Key highlights

The standalone net sales for Q4 FY15 have decreased by 1% to Rs 185.24 crore. The net profit inclined by 12% to Rs 14.58 crore.

The standalone net sales for FY15 have decreased marginally to Rs 756.23 crore. The net profit declined by 13% to Rs 37.28 crore.

The consolidated net sales for FY15 have decreased marginally to Rs 756.23 crore. The net profit declined by 13% to Rs 36.92 crore.

For FY15, food business grew by 18% to Rs 160 crore. Its share is now increased to 21% from 18% YoY of total business. The company is targeting to increase the share to 25%.

Peanut butter sales have doubled to Rs 17 crore in FY15.

ACT II sales grew by 13% in FY15.

Total gross margin has increased by 70 bps to 25.3% in FY15. The company will increase its gross margin by 60-70 bps every year. In 3 years, it expects to reach to 28%.

The company has capitalized 75% of manufacturing assets in last 15 months, which has significant impact on P&L. Total manufacturing cost has gone up, which has impacted P&L.

Bag snacks contribution to total sales is 9%.

The company has incurred Rs 15 crore of additional A&P this year due to focus on 3 brands – ACT 2, Sundrop Peanut Butter and Sundrop Heart. It has incurred additional expense of Rs 27 crore (together A&P and manufacturing) which has impact on P&L. Margin growth and tax benefit both has help to absorb around Rs 6 crore of this expenses.

Edible Oil has grown marginally for the year. Sundrop oil has de-grown by 4% and Crystal by 7%.

Sundrop Heart contribution is 15-18% to total Sundrop oil portfolio.

For FY16., the company will aggressive on fleet on street, since new production has started. For next 2-3 years, the company will spend on the sales force. The company has 80 plus sales person and 1000 plus distributors. The company's product is available in 2.5 lakh outlets

ACT II was largest selling snack in modern trade as per company.

Effective tax rate for FY15 was 16-17% due to Kashipur plant tax benefit. It will be not there in FY16, only benefit from R&D lab will be there. As such tax rate is expected to be around 31% for FY16.

The plant in Bangladesh is ready. The company will install there old machinery from India.

The company's peanut butter market share is 90%, ACT 2 is 90%, while ready to eat popcorn is less due to competition from local players.

The mgmt said food business doesn't have good operating margin. If any food business has 10% operating margin, then it's good.