Fu­ture Con­sumer En­ter­prise 1Q net loss widens

The Pak Banker - - COMPANIES/BOSS -

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 Rs.357.83 crore for quar­ter ended 30 June from Rs.292.98 crore in the year-ago pe­riod. Con­sol­i­dated net loss al­most dou­bled to Rs.32.35 crore in the June quar­ter com­pared with Rs.17.21 crore in the year-ago pe­riod, hurt in part by a 15% rise in to­tal ex­penses.

Net sales grew 22.12% to Rs.351.95 crore in the June quar­ter com­pared with Rs.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 Rs.6.10 crore in the June quar­ter from Rs.66.48 crore in the year-ago pe­riod. How­ever, net sales sur­prised by grow­ing at 22.85% to Rs.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 3040% 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 pres- ence in the grow­ing home and per­sonal care mar­ket. The two com­pa­nies have made an ini­tial in­vest­ment of Rs.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.

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