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Q2FY25 V/S Q2FY24 

Financial Performance Summary

• Revenue from operation grew by 18.5% YoY to Rs. 7,212 mn with Volume growth of 15.0% YoY • EBITDA grew by 21.7% YoY to Rs. 1,067 mn with a margin of 14.8% (up 39 bps YoY) led by strong festive demand 

• Profit After Tax (PAT) grew by 14.7% YoY to Rs. 686 mn • Earnings per share (EPS) (Basic) stood at Rs. 2.76

Business Segments Review

• Ethnic Snacks: Revenue grew by 10.5% YoY; constitutes 63.8% of overall revenue 

• Packaged Sweets: Revenue grew by 22.0% YoY; constitutes 17.5% of overall revenue 

• Western Snacks: Revenue grew by 23.2% YoY; constitutes 8.3% of overall revenue 

• Papad: Revenue grew by 26.2% YoY; constitutes 4.1% of overall revenue 

H1FY25 V/S H1FY24 

Financial Performance Summary

• Revenue from operation grew by 18.6% to Rs. 12,933 mn with Volume growth of 15.5% • EBITDA grew by 29.2% to Rs. 1,983 mn with a margin of 15.3% (up 126 bps YoY) led by strong festive demand 

• Profit After Tax (PAT) grew 25.1 % to Rs. 1,266 mn • Earnings per share (EPS) (Basic) stood at Rs. 5.10

Business Segments Review: 

• Ethnic Snacks: Revenue grew by 13.1 %; constitutes 67.8% of overall revenue

• Packaged Sweets: Revenue grew by 22.7%; constitutes 13.1% of overall revenue

• Western Snacks: Revenue grew by 24.5%; constitutes 8.8% of overall revenue

• Papad: Revenue grew by 19.4%; constitutes 4.9% of overall revenue 

Deepak Agarwal, Managing Director of Bikaji Foods International Limited stated “We are delighted to inform our stakeholders that our company has demonstrated strong performance across all the categories. This quarter we have witnessed a significant jump in revenue and profit margins. This surge in growth is due to the demand in Ethnic Snacks and Packaged Sweets on account of Festive seasonality impact. Overall contribution of Packaged Sweets has jumped to 17.5% this quarter, which is again due to festive play. Despite facing significant inflationary challenges, we successfully maintained our margin profile while achieving robust volume growth. Strategic cost management and effective pricing strategies enabled us to navigate this environment, ensuring both profitability and market competitiveness.”

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This acquisition will enable Bikaji to expand its product portfolio into the premium bakery and patisserie segment, while also incorporating various café offerings to meet evolving consumer preferences.

The Hazelnut Factory is an established Café cum Artisanal sweets brand having a retail presence in 6 stores in Lucknow and 1 store each in Kanpur & Delhi. The brand offers Specialty coffee, Artisanal sweets, bakery & patisserie along with a range of café Menu.

The acquisition of The Hazelnut Factory will enhance Bikaji’s ‘House of Brands’ by providing cross-selling opportunities, flexible menu offerings, a diverse customer base, a diversified brand portfolio, shared facilities and resources, and increased market presence.

Deepak Agarwal, MD of Bikaji Foods International, remarked, “This acquisition marks a significant step in Bikaji’s journey to expand beyond traditional ethnic snacks and enter into retail QSR, premium artisanal sweets and bakery segment. This strategic move not only marks our entry into the high-growth QSR sector but also aligns with our vision to build a ‘House of Brands’. By integrating THF’s premium offerings and Bikaji’s manufacturing capabilities, we aim to cater to unique customer tastes and preferences, establishing Bikaji as a key player in the QSR space.”

Ankit Sahni, Founder of The Hazelnut Factory, said, “We are delighted to join hands with Bikaji and this acquisition marks an exciting milestone for The Hazelnut Factory. With our innovative culinary offerings and Bikaji’s strong distribution network along with it’s operational excellence, we are well-positioned to accelerate our growth. Our vision to blend the rich tradition of artisanal sweets with global coffee culture will now reach a broader audience, creating unforgettable culinary experiences for even more customers. Our combined expertise will allow us to cater to a wider audience.”

The acquisition comes at a pivotal moment, as the Quick Service Restaurant (QSR) segment is witnessing rapid growth and an increased store presence in tier-2 and tier-3 cities and smaller towns, fueled by factors such as increasing urbanization, a growing young population, rising travel and tourism, and expanding internet penetration.

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This strategic investment, totalling Rs. 60.49 crore, will enable Bikaji to enhance its frozen food production capabilities and expand its market presence.

“We are thrilled to announce our acquisition of a 55% stake in Ariba Foods Private Limited,” said Deepak Agarwal, Managing Director, Bikaji Foods International Limited. “This strategic move not only strengthens our capacity for export growth but also supports our entry into the QSR segment. By integrating Ariba’s state-of-the-art production capabilities, we aim to enhance our frozen snacks and savouries manufacturing.”

The acquisition comes at a pivotal moment as the frozen food sector experiences rapid growth driven by technological advancements. With a positive growth perspective, the industry is set to leverage these innovations to meet increasing consumer demand and expand its market presence.

“This acquisition marks an exciting milestone for Ariba Foods. With our advanced production facilities and export expertise, we are well-positioned to meet Bikaji’s production needs. Our strategic location and state-of-the-art manufacturing capabilities will enable us to drive significant growth in the frozen food category together,” said Gaurav Baheti, Promoter, Ariba Foods Private Limited.

Intensive Softshare Private Limited, a Mumbai-based investor with a strong focus on the Indian consumer industry is the sole syndicator and advisor to the deal.

Bikaji Foods International is an ethnic snacks company and a leading producer of Bikaneri Bhujia, with an annual production of 41,369 tonnes in the financial year (FY24). The brand enjoys extensive market reach across 25 states and 4 union territories as of March 31, 2024, offering a diverse range of products including bhujia, namkeens, packaged sweets, papad, western snacks, and frozen foods.

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