Manpasand Beverages Q1 profit rises 1.3% at Rs 36.38 cr

Yum! Brands has reported system sales growth for its KFC and Pizza Hut brands in India by 22% and 9%, respectively, for the second quarter ended June 30, 2019. This is the eleventh consecutive quarter of positive system sales growth for both brands in the country.

The fast food company measures growth through system sales, that includes the results of all restaurants regardless of ownership, including company-owned and franchise restaurants.

Samir Menon, Managing Director, KFC India, said, “The quarter ending June (Q2 2019) marked the eleventh consecutive quarter of positive system sales growth, with a 22% system sales growth, for India and area countries. The results signify the brand’s continued positive momentum for the last three years.”

Besides Pizza Hut and KFC, Yum! also runs the Taco Bell brand of fast food globally.

Earlier in 2019, Taco Bell has announced plans to launch 600 restaurants over the next 10 years, to make India its largest market outside the US. The plan comes after the company signed New-Delhi based Burman Hospitality Pvt Ltd as its master franchise partner for the brand in India.

Ankush Tuli, Managing Director, Taco Bell APAC, stated, “Taco Bell is gaining significant momentum in India, with a strong quarter of double-digit same-store sales growth. This happened on the back of value offerings such as the Big Bell Box and introduction of global innovations like the Quesalupa.”

डेयरी प्रमुख क्वालिटी लिमिटेड ने कहा कि वित्तीय वर्ष 2018-19 की पहली तिमाही के दौरान इसका शुद्ध लाभ 1.04 करोड़ रुपये हो गया है। कम बिक्री के कारण मुनाफे में भारी गिरावट देखी गई है।

अप्रैल-जून, 2017-18 के दौरान, कंपनी का शुद्ध लाभ 27.87 करोड़ रुपये था। शुद्ध आय भी 1,573.18 करोड़ रुपये से, 1,265.78 करोड़ रुपये हो गई है।

वर्तमान में, क्वालिटी को प्राप्ति प्रबंधन के मुद्दे का सामना करना पड़ रहा है।

कंपनी ने कहा, "यह तब शुरू हुआ जब कंपनी अपने ग्राहकों को लिक्विडिटी की कमी के कारण आवश्यक वस्तुओं के साथ सेवा नहीं दे सकी, ऐसी स्थिति मुख्य रूप से तिमाही के अंत में, बैंकिंग भागीदारों से स्वीकृत कार्यशील पूंजी के वितरण के कारण ट्रिगर हुई।"

"वैश्विक बाजार में निरंतर मंदी के मद्देनजर, क्वालिटी ने पूरी तरह से स्वामित्व वाली सहायक" क्वालिटी डेयरी प्रोडक्ट्स एफजेई "के संचालन का चरणबद्ध तरीके से बंद होने का निर्णय लिया है। हालांकि निर्णय से लंबी अवधि में कमाई को अनुकूलित होने की उम्मीद है, कंपनी जिनको अब माल की आपूर्ति नहीं कर रही है, उन पार्टियों को कलेक्शन में देरी का अल्पकालिक प्रभाव पड़ेगा" क्वालिटी ने आगे कहा।

Dairy major Kwality Ltd said that its net profit during the first quarter of the financial year 2018-19 has declined to Rs 1.04 crore. The net profit has seen a steep fall due to poor sales.

During April-June, 2017-18, the company’s net profit stood at Rs 27.87 crore. The net income has also been decreased to Rs 1,265.78 crore from Rs 1,573.18 crore.

Currently, Kwality is facing an issue of receivables management.

The company said, "This started when the company could not service its customers with the required goods due to liquidity crunch, a situation that emerged primarily towards the end of the quarter triggered due to non-disbursement of sanctioned working capital from banking partners."

"In view of the consistent recession in the global market, Kwality has decided to discontinue in a phased manner its operation of the wholly-owned subsidiary "Kwality Dairy Products FZE". While the decision is expected to optimise the earnings on a long-term horizon, it has a short-term impact of delay in the collections from the parties to whom the company is no longer supplying the goods," Kwality further added.

Driven by the double-digit volume growth, FMCG major Britannia Industries has posted 19.41 per cent growth in consolidated net profit at Rs 258.08 crore for the quarter ended June 30, 2018. The company had posted a net profit of Rs 216.12 crore in the April-June period a year ago.

 For the quarter under review, the total revenue stood at Rs 2,585.84. It was Rs 2,375.01 crore in the corresponding period of the previous fiscal, Britannia Industries said in a BSE filing.

The company said reported revenue, part of total income, for the quarter ended June 30, 2018, is not comparable to the revenue reported in the previous period due to implementation of GST with effect from July 1, 2017.

"Excise duty has subsumed into GST, and hence revenue from sale of goods for the period commencing July 1, 2017 does not include excise duty," it added.

"We have witnessed positive momentum in the market over the last few quarters. Our double-digit growth for the quarter is backed by a double-digit volume growth primarily due to our investment in brands and widening our distribution network through focus on direct reach, rural market and weak states," Britannia Industries MD Varun Berry said.

The international businesses remained flat due to slow-down in geographies like Middle East and Africa, Britannia said.

"The growth in dairy business has been subdued due to our focus on driving value added products and reducing our play in the less profitable commoditised products, which has helped us improve our profitability," Britannia said.

The company said in its 100th year it will enter into “many unchartered territories" to secure disruptive growth.

The company in a separate filing said its board of directors has recommended and approved issuance of secured redeemable non-convertible debentures as bonus debentures of Rs 50 in the ratio of 1 bonus debenture for every 1 equity shares held by the shareholders of the company.

Shares of Britannia Industries were trading at Rs 6,318.95 apiece, down 1.19 per cent, on BSE.

Abetted by lower expenses, FMCG major Nestle India has posted 49.95 per cent rise in net profit at Rs 395.03 crore for the second quarter ended June 30.

The January-December financial year following company had posted a net profit of Rs 263.43 crore for the April-June quarter of 2017-18.

Total income during the quarter stood at Rs 2,758.63 crore. It was Rs 2,525.96 crore in April-June, 2017-18, Nestle said in a BSE filing.

The company said financial results for the reported quarter are not comparable as sales for the June quarter 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/ Sales Tax. Excise duty was reported as a separate expense line item.

"Consequent to the introduction of GST with effect from July 1 2017, VAT/Sales Tax, Excise duty etc have been subsumed into GST and accordingly the same is not recognised as part of sales," the company said.

"The market momentum continued to be favourable and...we have sustained our broad based volume growth across categories. There is an improvement in margins due to favourable cost of commodities and cost efficiency programmes.

"However, we are now witnessing headwinds in commodity prices," Nestle India Chairman and Managing Director Suresh Narayanan said.

The company said its total sales and domestic sales increased 8.5 per cent and 8 per cent, respectively in the reported quarter.

"The growth rates are adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the GST benefits.

McDonald's Corp topped Wall Street estimates with a 4 percent growth in quarterly sales at its established restaurants globally on Thursday, as customers flocked at its outlets for value menu offerings.

Global sales at stores open at least 13 months rose 4 percent, topping the average analyst estimate of 3.60 percent, according to Thomson Reuters I/B/E/S.

Net income rose to about $1.50 billion, or $1.90 per share, in the second quarter ended June 30 from about $1.40 billion, or $1.70 per share, a year earlier.

Jubilant FoodWorks reported a three-fold jump in net profit to Rs 74.67 crore in the first quarter of the financial year 2018-19 ending June 30 as compared to Rs 23.84 crore the company posted during the same period last year.

Operating revenue for first quarter of the fiscal year 2019 jumped 26 percent to Rs 855 crore. The operator of Dominos Pizza and Dunkin' Donuts reported operating revenue of Rs 678 crore during the corresponding period last year.

The growth was on the back of a strong same-store-growth of 25.9% in Domino’s Pizza, the company said during its earnings announcement.

“We are pleased to start the year on a strong note with our robust performance in Q1 FY19. The strong growth in Domino’s came on the back of a superior product, Value for money delivery and growing digital contribution. This together with our focus on achieving break-even in Dunkin’ Donuts by the end of the financial year will continue to drive profitable growth for us," said Shyam S. Bhartia, Chairman, and Hari S. Bhartia, Co-Chairman, Jubilant FoodWorks.

According to the company, the strong performance in Q1 FY19 was on account of a good response to the Every Day Value offer on Regular Pizzas launched in March 2018, and which was supported aggressively during the IPL T20 cricket season.

“We delivered a strong quarter in both Domino’s and Dunkin’ Donuts. In Domino’s, the extension of EDV to Regular Pizzas received a very good response with an increase in both new customer acquisition as well as existing customer frequency. Dunkin’ Donuts too saw encouraging growth and made good progress towards profitability on the back of successful innovations and disciplined cost management,” said Pratik Pota, CEO and Whole-time Director, Jubilant FoodWorks.

During the quarter under review, the company opened 13 new Domino's Pizza outlets and closed three stores. The company also opened one new Dunkin' Donuts outlet during the quarter.

PepsiCo, grappling with a slumping soda business, got another boost from its food operations. The maker of Mountain Dew drink posted second quarter profit that topped analysts’ estimates, helped by strong sales of Frito-Lay chips and Quaker oatmeal, according to a statement on Tuesday.

Core earnings per share were $1.61, 9 cents above analysts’ consensus estimate. Results sent company shares up 1.6% in early trade. Stock closed Monday at $107.76 in New York, down 10% for the year. PepsiCo, like rival Coca-Cola, is looking beyond sugary soda to drive growth as consumers become more health-conscious. Chief executive officer Indra Nooyi has said fixing the struggling North American beverage unit is a top priority, but in the meantime the company is getting a boost from its food brands.

Consumer giants ranging from PepsiCo to Nestle are wrestling with changing tastes as shoppers turn away from sugary foods and drinks and seek out healthier fare. Consumption of carbonated soft drinks fell to a 32-year low in the US last year, according to Beverage-Digest, a trade publication.

While chips have been less affected than sodas, PepsiCo has also introduced organic versions of some big snack brands, in addition to buying startup competitors.

Aashirvaad atta, Sunfeast cookies, and Bingo snacks are helping cement ITC’s credentials on the Indian packaged foods leaderboard, helping the segment log about half the annual sales of the conglomerate’s traditional mainstay cigarettes.

At the tobacco products FMCG-hotels major, which just published its annual report, the branded packaged food business made up 22.1% of the net turnover in FY18, compared with the 46% contribution from cigarettes, which also had a far higher base. Agri-business was the third largest about half of packaged foods in net sales contributions. ITC’s net revenue in FY18 was Rs 39,255 crore.

The packaged foods business was the first FMCG category the conglomerate had entered 17 years ago to reduce its reliance on the cigarette revenue stream. It clocked sales of Rs 8,668.7 crore in FY18, ITC reported in the annual report.

In FY17, packaged food sales were at Rs 8,036.4 crore, but the revenues are not comparable due to the transition to the GST regime, in which sales are calculated net of GST. Earlier calculations included the impact of the excise levy.

The company’s packaged foods division now accounts for 76% of the total sales of non-cigarette FMCG business, which also includes personal care, stationary products, lifestyle retail, safety matches and incense sticks.

The non-cigarette FMCG business also clocked gross profit of Rs 164.1 crore in FY18, driven by the food business, with other categories yet to break even. ITC continues to be the third largest listed packaged foods company in India: Nestle (Rs 9,472.5 crore domestic sales in CY17) leads the table, followed by cookies maker Britannia (standalone sales of Rs 9,380.2 crore in FY18). ITC has ambitions to establish itself as India’s biggest packaged foods company.

In foods, ITC is the market leader in packaged atta, premium cream biscuits, and the bridges segment in snacks. It is the second largest in instant noodles and the third in packaged juice.

By way of consumer spend that includes taxes, Aashirvaad is the largest non-cigarette food brand at more than Rs 4,000 crore, followed by Sunfeast at more than Rs 3,500 crore, and Bingo at more than Rs 2,000 crore. In FY18, ITC had entered into packaged fruits and vegetables, blended spices and frozen prawns, and is betting on the dairy business as the next big growth driver.

Manpasand Beverages on Wednesday posted 36.42 per cent year-on-year rise in profit at Rs 42.74 crore for the quarter ended March 31. It had posted a net profit of Rs 31.33 crore in the corresponding quarter last year.

Total revenue of the company increased 39.38 per cent to Rs 392.95 crore during the quarter under review. The figure stood at Rs 281.92 crore in the same period last year.

Earnings per share of the company rose to Rs 3.73 as of March against Rs 2.74 in Q4FY17. The figure was at Rs 1.05 as of December 31.

The board of the company also recommended of final dividend at 5 per cent on the face value of Rs 10 per equity share for the financial year ended March 31, 2018.

The share price of the company closed 3 per cent down at Rs 143.25.

Shares of the company have been falling since auditing major Deloitte Haskins & Sells last month resigned as statutory auditors of Manpasand Beverages as the fruit juice maker failed to provide them with "significant information" on the financial results for the year ended March 31, 2018. Shares of the company plunged nearly 30 per cent on a month-to-date basis.

Domino's Pizza and Dunkin' Donuts chain operator in India, Jubilant Foodworks has posted a net profit of Rs 68.1 crore for the fourth quarter of the financial year 2017-18 ending March 31, the company said in its earnings announcement. The company had posted a net profit of Rs 6.7 crore during the same period last year.

The company reported 27 percent rise in its revenue to Rs 780 crore in the fourth quarter as compared to Rs 612 crore it posted during the corresponding period last fiscal.

For the full year, Jubilant posted a net profit of Rs 206 crore as opposed to Rs 67.2 crore it posted last year.

For the financial year 2017-18, operating revenues stood at Rs.2980 crore, up by 17.1 percent over last year, driven by a full year same-store growth of 13.9 percent in Domino’s Pizza, the company said.

“We are pleased with our performance in Q4 FY 18. Our key strategic initiatives undertaken in the past one year such as the launch of All-New Domino’s, Everyday Value and sharp focus on Digital sales drove strong growth for us, leading to a six-year high of 26.5% SSG for Domino’s Pizza in the quarter," said Pratik Pota, CEO and Whole Time Director at Jubilant FoodWorks.

"In Dunkin’ Donuts, we halved our losses in line with our stated commitment through a focus on Donuts and Beverages and shutting of unprofitable stores. Going forward, we will remain focused on the strategic pillars of Product Quality and Innovation, Value-for-money, Seamless Customer Experience and Digital Technology and are confident that these will help us deliver robust growth," Pota said further.

India’s leading food & grocery retailers, Avenue Supermarts Ltd. (ASL) has declared its financial results for the quarter and year ended March 31, 2018.

Total Revenue for the quarter ended March 31, 2018 stood at Rs. 3,810 crore, as compared to Rs 3,111 crore in the same period last year. ASL’s Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q4FY18 stood at Rs. 294 crore, as compare to Rs. 208 crorein the corresponding quarter of last year. The company’s EBITDA margin improved from 6.7% in Q4FY17 to 7.7% in Q4FY18.

The Company reported Net Profit of Rs. 167 crore for Q4FY18, as compared to Rs. 97 crore in the corresponding quarter of last year. The company’s PAT margin improved from 3.1% in Q4FY17 to 4.4% in Q4FY18.

Basic Earnings per share (EPS) for Q4FY18 stood at Rs. 2.68, as compared with Rs. 1.69  for Q4FY17.

Total Revenue for FY 18 stood at Rs. 15,009 crore, as compared to Rs. 11,881 crore for FY 17. ASL’s EBITDA in FY18 stood at Rs. 1,337 crore, as compared to Rs. 964 crore during FY17. The company’s EBITDA margin improved from 8.1% FY17 to 8.9% in FY18. 

For FY 18 ASL’s net profit grew by 62.6% to Rs. 785 crore, as compared to Rs. 483 for last year. The company’s PAT margin improved from 4.1% in FY17 to 5.2% in FY18.

For FY 18, Basic EPS stood at Rs. 12.57 as against Rs. 8.56 in FY17.

D-Mart follows Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive price, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.

Commenting on the financial performance of the company, CEO & Managing Director, Avenue Supermarts Limited, Neville Noronha said, “Deflation in staples, tax rates not being comparable, store addition not in line with expectation and base effect of demonetization has made March 2018 revenue a little tepid. Grooming talent and store addition shall continue to remain two main challenges as well as focus areas for the Company.”

Danish brewer Carlsberg claims 30% by volume growth in Indian market due to lower base and increasing market share of its strong beer brand Tuborg.

"Our Indian volumes grew by more than 30% due to market share gains and also very easy comparable as Q1 last year was weak being impacted by the highway ban," Heine Dalsgaard, chief financial officer at Carlsberg said in a telephonic conversation.

Over the past two years, there have been policy changes in West Bengal, Chhattisgarh and Jharkhand to allow liquor sales only through government-owned corporations, similar to states such as Delhi, Rajasthan, Kerala and Tamil Nadu. Supreme Court restrictions last year on the sale of alcohol near state and national highways led to the closure of about a third or about 30,000 of the country’s liquor vends, causing a drop in demand for beer and spirits. The court subsequently clarified its ruling, easing conditions for liquor sales and allowing many outlets to reopen.

However, Carlsberg, the world's third-largest brewer, said it doesn't expect any further disruptions. "In general, we don't see a further announcement of the regulations to come up but we see in tax issue in West Bengal so that probably there will be an increase in the excise," Cees ’t Hart, global chief executive officer, Carlsberg told analysts.

The brewer has about 18% market share in India backed by Carlsberg Elephant and Tuborg in a market skewed towards strong beer. Last year, it set up its eight breweries in the country.

In India, Tuborg accounts for more than two-thirds of the company's annual sales. The country is largely a whiskey and spirits dominated market and per capita consumption of beer in India is about 2 litres per person a year, which is little compared with the global average of about 30 litres. And strong beer segment accounts for about 80% of the market.

FMCG major Dabur India has recorded 18.9 per cent year-on-year (YoY) rise in consolidated net profit at Rs 396.20 crore for the March quarter, an apparent rise with Rs 333.10 crore profit reported for the corresponding quarter last year.

Consolidated revenue from operation rose 6.2 per cent YoY in the March quarter to Rs 2,032.90 crore, from Rs 1,914.70 crore in the year-ago period.

Operating profit rose 16.2 per cent YoY to Rs 485.20 crore. PAT margin expanded 209 basis points on a YoY basis to 19.5 per cent.

Growth in the domestic FMCG business stood at 10 per cent, led by 7.7 per cent volume growth. The international business reported 16.8 per cent growth in constant currency terms.

The company’s board has recommended Rs 1.25 per share dividend and a special dividend of Rs 5 per share, the company said in a statement.

McDonald's Corp has posted a positive rise in quarterly sales at its restaurants boosted by strong international sales, especially in the UK and Germany, sending its shares up 3.6 percent.

Global sales at stores open at least 13 months rose 5.5 percent, easily topping the average analyst estimate of 3.94 percent, according to the report.

Same-store sales for what it calls its international lead markets - comprising Australia, Canada, France, Germany and the United Kingdom rose 7.8 percent, surging past analysts' expectation of a 5.30 percent gain.

McDonald's U.S. restaurants also topped sales estimates due to increased customer visits and higher menu prices.

Excluding items, the company earned $1.79 per share, beating the estimate of $1.67.

Net income rose to $1.38 billion, or $1.72 per share, from $1.21 billion, or $1.47 per share, a year earlier.

Revenue fell 9 percent to $5.14 billion but edged past the estimate of $4.98 billion.

Boosted by higher royalty and supply chain revenue from its franchisees, Domino's Pizza Inc reported a 28.3 percent rise in quarterly profit, sending its shares up 4.4 percent in premarket trading.

Net income rose to $93.3 million, or $2.09 per share, in the fourth-quarter ended Dec. 31, from $72.7 million, or $1.48 per share, a year earlier.

Domino's largely benefits from the high-margin royalty fee it charges its franchise stores and the revenue it gets from ingredients and the equipment it supplies them.

Same-store sales at its company-owned outlets in the United States rose 3.8 percent and 4.2 percent at its franchise stores, but both figures missed analysts' expectations.

Analysts' had predicted same-store sales to rise 5.93 percent at company-owned U.S. stores and 6 percent at its franchise stores, according to Thomson Reuters I/B/E/S.

Same-store sales in its international business rose 2.5 percent, but missed analysts' expectations of 5.4 percent.

Revenue rose 8.8 percent to $891.5 million, missing analysts' estimates of $906.4 million.

The company recorded global net store growth of 422 stores in the fourth quarter, including 96 domestic stores and 326 international stores.

Britain's biggest pizza delivery firm Domino’s stated that the annual pretax profit would be slightly ahead of market expectations as it posted an 18.2 percent jump in fourth-quarter sales.

The company, which has most of its 1,192 stores in the UK but , operates in Ireland, Switzerland and Germany also, said group system sales for the 13 weeks to Dec. 24 rose to 321.8 million pounds ($451 million) from 272.4 million pounds a year ago.

Orders rose sharply since the launch of British television music competition X Factor as more people ordered food at home increasing the sales at UK stores open over a year rose 6.1 percent during the 13-week period, the company said.

Dunkin' Brands Group Inc reported better-than-expected quarterly revenue, helped by increased royalties from franchisees and higher sales at company-operated restaurants, reported Reuters.

Royalty and fees from franchisees of its Dunkin' Donuts restaurants and Baskin-Robbins ice cream shops rose 5.6 percent to $133.9 million, accounting for nearly two-thirds of its total revenue in the quarter.

Sales at company-operated restaurants rose 38.5 percent to $7.3 million.

Net income attributable to the company fell to $46.2 million or 48 cents per share, in the third quarter ended Sept. 26 from $54.7 million or 52 cents per share, a year earlier.

Revenue rose nine per cent to $209.8 million, above the average analyst estimate of $204.1 million, according to Thomson Reuters.