You are here » Home » Companies » Company Overview » Tasty Bite Eatables Ltd

Tasty Bite Eatables Ltd.

BSE: 519091 Sector: Agri and agri inputs
NSE: TASTYBITE ISIN Code: INE488B01017
BSE 00:00 | 24 Apr Tasty Bite Eatables Ltd
NSE 05:30 | 01 Jan Tasty Bite Eatables Ltd
OPEN 10366.90
PREVIOUS CLOSE 10423.35
VOLUME 58
52-Week high 13297.00
52-Week low 7442.55
P/E 64.34
Mkt Cap.(Rs cr) 2,601
Buy Price 10120.00
Buy Qty 2.00
Sell Price 10999.00
Sell Qty 1.00
OPEN 10366.90
CLOSE 10423.35
VOLUME 58
52-Week high 13297.00
52-Week low 7442.55
P/E 64.34
Mkt Cap.(Rs cr) 2,601
Buy Price 10120.00
Buy Qty 2.00
Sell Price 10999.00
Sell Qty 1.00

Tasty Bite Eatables Ltd. (TASTYBITE) - Chairman Speech


Notice: Undefined variable: pattern in /usr2/unibs/application/modules/live-market/views/scripts/company/annual-report.php on line 72

Company chairman speech

We eat. Therefore we are. Our health wellness beliefs family values and even ourpolitics are deeply in uenced by the kinds of food we eat produce we buy and the mannerin which we prepare them. Who we invite home for dinner what we cook for them who wechoose to go out with for a meal or how often we choose to eat out each re ects who weare as people. I call this our Food Life.

Dear Shareholders

Welcome to a new beginning. The title of this Annual Report ‘‘WholesomeMazaa" ushers in Tasty Bite 3.0. The rst phase of almost 15 years was during theincubation of the company and a long period of existential challenge that lasted through1998. The next phase started with the acquisition by Preferred Brands the quickturnaround in 1999 and an uninterrupted period of continuous and pro table growth. TastyBite 3.0 represents a new beginning today.

I am pleased to announce that in our present avatar as a Mars Incorporated subsidiarywe continued along our well de ned path of accelerated growth ending the year with recordrevenues and pro ts. I shall discuss highlights of this performance later in my messageand several sections of this Annual Report will delve deeper still.

For now lets talk Wholesome Mazaa.

We eat. Therefore we are. Our health wellness beliefs family values and even ourpolitics are deeply in uenced by the kinds of food we eat produce we buy and the mannerin which we prepare them. Who we invite home for dinner what we cook for them who wechoose to go out with for a meal or how often we choose to eat out each re ects who weare as people. I call this our Food Life.

Ancient cultures with long standing food traditions will nd this instinctual. Butmelting pot societies driven by standardization have fallen prey to food choices thatcombine low-cost convenience with engineered taste (through non-food additives forinstance). It is now manifest that this path is neither cheap nor convenient resulting insoaring healthcare costs and lost workdays. This is not a Food Life conducive to wellness.

The good news is this is changing. Partly driven by ‘Aspirationals' alarge group of adult consumers that represent an enlightened cross section of the BabyBoomers Gen-Xers and Millennials companies are being forced to recalibrate theirproducts their messaging and indeed even their purpose. These Aspirationals expectconvenience without compromise adopt and demand sustainable practices shop in style yetseek value choose fun but without the associated guilt. At Tasty Bite we salute andcelebrate this consumer. This is consistent with our long-standing mission statement whosestated purpose is to build a socially responsible organization that will provide consumerdelight. We now call it Wholesome Mazaa!

You have often heard me refer to natural convenient & Specialty Foods asmegatrends. We rode and perhaps to some extent even helped drive these megatrends throughsustained innovation. We believe it is now time to scale. The ability of your company todesign develop and manufacture great tasting products combines well with Mars' globalreach and infrastructure. Add to this our track record of accelerated growth and I believewe have a clear competitive advantage as we move into our next phase.

Performance Highlights for 2017-18:

Five years ago in Fiscal 2013 I reported your company had crossed ` 1 Billion inrevenues for the rst time in its history. It took us 30 years to get there. In 2016 just3 years later we got the 2nd Billion. I am now delighted to announce that just 2 yearslater for the year ended March 2018 the company had revenues of ` 303 Crores up 18% overlast year and Pro t after Tax of ` 26.5 Crores up 20%.

• All segments across the board including our Consumer Business Private Label andthe Tasty Bite Food Service (TFS) saw double-digit growth.

While Revenue growth accelerated 18% to ` 303 Crores EBIDTA at ` 54.4 crores grewfaster (18% of revenues) contributing to a 20% growth in PBT of ` 41 crores up from ` 34crores last year.

• Exports crossed ` 2 Billion for the rst time growing 18% over last year.

• The Food Service industry after a few years of stagnancy rebounded during theyear helping TFS grow 16% accounting for 29% of revenues.

• Capacity expansion of the RTS and Sauces section of the factory proceeded onschedule and new plans are afoot for further expansion

Consumer Business:

Tasty Bite continued its market leadership in N.America with all three channels(Grocery Club and Private Label) experiencing robust growth. Entrees and Rice& Grains continued to show double-digit consumption growth in conventionalnatural and Club stores across the region. The overall consumer facing business grew morethan 15 % over last year.

Our record of uninterrupted growth since Tasty Bite was launched in the US in 1994enters its 24th year. Between all our SKUs the brand today is available in over 20000large-scale supermarkets that represent over 50% of all grocery stores in America.

The company launched the Hot & Spicy range of entrees during the year andextended the ready to eat organic rice & grains. Both these have beenauthorized in major chains and will be in full national distribution by the end of theyear.

Marketing got a major digital boost during the year. Tasty Bite today has one of thelargest social media presence in the natural foods industry and our E-Commerce businessgrew 60% our fastest growing channel in the company

TFS Business:

A series of factors including demonetization regulatory hurdles urban concentrationby the multinational QSRs a burgeoning domestic food service industry and a rapidlychanging consumer each contributed to stagnancy of most of the companies in the foodservice sector these last few years.

This year however the industry seems to have turned the corner with all major chainsreporting an uptick in SSSG (same store sales growth) the bellwether index for the healthof the QSR industry.

The TFS business grew 16% in revenues over last year and is set to accelerate furtherthis year driven by continued differentiation in both Sauces and FFP (Frozen FormedProducts). This innovation has helped consolidate our relationship with key customers whoare leaders in this industry and open new markets regionally.

Consequently we expect new channels and international expansion to be major growthdriver for the TFS business in the medium term.

Sustainability:

You might recall a couple of years ago your company adopted 12 of the 17 sustainabledevelopment goals that we thought were immediately relevant to us. We have madesignificant progress in each of them. In fact our resolve has been further strengthenedgiven Mar's global commitment to sustainability.

• Today 100% of the fuel we use in our boilers are sugarcane briquettes.

• The Tasty Bite Organic Farm enters its 2nd year after certi cation and cropyields are already comparable with conventional farming in the area with significantlybetter soil health.

• The effluent treatment plant is in full operation and has ensured a zero waterwaste environment on campus.

• The Rainwater harvesting program is in its 5th year and remarkably the watertable continues to rise. Even prior to the monsoon this year the water table rose to 60-70feet.

• Wind power continues to be an important source of energy and accounts for about14% of our total power consumption.

• We have begun work on solar power generation and should be seeing significantprogress during the year.

• The organic waste we generate increases with the scale of our business. But I ampleased to inform you that the biogas plant capacity has been doubled in less than 2 yearsafter commissioning.

We remain committed to our guiding principle on sustainability: It is not sufficientto follow sustainable practices only when they make business sense. Our responsibility isto make business sense out of sustainable practices.

Three-Year Plan (2019-2021) and beyond:

We recently concluded our corporate three-year plan that seeks to accelerate growth andpro tability. This will involve significant capital expenditure for capacity enhancementand modernization expansion in a few select global markets for both our Consumer and FoodService business and a continued focus on innovation with products that are necessarilynatural and preferably organic.

In the long term we are seeking to be:

• A household name in select global markets

• Synonymous with "Wholesome Mazaa"

• A brand of choice to the ‘Aspirationals'

• The benchmark for sustainability in the Food Industry

We have set our sights high. The employees at Tasty Bite and our network of serviceproviders have repeatedly proven to function well in this high-energy environment. Weremain committed to driving a positive Food Life. I think we are ready for TastyBite 3.0.

Thank you

Ashok Vasudevan

Chairman