Q3 2024 Apex Frozen Foods Ltd Earnings Call Transcript
Key Points
- Sales to the EU market posted a growth of 50% year-on-year in both Q3 FY24 and the nine months of FY24.
- The share of EU in the overall sales mix increased to 36% in Q3 FY24 from 17% last year, indicating a more diversified sales mix.
- The company is setting up a wholly-owned subsidiary in the US to support logistics and market development, expected to benefit from FY25 onwards.
- Debt continues to decline, with a debt-to-equity ratio of 0.17 times as of September 30, 2023.
- The company remains positive about the growth prospects in the EU market, especially once regulatory approvals for ready-to-eat products are obtained.
- Net revenue for Q3 FY24 decreased to INR148 crores from INR230 crores in Q3 of the last fiscal year, mainly due to lower volumes sold to the USA and a fall in global shrimp prices.
- Total volumes sold by the company dropped to 2,117 metric tons in Q3 FY24 from 2,869 metric tons in Q3 of the last fiscal year.
- Global shrimp prices have been tapering down, impacting overall realization in Q3 FY24.
- Lower operating leverage and higher freight costs negatively impacted the EBITDA margin in Q3 FY24.
- The company is still awaiting regulatory approvals for the sale of high-value ready-to-eat products in the EU market, limiting potential growth.
Ladies and gentlemen, good day, and welcome to Apex Frozen Foods Limited Q3 and nine months FY24 earning conference call. (Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Choudary Karuturi, Managing Director and CFO. Thank you, and over to you, sir.
Thank you, Ria. Good morning, everyone, and thank you for joining us on this investor call for the third quarter and nine months of FY24. With us on the call today is Mr. Durga Prasad from our Finance Team and Ms. Madhavi from our Operations Team; and Stellar IR Advisors, our Investor Relations Advisor.
We have uploaded the investor presentation on the website of the Stock Exchanges, and we hope you had a chance to go through it.
Let me begin by going through the numbers for the quarter. The net revenue for Q3 FY24 came in at INR148 crores as against INR230 crores in Q3 of last fiscal, and INR240 crores in Q2 of FY24, mainly led by
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