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Beverage company, Parle Agro has reported a decline of 12.3 per cent in its consolidated revenue from operations to ₹3126.06 crore in FY24, according to its RoC filing sourced from business intelligence platform Tofler. It had recorded a consolidated revenue from operations of Rs 3565.96 crore in FY23. The company attributed the decline to significant tax policy changes.
The consolidated net profit declined 89 per cent to Rs 17.30 crore in FY24 from ₹158.79 crore in FY23 , while consolidated total income stood at ₹3,209.43 crore in FY24, lower than ₹3,653.48 crore in FY23.
GST hike impact
When contacted by businessline, Nadia Chauhan, Joint Managing Director, Parle Agro said that the decrease in revenue and profit primarily stemmed from significant tax policy changes. “Appy Fizz, a rapidly growing challenger brand within our portfolio, encountered a drastic GST increase of four folds, from 12 per cent to 40 per cent. This tax hike impacted our pricing strategy considerably, leading us to adjust serving sizes for consumers,” she added in a statement.
The company’s product portfolio includes Frooti, Appy, Appy Fizz, B Fizz, Smoodh, Bailley, Bailley Soda Frio and Dhishoom.
Significant investments in dairy
The company said it has also been making significant investments in dairy category as a strategic focus on expansion. “In response, we have made substantial investments, exceeding ₹600 crores, in the dairy category. This strategic shift is redefining our growth trajectory. This category also mitigates the volatility of seasonal beverages, given the significant impact of unseasonal rains during the last financial year,” Chauhan added.
“Furthermore, with a comprehensive portfolio restructuringand an increase in the circulation of the ₹20 coin, we are confident in driving substantial expansion for Appy Fizz once again. We are already witnessing impressive growth rates of over 30-40 per cent for FY 2024-25 year-to-date compared to the previous year. Appy Fizz will regain its benchmark performance,” Nadia added.
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