ADF Foods: ADF Foods Ltd (BOM:519183) Q3 2025 Earnings Call Highlights: Revenue Growth Amidst Margin Pressures

In This Article: Release Date: February 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Negative Points Q & A Highlights Q : Can you provide details on the investment in ADF U.K. Limited and its purpose? A : The investment will be used to support our U.S. businesses, particularly to increase working capital due to rising demand for Unilever products and to invest in the Truly Indian brand. This is part of a strategic move to enhance distribution in the U.K. and U.S. markets. Q : Why did distribution revenue experience a sudden fall on a quarter-on-quarter basis? A : The decrease is due to carryforward issues from Q1 to Q2, caused by container availability problems and distributors stocking up for the Diwali season. We expect growth in the distribution segment in the upcoming quarters. Q : How do you see the distribution business evolving, given its volatility? A : The volatility is mainly on the supply side, while demand remains strong. The distribution business supports our brand strength and reduces operating costs. Once supply chain issues are resolved, we expect positive returns in the near to long term. Q : What are the latest revenue run rates for Truly Indian and Soul, and when do you expect them to break even? A : Truly Indian is expected to generate around 20 crores this year, while Soul has a monthly run rate of INR 70 lakhs. Both brands are currently in investment mode, with Truly Indian expected to break even in 6-8 months and Soul in about 12 months. Q : What is the impact of tariffs on your U.S. business, and how are you safeguarding margins? A : Tariffs will affect the entire industry, not just us. We are already paying duties, and any additional costs will likely be passed on to customers. Our strong brand equity allows us to adjust pricing as needed. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus .