Gopal Snacks targets 15% growth in FY25, CFO eyes bright outlook for wafer biz
Gopal Snacks' annual run rate from wafers is close to Rs 200 crore and expressed confidence that it would grow in the range of 25-30 percent year-on-year
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FMCG brand Gopal Snacks has anticipated a revenue growth between 13-15 percent range by the end of fiscal year 2025 (FY2025).
Chief Financial Officer Mukesh Shah, in an interview with CNBC TV18 said company's core market has grown by six percent year-on-year. He anticipated double-digit growth in the core market, which is Gujarat. Shah said the company's growth may surge more than 20 percent in focused and other states market taking an overall growth to 14-15 percent.
On Gopal Snack's EBITDA, the CFO said the margin is expected to be in the range of 11-12 percent by the end of the current fiscal year.
On the wafer business of the company, Shah said it was growing more than 40 percent year-on-year. According to Shah, the overall wafer market share is more than Rs 15,000 crore. He mentioned that the Gopal Snacks' annual run rate from wafers is close to Rs 200 crore and expressed confidence that it would grow in the range of 25-30 percent year-on-year.
Shah said that wafers account for 30-33 percent of gross profit margin on revenue whereas other products like ethnic snacks and namkeen have a gross profit margin close to 27 percent.
Gopal Snacks has witnessed a 10-15 percent rise in the input costs, such as channa or palm oil. "Going forward, maybe a year or so, we will be increasing the gross profit margin to 30-31 percent with the increase in the wafers mix," Shah added.
Gopal Snacks on Monday announced its Q2 FY25 results. The company's net profit rose 6.17% to Rs 28.89 crore in the quarter ended September 2024 as against Rs 27.21 crore during the previous quarter ended September 2023.
The company’s revenue from operations soared 12.6 percent to Rs 4,026.4 crore between July and September of FY25, from Rs 3,577 crore in the September quarter of FY24.
The company's Q2 Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) stood at 46.7 crore from Rs 45.5 crore in Q2FY24. Gopal Snacks added over 161 new distributors in the past six months.
