Consolidated reported EBITDA de-grew 60.8% YoY to Rs 87 crore in Q4 FY23 while EBITDA margin slipped to 4.2% in Q4 FY23 as compared to 10.7% in Q4 FY22.

Profit before tax slumped 92.1% to Rs 13 crore in Q4 FY23 as comapared with Rs 159 crore in Q4 FY22.

Godrej Agrovet recorded 25% decline in consolidated net profit to Rs 301.91 crore despite of 12.85% rise in revenues to Rs 9,373.68 crore in FY23 over FY22.

The Animal Feed segment volume growth in Q4 and full year was led by cattle-feed category (up 11% in Q4 and up 13% in FY) on account of market share gains. Segment margin in Q4 was impacted by volatile commodity price movements and limited transmission due to pricing pressure, mainly in poultry feed.

The Oil Palm Business delivered strong volume growth in Q4 FY23 vs Q4 FY22; however, performance was impacted by lower crude palm oil prices as compared to previous year. Growth in FY23, despite record high prices in FY22, was driven by consistent volumes and improved operational efficiencies.

The Crop Protection Business (standalone) achieved higher sales of Gracia and in-house herbicides portfolio coupled with lower returns resulted in topline growth. Segment results declined due to lower sales of plant growth regulators (PGR) category and pricing pressure. The segment achieved substantial improvement in the working capital cycle and collections in FY23 driven by concerted efforts in maintaining credit hygiene.

Astec Lifesciences Q4 and full year topline was severely impacted by sluggish demand for key enterprise products and sharp drop in realizations. In addition to this, high cost inventories led to EBITDA margin contraction in FY23 vs. previous year. CMO revenues grew 1.9x y-o-y with improved profitability in FY23, in line with our expectations.

Creamline Dairy reported volume growth remained robust in value-added products (up 30% YoY in Q4 and up 37% YoY in FY23), Dairy business crossed Rs 1,500 crore revenue mark in FY23; VAP salience increased to 32% of revenue in FY23 from 29% in FY22.

Godrej Tyson Foods branded business, mainly Real Good chicken (RGC) reported 30% volume growth, continued to drive topline performance in Q4 FY23; however, live bird prices were considerably lower resulting in decline in EBITDA margin. In FY23, GTFL crossed Rs 1,000 crore revenue mark for the first time driven by excellent volume growth in branded categories – RGC at 53% and Yummiez at 34%. With consistent growth in RGC margins, profitability significantly improved in FY23.

ACI Godrej Agrovet, Bangladesh posted revenue growth of 7% year-on-year in Q4 and 25% year-on-year in FY23, driven by higher realizations as well as volumes.

B S Yadav, managing director, Godrej Agrovet said, “Consolidated profitability was adversely impacted mainly due to a drop in operating margins of Crop Protection, Animal Feed and Dairy businesses. High level of channel inventories, adverse climatic conditions and price corrections weighed heavily on the profitability of Crop Protection business, primarily in Astec Lifesciences. In feed businesses, government price controls and volatile commodity prices with limited transmission impacted bottom-line. Creamline Dairy witnessed sustained rise in milk procurement costs which could not be fully passed on.

Higher margins in Vegetable Oil and Poultry businesses as compared to previous year provided support to some extent in an otherwise challenging year. Vegetable oil business maintained healthy volume growth with improved operational efficiencies. Godrej Tyson posted strong improvement in profitability driven by consistent growth in branded businesses namely Real Good Chicken and Yummiez.

Godrej Agrovet continued to focus on investing for long-term sustainable growth. In April'23, our subsidiary, Astec LifeSciences, commissioned a new state-of-the-art Research & Development centre, named ‘Adi Godrej Centre for Chemical Research and Development' in Maharashtra. During the year, GAVL also commissioned a new Fish feed manufacturing facility in Uttar Pradesh and commenced construction of Crude palm oil Refinery & Solvent Extraction plant to enable margin expansion through forward integration.”

Meanwhile, the board has recommended final dividend of Rs 9.50 per equity share for the financial year ended 31 March 2023, subject to approval of the shareholders.

Godrej Agrovet, part of the Godrej Group, has presence across the animal feed, palm oil, crop protection, dairy and poultry and processed foods segments with about 30 plus facilities and a wide distribution network across the country.