Amira Nature Foods Ltd (NYSE:ANFI), a leading global provider of branded, packaged Indian specialty rice, reported financial results for its fiscal 2016 full year and six months ended on March 31, 2016.
Bruce Wacha, Amira’s Chief Financial Officer, stated, “We are pleased to report our results for the fiscal year ended March 31, 2016. As we noted previously, 2016 was a challenging year due to a number of factors that we believe to be largely temporary in nature. Nonetheless, we maintained margins at historical levels – generating adjusted EBITDA of $74.7 million and adjusted EBITDA margins of 13.3% for the year. We have grown our business substantially since the time of our initial public offering in 2012 and we increased revenues by more than 60% since that period. We continue to maintain strong relationships with our major customers and now that we have reported our results for fiscal 2016 we look forward to returning to our growth model in 2017 and having a deeper engagement with our investors. Going forward, we continue to see many opportunities in India and around the world to further expand our business and create value for our shareholders.”
Full Year Fiscal 2016 Results
Revenue for the full year of fiscal 2016 was $563.4 million compared to $700.0 million in fiscal 2015. The revenue decline was primarily driven by decreases in volumes for the Company’s international emerging markets business that management believes to be short term in nature, as well as macro effects on the Company’s business such as the impact of currency translation on its India business and lower prices for its global Basmati rice sales following decreases in its input costs. Sales in India were $245.9 million, a decrease of 14.2%, or a decrease of 8.1% in INR compared to the prior year. International sales, or sales outside of India were $317.5 million compared to $413.3 million in the prior year. The decline in international revenue was primarily driven by the Company’s international emerging markets business, with its German, UK and US businesses sales generally flat to marginally up year-over-year.
Adjusted EBITDA for fiscal 2016 was $74.7 million compared to $99.9 million the prior year. Adjusted EBITDA margin was 13.3% for fiscal 2016 compared to 14.3% the prior year and 13.0% average margin over the previous five years. Adjusted profit after tax was $41.9 millioncompared to $56.1 million in fiscal 2015. Adjusted EPS was $1.17 per share in fiscal 2016 compared to $1.56 per share the prior year. The Company’s effective tax rate was 13.0% for the period compared to 13.9% for the prior year period. A reconciliation of adjusted EBITDA, adjusted profit after tax and adjusted EPS is provided in the “Non-IFRS Financial Measures” section of this release.
Six Months Ended March 31, 2016 Results
Revenue for the six months ended March 31, 2016 were $331.7 million compared to $419.8 million in the prior year period. Adjusted EBITDA was $44.2 million for the final six months of 2016, compared to $61.1 million. Adjusted profit was $28.4 million compared to $36.3 million in the prior year period. Adjusted EPS was $0.79 per share for the final six months of 2016, compared to $1.01 per share in the prior year period. A reconciliation of adjusted EBITDA, adjusted profit after tax and adjusted EPS is provided in the “Non-IFRS Financial Measures”section of this release.
Balance Sheet and Cash Flow Highlights
As of March 31, 2016, the Company’s cash and cash equivalents were $17.4 million, not including $3.6 million of short-term investments, which were available on demand. Adjusted net working capital was $420.3 million. Net debt (after deducting cash and cash equivalents) was$192.0 million and Net debt/Adj. EBITDA was 2.6x. As of March 31, 2016, inventories were $239.0 million compared to $262.9 million as ofMarch 31, 2015, trade receivables were $189.7 million(a), an increase of $59.3 million from $130.4 million, and trade payables were $14.5 million, a reduction of $19.8 million from $34.3 million. Total debt was $209.4 million, a reduction of $1.6 million from $211.0 million. 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.
As reported in its Form 6K filed with the Securities & Exchange Commission on January 25, 2016, the Company noted that as a result of the three years of audits, certain litigations and other related business disruptions, 2016 was an extremely challenging year and it looks forward to a return to normalcy and growth for the business for the fiscal year ending March 31, 2017. It continues to see many opportunities in Indiaand around the world to further grow its business and create value for its shareholders. (Original Source)
Shares of Amira Nature Foods closed yesterday at $6.77, down $0.32 or -4.51%. ANFI has a 1-year high of $14.09 and a 1-year low of $2.51. The stock’s 50-day moving average is $7.35 and its 200-day moving average is $8.88.
Amira Nature Foods Ltd. engages in the business of processing and selling packaged Indian specialty rice, primarily basmati rice and other food products. It sells goods to international buyers and distributors and retail chains in India. The company was founded in 1915 and is headquartered in Dubai, United Arab Emirates.