Apex Frozen Foods Limited is an India-based, integrated producer and exporter of shelf aquaculture products. Incorporated in 1995, Apex Frozen Foods Ltd is in the business of processing and exporting of Shrimps and has established itself as a prominent player in the Indian aquaculture industry. The company has evolved from a partnership firm established in 1995 to a publicly listed company, demonstrating significant growth and expansion over nearly three decades.
The company was originally formed as a Partnership Firm on October 24, 1995, under the name `Apex Exports`. It was converted from a Partnership Firm into a Private Limited Company with the name `Apex Frozen Foods Private Limited` on March 30, 2012. Subsequently, the Company was converted into a Public Limited Company with the name "Apex Frozen Foods Limited" and a fresh Certificate of Incorporation was granted by the Registrar of Companies, Hyderabad on November 29, 2016.
The Company produces two kinds of shrimps namely the Whiteleg shrimp (Litopenaeus vannamei) and the Black Tiger Shrimp (Penaeus monodon). The Vannamei shrimp (White shrimp) are sold under the brands including Bay fresh, Bay Harvest, and BayPremium. The Company processes Shrimp from its facilities at Panasapadu, G Ragampeta, and a Pre Processing Plant at Tallarevu, in the East Godavari District of Andhra Pradesh. The processed shrimp is primarily for export.
AFFL is engaged in processing and preserving fish, crustaceans, and molluscs, primarily dealing in processed frozen shrimp on a B2B basis. Its distributors supply these products to HORECA (Hotels, Restaurants, Cafés) and departmental stores in the USA, European Union, and China. Additionally, AFFL sells shrimp seeds to farmers.
The Company supplies ready-to-cook products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores, and distributors spread across the developed markets of the United States of America, the United Kingdom, and various European countries. The Company strategically focuses on the market of USA, which is the largest importer of aquaculture products in the world.
According to recent quarterly results, EU Market Share (Q2 FY25) accounted for 51% of the overall sales mix, and for H1 FY25, it stood at 45% of the overall sales mix. This demonstrates the company's strong foothold in European markets alongside its traditional focus on US markets.
The company's financial performance has shown mixed results in recent periods. It currently has a market capitalization of ₹760 crore. For the fiscal year, revenue was ₹814 crore and profit was ₹3.88 crore. However, the company has delivered a poor sales growth of -0.33% over the past five years.
Recent quarterly performance shows:
• Net Revenue (Q2 FY25): INR 200 crores
• Net Revenue (Q1 FY25): INR 186 crores
• Net Revenue (Q2 FY24): INR 241 crores
The company's margin profile indicates Gross Margin (Q2 FY25): 27% and Gross Margin (H1 FY25): 29%.
• Market Capitalization: ₹760 Crore
• Promoter Holding: 72.6%
• Stock P/E: 196
• Book Value: ₹158
• Dividend Yield: 0.80%
• ROCE: 2.46%
• ROE: 0.78%
• Sales Growth (past 5 years): -0.33%
• Dividend Payout: 78.8%
The company's operational performance in terms of volumes shows:
• Shrimp Volumes Sold (Q2 FY25): 2,710 metric tons
• Shrimp Volumes Sold (Q1 FY25): 2,571 metric tons
• Shrimp Volumes Sold (Q2 FY24): 3,084 metric tons
• Average Realization (Q2 FY25): INR 695 per kilo
As of the last reported quarter for Apex Frozen Foods Ltd., Promoter held 72.6%, FII held 3.3%, DII held 0.4%, and the public held 23.6% of the total shares. In the main management, Karuturi Satyanarayana Murthy is the chairman and S Sarojini is the company secretary for Apex Frozen Foods Ltd.
Apex Frozen Foods Limited has been in business since 1995 and is now a Public Limited Company. It has a cold storage capacity of 1500 MT for finished goods. The company has established comprehensive processing facilities with strategic locations in Andhra Pradesh to support its operations.
The aquaculture industry faces various challenges including market volatility, regulatory changes, and competition from international players. Ecuador has been levied a countervailing duty of 3.78%, while India faces a countervailing duty of 5.77%, pending confirmation by the US ITC. This regulatory environment impacts the competitive landscape for Indian shrimp exporters.
Despite challenges, global shrimp prices have improved after a prolonged period, encouraging higher stocking by shrimp farmers in India. This presents opportunities for companies like Apex Frozen Foods to benefit from improved pricing conditions.
The company continues to focus on maintaining its position in the global shrimp market while adapting to changing market conditions and regulatory requirements. With established infrastructure, diversified market presence, and strong management, Apex Frozen Foods remains positioned to capitalize on opportunities in the aquaculture sector.
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