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Bector Foods Hits Record Revenue Amidst Cost Hikes
9 Nov
Summary
- Record revenue achieved in Q2 FY27 despite rising input costs.
- Bakery segment showed strong momentum, biscuits lagged due to demand.
- Company targets 14-15% medium-term EBITDA margin goal.
Mrs Bector Foods reported a record revenue for the second quarter of fiscal year 2027, navigating a steep rise in input costs effectively. The company's EBITDA margin remained stable at 13.1%, aligning with market expectations.
The bakery division demonstrated robust growth, while the biscuits segment faced challenges due to subdued rural demand, attributed to below-normal monsoon conditions, and shipping disruptions in West Asia. The 'English Oven' brand saw significant growth in both volume and value.
Looking ahead to fiscal year 2027, Mrs Bector Foods anticipates revenue growth in the mid-teens. This outlook is supported by planned price increases in October-November, expansion of distribution networks, a focus on premiumization, and the recovery of deferred export orders.
The management is confident in sustaining current gross margins through annualized price hikes and project impact savings. They aim to maintain an EBITDA margin of approximately 13.1% in the near term, with a target to improve it to 13.5-14% by the fourth quarter of FY27, and reiterated a medium-term goal of 14-15%.
