India's Ruchi Soya swings to FY loss
Indian edible-oil-to-soy-foods group Ruchi Soya has posted annual losses of INR8.91bn (US$132.1m) amid falling sales.
Ruchi Soya's full-year loss for the 12 months to the end of March compared to a profit of INR609.3m a year earlier.
The group made a loss at the EBITDA level of INR2.11bn, versus a profit of INR6.26bn the previous year.
Ruchi Soya's net sales fell 2% to INR27.74bn.
"The company's performance was adversely impacted by sustained pressure in [the] global commodities market, [a] weak and erratic monsoon in the country, foreign exchange fluctuations and [an] overall economic downturn," founder and managing director Dinesh Shahra said. "Due to the turbulent economic conditions in global markets, coupled with [a] steep fall in prices of commodities such as soybean, edible oils, coffee, guar gum and castor, [these] businesses had an adverse impact on account of operational losses."
Shahra said Ruchi Soya's branded business "continued to register, good double-digit growth". He said the "popularity" of brands including soy food brand Nutrela and Sunrich sunflower oil was rising.
Last week, Ruchi Soya, Indian conglomerate Adani Enterprises and Singapore-based agri-food group Wilmar International set out plans for a venture to "create one of India's leading FMCG companies".
Wilmar and Indian conglomerate Adani, through their Adani Wilmar venture, and edible-oil-to-soy-foods group Ruchi Soya are to combine to market and distribute products including vegetable oils, soya foods, grains and biodiesel. Both the Adani Wilmar venture and Ruchi Soya will manufacture for the new venture.
The Adani Wilmar venture will own 66.66% of the new entity, with Ruchi Soya holding the remainder.
Companies: Ruchi Soya
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