DFM Foods Limited, a pioneer in the Indian snacks food market, today announced its financial results for the third quarter and nine months ended December 31st, 2018. Total Sales for 9M FY19 stood at Rs. 351.8 crore, higher by 8.5% versus last year. Adjusting for the impact of GST, real volume growth was higher at 10%. Gross Profit for 9M FY19 was Rs. 145.2 crore up 13.3% versus last year. Gross margins improved by 172 basis points and stood at 41.3%. EBITDA for the period was Rs. 46.5 crore, an increase of 20.6% versus last year. EBITDA margins improved significantly by 130 basis points to 13.2%. Net Profit for 9M FY19 stood at Rs. 22.8 crore up 29.6% and EPS for the period was Rs. 4.55.
Commenting on the results, Mr. Mohit Jain, Managing Director, DFM Foods Ltd. said "this quarter the company clocked it's all time highest revenue 0fRs.134.8 crore up 9.2% versus the corresponding quarter and 14% on a sequential basis. Ihe growth in sales was attributable to an increase in sales of Rings, Curls and the roll out of Fritts, which was made possible with the commissioning ofthe brownfield expansion in Sep. The trend in sales in the current year has been extremely encouraging with sales having increased every successive quarter.
The main highlight during the current quarter was the launch ofour latest offering - 'Fritts'. Ihe product which had been test marketed during Q2 and had met with a positive feedback was rolled out starting Oct on a Pan-India basis. The same was also supported with television advertising on cartoon channels. Given the increasing trend in monthly sales during Q3, we are excited about its future prospects.
Apart from the advertising ofFritts, the company continued to invest behind its brand mascot for Rings named 'RingBling' which had been launched during Q2. Through this animated character we hope to not only difierentiate Crax Rings fiom competition but also build a fitrther connect with our core consumers, the young children.
On the distribution front we continued our eflorts to deepen penetration using the hub and spoke model particularly in the North, Additionally we also worked on bringing about necessary changes in our distribution model to improve market servicing.
With Curls and now Fritts forming an integral part ofour product portfolio, we feel confident of seeing more consistency in our sales unlike the past where we have experienced some volatility. We are now less dependent on Rings and in turn the response to consumer promotions. Instead, growth today is more diversified, comingfiom both Rings and new launches.
As we move into the last quarter of the . financial year, we hope to carry forward the sales momentum seen in Fritts in Q3 and close the year at a higher growth rate than that seen for the first 9 months."
Shares of DFM FOODS LTD. was last trading in BSE at Rs.198 as compared to the previous close of Rs. 200.6. The total number of shares traded during the day was 112256 in over 27 trades.
The stock hit an intraday high of Rs. 203 and intraday low of 193. The net turnover during the day was Rs. 22785297.