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, 2017.
Six Months Ended September 30, 2017:
All numbers below are compared to six months ended September 30,
2016:
- Revenue of $228.9 million , an 8.5%
increase
- Adjusted EBITDA of $31.3 million,
increased $3.9 million
- Adjusted EBITDA margin of 13.7%,
increased 60 basis points
- Profit after tax of $11.5 million, a
15% increase
- Adjusted profits after tax of $11.9
million, a 2.5% decrease
- Earnings per share (“EPS”) of $0.29, a
7.4% increase
- Adjusted earnings per share (“Adjusted
EPS”) was $0.30, decreased 11.8%
- Net debt to the last twelve months
Adjusted EBITDA of 3.0x,
Varun Sethi, Amira’s Chief Financial Officer stated, “Our
business performance improved during the half year ended September
30, 2017 backed by an improved pricing environment, indicating
continued upwards movement from the inflection point reached in the
previous year. This is reflected in the increase in revenue, the
improved margins and our healthy balance sheet for the six months
ended September 30, 2017 compared to the same period in the prior
year. We have a solid platform for growth, driven by attractive
industry dynamics and backed by our global management teams. The
resilience in the business model is evidenced by the results
achieved for this period.”
Six Months Ended September 30, 2017 Results
Revenue increased $18.0 million, or 8.5%, to $228.9 million in
the six months ended September 30, 2017 from $210.9 million in the
six months ended September 30, 2016. The revenue increase was
primarily due to improved pricing environment both in India and
internationally, demonstrating the pricing power of the
industry.
During the six months ended September 30, 2017, revenue from
international and India sales contributed 58.4% and 41.6% of total
sales respectively. During the six month period ended September 30,
2016, revenue from international and India sales contributed 57.8%
and 42.2% of total sales respectively. During the six months ended
September 30, 2017, our revenue from Indian sales increased by $6.2
million or 6.9% to $95.2 million from $89.0 million in the same
period of 2016. Our sales in India increased by approximately 2.9%
during the six months ended September 30, 2017 as compared to the
same period in 2016, when measured in Indian rupees. Translation of
our revenues from India, to USD also positively impacted the
reported revenues. The Company’s International sales increased by
$11.8 million or 9.7% to $133.7 million from $121.9 million for the
same period in 2016.
Half Year
ended September 30, 2017 %
of total sales
September 30, 2016
% of total sales
Movement India sales
$ 95.2 Mn
58.4% $ 89.0 Mn 57.8%
$ 6.2 Mn International sales $ 133.7 Mn
41.6% $ 121.9 Mn 42.2%
$ 11.8 Mn
Total sales $ 228.9 Mn
$ 210.0 Mn
$ 18.0 Mn
During the six months ended September 30, 2017, adjusted EBITDA
increased $3.9 million to $31.3 million from $27.4 million in the
prior six months period. Adjusted EBITDA margin was 13.7% for the
six months ended September 30, 2017, approximately 60 basis points
higher than the prior year period, primarily due to improved
pricing environment. Profit after tax was $11.5 million for the
period, compared to $10.0 million for the prior year period.
Adjusted profit after tax was $11.9 million for period, compared to
$12.2 million for the prior year period. EPS was $0.29 per share
for the period compared to $0.27 for the prior year period.
Adjusted EPS was $0.30 for the period compared to $0.34 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, 2017, the
Company generated revenue of $569.8 million, adjusted EBITDA of
$74.4 million and adjusted EPS of $0.30 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, 2017, the Company had cash and cash
equivalents of $5.1 million (not including $2.9 million of short
term investments, deposits which are available on demand) and
adjusted net working capital was $531.5 million. Total debt was
$230.7 million as of September 30, 2017, compared to $224.4 million
at March 31, 2017 and net debt to LTM adjusted EBITDA was 3.0x. As
of September 30, 2017, inventories were $306.4 million, compared to
$273.1 million, trade receivables were $191.6 million compared to
$209.7 million and trade payables were $7.9 million compared to
$13.0 million at March 31, 2017, 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, 2017
(Unaudited)
As at
March 31, 2017
(Audited)
ASSETS Non-current Property, plant and
equipment $ 17,868,289 $ 18,674,113 Goodwill 1,512,058 1,386,322
Other intangible assets 1,468,158 1,419,363 Other long-term
financial assets 218,369 152,814
Total non-current assets $ 21,066,874
$ 21,632,612 Current Inventories
(Note 8) $ 306,841,721 $ 273,063,839 Trade receivables 191,552,088
209,673,239 Derivative financial assets - - Other financial assets
4,115,443 5,467,164 Prepayments (Note 9) 60,620,604 47,272,153
Other current assets 693,463 664,553 Cash and cash equivalents
5,151,300 16,831,655
Total current
assets $ 568,974,619 $
552,972,603 Total assets $ 590,041,493
$ 574,605,215 EQUITY AND
LIABILITIES Equity Share capital $ 13,609 $ 11,952 Share
premium 111,585,500 102,788,560 Other reserves (9,122,790)
(7,741,969) Retained earnings 179,244,727
167,424,244
Equity attributable to shareholders of the
Company $ 281,721,046 $ 262,482,787
Equity attributable to non-controlling interest 40,159,641
40,741,634
Total equity $
321,880,687 $ 303,224,421
Liabilities Non-current liabilities Defined benefit
obligations $ 337,556 $ 283,944 Debt 12,351 48,743 Deferred tax
liabilities (Net) 4,787,887 4,491,272
Total non-current liabilities $ 5,137,794
$ 4,823,959 Current
liabilities Trade payables $ 7,894,454 $ 13,004,865 Debt (Note
10) 230,654,710 224,391,280 Current tax liabilities (net)
16,929,802 15,799,116 Derivative financial liabilities - - Other
financial liabilities 5,940,112 12,259,830 Other current
liabilities 1,603,934 1,101,744
Total current liabilities $ 263,023,012
$ 266,556,835 Total liabilities
$ 268,160,806 $
271,380,794 Total equity and liabilities $
590,041,493 $ 574,605,215
Amira Nature Foods Ltd Condensed Consolidated
Statements of Profit or Loss
(Amounts in USD)
Six months ended September 30, 2017
(Unaudited)
September 30, 2016
(Unaudited)
Revenue $ 228,929,636 $ 210,924,684 Other income 19,110 19,682 Cost
of material (225,261,357) (182,978,800) Change in inventory of
finished goods 36,960,197 12,774,137 Employee benefit expenses
(3,303,120) (4,561,672)
Depreciation and amortization
(830,838) (936,271) Freight, forwarding and handling expenses
(907,591) (1,396,839) Other expenses (6,232,506)
(8,395,427)
$ 29,373,531 $
25,449,494 Finance costs (16,994,815) (13,997,437) Finance
income 28,695 147,607 Other gains and (losses) 673,677
(1,130,954)
Profit before tax for the
period
$ 13,081,088 $ 10,468,710 Income tax
expense (1,558,311) (434,324)
Profit after tax for the period
$ 11,522,777 $ 10,034,386 Profit after
tax attributable to: Shareholders of the Company
$ 9,250,902
$ 7,787,664 Non-controlling interest
$ 2,271,875
$ 2,246,722
Earnings per share
Basic earnings per share
$ 0.29
$ 0.27 Diluted
earnings per share
$ 0.29
$ 0.27
Amira Nature Foods Ltd Condensed
Consolidated Statements of Comprehensive Income
(Amounts in USD)
Six months ended September 30, 2017
(Unaudited)
September 30, 2016
(Unaudited)
Profit after tax for the period $ 11,522,777
$ 10,034,386 Other comprehensive
income/(loss) Items that may be reclassified subsequently to
profit or loss: Available for sale financial assets: Current
period gain/(loss) 37,269 31,991 Reclassification to profit or loss
- - Income tax (12,898) (11,071)
$ 24,371 $ 20,920 Cash
flow hedging reserve: Current period gain/(loss) - -
Reclassification to profit or loss - - Income tax -
-
$ - $ -
Currency translation
reserve (1,623,571) (666,761)
Other comprehensive
income/(loss) for the period, net of tax $
(1,599,200) $ (645,841) Total
comprehensive income for the period $ 9,923,577
$ 9,388,545 Total comprehensive
income/(loss) for the period attributable to:
Shareholders of
the Company $ 8,048,895 $ 7,266,728
Non-controlling interest $ 1,874,682 $
2,121,817
Amira Nature Foods Ltd Condensed
Consolidated Statements of Changes in Equity (unaudited)
(Amounts in USD)
Other reserves
Sharecapital
Sharepremium
Share-basedcompensationreserve
Reserve for
available for
sale financial
assets
Currencytranslation
Reserve
Cash flow hedging
Reserve
Restructuring
Reserve
Retained
Earnings
Equity
attributable to
shareholdersof
theCompany
Equity
attributable to
non - controlling
interest
Total equity 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
Balance as at April 1, 2017
(Audited) $ 11,952 102,788,560
5,973,642 14,129 (23,128,667) -
9,398,927 167,424,244 262,482,787
40,741,634 303,224,421 Issue of shares (Note
5) 1,657 8,796,940 (8,798,597) - - - - -
- - -
Share based compensation
(Note 6)
8,732,689 - - - - - $
8,732,689 - $
8,732,689
Transactions with Owner - Loan repayment (Note 4.1) - - - -
- Reclassification of Non-controlling interest (refer
MD&A- “Corporate Structure”) 2,569,581
2,569,581
(2,569,581)
- Profit after tax for the period - - - -
9,250,902 $
9,250,902 2,271,875 $
11,522,777
Other comprehensive income /(loss) for the period 20,039
(1,334,952) - - - $
(1,314,913) (284,287) $
(1,599,200) Total comprehensive income/(loss) for
the period $ -
$ - $ -
$ 20,039 $ (1,334,952)
$ - $ -
$ 11,820,483 $
10,505,570 $ (581,993)
$ 9,923,577 Balance as at September
30, 2017 (Unaudited) $ 13,609
$ 111,585,500 $
5,907,734 $ 34,168
$ (24,463,619) $ -
$ 9,398,927 $
179,244,727 $ 281,721,046
$ 40,159,641 $
321,880,687 Amira Nature Foods Ltd
Condensed Consolidated Statements of Cash Flows
(Amounts in USD)
Six months ended September 30, 2017
(Unaudited)
September 30, 2016
(Unaudited)
(A) CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax for the period $ 13,081,088
$ 10,468,710 Adjustments for non-cash items
10,146,516 7,310,918 Adjustments for non-operating incomes and
expenses 16,962,599 13,850,920 Changes in operating assets and
liabilities (43,074,971) (19,721,565)
$ (2,884,768) $ 11,908,983 Income taxes
paid (2,273) (3,748,261)
Net cash
used in operating activities $ (2,887,041)
$ 8,160,722 (B) CASH FLOW FROM
INVESTING ACTIVITIES Purchase of property, plant and equipment
$ (430,436) $ (196,721) Purchase of intangible assets - - Advance
for property, plant and equipment - - Proceeds from sale of
property, plant and equipment 19,279 2,218 Net cash outflow on
acquisition of subsidiaries - - Proceeds from term deposits -
(15,702,045) Investments in term deposits 1,241,394 16,572,440
Purchase of short term investments - - Interest income
75,776 225,352
Net cash generated from
investing activities $ 906,013
$ 901,244 (C) CASH FLOWS FROM FINANCING
ACTIVITIES Net (repayment of)/ proceeds from short term debt
5,800,846 (2,940,756) Proceeds from long term debt - - Repayment of
long term debt (37,865) (405,490) Interest paid (14,920,436)
(14,095,694)
Net cash used in financing
activities $ (9,157,455) $
(17,441,940) (D) Effect of change in exchange
rate on cash and cash equivalents (541,872)
3,741,018
Net decrease in cash and cash equivalents
(A+B+C+D) $ (11,680,355) $
(4,638,956) Cash and cash equivalents at the beginning of
the period 16,831,655 17,412,501
Cash and cash equivalents at
the end of the period $ 5,151,300
$ 12,773,545
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 for the six months ended
September 30, 2017 and 2016, respectively, other one-time legal
& professional charges for the six months ended September 30,
2017 and 2016;(3) adjusted profit after tax, as profit after tax
plus non-cash expense for share-based compensation for the six
months ended September 30, 2017 and 2016, respectively, and other
one-time legal and professional charges for the six months ended
September 30, 2017 and 2016;(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; during the applicable
period;(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.
In the following tables we have provided
reconciliation of 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, 2017 September 30, 2016
Profit after tax (PAT) $
11,522,777 $
10,034,386 Add: Income tax expense
1,558,311 434,324 Add: Finance costs (net of finance income)
16,966,120 13,849,830 Add: Depreciation and amortization
830,838 936,271
EBITDA
$ 30,878,046 $
25,254,811 Add: Non-cash expenses for share-based
compensation 230,000 1,184,784 Add: One-time legal &
professional charges 188,199
1,006,713
Adjusted EBITDA $
31,296,245 $ 27,446,308
2. Reconciliation of profit after tax to
adjusted profit after tax:
Six months ended
September 30, 2017 September 30, 2016
Profit after tax (PAT) $
11,522,777 $ 10,034,386 Add: Non-cash expenses
for share-based compensation 230,000 1,184,784 Add: One-time legal
& professional charges 188,199
1,006,713
Adjusted profit after tax
$ 11,940,976 $
12,225,883
3. Reconciliation of earnings per share and
adjusted earnings per share:
Six months ended
September 30, 2017
September 30, 2016
Profit after tax (PAT) $
11,522,777 $ 10,034,386 Profit attributable to
Shareholders of the Company (A) $ 9,250,902 $ 7,787,664 Weighted
average number of shares (for basic earnings per share) (B)
32,402,272 29,217,092 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)
32,402,272 29,217,092
Basic earnings per share as per IFRS (A) ÷
(B) $ 0.29 $
0.27 Diluted earnings per share as per IFRS
(A) ÷ (D) $ 0.29
$ 0.27
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)
39,407,706 36,222,526
Profit after tax (PAT)
$ 11,522,777 $ 10,034,386
Add: Non-cash expenses for share-based compensation $ 230,000 $
1,184,784 Add: One-time legal & professional charges
188,199
1,006,713
Adjusted profit after tax (G)
$ 11,940,976 $
12,225,883
Adjusted earnings per
share (G) ÷ (F) $
0.30 $ 0.34
4. Reconciliation of working capital (total
current assets minus total current liabilities) and adjusted net
working capital:
As at September 30, 2017
As at March 31, 2017 (Amount in $)
Current assets: Inventories 306,841,721
273,063,839 Trade receivables 191,552,088 209,673,239 Derivative
financial assets - - Other financial assets 4,115,443 5,467,164
Prepayments 60,620,604 47,272,153 Other current assets 693,463
664,553 Cash and cash equivalents 5,151,300
16,831,655
Total current assets
568,974,619 552,972,603
Current liabilities: Trade payables 7,894,454 13,004,865
Debt 230,654,710 224,391,280 Current tax liabilities (net)
16,929,802 15,799,116 Derivative financial liabilities - - Other
financial liabilities 5,940,112 12,259,830 Other current
liabilities 1,603,934 1,101,744
Total current liabilities 263,023,012
266,556,835
Working Capital (Total current assets minus Total
current liabilities) 305,951,607
286,415,768 Less: Cash and cash equivalents 5,151,300
16,831,655 Add: Current debt 230,654,710
224,391,280
Adjusted net working capital
531,455,017 493,975,393
5. Reconciliation of total current and
non-current debt to net debt:
As at September 30, 2017
As at March 31, 2017 (Amount in $)
Current debt 230,654,710 224,391,280 Non-current debt
12,351 48,743
Total current and non-current debt
as per IFRS 230,667,061 224,440,023 Less: Cash
and cash equivalents 5,151,300
16,831,655
Net debt 225,515,761
207,608,368
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171130005586/en/
Amira Nature Foods LtdVarun SethiChief Financial
OfficerVarun.Sethi@theamiragroup.comorAmy
GreeneAmy.Greene@theamiragroup.com
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