Any current/future new fundraising through debt or equity?

The company mentioned plans to use cash generated from the business for marketing efforts and setting up a subsidiary overseas to improve sales and margins. There is an intention to invest in additional capex at the right time, but no concrete decisions or timelines have been shared yet. The company is focused on deleveraging its balance sheet, with debt reduced to Rs 83 crores and a debt-to-equity ratio of 0.17x as of September 30, 2023. No explicit mention of any new fundraising through debt or equity was made during the call. The company will inform stakeholders when decisions regarding add

Any current/future capex/capital investment/strategic investment?

Apex Frozen Foods plans to invest cash generated from the business into enhanced marketing efforts. The company intends to set up its own subsidiary overseas to boost sales volumes and improve margins on processing and exports. Additional capital expenditure (capex) is planned, although specific decisions and timing will be communicated once finalized. Focus is on strategic investments to support growth, better utilization of processing capacities, and expansion into new markets. The investment strategy aligns with improving market prices, stable supply, and scaling up production for FY25 and

Future growth expectations in sales/revenue/volumes?

FY24 experienced degrowth in sales volumes due to subdued demand, mainly in the USA market and supply challenges. For FY25, the company is positive about returning to growth, targeting sales volumes between 15,000 to 18,000 metric tons. Expected minimum sales quantities quarterly are around 3,000 to 3,500 metric tons, subject to supply conditions. Improved demand outlook in key markets like the USA with new programs and stabilized pricing. Increasing capacity utilization anticipated, recovering from below 50% currently. Marketing and subsidiary efforts overseas (especially US and North America

Future growth expectations in earnings/operating earnings/profits/EPS?

FY24 has seen degrowth in sales and volumes due to subdued global demand and supply challenges, especially in the US market. Management is positive about recovery and expects growth in FY25, aiming sales volumes of 15,000 to 18,000 metric tons. Stable and improving farm gate prices along with stocking of seed for crops beginning March-April 2024 should support supply. Improved marketing efforts and setting up a wholly owned subsidiary in the US to bolster sales and margins. Anticipate better utilization of capacities with new sales programs starting Q1 FY25, supporting revenue growth. EBITDA m

Current/ Expected Orderbook/ Pending Orders?

New program contracts are being discussed and awarded for shipments in the current quarter and Q1 FY25, indicating a healthy order pipeline. Retail customers, especially supermarket chains, have started awarding fresh programs with planned volumes for FY25, which include a significant share of Ready-to-Eat (RTE) products. The company is engaging with new end customers and locking in new sales, enhancing order visibility. Discussions are ongoing for programs to support Europe, including exploring the Scandinavian markets. Overall, the order book appears to be rebuilding post the demand drop in

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Apex Frozen Foods LtdQ4 FY25Food Products

Apex Frozen Foods Ltd Q4 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹408P/E: 46.8Market Cap: ₹1.5K CrSector: Food Products

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→FY24 experienced degrowth in sales volumes due to subdued demand, mainly in the USA market and supply challenges.
→For FY25, the company is positive about returning to growth, targeting sales volumes between 15,000 to 18,000 metric tons.
→Expected minimum sales quantities quarterly are around 3,000 to 3,500 metric tons, subject to supply conditions.
→Improved demand outlook in key markets like the USA with new programs and stabilized pricing.
→Increasing capacity utilization anticipated, recovering from below 50% currently.
→Marketing and subsidiary efforts overseas (especially US and North America) expected to boost volumes and margins.
→Stable farm gate prices and improved shrimp production support better supply in FY25.
→Continued growth potential in EU market post regulatory approvals for ready-to-eat products.
→Optimistic about medium to long-term prospects based on government support and global demand stability.

Margin guidance

Category 3

→FY24 has seen degrowth in sales and volumes due to subdued global demand and supply challenges, especially in the US market.
→Management is positive about recovery and expects growth in FY25, aiming sales volumes of 15,000 to 18,000 metric tons.
→Stable and improving farm gate prices along with stocking of seed for crops beginning March-April 2024 should support supply.
→Improved marketing efforts and setting up a wholly owned subsidiary in the US to bolster sales and margins.
→Anticipate better utilization of capacities with new sales programs starting Q1 FY25, supporting revenue growth.
→EBITDA margin impacted by freight and lower operating leverage in FY24, but expected to improve with higher volumes and pricing stability.
→Regulatory approvals for ready-to-eat products in the EU pending, which could enhance future earnings.
→Overall cautious optimism for medium to long-term growth with better market conditions and supportive government measures.

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Fundraise plans

→The company mentioned plans to use cash generated from the business for marketing efforts and setting up a subsidiary overseas to improve sales and margins.
→There is an intention to invest in additional capex at the right time, but no concrete decisions or timelines have been shared yet.
→The company is focused on deleveraging its balance sheet, with debt reduced to Rs 83 crores and a debt-to-equity ratio of 0.17x as of September 30, 2023.
→No explicit mention of any new fundraising through debt or equity was made during the call.
→The company will inform stakeholders when decisions regarding additional investments or fundraising are finalized.

Order book

→New program contracts are being discussed and awarded for shipments in the current quarter and Q1 FY25, indicating a healthy order pipeline.
→Retail customers, especially supermarket chains, have started awarding fresh programs with planned volumes for FY25, which include a significant share of Ready-to-Eat (RTE) products.
→The company is engaging with new end customers and locking in new sales, enhancing order visibility.
→Discussions are ongoing for programs to support Europe, including exploring the Scandinavian markets.
→Overall, the order book appears to be rebuilding post the demand drop in FY24, with positive momentum expected into FY25.

Capex plans

Yes

→Apex Frozen Foods plans to invest cash generated from the business into enhanced marketing efforts.
→The company intends to set up its own subsidiary overseas to boost sales volumes and improve margins on processing and exports.
→Additional capital expenditure (capex) is planned, although specific decisions and timing will be communicated once finalized.
→Focus is on strategic investments to support growth, better utilization of processing capacities, and expansion into new markets.
→The investment strategy aligns with improving market prices, stable supply, and scaling up production for FY25 and beyond.

How does Apex Frozen Foods Ltd rank vs peers in Food Products?

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1Apex Frozen Foods Ltd

Rev 4Mar 3

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