Advanced Enzyme Technologies Limited — Earnings Release 2025

Nov 9, 2024

November 09, 2024

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 Press Release,titled "Quarterly Earnings Release” dated November 09, 2024.

This is for your information and for public at large. Thanking you, Yours faithfully, For Advanced Enzyme Technologies Limited

SANJAY Digitally signed by SANJAY PRAKASH PRAKASH BASANTANI BASANTANI Date: 2024.11.09 14:29:25 +05'30'

Sanjay Basantani Company Secretary and Head – Legal

Encl.: As above

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FOR IMMEDIATE RELEASE

Thane, India: Saturday, November 09, 2024

Advanced Enzyme Technologies Limited announces Financial Results for Second Quarter and Half Year ended September 2024

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 2024.

CONSOLIDATED QUARTERLY FINANCIAL HIGHLIGHTS:

(Amount in INR Mn.)	Q2 FY25 Q1 FY25 Q2 FY24 Change (Y-o-Y %) Change (Q-o-Q %)	H1 FY25 H1 FY24 Change (%)
Revenue EBITDA EBITDA Margin (%) PAT PAT Margin (%) EPS	1,461 1,545 1,578 -7 -5 424 512 513 -17 -17 29 33 33 334 350 352 -5 -5 23 23 22 2.94 3.05 3.08 -5 -4	3,006 3,051 -1 936 953 -2 31 31 684 646 6 23 21 5.99 5.65 6

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

Revenue from Operations:

Revenue from operations on consolidated basis decreased to ₹ 3,006 million in the H1 FY25 from ₹ 3,051 million in the H1 FY24, reported decrease of 1%.

Margin:

EBITDA margin stands at 31%, PBT margin stands at 30% and PAT margin stands at 23% during the H1 FY25.

Financial Costs:

Profit:

Consolidated EBITDA during H1 FY25 stands at ₹ 936 million as compared to ₹ 953 million during H1 FY24, de-growth of 2%.

Profit before tax stands at ₹ 909 million during H1 FY25 as against ₹ 893 million in H1 FY24, an increase of 2%.

Financial costs stood at ₹ 18 million during H1 FY25 as against ₹ 14 million in H1 FY24

Depreciation and Amortization:

Depreciation and Amortization charge for the H1 FY25 is ₹ 175 million as compared to ₹ 174 million in H1 FY24.

Earnings Per Share:

Profit after tax stands at ₹ 684 million during H1 FY25 as compared to ₹ 646 million during the H1 FY24, an increase of 6%.

Earnings Per Share during H1 FY25 stands at ₹ 5.99 as compared to ₹ 5.65 in H1 FY24.

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OPERATIONAL PERFORMANCE REVIEW:

Segmental Revenue:

Segmental Revenue:
(Amount in INR Mn.)	H1 FY24 H1 FY23 Change (%)
Human Nutrition Animal Nutrition Bio-Processing Specialized Manufacturing	2,003 2,054 -2% 353 331 7% 419 466-10% 230 200 15%

The total revenue from operations de-grew by 1% on y-o-y basis.

The human nutrition segment underperformed by 2% to ₹ 2,003 million in H1 FY25 as compared to ₹ 2,054 million in H1 FY24

The Animal nutrition outperformed by 7% to ₹ 353 million in H1 FY25 as against ₹ 331 million in H1 FY24.

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7%
Human Nutrition
14%
Animal Nutrition
12% Bio-Processing
67% Specialized
Manufacturing
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in H1 FY25 as compared to ₹ 466 million in H1 FY24. In this segment, food business contributed 10% and stood at ₹ 312 million while the NonFood business contributed 4% and stood at ₹ 107 million delivering a de-growth of 19% & growth of 33% respectively, during H1 FY25.

The Specialized manufacturing segment contributed 7% to the revenue stream. This segment grew by 15% to stood at ₹ 230 million to the revenue during H1 FY25.

The Bio-Processing segment de-grew by 10% during the first half, it accounted for ₹ 419 million

Geographical Revenue:

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2%
7%
4%
India
Americas
48%
Europe
Asia (ex-India)
39%
Rest of the world
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The total revenue comprises of International sales amounting to ₹ 1,564 million in H1 FY25 as

compared to ₹ 1,486 million in H1 FY24, growth of 5%. The revenue inclined by 24% in Americas while declined by 14% in Europe, 16% in Asia (ex-India) and 58% in rest of the world.

Domestic sales accounted for ₹ 1,442 million in H1 FY25 as compared to ₹ 1,565 million in H1 FY24, decrease of 8%.

The domestic sales constituted about 48% of the revenue from operations during H1 FY25 as compared to 51% during H1 FY24. International sales were 52% of revenue from operations as compared to 49% during H1 FY24.

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

Revenue from Operations:

Revenue from operations on consolidated basis decreased to ₹ 1,461 million in the Q2 FY25 from ₹ 1,545 million in the Q1 FY25, a de-growth of 5%.

Profit:

Consolidated EBITDA during Q2 FY25 stands at ₹ 424 million as compared to ₹ 512 million during Q1 FY25, a decline of 17%.

Profit before tax stands at ₹ 422 million during Q2 FY25 as against ₹ 487 million in Q1 FY25, decrease of 13%.

Profit after tax de-grew by 5% and stands at

₹ 334 million during Q2 FY25 as compared to ₹ 350 million during the Q1 FY25.

Financial Costs:

Financial costs remained unchanged during Q2 FY25 as compared to Q1 FY25

Depreciation and Amortization:

Depreciation and Amortization charge for the Q2 FY25 is ₹ 89 million as compared to ₹ 86 million in the last quarter

Earnings Per Share:

Earnings Per Share during Q2 FY25 stands at ₹ 2.94 as compared to ₹ 3.05 in Q1 FY25

OPERATIONAL PERFORMANCE REVIEW:

Segmental Revenue:

(Amount in INR Mn.)	Q2 FY25 Q1 FY25 Change (%)
Human Nutrition Animal Nutrition Bio-Processing Specialized Manufacturing	992 1,012 -2% 181 172 6% 168 251 -33% 120 110 9%

The human nutrition segment decreased by 2% to ₹ 992 million in Q2 FY25 as compared to ₹ 1,012 million in Q1 FY25.

The Animal nutrition grew by 6 % to ₹ 181 million in Q2 FY25 as against ₹ 172 million in Q1 FY25.

The Bio-Processing segment underperformed by 33% during the quarter, it accounted ₹ 168 million

in Q2 FY25 as compared to ₹ 251 million in Q1 FY25. In this segment, the food and non-food business de-grew by 41% to ₹ 116 million, and 7% to ₹ 51 million respectively, during the quarter in comparison to Q1 FY25.

The Specialized manufacturing segment grew by 9% to ₹ 120 million in Q2 FY25 from ₹ 110 million in Q1 FY25.

Geographical Revenue:

The total revenue comprises of International sales amounting to ₹ 758 million in Q2 FY25 as compared to ₹ 806 million in Q1 FY25, it de-grew by 6%. The revenue de-grew by 3% in Americas, 27% in Europe, 9% in Asia (ex-India) while it grew by 8% in rest of the world.

Domestic sales accounted for ₹ 703 million in

Q2 FY25 as compared to ₹ 740 million in Q1 FY25, a decline of 5%.

The contribution of domestic sales and international sales remained unchanged at 48% & 52% respectively, as a share of revenue from operations during Q2 FY25 as compared Q1 FY25.

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

Revenue from Operations:

Revenue from operations on consolidated basis decreased to ₹ 1,461 million in the Q2 FY25 from ₹ 1,578 million in the Q2 FY24, a de-growth of 7%.

Profit:

Consolidated EBITDA during Q2 FY25 stands at ₹ 424 million as compared to ₹ 513 million during Q2 FY24, decrease of 17%.

Margin:

EBITDA margin stands at 29%, PBT margin stands at 29% and PAT margin stands at 23% during the quarter.

Financial Costs:

Financial costs stood at ₹ 9 million during Q2 FY25 as against ₹ 7 million in Q2 FY24.

Depreciation and Amortization:

Profit before tax stands at ₹ 422 million during Q2 FY25 as against ₹ 479 million in Q2 FY24, decrease of 12%.

Profit after tax de-grew by 5% and stands at ₹ 334 million during Q2 FY25 as compared to ₹ 352 million during the Q2 FY24.

Depreciation and Amortization charge for the Q2 FY25 stood at ₹ 89 million as compared to ₹ 87 million same quarter previous year.

Earnings Per Share:

Earnings Per Share during Q2 FY25 stands at ₹ 2.94 as compared to ₹ 3.08 in Q2 FY24.

OPERATIONAL PERFORMANCE REVIEW:

Segmental Revenue:

(Amount in INR Mn.)	Q2 FY25 Q2 FY24 Change (%)
Human Nutrition Animal Nutrition Bio-Processing Specialized Manufacturing	992 1,059 -6% 181 173 5% 168 243-31% 120 103 17%

The total revenue from operations de-grew by 7% on y-o-y basis and 5% on q-o-q basis.

The revenue from human nutrition segment decreased by 6% to ₹ 992 million in Q2 FY25 as compared to ₹ 1,059 million in Q2 FY24.

The Animal nutrition delivered a growth of 5% to ₹ 181 million in Q2 FY25 as against ₹ 173 million in Q2 FY24.

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8%
Human Nutrition
11%
Animal Nutrition
12% Bio-Processing
68% Specialized
Manufacturing
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₹ 168 million in Q2 FY25 as compared to ₹ 243 million in Q2 FY24. In this segment, food business de-grew by 42% to ₹ 116 million on y-o-y basis during Q2 FY25. The Non-Food business grew by 24% to stood at ₹ 51 million during the quarter.

The Specialized manufacturing segment contributed 8% in the pie which is around ₹ 120 million to the revenue during the quarter, an increase of 17% on y-o-y basis.

The Bio-Processing segment underperformed by 31% during the quarter, it accounted for

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Geographical Revenue:

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7% [2%]
4%
India
Americas
48% Europe
Asia (ex-India)
39%
Rest of the world
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The total revenue comprises of International sales amounting to ₹ 758 million in Q2 FY25 as

• compared to ₹ 750 million in Q2 FY24, an increase of 1%. The revenue increased by 21% in Americas while there is de-growth of 35% in Europe, 25% in Asia (ex-India) and 49% in the rest of the world.

Domestic sales accounted for ₹ 703 million in Q2 FY25 as compared to ₹ 828 million in Q2 FY24, a de-growth of 15%.

The domestic sales constituted about 48% of revenue from operations during Q2 FY25 as compared to 52% during Q2 FY24. International sales were 52% of revenue from operations during Q2 FY25 as compared to 48% during Q2 FY24.

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OUTLOOK 2024-25

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.

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 14 dossiers with European Food Safety Authority (EFSA) and got positive opinion for 9 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:

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 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 7 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 frontend 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 13[th] November 2024, Wednesday 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: 5[th] Floor, ‘A’ Wing, Sun Magnetica, Louiswadi, Thane (W) ‐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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