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Amira Nature Foods Ltd Announces Second Quarter Fiscal 2014 Financial Results



  Amira Nature Foods Ltd Announces Second Quarter Fiscal 2014 Financial
  Results

           Second Quarter Revenue Increased 36.1% to $108.0 Million

            Second Quarter EBITDA Increased 38.1% to $14.1 Million

Business Wire

DUBAI, United Arab Emirates -- November 11, 2013

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

Second Quarter Financial Highlights:

  * Revenue increased 36.1% to $108.0 million, compared to $79.4 million
  * EBITDA increased 38.1% to $14.1 million, compared to $10.2 million
  * Profit after tax increased 90.0% to $6.3 million, compared to $3.3 million
  * Basic and diluted earnings per share ^ (1) was $0.18 compared to $0.09

(All comparisons above are to the second quarter of fiscal 2013)

Karan A. Chanana, Amira’s Chairman and Chief Executive Officer, stated, “We
are pleased to report strong second quarter financial results, as our revenue
increased 36.1% and EBITDA grew 38.1%. Our results reflect our ability to
consistently add new customers in India and internationally, enter new markets
as well as the continued growing demand for our premium product offerings.”

Mr. Chanana continued, “As we begin the second half of fiscal 2014, we are
well positioned to deliver another strong year. Our business continues to
benefit from our successful execution on our strategic initiatives, including
our expanding product portfolio, which includes our recently launched Amira
Organic business division. We have been encouraged by our customers’ responses
to our organic products and are excited about the long-term potential for this
segment of our business. Based on our year-to-date results and outlook for the
remainder of the year, we are reiterating our annual revenue and EBITDA
guidance.”

Second Quarter Fiscal 2014 Results

Revenue for the second quarter of fiscal 2014 increased 36.1% to $108.0
million, compared to $79.4 million for the same period in fiscal 2013. The
revenue increase was primarily due to increased sales volume both in India and
internationally.

Cost of materials including change in inventory of finished goods increased
$20.8 million, or 34.0%, to $82.0 million in the second quarter of fiscal 2014
from $61.2 million in the second quarter of fiscal 2013. This increase
primarily reflects the growth in revenue. As a percentage of revenue, cost of
material decreased to 75.9% in the second quarter of fiscal 2014, compared to
77.1% in the second quarter of fiscal 2013, primarily due to improved
operating efficiencies and economies of scale.

EBITDA increased 38.1% to $14.1 million in the second 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 second quarter of fiscal 2014 increased 90.0% to $6.3
million, compared to $3.3 million in the quarter of fiscal 2013. Basic and
diluted earnings per share^(1) was $0.18 compared to $0.09 for the second
quarter of fiscal 2013.

First Six Months Fiscal 2014 Results

For the first six months of fiscal 2014, net revenue increased 36.8% to $218.3
million, compared to $159.5 million for the same period of fiscal 2013. EBITDA
increased 40.2% to $28.6 million, compared to $20.4 million for the same
period in fiscal 2013. Profit after tax increased 107.2% to $13.6 million,
compared to $6.6 million in the same period in fiscal 2013.

Basic and diluted earnings per share^(1) was $0.38 compared to $0.18 for the
first six months of fiscal 2013.

Balance Sheet and Cash Flow Highlights

At September 30, 2013, the Company’s cash and cash equivalents were $46.2
million and adjusted net working capital was $223.2 million. Net debt (after
deducting cash and cash equivalents) as of September 30, 2013 was $102.6
million. As of September 30, 2013, inventory decreased $15.8 million to $165.7
million from $181.5 million as of March 31, 2013. As of September 30, 2013,
trade receivables were $69.5 million, an increase of $2.7 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. The Company’s guidance is
based on foreign exchange rates as of September 30, 2013.

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 13572661). 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 the number of our weighted average outstanding ordinary shares
during the applicable period.

  Amira Nature Foods Ltd
   
  Condensed Consolidated Statements of Financial Position
                                                          
                                    As at                    As at
                                    September 30, 2013       March 31, 2013
                                    (Unaudited)
                                                              
                                     
  ASSETS
  Non-current
  Intangible assets                 $     687,721            $   607,871
  Property, plant and equipment     20,176,354               23,467,379
  Other long-term assets            446,815                  430,739
  Total non-current assets          $     21,310,890         $   24,505,989
                                                              
  Current
  Inventories                       $     165,721,767        $   181,459,799
  Trade receivables                 69,539,435               66,792,434
  Derivative financial              -                        1,260,512
  instruments
  Prepayments                       14,397,890               8,386,856
  Other current assets              11,327,101               10,856,050
  Cash and cash equivalents         46,221,446               33,270,338
  Total current assets              $     307,207,639        $   302,025,989
  Total assets                      $     328,518,529        $   326,531,978
                                                              
  EQUITY AND LIABILITIES
  Equity
  Share capital                     $     9,111              $   9,111
  Share premium                     82,639,766               82,639,766
  Share based compensation          382,496                  227,674
  reserve
  Reserve for available for         (34,188)                 (21,561)
  sale financial assets
  Currency translation reserve      (19,713,227)             (5,582,983)
  Cash flow hedging reserve         (4,442,194)              258,647
  Actuarial gain reserve            26,340                   26,340
  Restructuring reserve             9,398,927                9,398,927
  Retained earnings                 55,253,069               44,348,684
  Equity attributable to            $     123,520,100        $   131,304,605
  Shareholders of the Company
  Equity attributable to            10,456,384               12,328,130
  Non-Controlling Interest
  Total Equity                      133,976,484              143,632,735
                                                              
  Liabilities
  Non-current liabilities
  Employee benefit obligations      $     223,077            $   185,437
  Debt                              3,318,723                4,831,416
  Deferred tax liabilities          7,757,791                8,527,874
  Total non-current liabilities     $     11,299,591         $   13,544,727
                                                              
  Current liabilities
  Trade payables                    $     22,057,765         $   4,516,657
  Debt                              145,464,894              156,785,820
  Current tax liabilities (net)     3,364,637                2,658,236
  Derivative financial              8,382,917                -
  instruments
  Other current liabilities         3,972,241                5,393,803
  Total current liabilities         $     183,242,454        $   169,354,516
  Total liabilities                 $     194,542,045        $   182,899,243
  Total equity and liabilities      $     328,518,529        $   326,531,978
  (The accompanying notes are an integral part of these unaudited condensed
  interim consolidated financial statements)
                                                                  
                                                                  

  Amira Nature Foods Ltd
   
  Condensed Consolidated Statements of Income
                                                       
                    Six months ended                    Three months ended
                    September 30,     September 30,     September 30,    September 30,
                    2013              2012              2013             2012
                    (Unaudited)       (Unaudited)       (Unaudited)      (Unaudited)
  Revenue           $ 218,296,338     $ 159,535,598     $ 108,011,250    $ 79,363,793
  Other income        95,063            92,102            57,187           40,703
  Cost of             (181,941,294)     (128,146,010)     (92,069,372)     (91,367,217)
  material
  Change in
  inventory of        12,484,391        1,080,029         10,115,880       30,188,582
  finished goods
  Employee            (4,252,315)       (1,839,450)       (2,107,397)      (1,034,770)
  expenses
  Depreciation
  and                 (951,200)         (937,322)         (462,317)        (476,424)
  amortization
  Freight,
  forwarding and      (9,861,688)       (5,684,149)       (3,320,673)      (2,959,869)
  handling
  expenses
  Other expenses      (6,457,078)       (5,039,588)       (3,035,481)      (2,127,274)
                    $ 27,412,217      $ 19,061,210      $ 17,189,077     $ 11,627,524
  Finance costs       (10,579,446)      (10,658,978)      (5,415,924)      (5,320,478)
  Finance income      1,563,146         179,150           778,169          69,983
  Other financial     190,828           361,953           (3,567,810)      (1,907,463)
  items
  Profit before     $ 18,586,745      $ 8,943,335       $ 8,983,512      $ 4,469,566
  tax
  Income tax          (4,960,365)       (2,366,989)       (2,703,828)      (1,165,074)
  expense
                                                                            
  Profit after      $ 13,626,380      $ 6,576,346       $ 6,279,684      $ 3,304,492
  tax
  Profit after
  tax
  attributable
  to:
  Shareholders of     10,904,385        5,287,382         5,023,637        2,656,812
  the company
  Non-controlling     2,721,995         1,288,964         1,256,047        647,680
  interest
                                                                            
  Earnings per
  share
  Basic and
  diluted
  earnings per      $ 0.38            $ 0.18            $ 0.18           $ 0.09
  share (Refer
  Note 9)
  (The accompanying notes are an integral part of these unaudited condensed interim
  consolidated financial statements)
                                                                            
                                                                            

  Amira Nature Foods Ltd
   
  Condensed Consolidated Statements of Comprehensive Income
                                                        
                      Six months ended                   Three months ended
                      September 30,    September 30,     September 30,   September 30,
                      2013             2012              2013            2012
                      (Unaudited)      (Unaudited)       (Unaudited)     (Unaudited)
  Profit after tax    $ 13,626,380     $ 6,576,346       $ 6,279,684     $ 3,304,492
  Other
  comprehensive
  income
  Items to be
  reclassified to
  income statement
  in subsequent
  period
  Available for
  sale financial
  assets
  -Current period       (23,793)         (11,785)          (52,389)        2,500
  gain/(loss)
  -Income tax           8,087            3,824             17,807          (811)
  Cash flow hedging
  reserve
  -Current period       (11,066,017)     (2,450,694)       (3,082,425)     7,773,710
  gain/ (loss)
  -Reclassification
  to income             2,208,545        1,732,009         2,722,317       1,732,009
  statement
  -Income tax           3,010,655        233,177           122,401         (3,084,130)
  Exchange
  differences on
  translation of      $ (17,574,930)   $ (741,929)       $ (6,250,496)   $ 2,151,500
  foreign
  operations
  Other
  comprehensive
  loss for the        $ (23,437,453)   $ (1,235,398)     $ (6,522,785)   $ 8,574,778
  period, net of
  tax
  Total
  comprehensive       $ (9,811,073)    $ 5,340,948       $ (243,101)     $ 11,879,270
  loss for the
  period
                                                                            
  Total
  comprehensive
  loss for the
  period
  attributable to:
  Shareholders of       (7,939,327)      4,294,122         (220,682)       9,550,933
  the Company
  Non-controlling       (1,871,746)      1,046,826         (22,419)        2,328,337
  interest
  (The accompanying notes are an integral part of these unaudited condensed interim
  consolidated financial statements)
   
   

  Amira Nature Foods Ltd                                                                                                                                                                                        
                                                                                                                                                                                                                  
  Condensed Consolidated Statements of Changes in Equity
  (Unaudited)
                                                                                                                                                                                               
                                                                  Reserve                                                                                                     Equity            Equity
                                               Share              for                                                                                                         attributable      attributable
                    Share       Share          based              available       Currency            Cash flow        Actuarial         Restructuring       Retained         to                to               Total
                    capital     premium        compensation       for             translation         hedging          gain/(loss)       Reserve             Earnings         Shareholders      Non -            Equity
                                               reserve            sale            Reserve             Reserve          Reserve                                                of the            controlling
                                                                  financial                                                                                                   Company           interest
                                                                  assets
  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      —           —              —                  —               —                   —                —                 —                   5,287,382    $   5,287,382         1,288,964    $   6,576,346
  tax
  Other
  comprehensive
  income            —           —              —                  (6,401  )       (596,511    )       (390,348   )     —                 —                   —            $   (993,260    )     (242,138   ) $   (1,235,398  )
  /(loss) for
  the period
  Total
  comprehensive
  income/(loss)   $ —         $ —            $ —              $   (6,401  )   $   (596,511    )   $   (390,348   ) $   —             $   —               $   5,287,382    $   4,294,122     $   1,046,826    $   5,340,948    
  for the
  period
  Balance as at
  September 30,   $ 100       $ —            $ —              $   (31,897 )   $   (2,541,958  )   $   (390,348   ) $   9,954         $   9,398,927       $   34,579,757   $   41,024,535    $   10,000,982   $   51,025,517   
  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       —           —              154,822            —               —                   —                —                 —                   —            $   154,822           —            $   154,822
  compensation
  Transaction     $ —         $ —            $ 154,822        $   —           $   —               $   —            $   —             $   —               $   —            $   154,822       $   —            $   154,822
  with owners
  Profit after      —           —              —                  —               —                   —                —                 —                   10,904,385   $   10,904,385        2,721,995    $   13,626,380
  tax
  Other
  comprehensive
  income            —           —              —                  (12,627 )       (14,130,244 )       (4,700,841 )     —                 —                   —            $   (18,843,712 )     (4,593,741 ) $   (23,437,453 )
  /(loss) for
  the period
  Total
  comprehensive
  income/(loss)   $ —         $ —            $ —              $   (12,627 )   $   (14,130,244 )   $   (4,700,841 ) $   —             $   —               $   10,904,385   $   (7,939,327  ) $   (1,871,746 ) $   (9,811,073  )
  for the
  period
  Balance as at
  September 30,   $ 9,111     $ 82,639,766   $ 382,496        $   (34,188 )   $   (19,713,227 )   $   (4,442,194 ) $   26,340        $   9,398,927       $   55,253,069   $   123,520,100   $   10,456,384   $   133,976,484  
  2013
  (The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements)
   
   

  Amira Nature Foods Ltd
   
  Condensed Consolidated Statements of Cash Flows
                                      
                                       Six months ended
                                       September 30, 2013   September 30, 2012
                                       (Unaudited)          (Unaudited)

                                                             
  (A) CASH FLOW FROM OPERATING
  ACTIVITIES
  Profit before tax                    $   18,586,745       $  8,943,335
  Adjustments for non-cash items           (2,295,894  )       141,483
  Adjustments for non-operating            7,885,594           8,516,398
  expenses
  Changes in operating assets and          (5,119,573  )       (34,027,228  )
  liabilities
                                       $   19,056,872       $  (16,426,012  )
  Income Taxes paid                        (547,045    )       (327,489     )
  Net cash generated from/(used in)    $   18,509,827       $  (16,753,501  )
  operating activities
                                                                
  (B) CASH FLOW FROM INVESTING
  ACTIVITIES
  Purchase of property, plant and      $   (781,245    )    $  (638,403     )
  equipment
  Purchase of intangible assets            (212,448    )       (106,149     )
  Proceeds from sale of property,          5,333               (350         )
  plant and equipment
  Interest income                          404,795             179,150       
  Net cash generated from/(used in)    $   (583,565    )    $  (565,752     )
  investing activities
                                                                
  (C) CASH FLOWS FROM FINANCING
  ACTIVITIES
  Net proceeds from short term debt    $   8,711,547        $  23,202,954
  Proceeds from long term debt             32,442              -
  Repayment of long term debt              (952,320    )       (963,036     )
  Interest paid                            (8,906,972  )       (8,695,198   )
  Net cash (used in)/ generated from   $   (1,115,303  )    $  13,544,720    
  financing activities
                                                                
  (D) Effect of change in exchange         (3,859,851  )       (308,955     )
  rate on cash and cash equivalents
  Net decrease in cash and cash        $   12,951,108       $  (4,083,488   )
  equivalents (A+B+C+D)
  Cash and cash equivalents at the         33,270,338          8,368,256
  beginning of the period
  Cash and cash equivalents at the     $   46,221,446       $  4,284,768     
  end of the period
                                                                
                                                                

                         Non-IFRS Financial Measures

In evaluating our business, we consider and use the non-IFRS measures EBITDA,
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 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 (3) 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 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 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)
                  Six months      Six months      Three months    Three months
                  ended           ended           ended           ended
                  September 30,   September 30,   September 30,   September
                  2013            2012            2013            30,
                                                                  2012
  Profit after    $  13,626,380   $  6,576,346    $  6,279,684    $ 3,304,492
  tax
  Add: Income     4,960,365       2,366,989       2,703,828       1,165,074
  tax expense
  Add: Finance
  costs (net of   9,016,300       10,479,828      4,637,755       5,250,495
  finance
  income)
  Add:
  Depreciation    951,200         937,322         462,317         476,424
  and
  amortization
  EBITDA          $  28,554,245   $  20,360,485   $  14,083,584   $ 10,196,485
                                                                     

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
                                         September 30, 2013     March 31, 2013
  Current assets:                                            
  Inventories                          $ 165,721,767          $ 181,459,799
  Trade receivables                      69,539,435             66,792,434
  Derivative financial instruments       -                      1,260,512
  Prepayments                            14,397,890             8,386,856
  Other current assets                   11,327,101             10,856,050
  Cash and cash equivalents              46,221,446             33,270,338
  Total current assets                 $ 307,207,639          $ 302,025,989
                                                                 
  Current liabilities:
  Trade payables                       $ 22,057,765           $ 4,516,657
  Debt                                   145,464,894            156,785,820
  Current tax liabilities (net)          3,364,637              2,658,236
  Derivative financial instruments       8,382,917              -
  (liability)
  Other current liabilities              3,972,241              5,393,803
  Total current liabilities            $ 183,242,453          $ 169,354,516
                                                                 
  Working Capital as per IFRS (Total
  current assets minus Total current   $ 123,965,185          $ 132,671,473
  liabilities)
  Less: Cash and cash equivalents        46,221,446             33,270,338
  Add: Current debt                      145,464,894            156,785,820
  Adjusted net working capital         $ 223,208,633          $ 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
                                         September 30, 2013     March 31, 2013
  Current debt                         $ 145,464,894          $ 156,785,820
  Non-current debt                       3,318,723              4,831,416
  Total current and non-current debt   $ 148,783,617          $ 161,617,236
  as per IFRS
  Less: Cash and cash equivalents        46,221,446             33,270,338
  Net debt                             $ 102,562,171          $ 128,346,898

Contact:

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