Advanced Enzyme Technologies Limited — Earnings Release 2024

Nov 7, 2023

November 07, 2023

BSE Limited P. J. Towers, Dalal Street, Mumbai- 400 001

National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex, Bandra (E) Mumbai- 400 051

Scrip Code-540025

Trading Symbol-ADVENZYMES

Subject: Press Release Ref: ISIN: INE837H01020

Dear Sir/Madam,

Pursuant to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, enclosed is the Press Release, titled "Quarterly Earnings Release” dated November 07, 2023.

This is for your information and for public at large.

Thanking you, Yours faithfully, For Advanced Enzyme Technologies Limited

SANJAY PRAKASH Digitally signed by SANJAY PRAKASH BASANTA BASANTANI Date: 2023.11.07 NI 15:34:23 +05'30'

Sanjay Basantani Company Secretary and Head – Legal

Encl.: As above

FOR IMMEDIATE RELEASE

Thane, India: Tuesday, November 07, 2023

Advanced Enzyme Technologies Limited announces Financial Results for Second Quarter and Half Year ended September 2023

Advanced Enzyme Technologies Limited (Advanced Enzymes; NSE: ADVENZYMES; BSE: 540025), a leading specialty biotech company, with global leadership in the manufacturing of enzymes & Probiotics, today announced their unaudited financial results for second quarter and half year ended September 2023.

CONSOLIDATED QUARTERLY FINANCIAL HIGHLIGHTS:

(Amount in INR Mn.)	Q2 FY24 Q1 FY24 Q2 FY23 Change (Y-o-Y %) Change (Q-o-Q %)	H1 FY24 H1 FY23 Change (%)
Revenue EBITDA EBITDA Margin (%) PAT PAT Margin (%) EPS	1,578 1,473 1,387 14 7 513 440 397 29 17 33 30 29 352 294 263 34 20 22 20 19 3.08 2.58 2.34 31 19	3,051 2,598 17 953 706 35 31 27 646 438 47 21 17 5.65 3.94 43

CONSOLIDATED FINANCIAL REVIEW (Y-o-Y basis):

Revenue from Operations:

Revenue from operations on consolidated basis increased to ₹ 1,578 million in the Q2 FY24 from ₹ 1,387 million in the Q2 FY23, a growth of 14%.

Profit:

Consolidated EBITDA during Q2 FY24 stands at ₹ 513 million as compared to ₹ 397 million during Q2 FY23, an increase of 29%.

Margin:

EBITDA margin stands at 33%, PBT margin stands at 30% and PAT margin stands at 22% during the quarter.

Financial Costs:

Financial costs stood at ₹ 7 million during Q2 FY24 as against ₹ 6 million in Q2 FY23.

Depreciation and Amortization:

Profit before tax stands at ₹ 479 million during Q2 FY24 as against ₹ 342 million in Q2 FY23, an increase of 40%.

Profit after tax grew by 34% and stands at ₹ 352 million during Q2 FY24 as compared to ₹ 263 million during the Q2 FY23.

Depreciation and Amortization charge for the Q2 FY24 stood at ₹ 87 million as compared to ₹ 88 million, the same quarter previous year.

Earnings Per Share:

Earnings Per Share during Q2 FY24 stands at ₹ 3.08 as compared to ₹ 2.34 in Q2 FY23.

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OPERATIONAL PERFORMANCE REVIEW:

Segmental Revenue:

Segmental Revenue:
(Amount in INR Mn.)	Q2 FY24 Q2 FY23 Change (%)
Human Nutrition Animal Nutrition Bio-Processing Specialized Manufacturing	1,059 939 13 173 172 0.2 243 193 26 103 83 24

The total revenue from operations grew by 14% on y-o-y basis and 7% on q-o-q basis.

The revenue from human nutrition segment increased by 13% to ₹ 1,059 million in Q2 FY24 as compared to ₹ 939 million in Q2 FY23. This growth is on account of API, Nutrition and Biocatalysis division.

The Animal nutrition segment remained flat by delivering a growth of mere 0.2% to ₹ 173 million in Q2 FY24 as against ₹ 172 million in Q2 FY23.

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7%
Human Nutrition
15%
Animal Nutrition
11% Bio-Processing
67% Specialized
Manufacturing
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The Bio-Processing segment outperformed by 26% during the quarter, it accounted for ₹ 243 million in Q2 FY24 as compared to ₹ 193 million in Q2 FY23. In this segment, food business grew by 43% to ₹ 201 million on y-o-y basis during Q2 FY24. The Non-Food business de-grew by 21% to stand at ₹ 42 million during the quarter.

The Specialized manufacturing segment contributed 7% in the pie which is ₹ 103 million to the revenue during the quarter, an increase of 24% on y-o-y basis.

Geographical Revenue:

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4%
9%
5% India
Americas
52% Europe
Asia (ex-India)
30%
Rest of the world
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The total revenue comprises of International sales amounting to ₹ 750 million in Q2 FY24 as compared to ₹ 725 million in Q2 FY23, an increase of 3%. The revenue increased by 2% in Europe and registered a strong growth of 43% & 96% in Asia (ex-India) and Rest of the world, respectively. While it registered a decline of 9% in Americas.

Domestic sales accounted for ₹ 828 million in Q2 FY24 as compared to ₹ 662 million in Q2 FY23, a robust growth of 25%.

The domestic sales constituted about 52% of

revenue from operations during Q2 FY24 as compared to 48% during Q2 FY23. International sales were 48% of revenue from operations during Q2 FY24 as compared to 52% during Q2 FY23.

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CONSOLIDATED FINANCIAL REVIEW (Q-o-Q basis):

Revenue from Operations:

Revenue from operations on consolidated basis increased to ₹ 1,578 million in the Q2 FY24 from 1,473 million in the Q1 FY24, a growth of 7%.

Profit:

Consolidated EBITDA during Q2 FY24 stands at ₹ 513 million as compared to ₹ 440 million during Q1 FY24, an increase of 17%

Profit before tax stands at ₹ 479 million during Q2 FY24 as against ₹ 414 million in Q1 FY24, an increase of 16%

₹ 352 million during Q2 FY24 as compared to ₹ 294 million during Q1 FY24.

Financial Costs:

Financial costs remained unchanged at ₹ 7 million during Q2 FY24 as against previous quarter.

Depreciation and Amortization:

Depreciation and Amortization charge for the Q2 FY24 is ₹ 87 million as compared to ₹ 86 million in the last quarter.

Earnings Per Share:

Profit after tax grew by 20% and stands at

Earnings Per Share during Q2 FY24 stands at ₹ 3.08 as compared to ₹ 2.58 in Q1 FY24.

OPERATIONAL PERFORMANCE REVIEW:

Segmental Revenue:

Segmental Revenue:
(Amount in INR Mn.)	Q2 FY24 Q1 FY24 Change (%)
Human Nutrition Animal Nutrition Bio-Processing Specialized Manufacturing	1,059 994 7 173 158 9 243 224 8 103 97 6

The human nutrition segment increased by 7% to ₹ 1,059 million in Q2 FY24 as compared to ₹ 994 million in Q1 FY24.

The Animal nutrition grew by 9 % to ₹ 173 million in Q2 FY24 as against ₹ 158 million in Q1 FY24.

The Bio-Processing segment grew by 8% during the quarter, it accounted ₹ 243 million in Q2

FY24 as compared to ₹ 224 million in Q1 FY24. In this segment, the food business grew by 9% to ₹ 201 million, while the Non-Food business grew by 7% to ₹ 42 million, during the quarter in comparison to Q1 FY24

The Specialized manufacturing segment grew by 6% to ₹ 103 million in Q2 FY24 from ₹ 97 million in Q1 FY24

Geographical Revenue:

The total revenue comprises of International sales amounting to ₹ 750 million in Q2 FY24 as compared to ₹ 736 million in Q1 FY24, an increase of 2%. The revenue grew by 1% in Americas, 26% in Europe, 13% in Asia (ex-India) while it de-grew by 26% in rest of the world.

Domestic sales accounted for ₹ 828 million in

Q2 FY24 as compared to ₹ 737 million in Q1 FY24, an increase of 12%.

The domestic sales constituted about 52% of revenue from operations during Q2 FY24 as compared to 50% during Q1 FY24. International sales were 48% of revenue from operations during Q2 FY24 as compared to 50% during Q1 FY24.

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CONSOLIDATED HALF YEARLY FINANCIAL REVIEW (Y-o-Y basis):

Revenue from Operations:

Revenue from operations on consolidated basis increased to ₹ 3,051 million in the H1 FY24 from ₹ 2,598 million in the H1 FY23, reported an increase of 17%.

Profit:

Consolidated EBITDA during H1 FY24 stands at ₹ 953 million as compared to ₹ 706 million during H1 FY23, growth of 35%.

Margin:

EBITDA margin stands at 31%, PBT margin stands at 29% and PAT margin stands at 21% during the H1 FY24.

Financial Costs:

Financial costs stood at ₹ 14 million during H1 FY24 as against ₹ 12 million in H1 FY23

Depreciation and Amortization:

Profit before tax stands at ₹ 893 million during H1 FY24 as against ₹ 578 million in H1 FY23, an increase of 54%

Profit after tax stands at ₹ 646 million during H1 FY24 as compared to ₹ 438 million during the H1 FY23.

Depreciation and Amortization charge for the H1 FY24 is ₹ 174 million as compared to ₹ 175 million in H1 FY23.

Earnings Per Share:

Earnings Per Share during H1 FY24 stands at ₹ 5.65 as compared to ₹ 3.94 in H1 FY23.

OPERATIONAL PERFORMANCE REVIEW:

Segmental Revenue:

(Amount in INR Mn.)	H1 FY24 H1 FY23 Change (%)
Human Nutrition Animal Nutrition Bio-Processing Specialized Manufacturing	2,054 1,745 18 331 329 1 466 376 24 200 148 36

The total revenue from operations grew by 17% on y-o-y basis.

The human nutrition segment outperformed by 18% to ₹ 2,054 million in H1 FY23 as compared to ₹ 1,745 million in H1 FY22.

The Animal nutrition remained flat with growth of mere 1% to ₹ 331 million in H1 FY24 as against ₹ 329 million in H1 FY23.

The Bio-Processing segment grew by 24% during the first half, it accounted for ₹ 466

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7%
Human Nutrition
15%
Animal Nutrition
11% Bio-Processing
67% Specialized
Manufacturing
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million in H1 FY24 as compared to ₹ 376 million in H1 FY23. In this segment, food business contributed 12% and stood at ₹ 386 million while the Non-Food business contributed 03% and stood at ₹ 80 million delivering a growth of 35% & de-growth of 10% respectively, during H1 FY24.

The Specialized manufacturing segment contributed 7% to the revenue stream. This segment grew by 36% to stood at ₹ 200 million to the revenue during H1 FY24.

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Geographical Revenue:

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5%
8%
India
5%
Americas
51% Europe
Asia (ex-India)
31%
Rest of the world
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The total revenue comprises of International sales amounting to ₹ 1,486 million in H1 FY24 as compared to ₹ 1,386 million in H1 FY23, growth of 07%. The revenue declined by 04% in Americas and 03% in Europe while grew 15% in Asia (ex-India) and rest of the world registered a growth of 275%.

Domestic sales accounted for ₹ 1,565 million in H1 FY24 as compared to ₹ 1,212 million in H1 FY23, increase of 29%.

The domestic sales constituted about 51% of the revenue from operations during H1 FY24

as compared to 47% during H1 FY23. International sales were 49% of revenue from operations as compared to 53% during H1 FY23.

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OUTLOOK 2023-24

Advanced Enzymes is constantly working towards improving and strengthening its business model, and will continue to focus on all three divisions - Human Nutrition, Animal Nutrition and Bio-Processing including developing, adding and launching more products in the target market of probiotics. The Company is confident that its existing capacities and capital investments would serve well to expand its enzymes and probiotics business.

Human Nutrition:

The Company already have B2C business in USA, which is performing well. The same business model is being replicated by the Company in India to explore avenues and accelerate growth. It will continue its focus and thrust on expanding B2C business in Human Nutrition business. The Company launched Wellfa, its own B2C nutraceutical brand targeting Indian customers, it offers immune support, skin care, gut health, metabolism boosters, detox solutions, weight management aids, stress relief and respiratory health products and much more.

This segment should be the next interesting growth driver for the Company. It is also exploring other online avenues for selling the products through parallel online sales channels.

Animal Nutrition:

In the Animal Nutrition, the Company is continuously conducting trials and studies to bring newer and effective nutritional products, which may improve the efficacy of animal feeds. It is working on registering and introducing more products in the domestic as well as in the international markets.

The Company is also looking to expand its sales and marketing team in USA, MENA and Asian market. At the same time, it is targeting to strengthen the geographical reach and distribution network by appointing more distributors in the overseas markets.

Probiotics:

The Company is in the process to introduce more probiotics products in Human Nutrition for the immunity development, active health

food, gut health and various nutraceutical applications. In the Animal Nutrition, the Company is determined to launch more products on immunity development, digestion improvement, and increase nutritional level of feed.

Bio Catalysis:

The Company has made significant progress on developing bio catalases for API manufacturers, providing enzymatic based solutions that are target specific, helping them to save cost of energy, time and use of chemicals. Couple of products are under the advanced stage of trials at plant level by the API manufacturers. This is one of the opportunities, where it will continue its efforts and focus.

Baking:

The Company has several enzymes for the food processing segment, have filed 12 dossiers with European Food Safety Authority (EFSA) and got positive news for 4 of the product dossiers. The product line is equally good in terms of efficacy and performance as compared to existing market players. The Company has seen positive response post pandemic. It is confident to expand in Europe, Americas and Rest of World to tap the available opportunities by offering a value based approach in the Baking Industry.

R&D:

The Company is making significant investments in developing state-of-the-art R&D facilities and intends to set trends in the R&D areas mainly for the formulation of new applications and shall continue to significantly invest to build its portfolio with focus on applications and industries. It is also looking to expand and strengthen the R&D team.

Inorganic expansion:

The Company has a robust record of accomplishment of growing inorganically. In the past 5 years, the Company has made 4 successful acquisitions through internal accruals maintaining its record of being zero debt company. It may keep looking for strategical acquisitions that may further strengthen its front-end marketing capabilities, geographical reach, product portfolio and B2C business.

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RESULTS CONFERENCE CALL DETAILS

Advanced Enzymes will hold an earnings conference call on 10[th] November 2023, Friday at 16:00 Hours IST to discuss quarterly performance. The transcript of the call will be available later in the Investor Relations section on the Company’s website, www.advancedenzymes.com

Please dial the numbers at least 5-10 minutes prior to the conference schedule to ensure that you are connected on time.

Conference Call Primary Number: +91 22 6280 1403 / +91 22 7115 8304

Pre-registration link

For further information, please contact:

Ronak Saraf

Investor Relations ir@advancedenzymes.com

CORPORATE INFORMATION : Advanced Enzyme Technologies Limited Regd. Office: 5th Floor, ‘A’ Wing, Sun Magnetica, ‐ Louiswadi, Thane (W), Mumbai 400 604, Maharashtra, India Tel.: +91 22 41703200 Fax: +91-22 25835159 Website: www.advancedenzymes.com CIN No: L24200MH1989PLC051018

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ABOUT ADVANCED ENZYME TECHNOLOGIES LIMITED

Advanced Enzyme Technologies Limited, incorporated in 1989, is a research driven company with global leadership in the manufacturing of enzymes and probiotics. We are committed to providing eco-safe solutions to a wide variety of industries like human health care and nutrition, animal nutrition, baking, fruit & vegetable processing, brewing & malting, grain processing, protein modification, dairy processing, specialty applications, textile processing and others. Our aim is to replace traditionally used chemicals with eco-friendly enzymatic solutions.

Equipped with state-of-the-art 9 manufacturing facilities and 7 research & development locations across India, Germany and US, Advanced Enzymes exports to 45+ countries across 6 continents, and provides customized & effective enzyme solutions coupled with the best in technical advice & superior service.

Advanced Enzymes has received the Bio-Excellence award for being the Best Industrial Biotech Company at Bangalore India Bio in 2010 as well as 2014. In 2013, Advanced Enzymes has also been recognised by Inc. India, as one of the top 500 fastest-growing mid-sized companies in India, Excellence in R&D at UBM India Pharma Awards 2018. Advanced Enzymes has also been recipient of the Emerging India Award in 2010, in the Life Sciences category, by CNBC TV18 and ICICI Bank. Advanced Enzymes has also been awarded for Best IPO at IR Society Awards 2017, by Investor Relation Society of India in association with BSE, KPMG India and Bloomberg.

FORWARD‐LOOKING STATEMENTS

‐ This press release may contain forward looking statements with respect to Advanced Enzyme Technologies’ future (financial) performance and position. Such statements are based on current expectations, estimates and information currently available to the company.

Advanced Enzyme Technologies Limited cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. The company has no obligation to update the statements contained in this press release, unless required by law.

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