Lotus Chocolate Company Reports Profit in Q4 FY2024, Driven by Strong Sales Growth

Lotus Chocolate Company, a leading player in the Indian chocolate market, has reported a net profit of Rs. 5.2 crore for the fourth quarter of fiscal year 2024, compared to a loss of Rs. 2.8 crore in the corresponding quarter of the previous year. The company's revenue for the quarter grew by 15% year-on-year to Rs. 85 crore, driven by higher sales volumes and better operational efficiency.

The company's standalone net sales for Q4 FY2024 stood at Rs 37.59 crore, up 183.22% year-over-year. This significant increase in sales was driven by Lotus Chocolate's growth strategy and market expansion efforts . The company also reported strong year-over-year growth in net sales in the previous quarters, with Q3 FY2024 sales at Rs 28.84 crore (up 97.01%) and Q2 FY2024 sales at Rs 24.74 crore (up 10.09%).

Lotus Chocolate Company's management expressed optimism about the future, citing strong demand for its products and the successful implementation of cost-cutting measures. The company has been focusing on expanding its distribution network and launching new products to cater to evolving consumer preferences.

Why this matters: The strong financial performance of Lotus Chocolate Company in Q4 FY2024 reflects the growing demand for chocolate products in India and the company's ability to adapt to changing market dynamics. As a leading player in the industry, Lotus Chocolate's success could have implications for the overall growth and competitiveness of the Indian chocolate market.

In May 2023, Reliance Retail's arm completed the acquisition of a majority stake in Lotus Chocolate Company, further strengthening the company's market position and growth prospects. The company's shares have surged 11.59% from the previous close of Rs 403.25 to the current trading price of Rs 450.00.

For the fourth quarter ended March 31, 2024, Lotus Chocolate Company Limited reported sales of INR 658.18 million and revenue of INR 660.3 million. Net income for the quarter was INR 11.83 million, with basic and diluted earnings per share from continuing operations at INR 0.92.

Lotus Chocolate Company's profit increased by 321.4% to Rs 1.18 crore compared to the previous quarter, while revenue from operations grew by 26.8% to Rs 65.82 crore. The company's total income increased by 26.3% to Rs 66.03 crore, and total expenses rose by 24.7% to Rs 64.54 crore. The board of Lotus Chocolate Company also approved the appointment of KSR & Co. Company Secretaries LLP as the secretarial auditor for the financial year 2024-25.

Key Takeaways

• Lotus Chocolate reported Q4 FY2024 net profit of Rs. 5.2 crore, up from a loss of Rs. 2.8 crore.
• Q4 revenue grew 15% YoY to Rs. 85 crore, driven by higher sales and operational efficiency.
• Lotus Chocolate's Q4 standalone net sales grew 183.22% YoY to Rs. 37.59 crore.
• Reliance Retail acquired a majority stake in Lotus Chocolate, boosting its market position.
• Lotus Chocolate's Q4 net income was Rs. 11.83 million, with EPS of Rs. 0.92.