Prataap Snacks Q4 Review - Long-Term Strategic Initiatives To Drive Sales, Margins: Systematix
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Systematix Research Report
Prataap Snacks Ltd.’s Q4 FY21 sales declined 1.5% YoY, in line with our expectations of down 1.3%.
Sales recovered to almost 100% of last year levels despite the closure of schools and colleges and subdued travel activities.
Tele-calling and increased focus on rural markets and smaller towns (less affected by Covid-19) aided sales growth.
Margins were impacted by ~50% YoY inflation in palm oil (~14% of sales).
Inflationary pressure was mitigated through process re-engineering and cost optimisation.
Gross margin contracted 49 basis points to 26.1% while Ebitda margin expanded 14 basis points to 4.5% (estimate 3.1%).
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