Parle Agro, known for its beverage brands like Frooti and Appy, has experienced a 12.3% drop in consolidated revenue, amounting to Rs 3,126.06 crore for FY24. The company’s profit also saw a significant decrease of 89.1%, reaching Rs 17.29 crore by March 31, 2024. This information was obtained from a RoC filing and the business intelligence platform Tofler.

The company’s revenue from operations was Rs 3,565.96 crore in FY23, with a profit of Rs 158.78 crore. In FY24, Parle Agro’s total consolidated income fell by 12.15% to Rs 3,209.43 crore, compared to Rs 3,653.48 crore in FY23. Advertising expenses increased by 17.7%, reaching Rs 278.38 crore in FY24 from Rs 236.49 crore the previous year.

Impact of Tax Policy Changes

Parle Agro attributed the decline in profit and revenue to major tax policy changes during FY24. Nadia Chauhan, Joint Managing Director of Parle Agro, explained that Appy Fizz faced a substantial GST increase from 12% to 40%. This tax hike forced the company to alter its pricing strategy and adjust serving sizes for consumers.

In response to these challenges, Parle Agro invested over Rs 600 crore in the dairy sector. This strategic move aims to redefine their growth path and reduce reliance on seasonal beverages, which were affected by unseasonal rains last year.

Future Growth Prospects

The company is optimistic about Appy Fizz’s future growth following a comprehensive portfolio restructure. “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,” Chauhan stated. She expressed confidence that Appy Fizz will regain its benchmark performance.

Parle Agro’s domestic sales revenue was Rs 3,061.10 crore, while exports contributed Rs 26.81 crore in FY24. Total expenses decreased by 8.19% to Rs 3,194.28 crore during the same period.

The strategic investments and adjustments made by Parle Agro indicate a focused effort to navigate tax challenges and seasonal impacts while aiming for renewed growth in the coming years.