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Amira Nature Foods Ltd Announces Results for the Six Months Ended September 30, 2015

DUBAI, United Arab Emirates--(BUSINESS WIRE)--Amira Nature Foods Ltd (the “Company;” or “Amira” NYSE: ANFI), a leading global provider of branded, packaged Indian specialty rice, today reported financial results for the six months ended September 30, 2015.

Six Months Ended September 30, 2015 versus Six Months Ended September 30, 2014:

  • Revenue declined by 17.3% to $231.7 million compared to $280.2 million
  • Adjusted EBITDA of $30.5 million compared to $38.8 million
  • Adjusted EBITDA margin of 13.2%
  • Adjusted profits after tax was $13.5 million compared to $19.8 million
  • Adjusted earnings per share (“EPS”) was $0.38 compared to $0.55
  • Total debt to last twelve months Adjusted EBITDA of 2.1x

Bruce Wacha, Amira’s Chief Financial Officer stated, “We faced an extremely challenging first half of fiscal 2016 which included current industry trends toward lower pricing, currency translation, three years of re-audits, certain litigations and other temporary short term related business disruptions that required increased financial resources and management time. Nonetheless, we were able to maintain our EBITDA margins at their historical levels and remain profitable. Our business began to recover in the fourth quarter of our fiscal year. We are committed to enhancing our customer relationships and returning to growth.”

Six Months Ended September 30, 2015 Results

Revenue decreased by $48.5 million, or 17.3%, to $231.7 million in the six months ended September 30, 2015 from $280.2 million in the six months ended September 30, 2014. The decline in revenue was driven in part by what management believes to be certain temporary short term challenges, including among other things, current industry trends toward lower pricing, currency translation, obtaining three years of re-audits of the Company’s financial statements, successful completion of a forensic investigation, ongoing litigation and certain business matters which required increased financial resources and management time be devoted to matters that did not generate revenue.

During the six months ended September 30, 2015, the Company’s Indian sales increased by $11.4 million or 10.3% to $122.6 million from $111.2 million in the same period of 2014. Revenue growth in India was negatively impacted by the depreciation of the Indian rupee against the U.S. dollar during the six months ended September 30, 2015 as compared to September 30, 2014. Sales in India grew by approximately 17.4% during the six months ended September 30, 2015 as compared to the same period in 2014, when measured in Indian rupees. Sales in India benefited from an increase in distribution which was offset in part by lower prices net of an improved mix. The Company’s International sales decreased by $59.9 million or 35.4% to $109.1 million from $169.0 million for the same period in 2014. International sales were impacted by reduced volumes due in large part to business disruptions which management believes to be short term in nature. During the six months ended September 30, 2015, revenue from international sales contributed 47.1% of total sales, while revenue from Indian sales contributed 52.9% of total sales. During the six month period ended September 30, 2014, revenue from international sales contributed 60.3% of total sales, while revenue from Indian sales contributed 39.7% of total sales.

During the six months ended September 30, 2015, sales of Amira branded and third party branded products declined by $49.0 million or 17.6% to $228.6 million from $277.6 million during the same period in 2014. Amira branded and third party branded sales contribution to 98.7% of total sales for the period, compared to 99.1% in 2014 for the same period. During the six months ended September 30, 2015, institutional sales were $3.1 million or 1.3% of total sales for the period. During the six months ended September 30, 2014, institutional sales were $2.6 million or 0.9% of total sales for the period.

During the six months ended September 30, 2015, adjusted EBITDA decreased $8.3 million to $30.5 million from $38.8 million in the prior six months period. Adjusted EBITDA margins decreased by 60 basis points to 13.2% for the six months ended September 30, 2015, which is in-line with the Company’s three year historical average of 13.2%. The Company’s effective tax rate was 15.7% for the period, compared to 15.9% in the prior year’s period. Adjusted profit after tax was $13.5 million for period, compared to $19.8 million for the prior year’s period. Adjusted EPS was $0.38 for the period compared to $0.55 for the prior year’s period. A reconciliation of adjusted EBITDA, adjusted EBITDA margin, adjusted profit after tax and adjusted EPS is provided in the “Non-IFRS Financial Measures” section of this release.

For the trailing twelve months ended September 30, 2015, the Company had sales of $651.6 million, adjusted EBITDA of $91.6 million and adjusted EPS of $1.39 compared to revenue of $342.0 million, adjusted EBITDA of $41.9 million and adjusted EPS of $0.38 per share for the twelve month period ended June 30, 2012 which proceeded its initial public offering.

Balance Sheet and Cash Flow Highlights

As of September 30, 2015, the Company’s cash and cash equivalents were $20.7 million (not including $8.2 million of short term investments, deposits which are available on demand) and adjusted net working capital was $374.8 million. Total debt was $191.2 million as of September 30, 2015, compared to $211.0 million at March 31, 2015 and total debt to LTM adjusted EBITDA remained 2.1x. As of September 30, 2015, inventories were $233.7 million, compared to $262.9 million, trade receivables were $168.3 million1 compared to $130.4 million and trade payables were $27.7 million compared to $34.3 million at March 31, 2015, respectively. Reconciliations of adjusted net working capital to the IFRS measures of working capital and total current and non-current debt, and LTM adjusted EBITDA respectively, are provided in the “Non-IFRS Financial Measures” section of this release.

Outlook

The Company will look to provide additional commentary around its current business conditions when it releases its full year Fiscal 2016 results. It also reiterated the statements made in its Form 6K filed with the Securities & Exchange Commission on January 25, 2016, where it noted that as a result of the three years of audits, certain litigations and other related business disruptions that it has been an extremely challenging year and that it looks forward to a return to normalcy and growth for the business for the fiscal year ending March 31, 2017.

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1 The trade receivables balance included $162.4 million of receivables that are not past due, $5.1 million due less than three months, $0.5 million due less than six months, $0.3 million due less than one year and $0.9 million due more than one year.

About Amira Nature Foods Ltd

Founded in 1915, Amira has evolved into a leading global provider of branded packaged specialty rice and other food products, with sales in more than 60 countries around the world. The Company primarily 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.

On January 25, 2016, Amira Nature Foods released its 20-F filing for the fiscal year ended March 31, 2015. This filing can be found on Amira’s website at https://www.amira.net/investor/sec-filings/ or upon request from Amira’s investor relations team.

Safe Harbor for Forward-Looking Statements

This press release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by words or phrases such as “may,” “will,” “except,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “future” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. There is no assurance that our current expectations and projections are accurate. These forward-looking statements include, but are not limited to:

  • our goals and strategies;
  • our operations and expansion plans;
  • our future business development, results of operations, financial...

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