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Business Standard
06-05-2025
- Business
- Business Standard
Prataap Snacks records net loss of nearly Rs 12 crore in Q4 as input prices surge
Prataap Snacks has reported a net loss of Rs 11.94 crore in Q4 FY25 as against a net profit of Rs 12.38 crore in Q4 FY24. Net sales rose by 3.1% year-over-year (YoY) to Rs 398.53 crore during the period under review. Total operating expenditure increased by 12.2% YoY to Rs 395.66 crore in Q4 FY25, due to higher raw material costs (up 18.6% YoY) and higher other expenses (up 3.4% YoY). Profit before interest, depreciation and taxes dropped by 81% to Rs 7.21 crore in the fourth quarter from Rs 37.99 crore recorded in the same period last year. The company posted a pre-tax loss of Rs 11.02 crore in Q4 FY25 as against a pre-tax profit of Rs 16.90 crore in Q4 FY24. Prataap Snacks has recorded a net loss of Rs 34.27 crore in FY25 as against a net profit of Rs 53.12 crore in FY24. Net sales for FY25 were Rs 1,699.08 crore, up 5.5% YoY. Amit Kumat, MD, Prataap Snacks, said: In FY25, we witnessed sustained inflationary pressures and weak consumption trends which have impacted demand for consumer products. The impact is more visible in the value segment. Given this backdrop, we are pleased to report positive revenue growth of 6% YoY for FY25 and 3% YoY in Q4FY25. Topline growth in Q4 would have been slightly higher, but for some lost sales due to the fire in our Jammu facility. We have enhanced capacities at other facilities located in North India towards end of the quarter. Our sharpened focus on core markets, data-driven sales strategies, and expanded distribution have been key enablers of the topline growth. In addition to witnessing encouraging trends in market share, we are pleased that our leadership in extruded snacks remains intact. During the year, we witnessed a sharp rise in input costs, especially palm oil and potatoes with other inputs also witnessing inflationary pressures. Our ongoing cost optimization initiatives delivered meaningful impact, easing some part of the margin pressures. As input prices eased slightly towards the end of the fiscal, we reported improved profitability in Q4 over Q3. Despite a challenging year, we have delivered a positive cash profit and improved working capital further. Looking ahead to FY26, our focus will be to drive sustainable profitable growth through sharper cost control, distribution expansion, and technology-led governance. Prataap Snacks (PSL) is a leading Indian snacks food company. It offers multiple variants of products across categories of potato chips, extruded snacks, namkeen (traditional Indian snacks) and cakes under the popular and vibrant Yellow Diamond and Avadh brands. The scrip shed 0.91% to currently trade at Rs 1195.15 on the BSE.
Time of India
29-04-2025
- Business
- Time of India
PepsiCo expands focus on India's snacks market amid rising local competition
PepsiCo has flown to India more than two dozen senior executives of its snacks business from around the world, with company chairman Ramon Laguarta leading the contingent. Such a large team of PepsiCo Snacks is visiting India for the first time, and it comes as the local market is exploding with regional players, and direct-to-consumer companies are eating into the share of established brands. Quick commerce that allows for easy product discoverability and delivery within 15 minutes, is pushing the change. PepsiCo's local rival, Haldiram, is expected to expand after raising $1 billion from private equity investors. The US major sees India as a key growth driver at a time when it is facing a slowdown in large markets, including at home. The general manager-level executives will be meeting in Hyderabad, as well as making plant and market visits this week, said people in the know. A PepsiCo spokesperson confirmed the India visit, saying, 'PepsiCo conducts meetings for its business executives across markets to facilitate learning and the exchange of best practices,' in an email response to ET's questions. 'India, with its significant capabilities, including the India capability centre, is a vital market for us,' PepsiCo spokesperson said. Last week, the New York-based company, which also makes Pepsi cola and Tropicana juice, reported that its international convenience foods business grew 2% in January-March, driven by India, Brazil, Egypt and Turkey, with Laguarta highlighting that India 'is in a good place.' The company does not provide country-specific numbers. As first reported by ET last December, PepsiCo's headquarters has identified India as one of its 13 'anchor markets,' and it expects these to contribute more than 85% to its future growth amid some headwinds. With its beverages business in India being outsourced almost entirely to RJ Corp-owned Varun Beverages , the company's core focus is now snacks. It has four local manufacturing plants, in Uttar Pradesh, Punjab, Maharashtra and West Bengal. Its current India head, Jagrut Kotecha, has been almost entirely associated with the snacks business during his threedecade tenure. Small is getting bigger Snacks, a category where PepsiCo used to dominate till five years ago, is now teeming with regional players and direct-to-consumer brands. 'We are leveraging quick commerce platforms to deliver even in remote pin codes, sell at lower prices and give higher retailer margins,' said the chief of a regional snacks brand, requesting not to be named. Haldiram, Bikanerwala, ITC , Parle, Balaji Wafers, Crax and Yellow Diamond maker Prataap Snacks are among the brands competing for a share in India's `47,000-crore snacks market.
