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Patanjali Foods reports 40% YoY growth in its results for H1FY23

Patanjali Foods reports 40% YoY growth in its results for H1FY23

Patanjali Foods reports 40% YoY growth in its results for H1FY23
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By Pihu Yadav  Nov 12, 2022 6:38 PM IST (Published)

The Foods Business achieved sales of Rs 2,399.66 crores with an EBIT of Rs 611.19 crores in Q2FY23. During the quarter, the revenue share of Food and FMCG has gone up to 28.18 percent.

Patanjali Foods Limited (PFL) announced its financial results of operation for the quarter and half year that ended on September 30, 2022.  

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In the September quarter, the company said that it successfully completed the acquisition of the Foods business in line with a strategic intent to expand the food business. 
In a statement, PFL said that during H1FY23, it achieved a total income of Rs 15,894.75 crores as compared to Rs 11,306.99 crores, reflecting a growth of 40.57 percent on a YoY basis. The earnings before interest, taxes, depreciation and amortisation (EBIDTA) in H1FY23 stood at Rs 755.95 crores with Rs 486.11 crores of Profit before Tax and Rs 353.55 crores of Profit after Tax. 
“Declining price trend left the industry with high price inventory in hand, although all major players including PFL passed on the benefit of lower prices to the consumers. This coupled with currency depreciation impacted margins during the quarter. However, this is purely cyclical in nature and on account of events that the industry witnessed in the quarter,” the company added.
In Q2FY23, PFL seems to have demonstrated a sustained performance despite being in a challenging consumption environment with a volatile, downward price regime and achieved a total Income of Rs 8,524.67 crores as compared to Rs 6,010.99 crores Q2FY22, reflecting a growth of 41.82 percent on YoY basis. The EBIDTA in Q2FY23 stood at Rs 205.15 crores with Rs 153 .63 crores of Profit Before Tax and Rs 112.29 crores of Profit After Tax. 
In Q2FY23, the Foods business achieved sales of Rs 2,399.66 crores contributing 37.18 percent of the total branded sales of the company. The branded sale including the institutional segment achieved sales of Rs 6,453.45 crores contributing 77.02 percent of the total sale of products of the company for the period.
During the quarter, the company also said that its strategic initiatives started giving results as the business mix of Edible Oil and Food business further moving and improving to 74.66 percent and 28.18 percent respectively as against the previous year's quarter of 94.20 percent and 11.76 percent.
“PFL has been able to deliver double-digit growth of 18.07 percent on a QoQ basis and robust growth of 42.02 percent on a YoY basis in revenue from operations while balancing margins in an extremely challenging & dynamic operating environment,” the company further added.
The Foods Business achieved sales of Rs 2,399.66 crores with an EBIT of Rs 611.19 crores in Q2FY23. During the quarter, the revenue share of Food and FMCG has gone up to 28.18 percent.
With the Patanjali Ayurved Limited (PAL) acquisition, the food product portfolio of the company has added 536 Stock Keeping Units (SKU) over eight product categories. PAL has also transferred two plants at Newasa and Padartha, and signed a Non-Compete agreement as part of the slump sale.
“PFL is confident of maintaining its growth momentum with complete reflection of the acquired foods business in the coming quarters. 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 concluded.
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