Biscuit and bakery products maker Mrs Bectors Food Specialities has seen growth across all verticals and expects margins to return to 14.5 percent on a sustainable basis.
Speaking to CNBC-TV18, Anoop Bector, MD of Mrs Bectors Food Specialities said that the company’s overall business grew by 16 percent.
“Our domestic biscuits business for the last 3 quarters has grown by 27 percent, exports grew by 32 percent, branded bakery grew by 46 percent, and our QSR business is getting back. There is a lot of improvement and we are coming to normalization. We are seeing pre-COVID levels coming in. Therefore we see strong numbers coming in Q4 on the domestic business, the export business, the ‘English Oven’ brand along with major improvement coming in our QSR business,” he said.
The company’s margins have been benefited as expenses on account of advertising and travel declined during COVID-19 pandemic.
“Going forward, for the next years, we are looking at 14.5-15% margin on the EBITDA front,” he added.
He said that the direct reach has increased to around 2 lakh outlets from 1.4 lakh outlets.
“Last year March, we were at around 450,000 outlets in Northern India and today we are touching 550,000 outlets. So, we have added 100,000 outlets. On the direct reach we were at 140,000 outlets and today we are at 180,000 outlets. So, our aim is to deeply increase our reach, increase our penetration and invest into sales distribution and innovative products.
Bector also said that the company will be installing one more biscuit line in Rajpura from the IPO proceeds. It will be commissioned in Q4FY22.Watch video for more.