News Releases

 

Amira Nature Foods Meets Consensus; Jefferies Confirms and Updates Its Report

DUBAI, United Arab Emirates--(BUSINESS WIRE)--Dec. 1, 2014-- Amira Nature Foods Ltd (the “Company;” or “Amira” NYSE: ANFI), a leading global provider of packaged Indian specialty rice, today clarified that the adjusted earnings per share reported November 24, 2014 for its fiscal 2015 second quarter did meet Street consensus earnings estimates of $0.29 per share. It was erroneously reported by Jefferies analyst, Kevin Grundy, that the Street consensus earnings estimate was $0.32 per share for the fiscal 2015 second quarter.

As such, on November 26, 2014, Jefferies amended and re-published its research report with the correct Street consensus earnings estimates of $0.29 per share, and confirmed that Amira’s fiscal 2015 second quarter did indeed meet Street consensus.

About Amira Nature Foods Ltd.

Founded in 1915, Amira has evolved into a leading global provider of branded packaged Indian specialty rice, with sales in over 60 countries today. The Company sells Basmati rice, which is a premium long-grain rice grown only in certain regions of the Indian sub-continent, under its flagship Amira brand as well as under other third party brands. Amira sells its products through a broad distribution network in both the developed and emerging markets. The Company’s global headquarters are in Dubai, United Arab Emirates, and it also has offices in India, Malaysia, Singapore, Germany, the United Kingdom, and the United States. Amira Nature Foods Ltd is listed on the New York Stock Exchange (NYSE) under the ticker symbol “ANFI.” For more information please visit www.amira.net.

Cautionary Note on Forward-Looking Statements

This release contains forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements generally can be identified by phrases such as that we or our members of management “believe,” “expect,” “anticipate,” “foresee,” “forecast,” “estimate” or other words or phrases of similar import. Specifically, these statements include, among other things, statements that describe our expectations for the growth of our business, expansion into new geographic markets, maintaining and expanding our relationship with key retail partners, the financial impact of new sales contracts on our revenue, our plans to make significant capital expenditures, and other statements of management’s beliefs, intentions or goals. It is uncertain whether any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what impact they will have on our results of operations, financial condition, or the price of our ordinary shares. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements, including but not limited to our ability to penetrate and increase the acceptance of our products in new geographic markets; our ability to perform our agreements with customers and further develop our relationships with key retail partners; our ability to recognize revenue from our contracts; continued competitive pressures in the marketplace; our reliance on a few customers for a substantial part of our revenue; our ability to implement our plans, forecasts and other expectations with respect to our business and realize additional opportunities for growth; and the other risks and important factors contained and identified in our filings with the Securities and Exchange Commission. All forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by these risk factors. Since we operate in an emerging and evolving environment and new risk factors and uncertainties emerge from time to time, you should not rely upon forward-looking statements as predictions of future events. Except as required under the securities laws of the United States, we undertake no obligation to update any forward-looking or other statements herein to reflect events or circumstances after the date hereof, whether as a result of new information, future events or otherwise.

 

Amira Nature Foods Ltd

Condensed Consolidated Statements of Financial Position

     

(Amounts in USD)

As at

September 30, 2014

(Unaudited)

  As at

March 31, 2014

(Audited)

ASSETS  
Non-current
Property, plant and equipment $ 22,709,419 $ 23,284,918
Goodwill 1,608,842 1,727,338
Other intangible assets 2,008,421 2,262,731
Other long-term financial assets   676,666       485,731  
Total non-current assets $ 27,003,348     $ 27,760,718  
 
Current
Inventories $ 251,322,898 $ 254,952,549
Trade receivables 86,483,943 80,882,986
Derivative financial assets - 2,352,886
Other financial assets 8,937,351 9,768,514
Prepayments 9,490,256 8,361,244
Other current assets 1,389,419 765,655
Cash and cash equivalents   25,677,486       37,606,098  
Total current assets $ 383,301,353     $ 394,689,932  
Total assets $ 410,304,701     $ 422,450,650  
 
EQUITY AND LIABILITIES
Equity
Share capital $ 9,115 $ 9,115
Share premium 82,821,560 82,804,750
Other reserves (6,459,745 ) (3,312,575 )
Retained earnings 89,911,780 74,334,687
Equity attributable to shareholders of the Company $ 166,282,710 $ 153,835,977
Equity attributable to non-controlling interest   21,305,819       18,005,030  
Total equity $ 187,588,529     $ 171,841,007  
 
Liabilities
Non-current liabilities
Defined benefit obligations $ 319,635 $ 246,548
Debt 1,989,020 2,739,414
Deferred tax liabilities   5,934,002       6,666,270  
Total non-current liabilities $ 8,242,657     $ 9,652,232  
 
Current liabilities
Trade payables $ 11,858,836 $ 41,197,158
Debt 182,178,084 182,103,347
Current tax liabilities (net) 12,778,581 9,644,944
Derivative financial liabilities 103,261 -
Other financial liabilities 5,704,301 6,031,593
Other current liabilities   1,850,452       1,980,369  
Total current liabilities $ 214,473,515     $ 240,957,411  
Total liabilities $ 222,716,172     $ 250,609,643  
Total equity and liabilities $ 410,304,701     $ 422,450,650  
 

Amira Nature Foods Ltd

Condensed Consolidated Statements of Profit or Loss

   

(Amounts in USD)

Six months ended Three months ended
September 30, 2014

(Unaudited)

  September 30, 2013

(Unaudited)

  September 30, 2014

(Unaudited)

  September 30, 2013

(Unaudited)

Revenue $ 280,200,545 $ 218,296,338 $ 141,387,573 $ 108,011,250
Other income 74,659 95,063 24,200 57,187
Cost of material (267,672,107 ) (181,941,294 ) (123,435,208 ) (92,069,372 )
Change in inventory of finished goods 49,112,448 12,484,391 13,123,609 10,115,880
Employee benefit expenses (5,419,006 ) (4,252,315 ) (2,860,498 ) (2,107,397 )
Depreciation and amortization (1,202,179 ) (951,200 ) (582,127 ) (462,317 )
Freight, forwarding and handling expenses (9,416,138 ) (9,861,688 ) (4,540,401 ) (3,320,673 )
Other expenses (11,566,530 )   (6,457,078 )   (6,122,934 )   (3,035,481 )
$ 34,111,692 $ 27,412,217 $ 16,994,214 $ 17,189,077
Finance costs (15,137,450 ) (10,579,446 ) (8,105,864 ) (5,415,924 )
Finance income 1,083,361 1,563,146 447,315 778,169
Other gains and (losses) 3,291,671     190,828     2,029,103     (3,567,810 )
Profit before tax for the period $ 23,349,274 $ 18,586,745 $ 11,364,768 $ 8,983,512
Income tax expense (3,702,122 ) (4,960,365 ) (926,432 ) (2,703,828 )
             
Profit after tax for the period $ 19,647,152 $ 13,626,380 $ 10,438,336 $ 6,279,684
Profit after tax attributable to:
Shareholders of the Company $ 15,577,093 $ 10,904,385 $ 8,272,706 $ 5,023,637
Non-controlling interest $ 4,070,059 $ 2,721,995 $ 2,165,630 $ 1,256,047
 
Earnings per share
Basic earnings per share $ 0.54 $ 0.38 $ 0.29 $ 0.18
Diluted earnings per share $ 0.54   $ 0.38   $ 0.29   $ 0.18  
 

Amira Nature Foods Ltd

Condensed Consolidated Statements of Comprehensive Income

   

(Amounts in USD)

Six months ended Three months ended
September 30, 2014

(Unaudited)

  September 30, 2013

(Unaudited)

  September 30, 2014

(Unaudited)

  September 30, 2013

(Unaudited)

Profit after tax for the period $ 19,647,152 $ 13,626,380 $ 10,438,336 $ 6,279,684
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Available for sale financial assets:
Current period gain/(loss) 30,129 (23,793 ) (4,833 ) (52,389 )
Reclassification to profit or loss - - - -
Income tax (5,400 )   8,087     1,643     17,807  
$ 24,729   $ (15,706 ) $ (3,190 ) $ (34,582 )
Cash flow hedging reserve:
Current period gain/(loss) 1,667,700 (11,066,017 ) (273,571 ) (3,082,425 )
Reclassification to profit or loss (2,587,545 ) 2,208,545 (1,292,189 ) 2,722,317
Income tax 312,655     3,010,655     532,202     122,401  
$ (607,190 ) $ (5,846,817 ) $ (1,033,558 ) $ (237,707 )
             
Currency translation reserve (3,333,979 )   (17,574,930 )   (3,299,161 )   (6,250,496 )
             
Other comprehensive income/(loss) for the period, net of tax $ (3,916,440 ) $ (23,437,453 ) $ (4,335,909 ) $ (6,522,785 )
Total comprehensive income/(loss) for the period $ 15,730,712   $ (9,811,073 ) $ 6,102,427   $ (243,101 )
 
Total comprehensive income/(loss) for the period attributable to:
Shareholders of the Company $ 12,429,923 $ (7,939,327 ) $ 4,788,460 $ (220,682 )
Non-controlling interest $ 3,300,789   $ (1,871,746 ) $ 1,313,967   $ (22,419 )
             

Amira Nature Foods Ltd

Condensed Consolidated Statements of Changes in Equity

 
                  Other reserves                

(Amounts in USD)

    Share capital   Share premium   Share-based compensation reserve   Reserve for

available for

sale financial

assets

  Currency translation

reserve

  Cash flow hedging

reserve

  Restructuring

Reserve

  Retained

earnings

  Equity

attributable to

shareholders of the Company

  Equity

attributable to

non - controlling interest

  Total equity
Balance as at April 1, 2013 (Audited) $ 9,111 $ 82,639,766 $ 227,674   $ (21,561 )   $ (5,582,983 )   $ 258,647   $ 9,398,927 $ 44,375,024 $ 131,304,605 $ 12,328,130 $ 143,632,735
Share based compensation - - 154,822 - - - - - $ 154,822 - $ 154,822
Profit after tax for the period - - - - - - - 10,904,385 $ 10,904,385 2,721,995 $ 13,626,380
Other comprehensive income /(loss) for the period - - - (12,627 ) (14,130,244 ) (4,700,841 ) - - $ (18,843,712 ) (4,593,741 ) $ (23,437,453 )
Total comprehensive income/(loss) for the period   $   -     $ -     $ -   $ (12,627 )   $ (14,130,244 )   $ (4,700,841 )   $ -   $ 10,904,385   $ (7,939,327 )   $ (1,871,746 )   $ (9,811,073 )
Balance as at September 30, 2013 (Unaudited)   $   9,111     $ 82,639,766     $ 382,496   $ (34,188 )   $ (19,713,227 )   $ (4,442,194 )   $ 9,398,927   $ 55,279,409   $ 123,520,100     $ 10,456,384     $ 133,976,484  
                                                                   
Balance as at April 1, 2014 (Audited) $ 9,115 $ 82,804,750 $ 2,863,362 $ (30,127 ) $ (16,018,401 ) $ 473,664 $ 9,398,927 $ 74,334,687 $ 153,835,977 $ 18,005,030 $ 171,841,007
Share based compensation 4 54,996 - - - - - - $ 55,000 - $ 55,000
Repurchase of shares from ex-director (4 ) (38,186 ) (38,190 ) (38,190 )
Profit after tax for the period - - - - - - - 15,577,093 $ 15,577,093 4,070,059 $ 19,647,152
Other comprehensive income /(loss) for the period - - - - 19,871 (2,679,116 ) (487,925 ) - - $ (3,147,170 ) (769,270 ) $ (3,916,440 )
Total comprehensive income/(loss) for the period   $   -     $ -     $ -   $ 19,871     $ (2,679,116 )   $ (487,925 )   $ -   $ 15,577,093   $ 12,429,923     $ 3,300,789     $ 15,730,712  
Balance as at September 30, 2014 (Unaudited)   $ $ 9,115     $ 82,821,560     $ 2,863,362   $ (10,256 )   $ (18,697,518 )   $ (14,261 )   $ 9,398,927   $ 89,911,780   $ 166,282,711     $ 21,305,819     $ 187,588,529  
 

Amira Nature Foods Ltd

Condensed Consolidated Statements of Cash Flows

(Amounts in USD)

Six months ended
September 30, 2014

(Unaudited)

  September 30, 2013

(Unaudited)

(A) CASH FLOW FROM OPERATING ACTIVITIES  
Profit before tax for the period $ 23,349,274 $ 18,586,745
Adjustments for non-cash items 2,297,255 (2,295,894 )
Adjustments for non-operating incomes and expenses 14,053,132 9,011,062
Changes in operating assets and liabilities   (41,709,501 )     (4,420,317 )
$ (2,009,840 ) $ 20,881,596
Income taxes paid   (509,525 )     (547,045 )
Net cash generated from/ (used in) operating activities $ (2,519,365 )   $ 20,334,551  
 
(B) CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment $ (1,320,860 ) $ (781,245 )
Purchase of intangible assets - (212,448 )
Proceeds from sale of property, plant and equipment 1,448 5,333
Proceeds from term deposits 9,063,340 6,883,986
Investments in term deposits (7,663,164 ) (8,629,936 )
Purchase of short term investments (33,200 ) (153,450 )
Interest income   364,706       340,038  
Net cash generated from/ (used in) investing activities $ 412,270     $ (2,547,722 )
 
(C) CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of shares (38,190 ) -
Net proceeds from short term debt $ 4,467,758 $ 8,706,169
Proceeds from long term debt 18,150 32,442
Repayment of long term debt (716,850 ) (952,320 )
Interest paid   (12,750,565 )     (9,927,782 )
Net cash used in financing activities $ (9,019,697 )   $ (2,141,491 )
 
(D) Effect of change in exchange rate on cash and cash equivalents   (801,820 )     (3,845,371 )
Net increase/ (decrease) in cash and cash equivalents (A+B+C+D) $ (11,928,612 )   $ 11,799,967  
Cash and cash equivalents at the beginning of the period 37,606,098 33,270,338
Cash and cash equivalents at the end of the period $ 25,677,486     $ 45,070,305  
 

Non-IFRS Financial Measures

In evaluating our business, we consider and use the non-IFRS measures EBITDA, adjusted EBITDA, adjusted profit after tax, adjusted earnings per share, adjusted net working capital and net debt as supplemental measures to review and assess our operating performance. The presentation of these non-IFRS financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with IFRS. We define: (1) EBITDA as profit after tax plus finance costs (net of finance income), income tax expense and depreciation and amortization; (2) adjusted EBITDA, as EBITDA plus non-cash expense for share-based compensation for three and six months ended September 30, 2014 and 2013, respectively (3) adjusted profit after tax, as profit after tax plus non-cash expense for share-based compensation for three and six months ended September 30, 2014 and 2013, respectively; (4) adjusted earnings per share as the quotient of: (a) adjusted profit after tax and (b) the sum of our weighted average number of shares (including dilutive impact of share options granted) for the applicable period and the ordinary shares subject to the exchange agreement between us and the non-controlling shareholders of Amira India; (5) adjusted net working capital as total current assets minus: (a) total current liabilities (b) cash and cash equivalents and plus current debt; and (6) net debt as total current and non-current debt minus cash and cash equivalents.

We use both EBITDA and adjusted EBITDA as measures of operating performance to assist in comparing performance from period to period on a consistent basis, as a measure for planning and forecasting overall expectations, for evaluating actual results against such expectations and as a performance evaluation metric, including as part of assessing and administering our executive and employee incentive compensation programs. We believe that the use of both EBITDA and adjusted EBITDA as non-IFRS measures facilitates investors’ assessment of our operating performance from period to period and from company to company by backing out potential differences caused by variations in items such as capital structure (affecting relative finance or interest expenses), non-recurring IPO-related expenses, the book amortization of intangibles (affecting relative amortization expenses), the age and book value of property and equipment (affecting relative depreciation expenses) and other non-cash expenses. We also present these non-IFRS measures because we believe they are frequently used by securities analysts, investors and other interested parties as measures of the financial performance of companies in our industry.

These non-IFRS financial measures are not defined under IFRS and are not presented in accordance with IFRS. These non-IFRS financial measures have limitations as analytical tool, and when assessing our operating performance, investors should not consider it in isolation, or as a substitute for profit/ (loss) or other consolidated statements of operations data prepared in accordance with IFRS. Some of these limitations include, but are not limited to:

• it does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

• it does not reflect changes in, or cash requirements for, our working capital needs;

• it does not reflect the finance or interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt;

• it does not reflect income taxes or the cash requirements for any tax payments;

• although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often will have to be replaced in the future, and adjusted net profit and EBITDA do not reflect any cash requirements for such replacements;

• other companies may calculate EBITDA differently than we do, limiting the usefulness of this non-IFRS measure as a comparative measure.

We compensate for these limitations by relying primarily on our IFRS results and using non-IFRS measures only as a supplemental information.

We present adjusted EBITDA, adjusted profit after tax, adjusted earnings per share, adjusted net working capital and net debt because we believe these measures provide additional metrics to evaluate our operations and, when considered with both our IFRS results and the reconciliation to profit after tax, basic and diluted earnings per share, working capital and total current and non-current debt, respectively, provide a more complete understanding of our business than could be obtained absent this disclosure. We also believe that these non-IFRS financial measures are useful to investors in assessing the operating performance of our business after reflecting the adjustments described above.

In the following tables we have provided reconciliation of non-IFRS measures to the most directly comparable IFRS measure:

1. Reconciliation of profit after tax to EBITDA and adjusted EBITDA:

    Six months ended   Three months ended
   

September 30,
2014

   

September 30,
2013

 

September 30,
2014

 

September 30,
2013

     
Profit after tax (PAT) $ 19,647,152 $ 13,626,380 $ 10,438,336 $ 6,279,684
Add: Income tax expense 3,702,122 4,960,365 926,432 2,703,828
Add: Finance costs (net of finance income) 14,054,089 9,016,300 7,658,549 4,637,755
Add: Depreciation and amortization   1,202,179     951,200     582,127     462,317
EBITDA $ 38,605,542   $ 28,554,245   $ 19,605,444   $ 14,083,584
Add: Non-cash expenses for share-based compensation   187,222     154,822     127,500     69,011
Adjusted EBITDA $ 38,792,764   $ 28,709,067   $ 19,732,944   $ 14,152,595

2. Reconciliation of profit after tax to adjusted profit after tax:

    Six months ended   Three months ended
   

September 30,
2014

   

September 30,
2013

 

September 30,
2014

 

September 30,
2013

     
Profit after tax (PAT) $ 19,647,152 $ 13,626,380 $ 10,438,336 $ 6,279,684
Add: Non-cash expenses for share-based compensation   187,222     154,822     127,500     69,011
Adjusted profit after tax $ 19,834,374   $ 13,781,202   $ 10,565,836   $ 6,348,695

3. Reconciliation of earnings per share and adjusted earnings per share:

      Six months ended   Three months ended
      September 30, 2014     September 30, 2013   September 30, 2014   September 30, 2013
     
Profit after tax (PAT) $ 19,647,152 $ 13,626,380 $ 10,438,336 $ 6,279,684
Profit attributable to Shareholders of the Company (A) $ 15,577,093 $ 10,904,385 $ 8,272,706 $ 5,023,637
Weighted average number of shares (for basic earnings per share) (B) 28,675,801 28,662,458 28,675,402 28,662,913
Dilutive impact of stock options as converted in equivalent number of shares (C)   245,346     -     249,370     -
Weighted average number of shares (for diluted earnings per share) (D ) = (B) + C)   28,921,147     28,662,458     28,924,772     28,662,913
Shares issuable under exchange agreement (E)   7,005,434     7,005,434     7,005,434     7,005,434
Basic earnings per share as per IFRS (A) ÷ (B) $ 0.54   $ 0.38   $ 0.29   $ 0.18
Diluted earnings per share as per IFRS (A) ÷ (D) $ 0.54   $ 0.38   $ 0.29   $ 0.18
                         
Profit after tax (PAT) (F) $ 19,647,152   $ 13,626,380   $ 10,438,336   $ 6,279,684
Add: Non-cash expenses for share-based compensation (G) $ 187,222   $ 154,822   $ 127,500   $ 69,011
Adjusted profit after tax (H ) = (F) +(G) $ 19,834,374   $ 13,781,202   $ 10,565,836   $ 6,348,695
 
Weighted average number of shares (including dilutive impact of share options granted) and the ordinary shares subject to the exchange agreement between us and the non-controlling shareholders of Amira India (I ) = (D) + (E)   35,926,581     35,667,892     35,930,206     35,668,347
Adjusted earnings per share (H) ÷ (I) $ 0.55   $ 0.39   $ 0.29   $ 0.18

4. Reconciliation of working capital (total current assets minus total current liabilities) and adjusted net working capital:

 

As at September 30,
2014

 

As at March 31,
2014

(Amount in $)
Current assets:  
Inventories 251,322,898 254,952,549
Trade receivables 86,483,943 80,882,986
Derivative financial assets - 2,352,886
Other financial assets 8,937,351 9,768,514
Prepayments 9,490,256 8,361,244
Other current assets 1,389,419 765,655
Cash and cash equivalents 25,677,486   37,606,098
Total current assets 383,301,353   394,689,932
 
Current liabilities:
Trade payables 11,858,836 41,197,158
Debt 182,178,084 182,103,347
Current tax liabilities (net) 12,778,581 9,644,944
Derivative financial liabilities 103,261 -
Other financial liabilities 5,704,301 6,031,593
Other current liabilities 1,850,452   1,980,369
Total current liabilities 214,473,515   240,957,411
       
Working Capital as per IFRS (Total current assets minus Total current liabilities) 168,827,838   153,732,521
Less: Cash and cash equivalents 25,677,486 37,606,098
Add: Current debt 182,178,084   182,103,347
Adjusted net working capital 325,328,436   298,229,770

5. Reconciliation of total current and non-current debt to net debt:

 

As at September 30,
2014

 

As at March 31,
2014

(Amount in $)
Current debt 182,178,084   182,103,347
Non-current debt 1,989,020 2,739,414
Total current and non-current debt as per IFRS 184,167,104 184,842,761
Less: Cash and cash equivalents 25,677,486   37,606,098
Net debt 158,489,618   147,236,663

Source: Amira Nature Foods Ltd

Amira Nature Foods Ltd
Bruce Wacha, 201-960-0745
bruce.wacha@theamiragroup.com
Chief Financial Officer
or
FTI Consulting
Beth Saunders, 212-850-5717
elizabeth.saunders@fticonsulting.com



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