Amira Nature Foods Ltd Announces First Quarter Fiscal 2014 Financial Results

  Amira Nature Foods Ltd Announces First Quarter Fiscal 2014 Financial Results

           First Quarter Revenue Increased 37.6% to $110.3 Million

            First Quarter EBITDA Increased 42.4% to $14.5 Million

Business Wire

DUBAI, United Arab Emirates -- August 26, 2013

Amira Nature Foods Ltd (the "Company") (NYSE: ANFI), a leading global provider
of packaged Indian specialty rice, today reported financial results for the
first quarter ended June 30, 2013.

First Quarter Financial Highlights:

  *Revenue increased 37.6% to $110.3 million, compared to $80.2 million in
    the first quarter of fiscal 2013
  *EBITDA increased 42.4% to $14.5 million, compared to $10.2 million
  *Profit after tax increased 124.5% to $7.3 million, compared to $3.3
    million
  *Basic and diluted earnings per share^(1) was $0.21 compared to $0.13
  *For better quarter-over-quarter comparability, after using 35.7 million
    fully diluted shares, adjusted earnings per share was $0.21 compared to
    $0.09 in the first quarter of fiscal 2013

Karan A. Chanana, Amira’s Chairman and Chief Executive Officer, stated, “We
are off to a strong start in fiscal 2014. In the first quarter, we generated
robust revenue and EBITDA growth, reflecting the continued strong demand for
our products and successful execution on our business strategy.”

Mr. Chanana continued, “In fiscal 2014, we believe we are positioned to
benefit from the progress we made to our business last fiscal year, including
the addition of new customers in both India and internationally and an
expanded geographic footprint. We recently announced the launch of the Amira
Organic business division, which we expect will enable us to enhance the
strength of the Amira brand product offering and capitalize on the growing
global demand for organic packaged foods for years to come.”

First Quarter Fiscal 2014 Results

Revenue for the first quarter of fiscal 2014 increased 37.6% to $110.3
million, compared to $80.2 million for the same period in fiscal 2013. The
revenue increase was primarily due to increased sales volume and prices both
in India and internationally. Revenue in the first quarter of fiscal 2014 for
Amira and third party branded products was 96.0% of total revenue, compared to
95.8% for the first quarter of fiscal 2013.

Cost of materials including change in inventory of finished goods increased
$21.6 million, or 32.8%, to $87.5 million in the first quarter of fiscal 2014
from $65.9 million in the first quarter of fiscal 2013. This increase
primarily reflects the growth in revenue. As a percentage of revenue, cost of
material decreased to 79.3% in the first quarter of fiscal 2014, compared to
82.2% in the first quarter of fiscal 2013, primarily due to improved operating
efficiencies and economies of scale.

EBITDA increased 42.4% to $14.5 million in the first 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 first quarter of fiscal 2014 increased 124.5% to $7.3
million, compared to $3.3 million in the quarter of fiscal 2013. Basic and
diluted earnings per share^(1) was $0.21 compared to $0.13 for the first
quarter of fiscal 2013.

For better quarter-over-quarter comparability, after using 35.7 million fully
diluted shares, adjusted earnings per share was $0.21 compared to $0.09 in the
first quarter of fiscal 2013. A reconciliation of adjusted earnings per share
to basic and diluted earnings per share is provided in the “Non-IFRS Financial
Measures” section of this release.

Balance Sheet and Cash Flow Highlights

At June 30, 2013, the Company’s cash and cash equivalents was $32.6 million
and adjusted net working capital was $226.6 million. Net debt (after deducting
cash and cash equivalents) as of June 30, 2013 was $107.7 million. As of June
30, 2013, inventory decreased $20.7 million to $160.8 million from $181.5
million as of March 31, 2013. As of June 30, 2013, trade receivables were
$62.4 million, a decrease of $4.4 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. We note that the Company’s
guidance is based on foreign exchange rates as of June 30, 2013 and takes into
account the potential impact of foreign currency fluctuations for the
remainder of our fiscal year.

Conference Call

The Company will hold an investor conference call today at 4:30 p.m. Eastern
time. The dial-in number for this conference call is (877) 407-3982 for North
American listeners and (201) 493-6780 for international listeners. Live audio
of the conference call will be simultaneously webcast in the investor
relations section of the Company's website at http://www.amirafoods.com.

An audio replay will be available following the completion of the conference
call by dialing (877) 870-5176 for North American listeners or (858) 384-5517
for international listeners (conference ID 418626). The webcast of the
teleconference will be archived and available on the Company’s website.

About Amira Nature Foods

Founded in 1915, Amira has evolved into a leading global provider of packaged
Indian specialty rice, with sales in over 40 countries today. Amira sells
Basmati rice, a premium long-grain rice grown only in certain regions of the
Indian sub-continent, under their flagship Amira brand as well as under other
third party brands. Amira sells its products primarily in emerging markets
through a broad distribution network. Amira’s headquarters are in Dubai,
United Arab Emirates, and it also has offices in India, Malaysia, Singapore,
the United Kingdom, and the United States.

Cautionary Note on Forward-Looking Statements

This release may contain forward-looking statements within the meaning of the
U.S. federal securities laws. These forward-looking statements generally can
be identified by phrases such as that we or our members of management
“believe,” “expect,” “anticipate,” “foresee,” “forecast,” “estimate” or other
words or phrases of similar import. Specifically, these statements include,
among other things, statements that describe our expectations for the growth
of our business, expansion into new geographic markets, maintaining and
expanding our relationship with key retail partners, the financial impact of
new sales contracts on our revenue, our plans to make significant capital
expenditures, and other statements of management’s beliefs, intentions or
goals. It is uncertain whether any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do, what
impact they will have on our results of operations, financial condition, or
the price of our ordinary shares. These forward-looking statements involve
certain risks and uncertainties that could cause actual results to differ
materially from those indicated in such forward-looking statements, including
but not limited to our ability to penetrate and increase the acceptance of our
products in new geographic markets; our ability to perform our agreements with
customers and further develop our relationships with key retail partners; our
ability to recognize revenue from our contracts; continued competitive
pressures in the marketplace; our reliance on a few customers for a
substantial part of our revenue; our ability to implement our plans, forecasts
and other expectations with respect to our business and realize additional
opportunities for growth; and the other risks and important factors contained
and identified in our filings with the Securities and Exchange Commission. All
forward-looking statements attributable to us or to persons acting on our
behalf are expressly qualified in their entirety by these risk factors. Other
than as required under the securities laws, we undertake no obligation to
update any forward-looking or other statements herein, whether as a result of
new information, future events or otherwise.

(1) Basic and diluted earnings per share is calculated by dividing our profit
after tax as reduced by the amount of a non-controlling interest reflecting
the remaining approximately 19.6% of Amira India that is not indirectly owned
by us, by our weighted average outstanding ordinary shares during the
applicable period.


Amira Nature Foods Ltd

Condensed Consolidated Statements of Financial Position

                                                            
                                             As at            As at
                                             June 30, 2013     March 31, 2013
                                             (Unaudited)       
ASSETS
Non-current
Intangible assets                            $ 596,771         $ 607,871
Property, plant and equipment                  21,290,063        23,467,379
Other long-term assets                        433,180         430,739     
Total non-current assets                     $ 22,320,014     $ 24,505,989  
                                                               
Current
Inventories                                  $ 160,803,687     $ 181,459,799
Trade receivables                              62,356,613        66,792,434
Derivative financial instruments               -                 1,260,512
Prepayments                                    12,873,666        8,386,856
Other current assets                           11,371,702        10,856,050
Cash and cash equivalents                     32,611,996      33,270,338  
Total current assets                         $ 280,017,664    $ 302,025,989 
Total assets                                 $ 302,337,678    $ 326,531,978 
                                                               
EQUITY AND LIABILITIES
Equity
Share capital                                $ 9,111           $ 9,111
Share premium                                  82,639,766        82,639,766
Share based compensation reserve               313,485           227,674
Reserve for available for sale financial       (6,384      )     (21,561     )
assets
Currency translation reserve                   (14,687,829 )     (5,582,983  )
Cash flow hedging reserve                      (4,251,078  )     258,647
Actuarial gain reserve                         26,340            26,340
Restructuring reserve                          9,398,927         9,398,927
Retained earnings                              50,229,432        44,348,684
Equity attributable to Shareholders of the   $ 123,671,770     $ 131,304,605
Company
Equity attributable to Non-Controlling        10,478,803      12,328,130  
Interest
Total Equity                                  134,150,573     143,632,735 
                                                               
Liabilities
Non-current liabilities
Employee benefit obligations                 $ 199,611         $ 185,437
Debt                                           3,943,933         4,831,416
Deferred tax liabilities                      6,872,048       8,527,874   
Total non-current liabilities                $ 11,015,592     $ 13,544,727  
                                                               
Current liabilities
Trade payables                               $ 4,483,286       $ 4,516,657
Debt                                           136,351,744       156,785,820
Current tax liabilities (net)                  2,546,577         2,658,236
Derivative financial instruments               7,382,468         -
Other current liabilities                     6,407,438       5,393,803   
Total current liabilities                    $ 157,171,513    $ 169,354,516 
Total liabilities                            $ 168,187,105    $ 182,899,243 
Total equity and liabilities                 $ 302,337,678    $ 326,531,978 


Amira Nature Foods Ltd

Condensed Consolidated Statements of Income

                                           
                                            Three months ended
                                            June 30, 2013    June 30, 2012
                                            (Unaudited)      (Unaudited)
Revenue                                     $ 110,285,088     $ 80,171,804
Other income                                  37,876            51,399
Cost of material                              (89,871,922 )     (36,778,793 )
Change in inventory of finished goods         2,368,511         (29,108,552 )
Employee expenses                             (2,144,918  )     (804,681    )
Depreciation and amortization                 (488,883    )     (460,898    )
Freight, forwarding and handling expenses     (6,541,015  )     (2,724,280  )
Other expenses                               (3,421,597  )    (2,912,313  )
                                            $ 10,223,140      $ 7,433,686
Finance costs                                 (5,163,522  )     (5,338,500  )
Finance income                                784,977           109,167
Other financial items                        3,758,638       2,269,416   
Profit before tax                           $ 9,603,233       $ 4,473,769
Income tax expense                           (2,256,537  )    (1,201,915  )
                                                              
Profit after tax                            $ 7,346,696       $ 3,271,854
Profit after tax attributable to:
Shareholders of the company                   5,880,748         2,630,571
Non-controlling interest                      1,465,948         641,283
Earnings per share
                                                              
Basic and diluted earnings per share        $ 0.21           $ 0.13        


Amira Nature Foods Ltd

Condensed Consolidated Statements of Comprehensive Income

                                            
                                             Three months ended
                                             June 30, 2013    June 30, 2012
                                             (Unaudited)      (Unaudited)
Profit after tax                             $ 7,346,696       $ 3,271,854
Other comprehensive income
Items to be reclassified to income
statement in subsequent period
Available for sale financial assets
-Current period gain/(loss)                    28,596            (14,285     )
-Income tax                                    (9,720      )     4,635
Cash flow hedge reserve
-Current period gain/(loss)                    (7,983,593  )     (10,224,404 )
-Reclassification to income statement          (513,772    )     -
-Income tax                                    2,888,254         3,317,308
Exchange differences on translation of       $ (11,324,434 )   $ (2,893,428  )
foreign operations
Other comprehensive loss for the period,     $ (16,914,669 )   $ (9,810,174  )
net of tax
Total comprehensive loss for the period      $ (9,567,973  )   $ (6,538,320  )
                                                               
Total comprehensive loss for the period
attributable to:
Shareholders of the Company                    (7,718,646  )     (5,256,810  )
Non-controlling interest                      (1,849,327  )    (1,281,510  )


Amira Nature Foods Ltd

Condensed Consolidated Statements of Changes in Equity
(Unaudited)


               Share    Share         Share         Reserve for  Currency         Cash flow       Actuarial    Restructuring  Retained      Equity           Equity          Total
                capital   premium        based          available     translation       hedging          gain/(loss)   Reserve         Earnings       attributable      attributable     Equity
                                         compensation   for           Reserve           Reserve          Reserve                                      to                to
                                         reserve        sale                                                                                          Shareholders      Non-
                                                        financial                                                                                     of the            controlling
                                                assets                                                                             Company          interest        
Balance as at   $ 100     $ —            $   —          $ (25,496 )   $ (1,945,447  )   $ —              $   9,954     $  9,398,927    $ 29,292,375   $ 36,730,413      $ 8,954,156      $ 45,684,569
April 1, 2012
Profit after      —         —                —            —             —                 —                  —            —              2,630,571    $ 2,630,571         641,283        $ 3,271,854
tax
Other
comprehensive
income/(loss)     —         —                —            (7,760  )     (2,326,316  )     (5,553,305 )       —            —              —            $ (7,887,381  )     (1,922,793 )   $ (9,810,174  )
for the
period
Total
comprehensive
income/(loss)  $ —      $ —           $   —         $ (7,760  )  $ (2,326,316  )  $ (5,553,305 )  $   —        $  —           $ 2,630,571   $ (5,256,810  )  $ (1,281,510 )  $ (6,538,320  )
for the
period
Balance as at  $ 100    $ —           $   —         $ (33,256 )  $ (4,271,763  )  $ (5,553,305 )  $   9,954    $  9,398,927   $ 31,922,946  $ 31,473,603    $ 7,672,646    $ 39,146,249  
June 30, 2012
                                                                                                                                                                 
Balance as at   $ 9,111   $ 82,639,766   $   227,674    $ (21,561 )   $ (5,582,983  )   $ 258,647        $   26,340    $  9,398,927    $ 44,348,684   $ 131,304,605     $ 12,328,130     $ 143,632,735
April 1, 2013
Share based       —         —                85,811       —             —                 —                  —            —              —            $ 85,811            —              $ 85,811
compensation
Transaction     $ —       $ —            $   85,811     $ —           $ —               $ —              $   —         $  —            $ —            $ 85,811          $ —              $ 85,811
with owners
Profit after      —         —                —            —             —                 —                  —            —              5,880,748    $ 5,880,748         1,465,948      $ 7,346,696
tax
Other
comprehensive
income/(loss)     —         —                —            15,177        (9,104,846  )     (4,509,725 )       —            —              —            $ (13,599,394 )     (3,315,275 )   $ (16,914,669 )
for the
period
Total
comprehensive
income/(loss)  $ —      $ —           $   —         $ 15,177    $ (9,104,846  )  $ (4,509,725 )  $   —        $  —           $ 5,880,748   $ (7,718,646  )  $ (1,849,327 )  $ (9,567,973  )
for the
period
Balance as at  $ 9,111  $ 82,639,766  $   313,485   $ (6,384  )  $ (14,687,829 )  $ (4,251,078 )  $   26,340   $  9,398,927   $ 50,229,432  $ 123,671,770   $ 10,478,803   $ 134,150,573 
June 30, 2013


Amira Nature Foods Ltd

Condensed Consolidated Statements of Cash Flows

                                                            
                                             June 30, 2013    June 30, 2012
                                             (Unaudited)       (Unaudited)
(A) CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax                            $ 9,603,233       $ 4,473,768
Adjustments for non-cash items                 (1,869,009  )     (2,083,040  )
Adjustments for non-operating expenses         3,954,965         4,241,217
Changes in operating assets and               2,777,060       (17,038,395 )
liabilities
                                             $ 14,466,249      $ (10,406,450 )
Income Taxes paid                             (225,043    )    (191,174    )
Net cash generated from/(used in)            $ 14,241,206     $ (10,597,624 )
operating activities
                                                               
(B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment    $ (315,703    )   $ (245,883    )
Purchase of intangible assets                  (67,286     )     (27,485     )
Proceeds from sale of property, plant and      5,332             -
equipment
Interest income                               784,976         109,167     
Net cash generated from/(used in)            $ 407,319        $ (164,201    )
investing activities
                                                               
(C) CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from/(repayment of) short       $ (7,714,984  )   $ 13,000,712
term debt
Repayment of long term debt                    (500,743    )     (599,186    )
Interest paid                                 (4,743,922  )    (4,350,384  )
Net cash (used in)/ generated from           $ (12,959,649 )   $ 8,051,142   
financing activities
                                                               
(D) Effect of change in exchange rate on       (2,347,218  )     (2,010,709  )
cash and cash equivalents
                                                              
Net decrease in cash and cash equivalents    $ (658,342    )   $ (4,721,392  )
(A+B+C+D)
Cash and cash equivalents at the beginning     33,270,338        8,368,256
of the period
Cash and cash equivalents at the end of      $ 32,611,996     $ 3,646,864   
the period

                         Non-IFRS Financial Measures

In evaluating our business, we consider and use the non-IFRS measures EBITDA,
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 earnings per share as
the quotient of: (a) profit after tax and (b) the sum of our outstanding
ordinary shares and the ordinary shares subject to the exchange agreement
between us and the non-controlling shareholders of Amira India or 35.7 million
shares, during the applicable period; (3) adjusted net working capital as
total current assets minus: (a) cash and cash equivalents and (b) trade
payables, current tax liabilities (net) and other current liabilities; and (4)
net debt as total current and non-current debt minus cash and cash
equivalents.

We use EBITDA as a measure 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 EBITDA as a non-IFRS measure
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), the book amortization of intangibles (affecting
relative amortization expenses), the age and book value of property and
equipment (affecting relative depreciation expenses). We also present this
non-IFRS measure because we believe it is frequently used by securities
analysts, investors and other interested parties as measure of the financial
performance of companies in our industry.

We present 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.

The following is a reconciliation of profit after tax to EBITDA:


                                    (Amounts in USD)
                                       Three months ended  Three months ended
                                       June 30, 2013       June 30, 2012
Profit after tax                       $     7,346,696      $     3,271,854
Add:     Income tax expense                  2,256,537            1,201,915
Add:     Finance costs (net of               4,378,545            5,229,333
         finance income)
Add:   Depreciation and                  488,883            460,898
         amortization
EBITDA                                $     14,470,661    $     10,164,000

The following is a reconciliation of earnings per share and adjusted earnings
per share:


                                      (Amounts in USD)
                                       Three months ended  Three months ended
                                       June 30, 2013       June 30, 2012
Profit after tax (PAT)                 $    7,346,696       $    3,271,854
Profit attributable to Shareholders    $    5,880,748       $    2,630,570
of the company (A)
Weighted average number of shares         28,661,998         19,660,000
(B)
Basic and diluted Earnings per share  $    0.21           $    0.13
as per IFRS (A/B)
Number of shares outstanding
including shares for non-controlling      35,676,434         35,676,434
interest - fully diluted
Adjusted earnings per share           $    0.21           $    0.09

The following is a reconciliation of working capital (total current assets
minus total current liabilities) and adjusted net working capital:


                                               (Amounts in USD)
                                                As at          As at
                                                June 30, 2013  March 31, 2013
Current assets:
Inventories                                     $ 160,803,687   $  181,459,799
Trade receivables                                 62,356,613       66,792,434
Derivative financial instruments                  -                1,260,512
Prepayments                                       12,873,666       8,386,856
Other current assets                              11,371,702       10,856,050
Cash and cash equivalents                        32,611,996     33,270,338
Total current assets                            $ 280,017,664  $  302,025,989
                                                                
Current liabilities:
Trade payables                                  $ 4,483,286     $  4,516,657
Debt                                              136,351,744      156,785,820
Current tax liabilities (net)                     2,546,577        2,658,236
Derivative financial instruments (liability)      7,382,468        -
Other current liabilities                        6,407,438      5,393,803
Total current liabilities                       $ 157,171,513  $  169,354,516
                                                                
Working Capital as per IFRS (Total current      $ 122,846,151   $  132,671,473
assets minus Total current liabilities)
Less: Cash and cash equivalents                   32,611,996       33,270,338
Add: Current debt                               136,351,744    156,785,820
Adjusted net working capital                   $ 226,585,899  $  256,186,955

The following is a reconciliation of total current and non-current debt to net
debt:


                                               (Amounts in USD)
                                                As at          As at
                                                June 30, 2013  March 31, 2013
Current debt                                    $ 136,351,744   $  156,785,820
Non-current debt                                 3,943,933      4,831,416
Total current and non-current debt as per       $ 140,295,677   $  161,617,236
IFRS
Less: Cash and cash equivalents                 32,611,996     33,270,338
Net debt                                       $ 107,683,681  $  128,346,898

Contact:

ICR
John Mills/Katie Turner, 646-277-1200
 
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