Mrs Bectors Food Specialities Ltd has announced robust financial results with significant strides in premiumisation and volume-led sales growth, the company said in an earnings call. The company reported an impressive 15 percent improvement in sales of premium products, reflecting a growing consumer preference for higher quality offerings.
The company on November 10 reported consolidated net profit at Rs 37.28 crore for the September quarter of FY24, registering a 70.15 percent from Rs 21.91 crore in the same quarter of the previous financial year. Total revenue of the company is Rs 414.5 crore, rising 19.3 percent from Rs 347.3 crore in the year-ago quarter, the company said in a regulatory filing.
Mrs. Bectors Food Specialities Limited is one of the leading companies in the premium and mid-premium biscuits segment in North India and a leading premium bakery player in India. The company is the preferred supplier to some of the largest QSR Franchises, cloud kitchens and multiplexes in India.
In the second quarter of the fiscal year 2024, the revenue from the biscuit segment exhibited a 25 percent increase from the year-ago period. The growth in revenue was attributed to volume led growth.
“Our almost 75 percent growth was led through volumes and the balance through premiumization, and volume growth is entirely led by the distribution,” the company said in the investors call.
The company said when examining the distribution-led growth, 70 percent came from their existing outlets, while the remainder resulted from the establishment of new outlets.
The plans to expand distribution has been strategic, as outlined in April 2022 when the company targeted doubling their outlet count from 160,000 to around 320,000 by March 2024. By March 2023, they had already reached 216,000 outlets and anticipate achieving the goal of 310,000-320,000 outlets by March 2024.
On November 10, shares of Mrs. Bectors Food Specialities closed 3.58 percent higher at Rs 1,261 on NSE.
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