DMart’s Q4 FY24 net profit soars 22.3% to INR 563 Crore, driven by strong performance in general merchandise and apparel

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May 6, 2024

Avenue Supermarts, the company behind DMart, has reported a 22.3% increase in its consolidated net profit for the fourth quarter ended in March 2024. The profit surged to INR 563.14 crore compared to INR 460 crore in the same quarter last year.

The profit after tax (PAT) margin for Q4 FY24 was 4.4%, up from 4.3% in Q4 FY23. Basic earnings per share (EPS) for Q4 FY24 were INR 8.66, compared to INR 7.10 for Q4 FY23.

According to the BSE filing, the company’s total revenue from operations increased to INR 12,727 crore in Q4 FY24, up from INR 10,594 crore in the corresponding period last year.

In Q4 FY24, DMart saw a rise in its earnings before interest, tax, depreciation, and amortization (EBITDA) to INR 944 crore, up from INR 772 crore in the same quarter of the previous year. The EBITDA margin for Q4 FY24 was 7.4%, slightly higher than the 7.3% recorded in Q4 FY23.

Continue Exploring: DMart’s Q3 standalone revenue surges by 17.18%, reaching INR 13,247.33 Crore

The company’s total revenue for FY24 increased to INR 50,789 crore from INR 42,840 crore in the corresponding period last year. Its EBITDA for FY24 amounted to INR 4,104 crore compared to INR 3,637 crore in FY23. The EBITDA margin for FY24 was 8.1%, down from 8.5% in FY23, as indicated in the filing.

For FY24, the net profit rose to INR 2,536 crore from INR 2,378 crore in FY23.

Regarding DMart’s brick-and-mortar business and overall performance, Neville Noronha, CEO and Managing Director, stated, “We concluded the year with growth in key financial indicators such as revenue, EBITDA, and PAT. DMart stores aged two years and older experienced a growth of 9.9% during FY 2024 compared to FY 2023.”

The company stated it operates 284 stores aged 2 years or older. Furthermore, over the fiscal year 2023-24, it opened 41 new stores, bringing the total store count to 365.

Throughout the quarter (Q4), the supermarket chain has observed a sustained increase in the contribution from general merchandise and apparel. The improvement in gross margin during Q4 FY24 compared to the same quarter of the previous fiscal year reflects this enhanced mix.

In regards to DMart Ready, its online business, Noronha mentioned, “Our e-commerce operations expanded into one new city (Gurugram) during the year, alongside reinforcing our presence in current cities.”

At present, the company maintains an online presence in 23 cities across India.

Continue Exploring: Godfrey Phillips explores sale of 24Seven grocery chain to major retail players

Shake Shack bounces back strong with $2.2 Million net income in Q1 2024, plans aggressive expansion for Q2

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May 4, 2024

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Shake Shack, the American fast casual restaurant chain, has reported an attributable net income of $2.2 million for the initial quarter (Q1) of 2024, marking a turnaround from a net loss of $1.6 million in Q1 2023.

For the quarter ended on March 27, 2024, total revenue amounted to $290.5 million, representing a 14.7% increase from the $253.28 million reported in the previous year.

System-wide sales increased by 12.3% year-on-year to reach $443.3 million.

The restaurant-level profit saw a notable increase of 22.4%, reaching $54.7 million, up from $44.7 million in Q1 2023.

Continue Exploring: Restaurant Brands International sees profit surge in Q1 2024

The restaurant-level profit margin, calculated as a percentage of the chain’s sales, rose to 19.5% from 18.3% in the previous year.

In the quarter, Shake Shack’s total expenses amounted to $290.47 million, marking a 13.3% increase from the $256.46 million reported in the corresponding period of the previous year.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the period under consideration amounted to $35.88 million, showing a 30.2% increase compared to the previous year.

Shake Shack’s chief financial officer, Katie Fogertey, remarked, “We established a robust groundwork in the first quarter, aiming to bolster profitable sales and enhance margins in 2024. Our strategy includes targeting a 15% year-on-year revenue growth, expanding restaurant-level profit margins by 120 basic points, and achieving over a 30% year-on-year increase in adjusted EBITDA.”

In the initial quarter, Shake Shack broadened its presence by inaugurating four new company-operated sites, comprising two drive-throughs, along with four new licensed locations.

Moving forward, the company has outlined its plans for the second quarter, aiming to launch 10 company-operated locations and eight to nine licensed locations.

Continue Exploring: Little Caesars announces major expansion: Over 30 new restaurants set to open across the US

For the second quarter of the year, the company expects total revenue to range from $308.9 million to $314.3 million, with a restaurant-level profit margin anticipated to fall between 21.5% and 22.0%.

Fogertey further commented, “Our teams are actively implementing our 2024 strategies to enhance the overall guest experience, boost sales, widen restaurant-level profit margins, and reduce construction costs. We aim to achieve a year-on-year sales growth of 12% to 15% and increase adjusted EBITDA to between $160 million and $170 million, representing a rise of 21% to 29%.”

Apparel retailer rue21 files for third bankruptcy, announces closure of all stores

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May 4, 2024

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rue21, a teen apparel retailer, has filed for Chapter 11 bankruptcy protection for a third time, seeking to shut down its 540 stores and sell its intellectual property.

In documents filed in Wilmington, Delaware, bankruptcy court, rue21 stated that despite attempts to sell its business, no buyer emerged willing to offer more than the potential earnings from liquidating inventory through “going out of business” sales and closing down stores.

Based in Warrendale, Pennsylvania, the retailer rue21, which has previously undergone bankruptcy proceedings in 2003 and 2017, specializes in budget-friendly fashion geared towards teens and young adults. The company currently employs around 4,900 individuals and carries a debt of $194.4 million.

Continue Exploring: Apparel retailer Express files for US bankruptcy protection, plans closure of over 100 stores

During its prime, rue21 operated 1,000 stores across malls nationwide in the United States. In its 2017 bankruptcy, the company closed approximately 400 stores as part of an agreement that enabled rue21 to reduce its debt by $700 million.

However, even after emerging from bankruptcy, the company faced ongoing challenges exacerbated by the rapid transition to online shopping, a trend further accelerated by the COVID-19 pandemic.

In 2022, rue21 aimed to secure additional capital to tackle its business obstacles, ultimately securing a $25 million investment from its current lenders. According to court documents, these lenders now hold an 80% stake in rue21’s stock.

rue21 plans to sell its brand and other intellectual property independently of its store closure proceedings. The company has enlisted Gordon Brothers to aid in the store closure sales.

Continue Exploring: The Body Shop files for bankruptcy: US operations shut down, Canadian stores to follow suit

India lifts ban on onion exports, sets minimum export price at $550 per tonne

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May 4, 2024

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On Saturday, the Government announced the lifting of the ban on onion exports, as per a notification from the Directorate General of Foreign Trade (DGFT), ending a restriction that had been in place for approximately six months.

“The export policy of onions has been modified from “prohibited to free,” subject to a minimum export price of $550 per metric tonne, with immediate effect and until further orders,” according to the DGFT notification.

This move is part of the government’s efforts to strike a balance, ensuring farmers receive fair prices while also maintaining inflation at manageable levels to safeguard consumers from its effects.

On April 27, the Government permitted the export of 99,150 metric tonnes of onions to six neighboring countries: Bangladesh, UAE, Bhutan, Bahrain, Mauritius, and Sri Lanka.

Continue Exploring: Govt extends ban on onion exports indefinitely

On December 8, 2023, the government imposed a restriction on onion exports effective March 31 of the same year. The restriction was imposed to ensure adequate local supply and price stability in light of reduced outputs expected for both the Kharif and Rabi harvests in 2023-24 compared to the previous year, as well as increased demand in the foreign market.

The National Cooperative Exports Limited (NCEL), tasked with exporting onions to these nations, procured domestic onions for export via an e-platform at L1 prices. These onions were then supplied to government-nominated agencies in the destination countries at negotiated rates, with payment made on a 100% advance basis, as outlined by the Food Ministry.

NCEL’s offer rate to buyers considers current prices in the destination market, as well as trends in international and domestic markets. Quotas assigned for export to the six countries are fulfilled based on requests from these destinations.

Being the leading onion producer in the nation, Maharashtra serves as the primary onion supplier for NCEL’s export operations.

The Government also authorized the export of 2000 metric tonnes (MT) of white onions, specifically cultivated for markets in the Middle East and certain European countries. Given its focus solely on exports, the production costs of white onions are higher compared to other varieties, attributable to increased seed expenses, adherence to good agricultural practices (GAP), and compliance with stringent maximum residue limit (MRL) regulations.

Continue Exploring: India eases onion export restrictions, allows shipments to selected countries

This year, the Department of Consumer Affairs’ Price Stabilisation Fund (PSF) has set a procurement target of 5 lakh tonnes for onion buffer beginning in Rabi 2024. NCCF and NAFED are working with local agencies such as FPOs/FPCs/PACs to help with purchase, storage, and farmer registration for any store-worthy onions. On April 11-13, 2024, a high-level team from the Department of Consumer Affairs, NCCF, and NAFED toured the Maharashtra districts of Nashik and Ahmednagar to promote awareness among farmers, FPOs/FPCs, and PACs about the procurement of 5 LMT of onion for the PSF buffer.

To mitigate onion storage losses, the Department of Consumer Affairs has opted to increase the amount of onions to be irradiated and cold-stored from 1200 MT last year to over 5000 MT this year, with technical assistance from BARC, Mumbai. The previous year’s pilot project on onion irradiation and cold storage has demonstrated a reduction in storage losses to less than 10 percent.

Sustainable tableware brand CHUK sees remarkable profit surge in Q3 2023–24

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May 4, 2024

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CHUK, a manufacturer of compostable tableware crafted from sugarcane residue, reported a significant profit rebound in the third quarter of the fiscal year 2023–24. During Q3 2023, CHUK saw a remarkable pre-tax profit (PBT) of INR 174.24 lakhs.

Satish Chamyvelumani, Business Head-Compostable at CHUK, expressed, “It’s incredibly motivating and uplifting to see CHUK’s remarkable growth within just six years. The rising demand for compostable packaging reflects a growing commitment to sustainability. We’re leading this change by offering compostable tableware solutions globally. This achievement underscores our unwavering dedication to fostering a cleaner, greener planet. We’re continuously innovating and expanding our product range, eagerly anticipating sustained growth ahead.”

Continue Exploring: Chuk teams up with Zomato’s Hyperpure to expand online presence and promote sustainable food packaging alternatives

The projected growth of the global bagasse tableware products market indicates a CAGR of 6.7% from 2023 to 2032, with the market value anticipated to rise from US$ 2,985.1 million in 2023 to US$ 5,230.5 million by 2032, according to data. CHUK plans to expedite its growth, aiming for double the pace in the upcoming financial year. The brand’s objectives include boosting profitability, extending its global presence, and introducing new product lines that resonate with changing consumer tastes.

Earlier, CHUK collaborated with the Ram Mandir Trust during the Ayodhya Mandir consecration event to distribute compostable tableware and showcased its product portfolio at the Aahar 2024 show in Delhi.

Continue Exploring: CHUK launches Sustainable packaging Solutions for Food Delivery and QSR Brands

India’s beverage market bubbling with natural ready-to-drink punch and mocktails as health and convenience take center stage

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May 4, 2024

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mocktails-for-booze-free — (Representative Image)

Driven by a trend towards healthier options and convenience, ready-to-drink punch and mocktail brands, boasting ‘natural’ ingredients ranging from fruits and roots to herbs and spices, are entering India’s beverage market.

Moving away from alcoholic indulgences and fizzy aftereffects, revelers are embracing fruity blends. A Statista report suggests that the worldwide non-alcoholic beverage market is poised for a 2.3% volume growth this year. By 2027, it’s expected to soar to 944.6 billion liters, with a compound annual growth rate (CAGR) of 4.6% from 2023 to 2027. Presently, India hosts a market with over 200 contenders in the ready-to-drink juice, mocktail, and non-alcoholic beverage segment.

Producers are capitalizing on millennials and health-conscious Gen Zs, who eagerly embrace all things natural and organic.

“Post-Covid, there has been a notable shift towards healthier living, prompting a surge in demand for non-alcoholic options. Lifestyle adjustments have heightened consumer awareness of the harmful effects of alcohol, yet there persists a desire for non-alcoholic beverages that offer similar taste experiences. This trend is particularly prominent among consumers aged 25 to 34,” noted Neha Singh, co-founder of Tracxn, a startup information and market trends provider.

Continue Exploring: Healthy beverage trend surges in Europe as consumers seek alternatives to alcohol

Singh highlighted that in recent years, a plethora of new brands have emerged to cater to the growing demand, with India standing out among other leading nations in terms of funding raised in this sector. The market is witnessing significant interest, with startups securing fresh funding from angel investors, while FMCG giants are eyeing stakes in these ventures.

Continue Exploring: Investor appetite grows for homegrown food and beverage startups as demand skyrockets

For instance, Bengaluru-based Swizzle secured seed funding of nearly $67,000 from angel investors Akshay Singhal and Monika Rao in February. Coolberg received $1.1 million in its latest funding round from institutional and angel investors, including Ashok Kumar Damani. Last September, institutional investors such as Emami and Venture Catalysts, along with nine unicorns, invested an undisclosed amount in AloFrut.

Continue Exploring: Swizzle secures seed funding to fuel expansion and disrupt Indian beverage industry

According to data from Tracxn, leading players in this domain secured over $33 million in funding from institutional and angel investors between 2019 and 2024.

Harsha V Agarwal, Vice Chairman and Managing Director of Emami, resonates with similar sentiments. “We see immense growth in the segment,” she added, noting that “health and wellness” is currently the buzzword for consumers.

“Consumers are not just looking for products that are beneficial for their health, but also those that are ethically produced, with minimal environmental impact,” stated Deepender Singh, co-founder of the ready-to-drink mocktail brand Swizzle. Swizzle, which experienced a remarkable 210% growth in FY23, aims to achieve a projected revenue of INR 12 crore by the end of FY25.

Echoing the trend, Rishabh Gupta, promoter of Axiom Ayurveda, which produces canned fruit mocktails under the brand AloFrut, draws parallels between the surge in this market and the demand for energy drinks. “Energy drinks have significantly expanded their market presence in India over the past decade, and I anticipate a similar growth trajectory over the next five years. I envision the fruit or natural ingredient-based mocktail market following a comparable growth trajectory to where energy drinks currently stand within the next five to seven years,” stated Gupta. “Post-Covid, there has been a rise in house parties, and people are seeking alternatives to cola. Ready-to-drink mocktails offer them a viable option, without the need for a bartender,” he further explained.

Vaishali Mehta, co-founder of Swa, a Bangalore-based women-led initiative specializing in artisanal syrups, expresses optimism about the growing presence of natural concoctions in social gatherings. Mehta highlights that in India, many beverages rely on artificial concentrates and preservatives for their supposed exotic flavors. “Our company sources locally grown ingredients such as jamun, jackfruit, kokam, bird’s eye chili, and passion fruit for our beverages,” she emphasized.

Continue Exploring: India’s alcoholic beverage market surges to record highs, premiumization and home consumption drive growth

Simpli Namdhari’s innovates with ‘WhatAir’ mineral water launch, pioneering sustainable hydration solutions

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May 4, 2024

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Hema L., Head of Marketing, Simpli Namdhari’s — Hema L, Head of Marketing, Simpli Namdhari’s

Simpli Namdhari’s, an omnichannel retailer, has launched “WhatAir” mineral water, heralding a significant breakthrough in the beverage industry. This innovative product utilizes state-of-the-art technology to extract water directly from the air. By tapping into atmospheric moisture, WhatAir offers a sustainable solution to the global water crisis while providing consumers with a refreshing and eco-friendly alternative to traditional bottled water.

As Bangalore faces severe water scarcity, Simpli Namdhari steps forward as the first retailer in the city to offer “WhatAir” through its retail channels. This launch not only demonstrates the retailer’s dedication to sustainability, but also positions it as a pioneer in utilising technology to tackle environmental issues.

For every bottle of WhatAir bought, the retailer pledges to conserve a minimum of one liter of water per bottle, which would otherwise have been extracted from natural water reservoirs. Additionally, by utilizing glass bottles, WhatAir contributes to safeguarding water bodies from the harmful effects of single-use plastics.

Continue Exploring: At just INR 1 per bottle, Wahter shakes up India’s bottled water industry with game-changing approach

Hema L, the Head of Marketing at Simpli Namdhari’s, stressed the significance of innovation in tackling ecological emergencies. “At Simpli Namdhari’s, we acknowledge the pressing need to tackle Bangalore’s water crisis. We firmly believe that innovation holds the answer to discovering enduring solutions to environmental dilemmas. With the introduction of ‘WhatAir’ mineral water, we take pride in our contribution to water conservation endeavors and in offering consumers a product that not only fulfills their hydration requirements but also champions environmental sustainability. We are excited to have been instrumental in bringing this pioneering solution to the market,” she expressed.

Consumers can now find “WhatAir” mineral water available at all Simpli Namdhari’s retail outlets.

Katrina Kaif’s Kay Beauty makes its debut in the UAE market

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May 4, 2024

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Renowned Indian actress and entrepreneur Katrina Kaif has expanded her beauty brand, Kay Beauty, into the United Arab Emirates, marking its debut on the international stage. The eagerly awaited launch took place at Nysaa, the latest beauty destination in the UAE, where the exclusive range of Kay Beauty products is now accessible.

Established in partnership with Nykaa, India’s leading beauty retailer, Kay Beauty proudly stands as India’s first celebrity-backed makeup brand. Celebrated for its innovative spirit and top-notch products, the brand quickly gained prominence in the Indian beauty landscape. Designed to blend elegance with skincare benefits, Kay Beauty offers a diverse range of products, including lipsticks, eyeshadows, foundations, and nail colors, tailored to meet the preferences of beauty enthusiasts.

Continue Exploring: Nykaa-KK Beauty eyes aggressive overseas expansion, Gulf region in focus

Kay Beauty’s essence lies in the mantra #ItsKayToBeYou, embodying self-acceptance and empowerment, as advocated by Kaif. The brand’s statement emphasizes, “With the foundational belief #ItsKayToBeYou, Katrina assures us a personalized experience with Kay Beauty.”

Since its inception, Kay Beauty has experienced exceptional growth, reaching a gross margin value of INR 1.5 billion in a span of just over four years. It has solidified a strong presence throughout India, operating extensively online and through more than 300 retail outlets.

Katrina Kaif, Co-Founder of Kay Beauty, expresses, “Bringing Kay Beauty to the UAE brings me immense joy. It has always been my vision to expand Kay Beauty globally, enabling customers from diverse backgrounds to experience our products firsthand. Our entry into the GCC market allows us to engage with a demographic that holds a strong passion for both beauty and Indian cinema. Launching Kay Beauty in the region through omnichannel retailing is a strategic move for us. The GCC region embraces various ethnicities, genders, and age groups, and Kay Beauty’s fundamental ethos revolves around catering to all skin tones while upholding the commitment of #makeupthatkares.”

Adwaita Nayar, Co-Founder of Nykaa and CEO of Nykaa Fashion, expressed excitement, stating, “I am thrilled to announce the launch of Kay Beauty in the GCC region, in partnership with omnichannel retailer Nysaa. Kay Beauty has made a remarkable impact in India with its innovative and inclusive product range, resonating strongly with consumers from diverse backgrounds. Given the GCC’s emergence as a focal point for beauty enthusiasts eager to explore new market offerings, we are eager to introduce Kay Beauty to the region.”

Kay Beauty debuts in the UAE featuring an expansive collection of over 60+ SKUs for lips and face, along with approximately 30+ SKUs for nails and eyes, offering a comprehensive selection to suit every beauty requirement and preference. With a steadfast dedication to inclusivity, exceptional performance, and cruelty-free formulations, the brand emerges as a premier option for makeup enthusiasts in the region.

This strategic move by Kay Beauty not only introduces its celebrated range to the UAE but also seeks to leave a notable impression in a region renowned for its diverse demographic and shared enthusiasm for both beauty and Indian cinema.

Continue Exploring: Kylie Jenner’s Kylie Cosmetics launches in India in collaboration with House of Beauty

Mia by Tanishq on expansion spree, unveils 4 new retail stores in Tamil Nadu

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May 4, 2024

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The jewellery brand Mia by Tanishq, a part of the diversified conglomerate Tata Group, has opened four new stores in Tamil Nadu as part of its expansion initiative. To celebrate the inauguration, the brand is offering discounts of up to 20 percent on Mia’s product range until May 5th.

The company has opened three new stores, one each in Kellys, Adyar, & Velachery in Chennai, while another in Tiruppur District.

Continue Exploring: Tanishq marks milestone with 15th international store launch in Chicago

“We were thrilled with the tremendous reaction we received when we opened 12 new Mia by Tanishq stand-alone boutiques in Tamil Nadu last year. “We are launching four new stores in Chennai (3) and Tiruppur (1) between,” stated Shyamala Ramanan, Business Head of Mia by Tanishq.

Ramanan emphasized, “Mia comprehends the desires of contemporary women, seeking jewelry that mirrors their individuality. Our offerings feature lightweight designs crafted with trendy flair, tailored to match their preferences.”

Continue Exploring: Titan’s CaratLane jewellery line to make US debut in FY25

Costa Coffee expands plant-based menu with two new vegan delights in partnership with BOSH!

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May 4, 2024

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BOSH!’s Falafel Wrap and Gingernut Loaf Cake with Oat Iced Latte

Costa Coffee has strengthened its partnership with plant-based food provider BOSH! by introducing two new vegan products across its stores in the UK.

In response to the increasing demand for plant-based options, Costa Coffee is set to launch The Fab Falafel and Houmous Wrap along with the Gingernut Loaf Cake in May 2024.

The Fab Falafel and Houmous Wrap, a vegan delight, melds spinach and pine kernel falafel with spiced chutney and houmous, all crowned with pink pickled onions.

It offers a nutritious choice for customers during lunchtime.

Continue Exploring: Costa Coffee and BOSH! team up to introduce delectable plant-based delights across the UK

Paired with an Oat Latte, the Gingernut Loaf Cake offers a delightful indulgence, boasting warm spices, sweetness, ginger frosting, and a crumbly ginger biscuit topping.

The latest additions are currently accessible at 2,600 Costa Coffee outlets throughout the UK.

Since initiating their partnership in January 2024, both Costa Coffee and BOSH! have been actively working to increase the availability of plant-based options for busy consumers on-the-go.

Cathy Goodwin, Head of Food Innovation at Costa Coffee, remarked, “Our partnership with BOSH! keeps progressing, now bringing forth two new summer delights.”

“We’re excited to provide our customers with even more delectable plant-based options to enjoy either in-store or on-the-go with these offerings.”

Henry Firth and Ian Theasby, co-founders and co-CEOs of BOSH!, expressed, “The high street’s plant-based choices have received a significant boost with the introduction of one new sweet and one new savory product in collaboration with Costa Coffee.”

“By offering these options, we aim to encourage more plant-based eating, providing the perfect bite for a delightful lunch in the sunshine.”

Continue Exploring: Costa Coffee brings back Iced Whipped Latte selection with fresh flavors for summer

BOSH! has recently obtained B Corp certification, reaffirming its dedication to ethical business practices and environmental sustainability.

In April 2024, Starbucks Hong Kong unveiled a fresh plant-based meal option in collaboration with UNLIMEAT, a leading South Korean plant-based meat producer.

The UNLIMEAT Pulled Pork Wrap boasts vegan pulled pork alongside crisp vegetables such as carrots, red cabbage, and lettuce.

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