Q1 2027 Foods and Inns Ltd Earnings Call Transcript
Key Points
- Foods & Inns Ltd (BOM:507552) reported a good mango production season with encouraging trends, quality fruit, and reasonable prices.
- The company received a higher order from its top customer, Coca-Cola, for the Maza brand, which celebrated its 50th anniversary.
- The frozen food segment continues to show strong growth, with a 20% growth in Q1 and a 30% CAGR over the last two years, and the company is expanding capacity to meet demand.
- The company's sustainability efforts since 2014 have gained significant recognition, leading to extended partnerships with a large French customer and a new UK-based brand.
- The pectin segment has started commercial production, with samples sent to big brands and consumer testing underway, expected to yield opportunities in the second half of the year.
- The company's domestic market (65% of business) is expected to see increased demand due to favorable climate conditions (El Nino effect) boosting juice consumption.
- Export dispatches have been slowed down due to vessel non-availability and a significant increase in ocean freight, leading to delayed call-ups and a backlog of 1,800 million tons of finished goods.
- The company faces a blockage in its working capital cycle due to delayed shipments, potentially leading to higher interest costs.
- Average realization declined by 18.5% year-on-year due to lower raw material (mango) prices, impacting top-line value growth despite volume growth.
- The company's top-line has remained stagnant over the last four years, with value declining due to a drastic reduction in raw material prices (from Rs. 25 to Rs. 6 per kg for mango).
- There is significant uncertainty in the export market due to geopolitical issues and high freight costs, making it difficult to meet the 20% volume growth guidance for the year.
- The company's B2C products are not yet widely available on major online marketplaces like Amazon and Flipkart, limiting its reach in the high-margin consumer segment.
Ladies and Gentlemen, good day and welcome to Foods and Hands Limited Q1 FY27 conference call hosted by Arihant Capital Markets Limited.
(Operator Instructions) I now hand the conference over to Ms. Deepali Kumari from Arihant Capital Markets Limited. Thank you and over to you, ma'am.
Thank you. Hello and good afternoon to everyone. On behalf of Arihant Capital Markets Limited, I thank you all for joining in to the Q1 FY27 earnings conference call of Foods and Inns Limited. Today from the management, We have Mr. Milan Dalal, Managing Director, and Mr. Moloy Saha, Chief Executive Officer. So, without any further delay, I would like to hand over the call to the management for their opening remarks. Over to you, sir.
Hello, good afternoon. This side moloy Saha.
Greetings to my fellow shareholders, analysts, well-wishers, and prospective shareholders.
While I will be happy to elaborate
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