Future Consumer Enterprise 1Q net loss widens
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.