Amira Nature Foods Ltd, a leading global provider of packaged Indian specialty rice, reported financial results for the second quarter and six months ended September 30, 2013.
Karan A. Chanana, Amira's Chairman and Chief Executive Officer, stated, "We are pleased to report strong second quarter financial results, as our revenue increased 36.1% and EBITDA grew 38.1%. Our results reflect our ability to consistently add new customers in India and internationally, enter new markets as well as the continued growing demand for our premium product offerings."
Mr. Chanana continued, "As we begin the second half of fiscal 2014, we are well positioned to deliver another strong year. Our business continues to benefit from our successful execution on our strategic initiatives, including our expanding product portfolio, which includes our recently launched Amira Organic business division. We have been encouraged by our customers' responses to our organic products and are excited about the long-term potential for this segment of our business. Based on our year-to-date results and outlook for the remainder of the year, we are reiterating our annual revenue and EBITDA guidance."
Second Quarter Fiscal 2014 Results
Revenue for the second quarter of fiscal 2014 increased 36.1% to $108.0 million, compared to $79.4 million for the same period in fiscal 2013. The revenue increase was primarily due to increased sales volume both in India and internationally.
Cost of materials including change in inventory of finished goods increased $20.8 million, or 34.0%, to $82.0 million in the second quarter of fiscal 2014 from $61.2 million in the second quarter of fiscal 2013. This increase primarily reflects the growth in revenue. As a percentage of revenue, cost of material decreased to 75.9% in the second quarter of fiscal 2014, compared to 77.1% in the second quarter of fiscal 2013, primarily due to improved operating efficiencies and economies of scale.
EBITDA increased 38.1% to $14.1 million in the second quarter of fiscal 2014, compared to $10.2 million in the same period last year. A reconciliation of EBITDA to the IFRS measure of profit after tax is provided in the "Non-IFRS Financial Measures" section of this release.
Profit after tax for the second quarter of fiscal 2014 increased 90.0% to $6.3 million, compared to $3.3 million in the quarter of fiscal 2013. Basic and diluted earnings per share(1) was $0.18 compared to $0.09 for the second quarter of fiscal 2013.
First Six Months Fiscal 2014 Results
For the first six months of fiscal 2014, net revenue increased 36.8% to $218.3 million, compared to $159.5 million for the same period of fiscal 2013. EBITDA increased 40.2% to $28.6 million, compared to $20.4 million for the same period in fiscal 2013. Profit after tax increased 107.2% to $13.6 million, compared to $6.6 million in the same period in fiscal 2013.
Basic and diluted earnings per share(1) was $0.38 compared to $0.18 for the first six months of fiscal 2013.
Balance Sheet and Cash Flow Highlights
At September 30, 2013, the Company's cash and cash equivalents were $46.2 million and adjusted net working capital was $223.2 million. Net debt (after deducting cash and cash equivalents) as of September 30, 2013 was $102.6 million. As of September 30, 2013, inventory decreased $15.8 million to $165.7 million from $181.5 million as of March 31, 2013. As of September 30, 2013, trade receivables were $69.5 million, an increase of $2.7 million from $66.8 million as of March 31, 2013. Reconciliations of adjusted net working capital and net debt to the IFRS measures of working capital and total current and non-current debt, respectively, are provided in the "Non-IFRS Financial Measures" section of this release.
Fiscal 2014 Outlook
The Company reiterates its previously issued guidance and continues to expect full year fiscal 2014 revenue in the range of $480 million to $507 million and EBITDA in the range of $62 million to $66 million. This is in line with long-term guidance previously provided to the investment community in connection with Amira's initial public offering. The Company's guidance is based on foreign exchange rates as of September 30, 2013.
