Amira Nature Foods Ltd Announces Second Quarter Fiscal Year 2013 Financial Results
Amira Nature Foods Ltd Announces Second Quarter Fiscal Year 2013 Financial Results
Second Quarter Revenue Increased 28.7% to $79.4 Million
Second Quarter EBITDA Increased 54.8% to $10.3 Million
DUBAI, United Arab Emirates--(BUSINESS WIRE)-- Amira Nature Foods Ltd (the "Company") (NYS: ANFI) , a leading global provider of packaged Indian specialty rice, today reported financial results for the second quarter and six months ended September 30, 2012.
Second Quarter Financial Highlights:
Revenue increased 28.7% to $79.4 million, compared to $61.7 million in the second quarter of fiscal 2012
EBITDA increased 54.8% to $10.3 million, compared to $6.6 million in the second quarter of fiscal 2012
Profit after tax for the second quarter of fiscal 2013 increased 291.4% to $3.3 million, compared to $0.8 million in the second quarter of fiscal 2012
Pro forma basic and diluted earnings per share(1) for the second quarter of fiscal 2013 was $0.09 per diluted share, compared to $0.02 per diluted share in the second quarter of fiscal 2012
"We are pleased to report strong financial results for the second quarter of fiscal 2013, as our year-over-year improvements in revenue and EBITDA underscore the strength of our business model," stated Karan Chanana, Amira's Chairman and Chief Executive Officer. "Global demand for Basmati rice continues to grow, and with our strong team of distributors and experience in the international market, we believe we are well positioned to capitalize on the demand and achieve growth going forward."
Mr. Chanana continued, "In October, we completed our initial public offering and listed our shares on the New York Stock Exchange. In this offering, we raised capital that will enable us to invest in our business and further improve our foundation for long-term growth."
Second Quarter Fiscal 2013 Results
Revenue for the second quarter ended September 30, 2012 increased 28.7% to $79.4 million, compared to $61.7 million for the same period in fiscal 2012. The revenue increase was primarily due to increased sales volumes.
Revenue in the second quarter of fiscal 2013 for the Company's Amira and third party branded products was 98.5% of total revenue, compared to 86.2% of total revenue, for second quarter of fiscal 2012. Sales of bulk commodity products to institutional customers in the second quarter of fiscal 2013 contributed 1.5% of total revenue, compared to 13.8% of total revenue, for the second quarter of fiscal 2012.
Cost of materials including change in inventory of finished goods increased $11.7 million, or 23.6%, to $61.2 million in the second quarter of fiscal 2013 from $49.5 million in the same period last fiscal year. This increase primarily reflects the growth in Company's revenue. As a percentage of revenue, cost of material decreased to 77.1% in the second quarter of fiscal 2013 as compared 80.3% to in the second quarter of fiscal 2012.
EBITDA (defined as profit after tax plus finance costs, income tax expense and depreciation and amortization) was $10.3 million in the second quarter of fiscal 2013, compared to $6.6 million in the same period last year. A reconciliation of EBITDA to the IFRS measure of profit after tax is provided at the end of this release.
Profit after tax for the second quarter of fiscal 2013 increased 291.4% to $3.3 million, compared to $0.8 million in the same period last year. Following the Company's initial public offering on October 10, 2012, the Company has 35.7 million diluted shares. Pro forma diluted earnings per share(1) for the second quarter of fiscal 2013 was $0.09 per diluted share, compared to $0.02 per diluted share in the same period last fiscal year.
First Six Months Fiscal 2013 Results
For the first six months of fiscal 2013, net revenue increased 23.9% to $159.5 million, compared to $128.8 million for the same period in fiscal 2012. EBITDA increased 37.3% to $20.5 million compared to $15.0 million in the same period of last fiscal year. Profit after tax increased 157.0% to $6.6 million compared to $2.6 million in the same period last fiscal year.
Recent Developments:
On October 15, 2012, the Company completed an initial public offering (IPO) of its ordinary shares at $10.00 per share and raised $90.0 million. The Company received approximately $81 million in net proceeds. Contemporaneously with the completion of the offering, these net proceeds were used to fund the purchase by Company's direct wholly owned subsidiary Amira Nature Foods, Ltd. (Amira Mauritius), of 80.4% of the equity shares of Amira Pure Foods Private Limited ("Amira India"), of which Amira India will use approximately $25.0 million to partially fund the development of a new processing facility. Amira India has also used $52.0 million to reduce its indebtedness. Assuming the Company's receipt of these net proceeds on September 30, 2012, and the repayment of $52.0 million of indebtedness, as of such date, proforma cash and cash equivalents were $33.3 million (with $25 million of this, reserved for the new facility and $4.0 million retained to fund future operating expenses through 2015). Total pro forma debt as of such date was $111.0 million.
On November 14, 2012, the Company announced that Amira India has entered into an agreement with an Indonesian customer to supply 90,000 metric tons of Indian white rice for $39.4 million. Amira India previously supplied its products to this customer in the fiscal year ended March 31, 2012. The $39.4 million of revenue under the contract is expected to be recognized in the current fiscal year ending March 31, 2013.
In a separate press release today the Company also announced Ritesh Suneja, Chief Financial Officer, will resign due to health and personal reasons, effective December 1, 2012. The Company's Board of Directors has named Ashish Poddar, currently Executive Director of Finance, as Chief Financial Officer, effective the same date.
Outlook
The Company is on track to deliver its full year fiscal 2013 and long-term growth target guidance provided during the time of the IPO which is greater than 20% revenue growth, 25% EBITDA growth and greater than 30% earnings per share growth.
Conference Call
The Company will hold an investor conference call today at 5:00 p.m. Eastern time. The dial-in number for this conference call for domestic callers is (877) 407-3982 and (201) 493-6780 for international callers. Live audio of the conference call will be simultaneously webcast in the investor relations section of the company's website at http://www.amirafoods.com.
An audio replay will be available following the completion of the conference call by dialing 877-870-5176 for North American listeners or (858) 384-5517 for international listeners (conference ID 403565). The webcast of the teleconference will be archived and available on the Company's website.
About Amira Nature Foods
Founded in 1915, Amira has evolved into a leading global provider of packaged Indian specialty rice, with sales in over 40 countries today. Amira sells Basmati rice, premium long-grain rice grown only in certain regions of the Indian sub-continent, under their flagship Amira brand as well as under other third party brands. Amira sells its products primarily in emerging markets through a broad distribution network. Amira's headquarters are in Dubai, United Arab Emirates, and it also has offices in India, Malaysia, Singapore, the United Kingdom, the United States and Nigeria.
Cautionary Note on Forward-Looking Statements
This release may contain forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements generally can be identified by phrases such as that we or our members of management "believe," "expect," "anticipate," "foresee," "forecast," "estimate" or other words or phrases of similar import.Specifically, these statements include, among other things, statements that describe our expectations for the global rice market, the financial impact of new sales contracts on our revenue, our plans to make significant capital expenditures, and other statements of management's beliefs, intentions or goals.It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on our results of operations, financial condition, or the price of our ordinary shares. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to our ability to perform our agreements with customers; our ability to recognize revenue from our contracts; continued competitive pressures in the marketplace; our reliance on a few customers for a substantial part of our revenue; our ability to implement our plans, forecasts and other expectations with respect to our business and realize additional opportunities for growth; and the other risks and important factors contained and identified in our filings with the Securities and Exchange Commission.All forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by these risk factors.Other than as required under the securities laws, we undertake no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events or otherwise.
(1) Pro forma basic earnings per share is calculated by dividing our profit after tax, which starting with our first financial statements for the period in which our initial public offering occurred, or the third quarter of fiscal 2013, will be reduced by the amount of a non-controlling interest reflecting the remaining approximately 19.6% of Amira India that will not be indirectly owned by ANFI, by our weighted average outstanding ordinary shares, during the applicable period. Pro forma diluted earnings per share is calculated by dividing our profit after tax by the weighted average of the sum of our outstanding ordinary shares and the ordinary shares subject to an exchange agreement between the company and certain shareholders of Amira India, during the applicable period.
Amira Pure Foods Private Limited (Predecessor to Amira Nature Foods Ltd) | ||||||||
Unaudited Condensed Interim Consolidated Financial Statements for the three months ended | ||||||||
September 30, 2012 | ||||||||
Consolidated Statements of Financial Position | ||||||||
(Amounts in USD) | ||||||||
As at | As at | |||||||
ASSETS | ||||||||
Non-current | ||||||||
Intangible assets | $ | 443,857 | $ | 360,578 | ||||
Property, plant and equipment | 24,969,790 | 25,520,950 | ||||||
Other long-term assets | 435,445 | 580,168 | ||||||
Non-current assets | $ | 25,849,092 | $ | 26,461,696 | ||||
Current | ||||||||
Inventories | $ | 129,628,057 | $ | 141,620,690 | ||||
Trade receivables | 59,998,322 | 37,175,413 | ||||||
Derivative financial instruments | 5,343,625 | 2,239,129 | ||||||
Prepayments | 10,329,122 | 6,965,302 | ||||||
Other current assets | 8,063,172 | 9,222,351 | ||||||
Cash and cash equivalents | 4,284,767 | 8,368,256 | ||||||
Current assets | $ | 217,647,065 | $ | 205,591,141 | ||||
Total assets | $ | 243,496,157 | $ | 232,052,837 | ||||
EQUITY AND LIABILITIES | ||||||||
Equity | ||||||||
Share capital | $ | 2,546,542 | $ | 2,546,542 | ||||
Securities premium | 8,757,683 | 8,757,683 | ||||||
Reserve for available for sale financial assets | (39,673 | ) | (31,712 | ) | ||||
Currency translation reserve | (3,161,639 | ) | (2,419,710 | ) | ||||
Cash flow hedge reserve | (485,508 | ) | - | |||||
Actuarial gain reserve | 12,380 | 12,380 | ||||||
Capital redemption reserve | 385,983 | 385,983 | ||||||
Retained earnings | 43,009,648 | 36,433,303 | ||||||
Total equity | $ | 51,025,416 | $ | 45,684,469 | ||||
Liabilities | ||||||||
Non-current liabilities | ||||||||
Employee benefit obligations | $ | 315,885 | $ | 178,497 | ||||
Debt | 6,127,306 | 7,344,938 | ||||||
Deferred tax liabilities | 4,998,616 | 4,821,503 | ||||||
Total non-current liabilities | $ | 11,441,807 | $ | 12,344,938 | ||||
Current liabilities | ||||||||
Trade payables | $ | 14,105,207 | $ | 21,302,059 | ||||
Debt | 156,916,436 | 134,410,915 | ||||||
Current tax liabilities (net) | 3,566,514 | 1,942,637 | ||||||
Other current liabilities | 6,440,777 | 16,367,819 | ||||||
Current liabilities | $ | 181,028,934 | $ | 174,023,430 | ||||
Total liabilities | $ | 192,470,741 | $ | 186,368,368 | ||||
Total equity and liabilities | $ | 243,496,157 | $ | 232,052,837 | ||||
Amira Pure Foods Private Limited (Predecessor to Amira Nature Foods Ltd) | |||||||||||||||||
Unaudited Condensed Interim Consolidated Financial Statements for the three months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Consolidated Income Statements | |||||||||||||||||
(Amounts in USD) | |||||||||||||||||
For the period ended | |||||||||||||||||
Six months ended | Six months ended | Three months ended | Three months ended | ||||||||||||||
Revenue | $ | 159,535,598 | $ | 128,796,492 | $ | 79,363,793 | $ | 61,667,142 | |||||||||
Other income | 92,102 | 406,879 | 40,703 | 177,881 | |||||||||||||
Cost of material | (128,146,010 | ) | (105,231,831 | ) | (91,367,217 | ) | (41,538,079 | ) | |||||||||
Change in inventory of finished goods | 1,080,029 | 302,212 | 30,188,582 | (7,970,343 | ) | ||||||||||||
Employee expenses | (1,839,450 | ) | (1,209,536 | ) | (1,034,770 | ) | (575,113 | ) | |||||||||
Depreciation and amortization | (937,322 | ) | (1,086,309 | ) | (476,424 | ) | (547,303 | ) | |||||||||
Freight, forwarding and handling expenses | (5,684,149 | ) | (3,874,234 | ) | (2,959,869 | ) | (1,502,966 | ) | |||||||||
Other expenses | (5,039,588 | ) | (3,993,653 | ) | (2,127,274 | ) | (1,808,894 | ) | |||||||||
$ | 19,061,210 | $ | 14,110,020 | $ | 11,627,524 | $ | 7,902,325 | ||||||||||
Finance costs | (10,658,978 | ) | (10,811,798 | ) | (5,320,478 | ) | (5,418,706 | ) | |||||||||
Finance income | 179,150 | 85,317 | 69,983 | 42,959 | |||||||||||||
Other financial items | 361,953 | (322,525 | ) | (1,907,463 | ) | (1,862,213 | ) | ||||||||||
Profit before tax | $ | 8,943,335 | $ | 3,061,014 | $ | 4,469,566 | $ | 664,365 | |||||||||
Income tax expense | (2,366,989 | ) | (502,601 | ) | (1,165,074 | ) | 179,860 | ||||||||||
Profit after tax attributable to equity shareholders | $ | 6,576,346 | $ | 2,558,413 | $ | 3,304,492 | $ | 844,225 | |||||||||
Amira Pure Foods Private Limited (Predecessor to Amira Nature Foods Ltd) | ||||||||
Unaudited Condensed Interim Consolidated Financial Statements for the three months ended | ||||||||
September 30, 2012 | ||||||||
Consolidated Statements of Comprehensive Income/ (Loss) | ||||||||
(Amounts in USD) | ||||||||
For the period ended | ||||||||
Six months ended Sep 30, 2012 | Six months ended Sep 30, 2011 | Three months ended Sep 30, 2012 | Three months ended Sep 30, 2011 | |||||
Profit after tax | $ 6,576,346 | $ 2,558,413 | $ 3,304,492 | $ 844,225 | ||||
Other comprehensive income | ||||||||
Available for sale financial assets | ||||||||
-Current period gain/(loss) | (11,785) | (107,640) | 2,500 | (83,741) | ||||
-Reclassification to income statement | - | - | - | - | ||||
-Income tax | 3,824 | 34,924 | (811) | 34,924 | ||||
Cash flow hedge reserve | ||||||||
-Current period loss | (2,450,694) | - | 7,773,710 | - | ||||
-Reclassification to Income Statement | 1,732,009 | - | 1,732,009 | - | ||||
-Income tax | 233,177 | - | (3,084,130) | - | ||||
Exchange differences on translation of foreign operations | $ (741,929) | $ (3,881,174) | $ 2,151,500 | $ (3,858,824) | ||||
Other comprehensive gain/ (loss) for the period, net of tax | $ (1,235,398) | $ (3,953,890) | $ 8,574,778 | $ (3,907,641) | ||||
Total comprehensive income/(loss) for the period attributable to equity shareholders | $ 5,340,948 | $ (1,395,477) | $ 11,879,270 | $ (3,063,416) | ||||
Amira Pure Foods Private Limited (Predecessor to Amira Nature Foods Limited) | ||||||||||||||||||||||||||||||||||
Unaudited Condensed Interim Consolidated Financial Statements for the three months ended September 30, 2012 | ||||||||||||||||||||||||||||||||||
Consolidated Statements of Change in Equity | ||||||||||||||||||||||||||||||||||
(Amounts in USD) | ||||||||||||||||||||||||||||||||||
Equity attributable to shareholders of the Group | ||||||||||||||||||||||||||||||||||
Share capital | Securities prem | |||||||||||||||||||||||||||||||||
