Amira Nature Foods Ltd (the “Company;” or “Amira”) (NYSE: ANFI),
a leading global provider of branded, packaged Indian specialty
rice, today reported financial results for the six months ended
September 30, 2016.
Six Months Ended September 30, 2016:
- Revenue of $210.9 million
- Adjusted EBITDA of $27.4 million
- Adjusted EBITDA margin of 13.0%
- Profit after tax of $10.0 million
- Adjusted profits after tax of $12.2
million
- Earnings per share (“EPS”) of
$0.27
- Adjusted earnings per share (“Adjusted
EPS”) was $0.34
- Net debt to last twelve months Adjusted
EBITDA of 2.6x
Bruce Wacha, Amira’s Chief Financial Officer stated, “Our
business continues to recover from the challenges that we faced in
fiscal 2016. Although we saw lower sales for the six months ended
September 30, 2016 compared to the prior year, our margins remained
strong and our balance sheet healthy. The sales declines that we
saw were largely driven by reduced pricing and the impact of
currency translation due to the stronger dollar relative to our
rupee denominated India business. We believe that our India
position has bottomed, while we have managed to hold onto our
international business. We have a great platform for growth,
benefiting from dual pillars of attractive industry dynamics and
deeply entrenched positions in our core geographies. We remain
committed to continued improvement in new and existing customer
relationships and a return to growth.”
Six Months Ended September 30, 2016 Results
Revenue decreased $20.8 million, or 9.0%, to $210.9 million in
the six months ended September 30, 2016 from $231.7 million in the
six months ended September 30, 2015. The decline in revenue was
largely, including among other things, due to the current industry
trends towards the lower pricing and the impact of FX on the
Company’s India business.
During the six months ended September 30, 2016, revenue from
international sales contributed 57.8% of total sales, and revenue
from Indian sales contributed 42.2% of total sales. During the six
month period ended September 30, 2015, revenue from international
sales contributed 47.1% of total sales, and revenue from Indian
sales contributed 52.9% of total sales. During the six months ended
September 30, 2016, the Company’s Indian sales decreased 27.4% to
$89.0 million from $122.6 million for the same period in 2015.
During the six months ended September 30, 2016, the Company’s
International sales increased 11.7% to $121.9 million from $109.1
million for the same period in 2015. Sales in India were impacted
primarily by reduced industry-wide pricing and was also impacted by
the depreciation of the Indian rupee against the U.S. dollar during
the six months ended September 30, 2016 as compared to September
30, 2015. Sales in India decreased approximately 24.2% during the
six months ended September 30, 2016 as compared to the same period
in 2015, when measured in Indian rupees.
During the six months ended September 30, 2016, adjusted EBITDA
decreased $3.1 million to $27.4 million from $30.5 million in the
prior six months period. Adjusted EBITDA margin was 13.0% for the
six months ended September 30, 2016, which is in-line with the
Company’s historical average and approximately 15 basis points
lower than the prior year period. Profit after tax was $10.0
million for the period, compared to $9.2 million for the prior year
period. Adjusted profit after tax was $12.2 million for period,
compared to $13.5 million for the prior year period. EPS was $0.27
per share for the period compared to $0.24 for the prior year
period. Adjusted EPS was $0.34 for the period compared to $0.38 for
the prior year period. A reconciliation of adjusted EBITDA,
adjusted EBITDA margin, adjusted profit after tax and adjusted EPS
is provided in the “Non-IFRS Financial Measures” section of this
release.
For the trailing twelve months ended September 30, 2016, the
Company generated revenue of $542.6 million, adjusted EBITDA of
$71.7 million and adjusted EPS of $1.13 compared to revenue of
$342.0 million, adjusted EBITDA of $41.9 million and adjusted EPS
of $0.38 per share for the twelve month period ended June 30, 2012
which preceded its initial public offering.
Balance Sheet and Cash Flow Highlights
As of September 30, 2015, the Company had cash and cash
equivalents of $12.8 million (not including $3.5 million of short
term investments, deposits which are available on demand) and
adjusted net working capital was $429.2 million. Total debt was
$204.3 million as of September 30, 2016, compared to $209.4 million
at March 31, 2016 and net debt to LTM adjusted EBITDA was 2.6x. As
of September 30, 2016, inventories were $244.6 million, compared to
$239.0 million, trade receivables were $194.7 million compared to
$189.7 million and trade payables were $16.8 million compared to
$14.5 million at March 31, 2016, respectively. Reconciliations of
adjusted net working capital to the IFRS measures of working
capital and total current and non-current debt, and LTM adjusted
EBITDA respectively, are provided in the “Non-IFRS Financial
Measures” section of this release.
About Amira Nature Foods Ltd
Founded in 1915, Amira has evolved into a leading global
provider of branded packaged specialty rice, including Basmati and
other food products, with sales across five continents around the
world. The Company primarily sells Basmati rice, which is a premium
long-grain rice grown only in the geographically indicated region
of the Indian sub-continent, under its flagship Amira brand as well
as under other third party brands. Amira sells its products through
a broad distribution network in both the developed and emerging
markets. The Company’s global headquarters are in Dubai, United
Arab Emirates, and it also has offices in India, Malaysia,
Singapore, Germany, the United Kingdom, and the United States.
Amira Nature Foods Ltd is listed on the New York Stock Exchange
(NYSE) under the ticker symbol “ANFI.”
For more information, please visit www.amira.net.
Safe Harbor for Forward-Looking Statements
This press release contains statements of a forward-looking
nature. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by words or
phrases such as “may,” “will,” “except,” “anticipate,” “aim,”
“estimate,” “intend,” “plan,” “believe,” “is/are likely to,”
“future” or other similar expressions. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our financial condition, results of operations,
business strategy and financial needs. There is no assurance that
our current expectations and projections are accurate. These
forward-looking statements include, but are not limited to:
- our goals and strategies;
- our operations and expansion
plans;
- our future business development,
results of operations, financial condition and financial
statements;
- our ability to protect our intellectual
property rights;
- projected revenue, EBITDA, adjusted
EBITDA, profits, adjusted profits, earnings, adjusted earnings and
other estimated financial information;
- our ability to maintain strong
relationships with our customers and suppliers;
- governmental policies regarding our
industry; and
- the impact of legal proceedings.
You should not place undue reliance on forward-looking
statements and you should read these statements in conjunction with
the risk factors disclosed in “Risk Factors” appearing in Amira’s
Annual Reports found on the SEC’s website located at www.sec.gov.
Those risks are not exhaustive. We operate in a rapidly evolving
environment. New risk factors emerge from time to time, and it is
impossible for our management to predict all risk factors, nor can
we assess the impact of all factors on our business or the extent
to which any factor, or combination of factors, may cause actual
results to differ from those contained in any forward-looking
statement. We do not undertake any obligation to update or revise
the forward-looking statements except as required under applicable
law.
Amira Nature Foods Ltd Condensed Consolidated
Statements of Financial Position
(Amounts in USD)
As at
September 30, 2016
(Unaudited)
As at
March 31, 2016
(Audited)
ASSETS Non-current Property, plant and equipment $
18,928,619 $ 19,931,857 Goodwill 1,445,059 1,461,139 Other
intangible assets 1,520,697 1,598,226 Other long-term financial
assets 3,041,890 3,960,684
Total
non-current assets $ 24,936,265 $
26,951,906 Current Inventories (Note 8) $
244,570,731 $ 239,048,161 Trade receivables 194,738,682 189,702,525
Derivative financial assets - 439,488 Other financial assets
4,759,532 5,577,017 Prepayments (Note 9) 29,192,481 22,572,280
Other current assets 656,589 1,282,267 Cash and cash equivalents
12,773,545 17,412,501
Total current
assets $ 486,691,560 $
476,034,239 Total assets $ 511,627,825
$ 502,986,145 EQUITY AND
LIABILITIES Equity Share capital $ 10,221 $ 9,301 Share
premium 91,803,118 85,114,755 Other reserves (11,774,940)
(11,212,715) Retained earnings 150,084,841
142,297,177
Equity attributable to shareholders of the
Company $ 230,123,240 $ 216,208,518
Equity attributable to non-controlling interest 35,635,065
33,513,248
Total equity $
265,758,305 $ 249,721,766
Liabilities Non-current liabilities Defined benefit
obligations $ 278,277 $ 334,928 Debt 106,889 518,056 Deferred tax
liabilities (Net) 3,165,796 5,201,372
Total
non-current liabilities $ 3,550,962
$ 6,054,356 Current liabilities Trade
payables $ 16,838,170 $ 14,513,988 Debt (Note 10) 204,208,021
208,924,196 Current tax liabilities (net) 14,272,670 15,716,854
Derivative financial liabilities - 453 Other financial liabilities
6,158,217 6,856,677 Other current liabilities 841,480
1,197,855
Total current liabilities $
242,318,558 $ 247,210,023 Total
liabilities $ 245,869,520 $
253,264,379 Total equity and liabilities $
511,627,825 $ 502,986,145
Amira Nature Foods Ltd Condensed Consolidated Statements
of Profit or Loss
(Amounts in USD)
Six months ended September 30, 2016
(Unaudited)
September 30, 2015
(Unaudited)
Revenue $ 210,924,684 $ 231,734,884 Other income 19,682
106,701 Cost of material (182,978,800) (143,279,652) Change in
inventory of finished goods 12,774,137 (38,825,651) Employee
benefit expenses (4,561,672) (6,890,500) Depreciation and
amortization (936,271) (1,059,994) Freight, forwarding and handling
expenses (1,396,839) (5,004,037) Other expenses (8,395,427)
(11,758,367)
$ 25,449,494 $
25,023,384 Finance costs (13,997,437) (15,239,053) Finance
income 147,607 936,237 Other gains and (losses) (1,130,954)
156,879
Profit before tax for the period
$ 10,468,710 $ 10,877,447 Income tax
expense (434,324) (1,703,371)
Profit after tax for the period $ 10,034,386
$ 9,174,076 Profit after tax attributable to:
Shareholders of the Company
$
7,787,664
$
6,965,609 Non-controlling interest
$
2,246,722
$
2,208,467
Earnings per share Basic earnings per share
$
0.27
$
0.24 Diluted earnings per share
$
0.27
$
0.24
Amira Nature Foods Ltd Condensed
Consolidated Statements of Comprehensive Income
(Amounts in USD)
Six months ended September 30, 2016
(Unaudited)
September 30, 2015
(Unaudited)
Profit after tax for the period $ 10,034,386
$ 9,174,076 Other comprehensive
income/(loss) Items that may be reclassified subsequently to
profit or loss: Available for sale financial assets: Current
period gain/(loss) 31,991 21,632 Reclassification to profit or loss
- - Income tax (11,071) (7,388)
$
20,920 $ 14,244 Cash flow hedging
reserve: Current period gain/(loss) - - Reclassification to profit
or loss - - Income tax - -
$ -
$ -
Currency translation reserve (666,761)
(8,101,255)
Other
comprehensive income/(loss) for the period, net of tax $
(645,841) $ (8,087,011) Total
comprehensive income for the period $ 9,388,545
$ 1,087,065 Total comprehensive
income/(loss) for the period attributable to:
Shareholders of
the Company $ 7,266,728 $ 461,722
Non-controlling interest $ 2,121,817
$ 625,343
Amira Nature Foods Ltd Condensed
Consolidated Statements of Changes in Equity (unaudited)
(Amounts in USD)
Other reserves
Share capital Share premium
Share-based compensation reserve
Reserve for
available for
sale financial
assets
Currency translation
Reserve
Cash flow hedging
Reserve
Restructuring
Reserve
Retained
Earnings
Equity
attributable to
shareholders of the Company
Equity
attributable to
non - controlling interest
Total equity Balance as at April 1, 2015
(Audited) $ 9,120 $ 82,896,596
$ 4,582,399 $ (6,634)
$ (19,988,326) $ -
$ 9,398,927 $ 116,467,681 $
193,359,763 $ 27,965,362 $
221,325,125 Issue of shares (Note 5) 100 1,611,900
(1,612,000) - - - - -
- - - Share based
compensation
(Note 6)
1,961,725 - - - - - $
1,961,725 - $
1,961,725
Profit after tax for the period - - - - - - - 6,965,609 $
6,965,609 2,208,467 $
9,174,076 Other comprehensive
income /(loss) for the period - - - 11,455 (6,515,343) - - - $
(6,503,888) (1,583,123) $
(8,087,011) Total
comprehensive income/(loss) for the period $ -
$ - $ - $ 11,455 $
(6,515,343) $ - $ - $
6,965,609 $ 461,721 $ 625,344
$ 1,087,065 Balance as at September 30, 2015
(Unaudited) $ 9,220 $
84,508,496 $ 4,932,124 $
4,821 $ (26,503,669) $
0 $ 9,398,927 $
123,433,290 $ 195,783,209
$ 28,590,706 $ 224,373,915
Balance as at
April 1, 2016 (Audited) $ 9,301 85,114,755
5,887,470 (9,728) (26,489,384) -
9,398,927 142,297,177 216,208,518
33,513,248 249,721,766 Issue of shares (Note 5) 503
3,688,780 (3,689,283) - - - - -
- - - Share
based compensation
(Note 6)
- - 3,647,994 - - - - - $
3,647,994 - $
3,647,994 Transactions with Owner - Loan repayment (Note
4.1) 417 2,999,583 - - - - - -
3,000,000 -
3,000,000
Profit after tax for the period - - - - - - - 7,787,664 $
7,787,664 2,246,722 $
10,034,386 Other comprehensive
income /(loss) for the period - - - 16,873 (537,809) - - - $
(520,936) (124,905) $
(645,841) Total
comprehensive income/(loss) for the period $
- $ - $ -
$ 16,873 $ (537,809)
$ - $ - $
7,787,664 $ 7,266,728 $
2,121,817 $ 9,388,545 Balance as at
September 30, 2016 (Unaudited) $ 10,221
$ 91,803,118 $ 5,846,181
$ 7,145 $ (27,027,193)
$ - $ 9,398,927
$ 150,084,840 $ 230,123,240
$ 35,635,065 $
265,758,305 Amira Nature Foods Ltd
Condensed Consolidated Statements of Cash Flows
(Amounts in USD)
Six months ended September 30, 2016
(Unaudited)
September 30, 2015
(Unaudited)
(A) CASH FLOW FROM OPERATING ACTIVITIES Profit
before tax for the period $ 10,468,710 $
10,877,447 Adjustments for non-cash items 7,310,918
2,701,241 Adjustments for non-operating incomes and expenses
13,850,919 14,299,818 Changes in operating assets and liabilities
(19,721,565) (29,243,258)
$
11,908,983 $ (1,364,752) Income taxes paid
(3,748,261) (85,825)
Net cash used in
operating activities $ 8,160,722 $
(1,450,577) (B) CASH FLOW FROM INVESTING
ACTIVITIES Purchase of property, plant and equipment $ (38,588)
$ (454,548) Purchase of intangible assets (158,133) - Advance for
property, plant and equipment - 31,685 Proceeds from sale of
property, plant and equipment 2,218 3,160 Proceeds from term
deposits (15,702,045) 7,892,671 Investments in term deposits
16,572,440 (7,437,166) Purchase of short term investments - -
Interest income 225,352 467,630
Net cash
generated from investing activities $ 901,244
$ 503,432 (C) CASH FLOWS FROM
FINANCING ACTIVITIES Net (repayment of)/ proceeds from short
term debt (2,940,756) (9,034,584) Proceeds from long term debt -
19,500 Repayment of long term debt (405,490) (459,085) Interest
paid (14,095,694) (13,334,153)
Net cash
used in financing activities $ (17,441,940)
$ (22,808,322) (D) Effect of
change in exchange rate on cash and cash equivalents
3,741,018 (2,231,157)
Net decrease in cash and
cash equivalents (A+B+C+D) $ (4,638,956)
$ (25,986,624) Cash and cash equivalents at the
beginning of the period 17,412,501 46,660,922
Cash and cash
equivalents at the end of the period $ 12,773,545
$ 20,674,298
Non-IFRS Financial Measures
In evaluating our business, we consider and use the non-IFRS
measures EBITDA, adjusted EBITDA, adjusted profit after tax,
adjusted earnings per share, adjusted net working capital and net
debt as supplemental measures to review and assess our operating
performance. The presentation of these non-IFRS financial measures
is not intended to be considered in isolation or as a substitute
for the financial information prepared and presented in accordance
with IFRS. We define: (1) EBITDA as profit after tax plus finance
costs (net of finance income), income tax expense and depreciation
and amortization; (2) adjusted EBITDA, as EBITDA plus non-cash
expense for share-based compensation and one-time legal &
professional charges for defending against a class action lawsuit
for six months ended September 30, 2016 and 2015, respectively (3)
adjusted profit after tax, as profit after tax plus non-cash
expense for share-based compensation and one-time legal &
professional charges for defending against a class action lawsuit
for six months ended September 30, 2016 and 2015, respectively; (4)
adjusted earnings per share as the quotient of: (a) adjusted profit
after tax and (b) the sum of our weighted average number of shares
(including dilutive impact of share options granted) for the
applicable period and the ordinary shares subject to the exchange
agreement between us and the non-controlling shareholders of Amira
India; (5) adjusted net working capital as total current assets
minus: (a) total current liabilities (b) cash and cash equivalents
and plus current debt; and (6) net debt as total current and
non-current debt minus cash and cash equivalents.
We use both EBITDA and adjusted EBITDA as measures of operating
performance to assist in comparing performance from period to
period on a consistent basis, as a measure for planning and
forecasting overall expectations, for evaluating actual results
against such expectations and as a performance evaluation metric,
including as part of assessing and administering our executive and
employee incentive compensation programs. We believe that the use
of both EBITDA and adjusted EBITDA as non-IFRS measures facilitates
investors’ assessment of our operating performance from period to
period and from company to company by backing out potential
differences caused by variations in items such as capital structure
(affecting relative finance or interest expenses), non-recurring
IPO-related expenses, one time legal and professional charges for
defending class action suits, the book amortization of intangibles
(affecting relative amortization expenses), the age and book value
of property and equipment (affecting relative depreciation
expenses) and other non-cash expenses. We also present these
non-IFRS measures because we believe they are frequently used by
securities analysts, investors and other interested parties as
measures of the financial performance of companies in our
industry.
These non-IFRS financial measures are not defined under IFRS and
are not presented in accordance with IFRS. These non-IFRS financial
measures have limitations as analytical tool, and when assessing
our operating performance, investors should not consider it in
isolation, or as a substitute for profit/ (loss) or other
consolidated statements of operations data prepared in accordance
with IFRS. Some of these limitations include, but are not limited
to:
- it does not reflect our cash
expenditures or future requirements for capital expenditures or
contractual commitments;
- it does not reflect changes in, or cash
requirements for, our working capital needs;
- it does not reflect the finance or
interest expenses, or the cash requirements necessary to service
interest or principal payments, on our debt;
- it does not reflect income taxes or the
cash requirements for any tax payments;
- although depreciation and amortization
are non-cash charges, the assets being depreciated and amortized
often will have to be replaced in the future, and adjusted net
profit and EBITDA do not reflect any cash requirements for such
replacements; and
- other companies may calculate EBITDA
differently than we do, limiting the usefulness of this non-IFRS
measure as a comparative measure.
We compensate for these limitations by relying primarily on our
IFRS results and using non-IFRS measures only as supplemental
information.
We present adjusted EBITDA, adjusted profit after tax, adjusted
earnings per share, adjusted net working capital and net debt
because we believe these measures provide additional metrics to
evaluate our operations and, when considered with both our IFRS
results and the reconciliation to profit after tax, basic and
diluted earnings per share, working capital and total current and
non-current debt, respectively, provide a more complete
understanding of our business than could be obtained absent this
disclosure. We also believe that these non-IFRS financial measures
are useful to investors in assessing the operating performance of
our business after reflecting the adjustments described above.
Reported results and other information herein are preliminary
and not final until the filing of the Company’s annual report on
Form 20-F with the Securities and Exchange Commission and therefore
remain subject to adjustment.
In the following tables we have provided reconciliation of the
non-IFRS measures to the most directly comparable IFRS measure:
1. Reconciliation of profit after tax to
EBITDA and adjusted EBITDA:
Six months ended September 30, 2016
September 30, 2015 Profit after tax
(PAT) $
10,034,386 $
9,174,076 Add: Income tax
expense 434,324 1,703,371 Add: Finance costs (net of finance
income) 13,849,830 14,302,816 Add: Depreciation and amortization
936,271 1,059,994
EBITDA $
25,254,811 $ 26,240,257 Add: Non-cash
expenses for share-based compensation 1,184,784 1,961,726 Add:
One-time legal & professional charges for defending against a
class action lawsuit 1,006,713 2,330,733
Adjusted EBITDA $ 27,446,308 $
30,532,716
2. Reconciliation of profit after tax to
adjusted profit after tax:
Six months ended September 30, 2016
September 30, 2015 Profit after tax
(PAT) $ 10,034,386 $ 9,174,076 Add:
Non-cash expenses for share-based compensation 1,184,784 1,961,726
Add: One-time legal & professional charges for defending
against a class action lawsuit 1,006,713
2,330,733
Adjusted profit after tax $
12,225,883 $ 13,466,535
3. Reconciliation of earnings per share and
adjusted earnings per share:
Six months ended September
30, 2016 September 30, 2015 Profit
after tax (PAT) $ 10,034,386 $
9,174,076 Profit attributable to Shareholders of the Company
(A) $ 7,787,664 $ 6,965,609 Weighted average number of shares (for
basic earnings per share) (B) 29,217,092 28,780,164 Dilutive impact
of share options as converted in equivalent number of shares (C)
- - Weighted average number of shares (for
diluted earnings per share) (D) = (B) + C) 29,217,092
28,780,164
Basic earnings per share as per IFRS
(A) ÷ (B) $ 0.27 $ 0.24
Diluted earnings per share as per IFRS (A) ÷ (D)
$ 0.27 $ 0.24
Shares issuable under share
exchange agreement for non-controlling interest (E)
7,005,434 7,005,434
Number of shares outstanding
including shares for non-controlling interest (F) = (D) +
(E) 36,222,526 35,785,598
Profit after
tax (PAT) $ 10,034,386 $
9,174,076 Add: Non-cash expenses for share-based
compensation $ 1,184,784 $ 1,961,726 Add: One-time legal &
professional charges for defending against a class action lawsuit
1,006,713 2,330,733
Adjusted profit
after tax (G) $ 12,225,883 $
13,466,535
Adjusted earnings per share (G) ÷ (F) $
0.34 $ 0.38
4. Reconciliation of working capital (total
current assets minus total current liabilities) and adjusted net
working capital:
As at September 30, 2016 As at March 31,
2016 (Amount in $) Current assets:
Inventories 244,570,731 239,048,161 Trade receivables 194,738,682
189,702,525 Derivative financial assets - 439,488 Other financial
assets 4,759,532 5,577,017 Prepayments 29,192,481 22,572,280 Other
current assets 656,589 1,282,267 Cash and cash equivalents
12,773,545 17,412,501
Total current assets
486,691,560 476,034,239 Current
liabilities: Trade payables 16,838,170 14,513,988 Debt
204,208,021 208,924,196 Current tax liabilities (net) 14,272,670
15,716,854 Derivative financial liabilities - 453 Other financial
liabilities 6,158,218 6,856,677 Other current liabilities 841,480
1,197,855
Total current liabilities
242,318,558 247,210,023
Working Capital (Total current assets minus Total current
liabilities) 244,373,002 228,824,216 Less:
Cash and cash equivalents 12,773,545 17,412,501 Add: Current debt
204,208,021 208,924,196
Adjusted net working capital
435,807,478 420,335,911
5. Reconciliation of total current and
non-current debt to net debt:
As at September 30, 2016 As at March 31,
2016 (Amount in $) Current debt 204,208,021
208,924,196 Non-current debt 106,889 518,056
Total
current and non-current debt as per IFRS 204,314,910
209,442,252 Less: Cash and cash equivalents 12,773,545
17,412,501
Net debt 191,541,365
192,029,751
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161129006312/en/
For Investor Inquiries:Amira Nature Foods LtdBruce Wacha,
646-779-1984Chief Financial
Officerbruce.wacha@theamiragroup.com
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