ADF Foods stuns market with 29% revenue surge in Q2 FY25 amid global expansion

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ADF Foods Limited, a leading player in the ethnic foods market, has reported a 29% year-on-year increase in standalone revenue for the second quarter of fiscal year 2025, ending on 30th September 2024. The company credited the impressive rise to significant expansion across its primary brands, particularly in international markets. For the quarter, revenue reached ₹125.6 crore, marking an increase from ₹97.3 crore during the same period last year.

The company’s EBITDA for Q2 stood at ₹27.7 crore, representing a 22.3% growth year-on-year, albeit with a slight margin reduction. Profit after tax (PAT) also rose by 20.6% to ₹21.4 crore, with a margin of 17%. Consolidated revenue, reflecting the company’s extended operations, showed an even more significant leap of 29.5%, with revenue growing to ₹161.4 crore.

Flagship brand Ashoka leads the charge with international gains

ADF Foods Limited’s flagship brand, Ashoka, has played a pivotal role in driving the company’s revenue, reportedly benefiting from its deepened market penetration. Chairman and Managing Director Bimal Thakkar stated that demand across all ADF Foods brands, including Ashoka, saw unprecedented growth. Thakkar emphasized that this increased demand is indicative of the brand’s growing acceptance and reputation among global consumers.

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The company also noted initial success in expanding its Truly Indian brand in the United States, where it has established a presence in several high-profile retail outlets, such as Whole Foods and Stop & Shop. Online platforms have further bolstered its reach, creating a foundation for anticipated continued growth in this market. Additionally, ADF Foods recently acquired the remaining 30% stake in Vibrant Foods New Jersey LLC, a strategic move expected to optimize the company’s operational capabilities and cost efficiency in the U.S. market.

Strategic growth in India and quick commerce advancements

ADF Foods’ India-focused brand, ADF SOUL, is also expanding steadily, with the company pushing into the quick commerce segment to meet the growing demand for convenience-based food solutions. As part of its strategic growth plan, ADF Foods is eyeing expansion into select modern trade channels in the Indian market, a move anticipated to amplify sales in the upcoming quarters.

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With robust growth recorded in both the ADF SOUL and Truly Indian brands, ADF Foods continues to anticipate long-term returns on its current investments. Thakkar expressed optimism about the company’s continued success, hinting at further expansions and innovations to secure ADF Foods’ position as a leader in the ethnic foods industry.

Financial highlights reflect strong operational performance

For the first half of FY25, ADF Foods posted standalone revenue growth of 22.4%, totalling ₹222.7 crore, while consolidated revenue grew by 19.4% to reach ₹283.0 crore. EBITDA for the half-year period was reported at ₹50.5 crore, with PAT at ₹38.5 crore. In addition to this positive performance, the company declared an interim dividend of ₹0.60 per share.

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Industry expert views on ADF Foods’ strategic positioning

Industry experts suggest that ADF Foods’ strategic investments in established brands are positioning it strongly within the ethnic foods sector. The company’s emphasis on product diversification and expansion into the U.S. and Indian quick commerce markets indicate a forward-looking strategy, which analysts expect to yield sustainable growth. Given the evolving consumer preference for convenience foods and the popularity of ethnic cuisines worldwide, experts believe that ADF Foods is well-positioned for continued revenue growth.


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