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The company held its conference call for discussing Q4 and FY17 results.
Key highlights
For FY17, Food business was stable at Rs 171 crore. Within it, there was some decline in vending business which was offset by growth in branded food business , which was up by 12% to Rs 160 crore.
There was additional employee cost due to hire in retail and wholesale business.
For FY17, Sundrop oil volume growth was 2% and value growth was 3%. Peanut butter grew by 26% in volume and 18% in value. ACT II consumer part grew by 11% in volume and value. Revenue growth on ready to cook popcorn was lower by 1%. Without impact of excise part, it woild have grown by 12%. Vending business declined 35%.
For FY17, volume grew by 1% and value grew by 3%.
For Q4 , Sundrop oil volume growth was 3% and value growth was 4%. Crustal volume was flat while value de-grew by 2%,Peanut butter grew by 70% in volume and 46% in value. Larger pack done well. ACT II grew by 12% in volume and 11% value. Vending business declined 50%.
For Q4, volume grew by 3% and value grew by 4%.
By H1FY18, the company will be debt free.
Bag snack grew by 19% in Q4.
Peanut butter- 50K stores retail outlet reach.
The company has seen healthy increase in distribution throughout the broad. The company has increased its cover by 45K stores last year.
The company has 5 manufacturing plants. Starting construction of 6th plant in Chitoor. 7th plant will come up in Calcutta.
RTE popcorn and extruded snack- more work needed to be done.
Product portfolio will continue to widen.
Distributors – 180 added last year and will add 100 more this year.
Sundrop oil – the company had withdrawn its olive oil brand. If require, it will again look at the product.
GST - when rate is announced, the company will have better idea.
Geographical spread – strong in south and east in oil and north and west in popcorn.
Beyond the top 25 cities the company's distribution system is not good.
Food business contributed 22% in FY17 to total business and for FY18, it is expected to contributes 25%. Somewhere around 35% range food business will become a lot significant.
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