Edible Oils company Patanjali Foods announced Q2FY24 & H1FY24 results:
- Onboarded world-renowned cricketer MS Dhoni as a brand ambassador for branding and marketing campaigns of its Mahakosh & Sunrich brands. Dhoni's association complements the health-oriented nature of the company’s edible oil range, in harmony with the overarching vision of the Patanjali Group.
- The company is actively in the process of developing the “PFL-Employee Stock Option Plan 2023”, which will be rolled out in the near future.
- In Q2FY24, the total revenue from operations stood at Rs 7,821.89 crore and Rs 15,588.98 crore in H1FY24.
- The Food & FMCG segment achieved revenue of Rs 2,487.62 crore in Q2FY24. The contribution of the Food and FMCG segment to the total revenue from operations increased to 31.80% in Q2FY24 from 25.14% in Q1FY24 and 27.7% in Q2FY23.
- The EBITDA for Q2FY24 increased by 97.75% QoQ and stood at Rs 419.20 crore, while EBITDA margins improved to 5.34% vs 2.71% in Q1FY24 and 2.41% in Q2FY23.
- The PAT for the quarter was Rs 254.54 crore vs Rs 112.29 crore in Q2FY23 and the PAT margins improved to 3.24% from 1.12% in Q1FY24 and 1.32% in Q2FY23.
- The company achieved export sales of Rs 41.65 crore during Q2FY24. The products are exported to 23 countries.
Sanjeev Asthana, CEO, Patanjali Foods, said, “Despite the challenging macro and operating environment, the first half of the fiscal year has ended on a positive note. I am pleased to inform that in the quarter the company performed well on the profitability metrics with both EBITDA and PAT showcasing strong growth on a QoQ basis. This growth is despite a flat sequential performance in terms of revenue from operations/total income.
The company’s Food & FMCG segment is performing in line with the targets and saw further expansion of higher contribution in the overall financial performance. This improvement is in line with the tactical shift in our business operations.
The growth in the quarter has come across multiple parameters. The company achieved new heights in its quarterly sales for TSP, deeper penetration of its prominent biscuit brands and positive response from customers for the multiple product launches.
The company’s strategy to increase penetration across different categories of customers through its wide bouquet of offerings, premiumization and multiple price points and strong distribution network is working to be a sustainable model for growth. I am optimistic about the upcoming festival seasons and the increase in consumer spending to drive growth in the coming quarter.
To increase brand awareness and brand penetration, the company has signed well-known cricketer, Mr. Mahendra Singh Dhoni, as a brand ambassador for its range of Soy, Mustard and Sunflower oils. Dhoni and Patanjali share common values, and both enjoy popularity and credibility with the public at large.”