Venky’s India Q3 profit doubles on lower feed costs, poultry recovery
Revenue gains led by growth in oilseed business and improved chicken prices.
INDIA – Venky’s India reported a net profit of US$5.36 million for the quarter ending December 31, more than doubling from US$2.25 million in the same period last year.
The company attributed part of the profit increase to lower prices for maize, soybean, and millet, which are the primary components of chicken feed.
Total expenses for the quarter grew 4%, slower than the 9% rise recorded in the previous quarter.
Quarterly revenue reached US$105.8 million, an 8% increase compared to the year-ago period, driven by a 20% rise in sales from its oilseed division.
Venky’s oilseed business produces refined soybean oil and soybean cake and benefited from steady demand and higher soybean prices.
Poultry sales returned to growth during the quarter, following sharp declines over the previous two quarters due to lower broiler bird prices.
Higher chicken prices improved margins in the poultry division, which accounts for about 44% of total revenue.
The segment had faced an 18.6% year-on-year decline in sales during earlier quarters, as market oversupply put pressure on pricing.
Seasonal factors, including the nine-day Navratri festival, were cited by the company as reducing meat and egg consumption during the second and third quarters.
In the first quarter, Venky’s India posted net earnings of US$1.81 million, down from US$9.1 million a year earlier, reflecting broader declines in poultry prices and excess supply.
The poultry segment itself swung to a loss of US$0.65 million in the first quarter, after a profit of US$10.8 million in the prior year, as heatwaves in April prompted farmers to sell birds quickly to avoid losses.
Despite volatility in poultry, the oilseed business offset some losses by recording a 33.6% increase in revenue, supported by steady demand for soybean products.
Overall revenue for the first quarter grew 7.1% year-on-year, though expenses rose 19%, surpassing the gains from the oilseed division.
Venky’s India is also expanding into ready-mix spice powders as part of its strategy to diversify beyond poultry and oilseed products.
Shares of the company fell 7.4% following the quarterly results, marking the largest single-day decline in a year amid investor concerns over potential continued losses in poultry.
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