2012 Year Information
The fiscal year 2012, which began in June 2011 for Amira, was a particularly critical one in the development of the group. Both growth and expansion were rapid during the period, fuelled by the Initial Public Offering in October on the New York Stock Exchange. Revenue rose to US$329 million from US$255 million in the previous fiscal year at a compound annual growth rate (CAGR) of 29 percent.
In the fiscal year 2012, Net profit rose to $11.9 million from 6.4 million in the previous fiscal year, due to sharp increase in revenue coupled with decrease in operating expenses. EBITDA rose sharply to US$40 million from US$31 million in the previous year at a CAGR of 29 percent.
The improvement in Amira’s international revenue from sale of both Amira branded and third-party branded products was a result of Amira’s current strategy of expanding our brand penetration in existing markets and accessing new international markets.
In October 2012, AMIRA placed its shares in a successful offering on the New York Stock Exchange, a move that raised $90 million. Amira used $52 million in the proceeds of the IPO to pay down its debt. Remaining funds are kept to increase processing capacity (a new processing plant is under construction) and to improve operating efficiencies, to capture long-term growth opportunities and to drive margin expansion.
India produced a record 103 million tonnes of rice in 2011/12 crop year that ended in June, a jump of about 8 percent from the previous year, including 5.0 million tonnes of basmati.
In this year, Amira has been very successful in expanding its international markets for basmati rice: the percentage of sales revenue generated outside of India grew to 66 percent in 2012 from 61.9 percent in 2011, up from 53.4 percent in 2010. Amira successfully launched its own brand in 25 countries, and was selling via third-party branded business in 40 countries.
At the end of fiscal year 2012, AMIRA had 77 distributors across India and 23 international distributors. In order to further increase our Indian and international revenue, particularly for our branded products in India, Amira has entered into arrangements with leading retail chains for the distribution of our Amira branded products, including Bharti Wal-Mart, Big Bazaar, Metro Cash & Carry, Spar, Spencer’s Retail, Star Bazaar (Tesco in India) and Total in India, and Carrefour, Costco, Jetro, Restaurant Depot, Lulu’s and Smart & Final globally. Amira sold its third-party branded products to many large international and regional customers, such as Indonesia’s Business State Logistics Agency (Bulog), Platinum Corp. FZE and SGS International Rice Co. Inc., who marketed them under their own brand through their own distribution networks.
At the end of the fiscal year 2012, Amira had 60 employees working exclusively in sales, marketing and distribution. This personnel were divided across different geographic regions in India and the rest of the world: 45 of them were focused on sales and marketing to the Indian market, and 15 of them were focused on sales and marketing internationally. We plan to open additional company-owned distribution centers in 15 major cities in India to target modern trade retailers, which we expect will result in greater market penetration and higher margins