Apex Frozen Foods Ltd (NSE:APEX) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...

In This Article:

  • Net Revenue (Q2 FY25): INR 200 crores.

  • Net Revenue (Q1 FY25): INR 186 crores.

  • Net Revenue (Q2 FY24): INR 241 crores.

  • Net Revenue (H1 FY25): INR 386 crores.

  • Net Revenue (H1 FY24): INR 494 crores.

  • Gross Margin (Q2 FY25): 27%.

  • Gross Margin (H1 FY25): 29%.

  • Shrimp Volumes Sold (Q2 FY25): 2,710 metric tons.

  • Shrimp Volumes Sold (Q1 FY25): 2,571 metric tons.

  • Shrimp Volumes Sold (Q2 FY24): 3,084 metric tons.

  • Shrimp Volumes Sold (H1 FY25): 5,281 metric tons.

  • Shrimp Volumes Sold (H1 FY24): 6,531 metric tons.

  • Average Realization (Q2 FY25): INR 695 per kilo.

  • EU Market Share (Q2 FY25): 51% of overall sales mix.

  • EU Market Share (H1 FY25): 45% of overall sales mix.

Release Date: November 19, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Global shrimp prices have improved after a prolonged period, encouraging higher stocking by shrimp farmers in India.

  • Inventories in the US, a major market for shrimp, are clearing up, leading to improved demand.

  • The European Union market remains robust, with an increased share in Apex's sales mix, indicating geographical diversification.

  • Freight costs have been reducing, which is expected to positively impact profit margins.

  • Apex is optimistic about future growth prospects, particularly with the potential approval of ready-to-eat products for the European Union market.

Negative Points

  • Low demand and supply of shrimp affected overall shipments and profit margins.

  • Higher raw material and freight costs have impacted profit margins.

  • Ready-to-eat volume has decreased significantly due to loss of sales to certain retail customers in the United States.

  • The company faces challenges due to countervailing duties and antidumping duties, which could impact costs and competitiveness.

  • Shrimp volumes sold have decreased compared to the previous year, indicating supply challenges.

Q & A Highlights

Q: How has the shrimp supply from Ecuador to the USA been affected recently? A: Shipments from Ecuador to the USA have reduced due to energy-related issues in Ecuador, including electricity failures impacting the farm, feed, and processing industries. This has led to a 17% reduction in imports from Ecuador to the USA compared to the previous year. - Karuturi Chowdary, CFO

Q: What is the current status of Apex Frozen Foods' ready-to-eat shrimp volumes? A: The ready-to-eat volume has decreased to 10% in H1 FY25 from 20% last year, mainly due to a loss of sales to certain retail customers in the USA. This segment is primarily retail-focused, and the reduction in demand has impacted sales. - Karuturi Chowdary, CFO