By a News Reporter-Staff News Editor at Investment Weekly News -- Amira Nature Foods Ltd (the "Company;" or "Amira" NYSE: ANFI), a leading global provider of packaged Indian specialty rice, reported financial results for its fiscal 2015 first quarter which ended on June 30, 2014. First Quarter Financial Highlights: Revenue grew 25.9% to $138.8 million compared to $110.3 million in the year earlier period
Adjusted EBITDA increased 30.9% to $19.1 million compared to $14.6 million
Adjusted EBITDA margin increased to 13.7% percent of sales compared to 13.2%
Adjusted profits after tax increased 24.7% to $9.3 million compared to $7.4 million
Basic earnings per share was $0.25 compared to $0.21
Adjusted earnings per share was $0.26 compared to $0.21
Karan A. Chanana, Amira's Chairman and Chief Executive Officer, stated, "Our strong first quarter performance reflects increased demand and a favorable pricing environment for our products - with gains in our core Indian and Middle East markets, as well as in developed markets, such as the US, the UK and Continental Europe where we continue to make inroads in these priority markets. We believe that fiscal 2015 will be a great year and we expect to meet our growth forecasts as we expand markets and distribution points around the world."
Bruce Wacha, Amira's Chief Financial Officer, added, "We are pleased with the progress in the first quarter - we grew top line, adjusted EBITDA and profits by approximately 25% or more, while also increasing margins and improving our balance sheet. We added to inventory during the quarter providing support for our future sales growth and simultaneously reduced our trade payables and debt." First Quarter Fiscal 2015 Results Revenue for the first quarter of fiscal 2015 increased 25.9% to $138.8 million, compared to $110.3 million for same period in fiscal 2014. The revenue increase was primarily due to continuing increases in sales volume, pricing and mix. Amira branded and third party branded sales increased by 29.3% to $136.8 million. Revenue from institutional sales fell marginally in dollar terms to $2.0 million from $4.4 million a year ago. Sales in India increased by 20.9% to $55.8 million (an increase of 30.3% in Indian rupees), while non-India or international sales increased by 29.5% to $83.0 million.
Cost of materials including change in inventory of finished goods increased by $20.7 million, or 23.7% to $108.2 million in the first quarter of fiscal 2015 from $87.5 million in the first quarter of 2014, primarily reflecting revenue growth during that period. As a percentage of revenue, cost of materials including change in inventory of finished goods decreased to 78.0% in the three months ended June 30, 2014, versus 79.3% in the same period a year ago, due to improved pricing, operating efficiencies and continued benefit from economies of scale.
Adjusted EBITDA increased by approximately $4.5 million or 30.9% to $19.1 million, with adjusted EBITDA margins increasing by approximately 50 basis points to 13.7%. Adjusted EBITDA benefited from improvements in cost of materials including change in inventory of finished goods and freight, forwarding and handling, which improved by approximately 140 basis points and 240 basis points as a percentage of sales, respectively. These gains were offset in part by slight increases in employee benefit costs and other expenses.
Adjusted profit after tax increased by $1.8 million or 24.7% to $9.3 million for the three months ended June 30, 2014. Adjusted EPS increased by 23.8% to $0.26 per share from $0.21 per share in the year-ago quarter.
A reconciliation of Adjusted EBITDA, Adjust profit after tax and Adjusted EPS is provided in the "Non-IFRS Financial Measures" section of this release. Balance Sheet and Cash Flow Highlights At June 30, 2014, the Company's cash and cash equivalents was $32.8 million and adjusted net working capital was $311.1 million. Net debt (after deducting cash and cash equivalents) as of June 30, 2014 was $150.2 million. As of June 30, 2014, inventories increased $10.7 million to $265.7 million from $255.0 at March 31, 2014, trade receivables were $71.4 million, a decrease of $9.5 million from $80.9 million, trade payables were $23.7 million, a decrease of $17.5 million from $41.2 million and total debt was $182.9 million a decrease of $1.9 million from $184.8 million. Reconciliations of adjusted net working capital and net debt to the IFRS measures of working capital and total current and non-current debt, respectively, are provided in the "Non-IFRS Financial Measures" section of this release. Fiscal 2015 Outlook The Company reiterates its previously-issued guidance and expects full-year fiscal 2015 Revenue and Adjusted EBITDA growth in excess of 20%. This is in line with long-term guidance previously provided to the investment community. The Company's guidance is based on foreign exchange rates as of June 30, 2014 and does not take into account the potential impact of foreign currency fluctuations for the remainder of the fiscal year. Conference Call The Company will hold an investor call today at 5:00 p.m. Eastern time. The dial-in number for this conference call is 1-877-407-3982 for North American listeners and 1-201-493-6780 for international listeners. Live audio of the conference call will be simultaneously webcast on the investor relations section of the Company's website at www.amira.net.
Keywords for this news article include: Amira Nature Foods Ltd, Finance, India.
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