BackFuture Consumer Enterprise Q1 net loss widens to `32.35 cr
Firm also announces a 50:50 JV with Swiss personal goods maker Mibelle AG
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Mumbai: Future Consumer Enterprise Ltd, a part of retailer Future Group, on Saturday reported a wider net loss even as consolidated net income rose 22% to ₹ 357.83 crore for quarter ended 30 June from ₹ 292.98 crore in the year-ago period. Consolidated net loss almost doubled to ₹ 32.35 crore in the June quarter compared with ₹ 17.21 crore in the year-ago period, hurt in part by a 15% rise in total expenses.
Net sales grew 22.12% to ₹ 351.95 crore in the June quarter compared with ₹ 288.18 crore in the year-ago period.
Future Consumer Enterprise is the group’s holding company for its food and packaged consumer goods brands, urban and rural distribution and investments in food parks, salons, spas and 400 convenience stores operated under the KB’s Fair Price, Aadhar and Nilgiri’s formats.
The group’s flagship company Future Retail Ltd, which operates hypermarket and retail chains such as Big Bazaar, Food Bazaar, FBB, HomeTown and eZone, reported its first quarter earnings on Friday that missed analyst expectations. Stand-alone net profit plunged 90.82% to ₹ 6.10 crore in the June quarter from ₹ 66.48 crore in the year-ago period. However, net sales surprised by growing at 22.85% to ₹ 2,846.84 crore in the June quarter.
“This quarter was more about stabilizing with growth between 20-25%, but from here on we expect growth to be 30-40% or even 50% this year," said Kishore Biyani, managing director, Future Group, on Saturday.
Also on Saturday, Future Consumer Enterprise announced that it has entered into an 50:50 joint venture (JV) with Swiss personal goods maker Mibelle AG to sell a range of consumer products exclusively for India and boost its presence in the growing home and personal care market.
The two companies have made an initial investment of ₹ 30 crore in the JV and eventually plan to set up a manufacturing base in India, said Biyani.
The JV will be based out of Switzerland, and will manufacture, market, distribute and export personal care products such as body wash, body lotion, hand wash, face wash, skin creams and other FMCG products, Future Consumer Enterprise said in a BSE filing on Saturday.
Mibelle, known for its body care, cosmetics and home products, is a division of Switzerland’s Migros Group, one of the largest retail companies in Europe. Mibelle will provide Future Consumer Enterprise with its entire consumer products range, technology and research and development (R&D), but the products sold in India will be made and marketed under a new brand name, Biyani said over the phone.
The JV will also mark Mibelle’s entry in the Indian personal products market, which is dominated by Hindustan Unilever Ltd and Procter & Gamble Hygiene and Health Care Ltd. In 2011, Mibelle AG’s brand Mibelle Bochemistry had announced a collaboration with Indian consumer firm Emami Ltd to sell its multi-plant stem cell creams in India.
Earlier this year, Future Consumer Enterprise acquired Godrej Agrovet Ltd’s 30% stake in their JV—Aadhar Wholesale Trading and Distrubtion—a supermarket chain operating 40 stores in Gujarat and Punjab. Last year, it had acquired Nilgiri Dairy Farm Pvt. Ltd, the company which owned the Nilgiri’s convenience store chain, for ₹ 300 crore.
PTI contributed to this story.
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