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Godrej Agrovet Limited Q4 FY22 total income increased to Rs. 2,133.9 crore from Rs. 1,472.4 crore


Mumbai, May 9, 2022: Godrej Agrovet Limited(“GAVL”) has todayannounced its financial results for the fourth quarterand financial year ended March 31, 2022 HIGHLIGHTS OF FINANCIAL PERFORMANCE (Q4FY22 and FY22) Q4 FY22 Financial Summary · Q4 FY22consolidated total incomeincreased to Rs.2,133.9 crore fromRs. 1,472.4 crorein Q4 FY21, a growthof 44.9% year-on-year · Q4 FY22 consolidated EBITDA,excluding non-recurring & exceptional items, increased to Rs. 193.3 crore from Rs. 124.5 crorein Q4 FY21, a growthof 55.3% year-on-year (reported growth of 82.0% year-on-year) · Q4 FY22 Profit beforetax, excluding non-recurring & exceptional items,increased to Rs. 129.6 crore from Rs. 67.4 crore in Q4 FY21, a growth of 92.4% year-on-year (reported growth of 144.0% year-on-year) FY22 Financial Summary · FY22 consolidated total income increased to Rs. 8,385.7crore from Rs. 6,306.3 crorein FY21, a growth of 33.0% year-on-year · FY22 consolidated EBITDA, excluding non-recurring & exceptional items,increased to Rs. 723.2 crore in Q4 FY22 fromRs. 598.1 crorein FY21, a growth of 20.9% year-on-year (reported growth of 23.5% year-on-year) · FY22 Profitbefore tax, excluding non-recurring & exceptional items, increased to Rs. 486.8crore from Rs. 397.6 crore in FY21, a growth of 22.4% year-on-year (reported growth of 26.3% year- on-year)


MANAGING DIRECTOR’S COMMENTS Commenting on the performance, Mr. B. S. Yadav, Managing Director, Godrej Agrovet Limited, said: The financial year 2021-22augured well for Godrej Agrovetin terms of top line growth with sustained rise in profitability. We achieved a strong performance clocking highest ever total incomeof INR 8,385.7 Crore in FY 2021-22,growing at 33.0%year-on-year while consolidated profit before tax grew by 22.4% year-on-year. Most of our businesses registered a strongvolume growth withthe exception of our Standalone CropProtection segment. Growthin profitability was largely drivenby Animal Feeds, Vegetable Oil and AstecLifeSciences, while Crop Protection and Food businesses reported a decline in operating margin. Animal Feed business recorded double-digit growthin volumes in all the four quarters on the back of new product launchesand increasing marketpenetration. Vegetable Oilbusiness reaped benefits of higher oil pricesand improved efficiency levels throughout the year as segment resultsgrew by 2.9x year-on-year. ForStandalone Crop Protection business, it was a very challenging yearon account of an erratic and uneven monsoon.This restricted productapplication opportunities in the peak season. Thiswas further impacted by higher salesreturns and increased provision for doubtful debts as we focusedon channel hygiene. Astec LifeSciences reportedanother year of outstanding growth, with increase in total revenuesby 22.1% and PBT by 36.0%, year-on-year. Higher realizations in exports were supported by favorable product mix and operational efficiencies. In our Food businesses, strong volumegrowth was offsetby margin pressures on account of unprecedented input costs inflation. Our Dairy subsidiary, Creamline Dairy achieved notablemarket share gainsin key value-added productsregistering 13.8% toplinegrowth. However, marginsdeclined owing to challenges in passing on increase in milk procurement, logistics and packagingcosts. Similarly, for Poultry and Processed Foodbusiness, favorable demanddynamics in Real Good Chicken(RGC) and Live Birdsub-segments were offsetby volatile livebird prices and elevated commodity inflation throughout the year. During the year, GodrejAgrovet also focusedon achieving the long-term sustainability targets guided by Group'sGood & Greenvision. We participated in Climate Disclosure Project’s (CDP) carbonand forests disclosure, becomingone of the first companies in the Indianagriculture sector to do so. GAVL’s CDP scores relatedto climate &palm submission are ahead of the globalaverages. We also made a good progress in achieving 2025sustainability targets suchas (a) 69% of energyconsumption from clean renewable energy sources as against target of 90% (b) beinga water positive company already conserving 6 times more water than the consumption (c) 89% of the totalCO2 emissions sequestered as against targetof 100% to become a carbon neutralcompany.


SEGMENT-WISE BUSINESS HIGHLIGHTS Animal Feed · In Q4 FY22, strongyear-on-year volume and revenue growthof 19.5% and 38.2%, respectively, was driven by marketshare gains and new productdevelopment. Volume growthwas recorded across key categories i.e. Cattle (+25%year-on-year), Broiler (+15%)and layer (+28%) · In Q4 FY22, Segmentresults grew by 5.9% year-on-year as profitability was impacted on account of sharp increase in pricesof key input commodities and limited transmission during the quarter. · For FY22, animal feeds segment reportedrobust growth in volumes (+20.3%)and topline (+40.6%) as comparedto the previous year. Segmentresults also grewby 22.2% year-on-year on account of timelyprice hikes, R&Dbenefits and strategic stocking initiatives. . Vegetable Oil · In Q4 FY22, Segmentrevenues and segmentresults grew by 2.6x and 6.2x year-on-year respectively on accountof improvement in oil extraction ratio (OER) coupledwith continued rise in oil prices and healthy volumegrowth. Prices of crude palmoil and palmkernel oil increased by 20% and 34% year-on-year, respectively, during the fourthquarter. · Overall, FY22 was a remarkable year for our Vegetable Oil business as we achievedgood improvement in oil extraction ratioon the back of R&Dinitiatives and operational efficiencies. This coupledwith record-high oil prices of crude palm oil and palm kerneloil led to strong growth in segment revenues and segment resultsby 78.1% and 187.6%, respectively. · For the entire year,average prices of crude palmoil and palm kernel oil increased by 51% and 90%,respectively, as comparedto the previous year. Crop Protection (Standalone) · In Q4 FY22, CropProtection segment reported 12.6% year-on-year growthin segment revenues led by higher saleof in-house products. Segment results grew by 2.1%year-on-year. · We launched ‘Gracia’ duringthe year, extending our in-licensing arrangement with Nissan Chemical Corporation, Japan.Gracia is an insecticide for control on chewing and sucking pests. · For FY22,there was a de-growth in segment revenuesby 6.3% year-on-year. Segment results also declined to Rs. 101.4crore in FY22 from Rs. 153.4 crorein FY21. Duringthe second halfof the year, higheremphasis was givenon improving channelhygiene which led to highersales returns and increasedprovision for doubtfuldebts. Astec LifeSciences · Astec registered its best quarterly performance in Q4 FY22, drivenby higher realisations from exports and increasein CMO volumes. Segment revenuesgrew by 58.2% year-on-year to Rs. 272.0crore while PATgrew by 79.7%year-on-year to Rs.43.0 Crore. EBITDAmargin improved to 26.6% in Q4FY22 from 23.1% in Q4FY21.



· Growth in Q4 FY22was driven by exports sales,which accounted for70.8% of the segment revenues for Q4 and grew by 127.3%year-on-year.

· For the full year,Astec’s solid growthwas driven by higher exportsrealization, favorable product mix and operational efficiencies. Geographically, exports were the maindriver growing by 44.4% year-on-year. Exports shareincreased to 57.7%of the segment revenues from 48.7% in FY21.

· Astec delivered 447bps improvement in gross marginto 42.8% in FY22 vs. 38.4% in FY21, on the back of higher realizations and benefits from investment in backward integration. The EBITDA margin stood at 24.3% in FY22 from 21.5% in the previous year.


Dairy

· In Q4 FY22, sustained volume growth in value-added products resulted in 20.2%growth in Segment revenues. Favorable product mix andpartial impact from price hikeduring the quarter translated into29.7% growth in segment EBITDA,albeit on a low base.

· For the full yearended 2022 also,value-added products continued to drive healthygrowth in topline. However,margins were undersevere pressure due to covid-led disruption in the first half of the year and elevated inputcosts throughout the year. Thiswas further exacerbated by lack of transmission in the first nine monthsby competition.


Godrej Tyson Foods Limited

· GTFL achieved 45.8% growth in segment revenuesin Q4 FY22 led by Real GoodChicken (RGC) and Live Bird categories. Sharp jump in live birdprices from mid-February exceeded input costs inflation resulting in EBITDAimprovement to Rs. 16.2 crorein Q4 FY22 form the lows of Rs. 0.8 crore in Q4 FY21.

· In FY22,GTFL reported 30.1%increase in revenues, however EBITDA margindeclined sharply. Sustained rise in input costs,mainly soymeal, was a severedrag on EBITDAmargin.


ACI Godrej Agrovet Private Limited, Bangladesh

· In Q4 FY22, ACI Godrej continuedwith its upbeatperformance and posted revenue growthof 41.0% year-on-year. The growth was driven by higher realizations and a volumegrowth of 23.3% during the quarter.

· For the full year, ACI Godrejrecorded 24.5% rise in segmentrevenues with all segments witnessing healthy growthin volumes drivenby market sharegains in Bangladesh.

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