Parag Milk Foods’ Q2 FY24 net profit skyrockets, surpassing INR 25.19 Crore and marking a 120.9% YoY surge

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November 10, 2023

Dairy FMCG firm Parag Milk Foods Limited (PMFL) reported a notable improvement in its financial performance on Friday. The company disclosed a substantial year-on-year (YoY) increase of 120.9%, with its consolidated net profit reaching INR 25.19 crore for the second quarter (Q2) ending September 2023. This signifies a noteworthy rise from the INR 11.39 crore consolidated net profit reported in the corresponding quarter of the previous fiscal year, as outlined in its recent regulatory filing.

In the same period a year earlier, the company’s total income increased to INR 803.7 crore in Q2 FY24, up from INR 665.16 crore.

According to the BSE filing, total expenses for the company expanded to INR 779.34 crore in Q2 FY24, compared to INR 654.83 crore in the corresponding period of the previous fiscal year.

The company noted a robust beginning to the festive season, marked by strong demand across various segments.

Despite the elevated festive performance of the previous year, the fundamental categories consistently recorded robust growth in both volume and value. This growth was attributed to inventive branding strategies and an extended distribution network. The stabilization of procurement prices, coupled with an enhanced product mix, contributed to a 220 basis point expansion in the Gross Profit Margin (GPM). This expansion also translated into an increased EBITDA margin, as shared by the company.

The EBITDA margin for the quarter saw a year-on-year expansion of 160 basis points, reaching 7.3%. The overall business health remained robust, as Parag Milk Foods Limited (PMFL) reported a healthy cash flow from operations amounting to INR 48.93 crore.

PMFL’s creative integration with Kaun Banega Crorepati (KBC) has facilitated a robust connection with consumers and an extension of distribution reach. According to a company statement, this integration is anticipated to enhance outreach particularly in tier 2 and tier 3 towns and cities.

Expanding its distribution reach and coverage of outlets will remain a strategic focus area for PMFL, with ongoing investments in this direction.

Devendra Shah, chairman of the company said, “On the back of a softening input cost environment and with good festive demand we expect the growth momentum to accelerate. Given this backdrop, we are confident to show healthy growth in our profitability in the coming quarters as well. We have also embarked on a business transformation drive by partnering with Boston Consultancy Group (BCG) to aid us unlock new avenues for growth, and streamline our operations for long-term sustainability.”

Parag Milk Foods additionally conveyed that key categories, such as Ghee and Cheese, sustained consistent momentum throughout the quarter, achieving a year-on-year growth of 6.2 percent.

GTRI proposes strict policies to combat consumption of unhealthy food in India

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November 10, 2023

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On Friday, the Global Trade Research Initiative (GTRI) proposed that the government implement rigorous policies, including raising taxes on unhealthy food products and launching impactful public health campaigns. GTRI also suggested establishing legal restrictions on the levels of trans fats, sugar, and salt in processed foods, along with enforcing stringent food labeling regulations that mandate transparent and easily understandable nutritional information. These measures aim to address the escalating consumption of detrimental processed foods in the country and empower consumers to make informed choices about their dietary habits.

“In light of the Food and Agriculture Organization’s State of Food and Agriculture (SOFA) report, GTRI recommends stringent policy measures, including taxation on unhealthy foods and robust public health campaigns, to curb India’s rising consumption of harmful processed foods,” it said.

The study, which analyzed 154 countries, revealed that agricultural food systems globally incur hidden costs amounting to a minimum of USD 10 trillion each year.

In the case of India, this results in an annual sum of USD 450 billion, driven by environmental harm caused by greenhouse gas emissions, improper use of land and water resources, as well as health issues stemming from air pollution and diet-related diseases, according to the report.

The report noted that the proportion of ultra-processed foods, fats, and sugars is escalating at a concerning rate within India’s USD 325-billion food processing sector.

“The country’s battle with unhealthy diets, predominantly rich in ultra-processed foods, fats, and sugars, is a key contributor to these hidden costs,” GTRI Co-Founder Ajay Srivastava said.

According to him, the report emphasizes that these dietary patterns result in obesity and non-communicable diseases, leading to significant losses in productivity.

Given that India’s concealed expenses arising from unhealthy diets are calculated at 7.2 percent of GDP, the imperative for a dietary revolution is now more pressing than ever.

It recommended “enforcing increased taxes on ultra-processed foods, sugary beverages, and high-fat snacks to deter consumption. This approach could resemble the sugar tax implemented in certain nations.

“Import duties may be raised to the highest allowed level to cut unhealthy imports,” Srivastava said, adding there should be restrictions on the advertising of unhealthy foods, especially during children’s television programming and on platforms predominantly used by younger audiences.

He further stated that the government encounters a significant challenge: to harmonize the dimensions of agri-food systems by incorporating environmental stewardship, health awareness, and social equity into its policy framework.

“The FAO’s findings serve as a wake-up call for India to safeguard its future against the tide of environmental degradation and the burgeoning health crisis linked to dietary choices,” he said.

Shraddha Kapoor brightens Diwali with Hershey’s new digital campaign!

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November 10, 2023

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Hershey India, a division of The Hershey Company, a prominent global snacking enterprise, has introduced a fresh digital initiative titled “Shraddha Waali Diwali” for its renowned HERSHEY’S KISSES brand, featuring Shraddha Kapoor as the brand ambassador. Remaining aligned with its core values of fostering heartfelt connections with those close to us, the digital film underscores the importance of reveling in the enchantment of unspoken moments with friends and family during the Diwali festivities.

Discovering how a beloved celebrity celebrates a special occasion is a source of fascination for many. Hershey India leverages this curiosity to establish relatability and forge connections with its audience this Diwali. The film unveils the essence of a ‘Shraddha Waali Diwali’ as a part of the ‘HERSHEY’S Waali Diwali’ celebration.

The film opens with a captivating scene featuring Shraddha Kapoor engrossed in her Diwali preparations. With enthusiasm, she highlights that when words fall short in expressing affection, the HERSHEY’S KISSES brand emerges as a perfect gifting solution, resonating with the festival’s spirit of love and togetherness. This cinematic experience beautifully encapsulates the simplicity and sweetness of Diwali celebrations, showcasing how the HERSHEY’S KISSES brand can be a source of pure goodness, enhancing the joy of those special moments with loved ones and fortifying everlasting bonds with family, siblings, and friends.

Commenting on the new campaign, Ankit Desai, Marketing Director, Hershey India said, “Chocolates have made a special place in consumers’ hearts as a preferred choice for celebrating moments of togetherness, through shared consumption or gifting, during festivals. Hershey’s delicious range of chocolates have seamlessly become an integral part of Indian households, for elevating everyday occasions or enhancing the joy of festive celebrations. Our latest campaign, Shraddha Waali Diwali, captures the true spirit of Diwali, where love and playfulness combine to create unforgettable moments with HERSHEY’S KISSES brand, fostering warm connections with loved ones. Through this campaign we want to strengthen our connection and relatability with audiences.”

This Diwali, Hershey India has also curated HERSHEY’S Festive Moments Gift Packs, each designed to offer a distinctive and immersive consumer experience through a QR Code featured on the packaging. Encouraging buyers of the HERSHEY’S Festive Moments Gift Pack to scan the QR Code, the initiative invites them on a personalized journey where they can input specific details, tailoring the experience to match the nature of their Diwali celebration—be it with family, friends, or a long-distance festivity.

Upon completing the details, consumers receive a specially crafted wish generated by augmented reality (AR), ready to be shared effortlessly over WhatsApp with their loved ones, thereby infusing a touch of thoughtfulness into the celebration. These Gift Packs showcase Hershey’s iconic brands, such as HERSHEY’S KISSES, HERSHEY’S Bars, and HERSHEY’S Exotic Dark, presenting a curated selection of handpicked flavors for a delectable and melt-in-mouth chocolaty experience.

Hershey’s Festive Gift Packs can be found at various outlets and retail stores across all channels.

Watch the film here:

CJI DY Chandrachud inaugurates cafe run by differently-abled individuals at SC complex

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November 10, 2023

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Chief Justice of India (CJI) DY Chandrachud inaugurated the ‘Mitti Cafe’ in the Supreme Court’s complex on Friday. This cafe, exclusively managed by a non-governmental organization (NGO), is staffed entirely by individuals with diverse abilities. The NGO, known as ‘Mitti,’ is committed to facilitating economic independence and preserving the dignity of adults with physical, intellectual, and psychiatric disabilities, as well as those from vulnerable communities.

VIDEO | CJI DY Chandrachud inaugurates 'Mitti Cafe' inside Supreme Court complex. The cafe is managed by differently-abled people. pic.twitter.com/MpRbpL4dy6
— Press Trust of India (@PTI_News) November 10, 2023

Before the commencement of the inauguration, the Chief Justice of India called upon members of the Supreme Court Bar Association to rally behind the cause. Furthermore, in the presence of fellow judges, he announced the inauguration at the start of the day’s proceedings, as per a report from PTI.

“I hope the bar will support the initiative,” the CJI said.

Attorney General R Venkataramani said it is a “symbol of great compassion”.

The CJI mentioned that ‘Mitti Cafe’ has opened 38 outlets in different parts of the country and has served six million meals during the Covid-19 pandemic. In acknowledgment of this achievement, Advocate Priya Hingorani, who played a pivotal role in the process of opening Mitti Cafe in the Supreme Court, expressed gratitude to CJI Chandrachud for his unwavering support.

The NGO, established in 2017, has actively fostered job opportunities for individuals with diverse abilities over the years. Guided by an all-women’s leadership, CEO-founder Alina Alam heads the organization’s efforts.

Ayesha Alam, the director of Mitti Cafe, said “Mitti Cafe provides job opportunities to people with special needs and around 500 disabled people are directly associated with the cafe, with an additional 1200 disabled individuals being indirectly associated.”

During the event, the National Anthem was performed in sign language by children with diverse abilities.

Rocky ride for Honasa Consumer Ltd as shares dip 5% lower than IPO

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November 10, 2023

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On Friday, shares of Honasa Consumer Ltd, the company behind the skincare brand Mamaearth, were trading nearly 5% lower than their initial public offering (IPO) price of INR 324 per share.

As of 11:02 AM IST, the company’s shares were valued at INR 287.45 on the National Stock Exchange (NSE). Nevertheless, during early trading, the stock experienced a decline, reaching as low as INR 256.30, marking a 15% decrease from the previous day’s closing price.

The company’s most recent market capitalization stood at INR 9,248.61 crore but dipped to INR 8,246 crore before partially recovering from the losses. The initial public offering (IPO) valuation of the company was approximately INR 10,425 crore.

In 2022, the latest private funding round for Honasa assigned a valuation of $1.2 billion to the omnichannel retailer, equivalent to approximately INR 9,995 crore at the exchange rate on Friday.

On Tuesday, November 7, Honasa Consumer’s shares debuted on the NSE at INR 330 per share, representing a 2% premium over the issue price. Subsequently, the stock witnessed substantial selling activity in the market.

The Honasa initial public offering (IPO) commenced on October 31, featuring a price range of INR 308-324 per share and concluded on November 2. The IPO successfully garnered INR 1,701 crore, comprising a fresh issue of INR 365 crore and an offer-for-sale component involving up to 4.12 crore equity shares valued at INR 1,336 crore.

Prior to the IPO opening for public subscription, Honasa Consumer had secured INR 765.19 crore from anchor investors, a list featuring prominent names such as Abu Dhabi Investment Authority, Fidelity, Goldman Sachs, Capital Group, and Norges Bank.

During an interview, Varun Alagh, the co-founder and chief executive of the company, cautioned against forming opinions about a company solely based on its short-term stock market performance. “If you’re trying to measure performance over 3-6 months, you should not … If you genuinely like a company, stay invested for a few years and measure our performance over the index, and that’s what one should hold the company accountable to,” Alagh had said.

Rising tur dal prices in India: Trade body calls for end of import deal with Mozambique

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November 10, 2023

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India’s pulses trade body has called upon the government to annul the memorandum of understanding with Mozambique, which binds India to import 200,000 tonnes of tur dal from the country each year until 2025-26.

The Indian Pulses and Grains Association (IPGA) reported that a prominent exporter in Mozambique is hindering other exporters from shipping tur to India, consequently leading to a surge in prices.

“He has been forcing other exporters to sell tur to him. He has been holding the stocks and hiking the prices,” said Bimal Kothari, president, IGPA.

Importers of pulses in India have encountered difficulties in procuring tur from Mozambique over the last two months.

To counter the uncomfortably high domestic prices caused by a smaller Indian crop in the kharif 2022-23 season, India has turned to importing tur from Mozambique, Myanmar, and Malawi.

“Given that tur production in the current kharif crop is likely to remain lower, we are again likely to face supply tightness next year” Kothari said.

DS Group brings Italian luxury to India with first Brioni boutique in Delhi

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November 10, 2023

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On Thursday, DS Group’s luxury menswear division announced the opening of the first Brioni boutique in Delhi, showcasing the renowned Italian luxury menswear brand.

The boutique encapsulates the essence of Brioni’s worldwide store concept, providing a welcoming and thoughtfully curated environment adorned with Italian-designed furnishings. This encompasses items such as a vintage Carlo Roma coffee table, a timeless Marco Zanuso armchair, and artisanal décor like a carpet and wall tapestry from the Genoese manufacturer MITA.

The Brioni boutique in New Delhi presents a varied selection of ready-to-wear clothing and accessories collections, along with an exclusive Bespoke service. Clients can experience personalized assistance and exceptional tailoring craftsmanship in a welcoming Italian ambiance that radiates both elegance and comfort.

Ritesh Kumar, spokesperson for DS Luxury, expressed his enthusiasm for this development, saying, “We are thrilled to announce the opening of the first Brioni boutique in India, right here at The Chanakya. This marks another significant milestone for DS Luxury as we continue to introduce the world’s iconic luxury brands across segments to discerning Indian consumers. Brioni epitomizes modern elegance and timeless craftsmanship, and we are confident that our patrons will appreciate the sophistication and exclusivity that this brand represents. The establishment of our new boutique underscores our unwavering dedication to delivering the utmost in luxury fashion, solidifying our role as a prominent arbiter of premium retail experiences in India.”

Mehdi Benabadji, Brioni CEO, added, “We are delighted to enter the Indian market with DS Luxury. The clientele in India will enjoy the creativity and exquisite savoir-faire our House has to offer.” This marks a significant step in bringing the luxury and craftsmanship of Brioni to the Indian market.

Jewellers anticipate 10% surge in Dhanteras sales despite rising gold prices

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November 10, 2023

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Jewellers express guarded optimism regarding gold demand this Dhanteras, anticipating a 10% surge in sales for both gold jewellery and bullion. This optimism is fueled by a significant uptick in gold prices attributed to ongoing geopolitical developments. Over the past year, gold prices have risen by more than 20%, reaching nearly INR 61,000 per ten grams. Last year’s Dhanteras saw gold prices in Delhi at INR 50,139 per ten grams (excluding taxes), compared to INR 47,644 on the Dhanteras festival in 2021.

Dhanteras holds a special significance in the Hindu calendar as the most auspicious time for acquiring items such as precious metals, utensils, and valuables. Additionally, many individuals choose this occasion to purchase vehicles. Typically, on a Dhanteras day in regular years, approximately 20-30 tonnes of gold are sold.

“There is an 8-10 per cent annual rise in gold prices. And people have accepted the base price of gold at INR 58,000 per ten grams. We are expecting 10 per cent increase in sales volume this Dhanteras from over the last year,” said All India Gems and Jewellery Domestic Council Chairman Saiyam Mehra.

He mentioned that customers have taken advantage of discounts in making charges provided by various jewelers by pre-booking deliveries for Dhanteras day.

However, World Gold Council (WGC) India Regional CEO Somasundaram PR said, “Jewellers are cautiously optimistic although consumer sentiments remain positive. The high price of gold will be a significant dampener on Dhanteras.”.

There will be a token buying and huge demand for bars and coins. Total Dhanteras sales are unlikely to see the level achieved in 2021 and 2022, he said.

Whereas jewellery retailer Joyalukkas, which has 100 stores in India, is expecting a 25 per cent increase in gold jewellery sales this time.

“We are expecting about 650 kg of sale of gold jewellery this Dhanteras across our stores. If prices soften then the sales might be even more,” Joyalukkas Chairman and Managing Director Joy Alukkas said.

The company, which is preparing for an IPO, had sold about 500 kg of gold during the last Dhanteras, he added.

Upbeat about sales, Kalyan Jewellers Executive Director Ramesh Kalyanaraman said, “We have been witnessing strong demand momentum and footfalls across our showrooms.”

While, the industry witnessed a delay in demand due to the extended Shraadh period, as compared to FY’23, the renewed surge in sales momentum post this, has instilled optimism in the company’s future outlook, he said.

Apart from the new and seasonal line of jewellery, in keeping with the Dhanteras spirit, the company has released a unique edition of ‘Ashta Lakshmi’ and ‘Ashta Vinayak’ coins, in both 22-carat and 24-carat, with flexibility in product weight.

“The booking-based advanced purchases have been showcasing signs of positive consumer sentiment. We are confident that the demand momentum will continue to further accelerate till the end of the year,” he added.

Bachharaj Bamalwa, partner of Kolkata-based jewellery chain Nemichand Bamalwa & Sons, said price will be a factor for buying on this Dhanteras.

“We started offers two weeks before Dhanteras and footfalls have been good. Most of them will take delivery on Dhanteras day tomorrow.”

“Although gold rates have gone up 10 per cent from over last year, we expect sales to increase by only 10 per cent in volume wise and 20 per cent in value terms,” he added.

On bullion demand, MMTC-PAMP Managing Director and CEO Vikas Singh said Dhanteras and Diwali occasions witness families embracing age-old customs of purchasing gold, as an investment and a cherished ritual.

“We anticipate robust demand during this festive season,” he said and added the company sells purest 999.9+ (24 carat) gold and silver products.

Kura Sushi US reports remarkable 53% increase in net income for Q4 2023, achieving record sales and expansion

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November 10, 2023

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The Japanese restaurant chain Kura Sushi US has disclosed a fourth-quarter net income of $2.92 million for the fiscal year 2023, marking a significant increase of 53% from the $1.91 million reported in the same period last year.

In the quarter concluding on August 31, 2023, the company achieved total sales of $54.93 million, reflecting a notable increase of 30.7% compared to the $41.99 million recorded in the corresponding period the previous year.

In the fourth quarter of 2023, food and beverage costs, as a percentage of sales, stood at 29.5%, showcasing a decline from the 30.7% recorded in the corresponding period of the previous year. The company attributed this decrease to the implementation of higher menu prices.

In the quarter, labor and related costs, as a percentage of sales, remained nearly unchanged at 28.8%, showing minimal variation compared to the corresponding period from the previous year.

Comparable restaurant sales experienced a 6.5% increase compared to the fourth quarter of the previous year.

During the quarter, Kura Sushi US reported an operating income of $2.2 million, marking an increase from the $1.9 million recorded in the corresponding period of the previous year.

The company reported an adjusted EBITDA of $6.3 million for the period, showcasing growth from the $4.8 million recorded in the fourth quarter of the previous year.

During the quarter, the company expanded its reach by opening four new restaurants in Framingham, Massachusetts; Carle Place, New York; San Jose, California; and Dorchester, Massachusetts.

Kura Sushi president and CEO Hajime Uba said, “I’m very pleased to announce that we’ve closed another record-breaking year with a great fiscal fourth quarter. In Q4, we achieved comparable sales growth of 6.5% against one of our hardest comparisons yet.

“Traffic growth has continued to be a highlight for Kura Sushi, with 5.6% of our comparable sales growth being driven by increased guest traffic. We also opened four new restaurants during the quarter.

“Over the course of fiscal 2023, we achieved our three major goals by opening a record ten new units, improving our restaurant-level operating profit margins by 70 basis points and leveraging our general and administrative expenses by 80 basis points.”

India’s first-ever shipment of bananas by sea to Europe flagged off

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November 10, 2023

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India’s first-ever shipment of bananas to Europe by the sea route was flagged off on Thursday.

The pioneering effort orchestrated by the Agricultural and Processed Food Products Export Development Authority (APEDA) seeks to boost the market presence of Indian bananas in Europe.

The APEDA-registered exporter, M/s INI Farms Pvt. Ltd., shipped a total of 19.50 metric tons of bananas from Maharashtra. The banana consignment originated from the packhouse located at Vasunde, Baramati – Kurkumbh Road in Pune district and is set to be transported by sea through the Jawaharlal Nehru Port Trust (JNPT) in Mumbai.

APEDA provided comprehensive support to M/s INI Farms Pvt. Ltd., facilitating the systematic commencement of export activities and signaling the dawn of a new era in Indian banana exports.

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