after successfully implementing the resolution plan approved by NCLT. Its strategic initiative to acquire food business during FY2023 has become a major milestone for the company to strengthen its food product portfolio with array of brands. Acquired Food business with a bouquet of 21 products like Cow Ghee, Honey, Chyawanprash Spices, Medicinal Juices like Amla, Aloevera etc. and Fruit Juices, Atta etc. The name Patanjali has now become a known household brand and thus the company has been able to reposition itself in the FMCG market in a very strong and aggressive manner.
Food and FMCG segment is proving to be a big boost in the company’s initiative to become FMCG segment. Products like nutraceutical business to grow to Rs 509 crore in FY 2023 as compared to Rs 225 crore in the previous year 2021-22. The company has launched nutraceuticals products with 6 products and 18 new SKUs.In respect of Biscuits and Confectionery, with sales of Rs 1300 crore with a growth of 10% Q-o-Q and 20% YoY happened. Doodh Biscuit is now a Rs 826 crore brand, contributing 63% of total biscuit sales. Presently, PFL is the 4th largest company in the Biscuit category with a national presence. Premier brand Nutrela reaches highest ever sales of 25,600 MT during FY2023.

The company has achieved a steady growth of 6% in TSP products despite competition from organized and unorganized sector. Premium oil sales grew 39% year-on-year to 16,800 MT. The company has also forayed into dry fruits (edible) processing by setting up a processing facility for almonds at Patalganga, Maharashtra.
In the fourth quarter, PFL maintained its growth momentum in revenue as it registered a growth of 18.15% as revenue rose to Rs 7,872.92 crore as compared to Rs 6,663.72 crore in the corresponding quarter on a year-on-year basis. Food products under the Patanjali brand are gaining market acceptance to sustain the growth recorded in the last 3 quarters of FY 2022-23, mainly after the completion of food business acquisition. EBIDTA earnings over food revenue continues to be strong and strong as it crossed over 13.70% of the total food business revenue. Below are the performance highlights in Q4-23.
In the fourth quarter of FY23, the profit before tax was Rs 349.39 crore (growth of 18.16%) and profit after tax was Rs 263.71 crore (growth of 12.49%) respectively. Revenue and EBIT margins for the Food business continue to be strong and robust as the contribution of Food and FMCG to EBIT is over 68.30% as against 14.39% in the previous year on a YoY basis. The company continues to maintain its EBIDTA margins despite rising inflation levels, macro challenges as well as aggressively managing costs so as to keep margins in a healthy range. The Food and FMCG business EBIDTA contributed a healthy margin of over 14.20 per cent to the company’s overall margin in the fourth quarter.
On an annualized basis, in FY 2022-23, PFL registered a total income of Rs 31,821.45 crore, registering an impressive growth of 31.04% over the previous year. The revenue for the Food and FMCG segment reached Rs 6,218.08 crore as compared to Rs 1,683.24 crore on a year-on-year basis. PBT and PAT grew by around 10% during FY2023, however, EBIDTA declined marginally due to sharp fall in edible oil prices.
With respect to edible oils, the sales volume is set to register a growth of 21% to 1.97 million metric tonnes, while the share of the food and FMCG business is expected to increase from 7% in FY2022 to 20% in FY2023. Branded sales account for 77.09% of the annual turnover for FY2023, showing a YoY growth of 30.20%.
With respect to the Biscuit segment, it has successfully executed RCN shipments of soybeans from Guinea Bissau, West Africa and Nigeria; Successful launch of almond import from USA. It has also signed MoUs with The Wonderful Company – the world’s largest producer and processor of pistachios with 55% volume share, and with Mariani Nuts, one of the largest processors for almonds and walnuts in the world.
Sales Innovation Initiatives, 600 Nutrela Wellness Stores planned (Nutrela Nutrition Branding + Promoter deployment @ high footfall stores) Vaidya & Ayurvedic Doctor Program planned with 1800 Vaidya Retailer Loyalty 9,000 Nutrela Preferred Outlets Influencer Plan – Including 1,000 gym instructors are included. New product launched – Orthocare. E-commerce and modern trade channels started. 4 lakh unique outlets added in a year; Total retail reach is 8 Lakh+ monthly.
The company has been able to balance its revenue with its strong food products business. PFL has a huge portfolio of food business which is growing at 15% to 20% year-on-year. The food portfolio has a wide range of products like cow ghee, staples, edible oils like mustard oil etc., including beverages like aloe vera juice and amla juice etc., which have become very popular. The new businesses of biscuits and nutraceuticals have expanded its portfolio into higher margin and value added categories with expanded distribution across channels.
The double-digit growth was primarily driven by the edible oil business, the edible oil business faced several challenges due to highly dynamic market conditions, followed by high inflationary pressures and volatility in edible oil prices in Q2. The edible oil industry witnessed volatile market conditions during FY2023 due to a sharp fall in edible oil prices. This has impacted the overall revenue levels as well as gross margin for the company’s oil business. Rising production costs resulting from high inflationary pressures and other costs such as logistics, power and fuel have put pressure on margins. In order to further strengthen its portfolio of edible oil brands (such as Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight) and deliver sustained growth, the company is looking to expand its brands of oil business with a focus on expanding geographically. continues to invest in All the brands of Patanjali like Ruchi Gold, Mahakosh, Sunrich, Nutrela, Ruchi Star and Ruchi Sunlight are getting tremendous response. Patanjali is one of the largest palm plantations in India, with more than 63,816 hectares of palm cultivation, associated with more than 39,000 farmers in nine states of India.
The company has initiated the process of implementing ESOP policy to attract fresh talent and retain the existing performing human resource. The company plans to implement the ESOP policy during CFY 2023-24.