INDIA – Mrs Bectors Food Specialities, a leading premium bakery player in India, has recorded a jump in profits for the three months ending October 2020, despite the company operating in a challenging environment punctuated by a pandemic.
According to a report by Economic Times India, the company’s Q3 profits after tax jumped 86 per to Rs21 crore (about US$1.9 million) from Rs 11 crore (about US$1 million), recorded during a similar period in 2019.
The company’s revenues for Q3 also rose to Rs 226 crore (US$20.6 million)in Q3 FY21 from Rs 203 crore in the same period of previous fiscal representing a growth of 11%.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 40 per cent to Rs 40 (about US$3.65 million) crore from 28 crore (about US$2.5 million).
Mrs Bectors also posted its results for the nine month period ended December 2020 where it net profit was up by 180 per cent to Rs 60 crore (about US$5.48 million) from Rs 21 crore (about US$1.9 million) in the corresponding period of FY2020.
Revenues totalled Rs 657 crore (about US$60 million) from Rs 568 crore (about US$51.8 millon), up 16 per cent, with EBITDA rising by 66 per cent to Rs 112 crore (about US$10.2 million) from Rs 67 crore (about US$6.12 million).
Managing Director Anoop Bector attributed the company’s strong performance to the festives that helped to create a positive sentiment among consumers across India despite Covid-19 during the last quarter.
This, according to Bector created a strong volume uptick for its products across all categories, especially in the premium category.
The company, for instance, witnessed double-digit growth in its biscuits segment backed by strong demand in both domestic as well as exports market.
The branded breads and bakery products also saw an increased level of demand with the change in dietary habits and lifestyle behaviours during Covid-19.
Institutional bakery sales also started picking up pace as restaurants opened after relaxation of Covid-19 restrictions.
“We expect the growth momentum to continue and envisage volume pick up which will lead to improvement in operational efficiencies and margin uptick. We are continually working towards achieving sustainable earnings growth,” said Bector.
During Q3 of 2021, Mrs Bectors also successfully launched its US$73 million IPO which was subscribed over 198 times, making it one of the top IPO by subscription in 2020.
The company said it planned to use the IPO proceeds to financing its Rajpura expansion project by establishing a new production line for biscuits and for general corporate purposes.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE