WEB NEWS Acquisition Activity
DUBAI, United Arab Emirates--(BUSINESS WIRE announced a definitive agreement to acquire Basmati Rice GmbH, a specialty distributer of premium branded rice, particularly Basmati rice in Germany.
Basmati Rice GmbH generated approximately $8.0 million in sales in calendar year 2012 and $6.5 million in sales for the nine months ended September 30, 2013. The transaction is expected to be accretive to Amira’s current fiscal year 2014 earnings. Details of the transaction were not disclosed.
“We are excited about this highly accretive acquisition of Basmati Rice GmbH which has a rich 25 year history of serving some of the largest supermarkets in Germany and more recently in neighboring countries across Europe,” commented Karan A. Chanana, Amira’s Chairman and Chief Executive Officer. “We believe our team can quickly expand their sales and further enhance their high margin branded product offering as we leverage our existing vertically integrated infrastructure and distribution in Europe to provide consumers a vast array of branded Basmati rice from our natural and organic offerings to new, unique items like smoked Basmati rice.”
Basmati Rice GmbH offers ten different varieties of rice to consumers under the ATRY, Scheherazade, Sultan, Sativa and Sadry brands. These brands can be found in over 4,000 stores across Germany and Europe including but not limited to Edeka, Markant, Metro, Mpreis, REWE, Frischeparadies as well as in certain food service distributors.
Comments & Business Outlook
Second Quarter 2014 Results
Revenue increased 36.1% to $108.0 million, compared to $79.4 million
Basic and diluted earnings per share was $0.18 compared to $0.09
Karan A. Chanana, Amira’s Chairman and Chief Executive Officer, stated, “We are pleased to report strong second quarter financial results, as our revenue increased 36.1% and EBITDA grew 38.1%. Our results reflect our ability to consistently add new customers in India and internationally, enter new markets as well as the continued growing demand for our premium product offerings.”
Mr. Chanana continued, “As we begin the second half of fiscal 2014, we are well positioned to deliver another strong year. Our business continues to benefit from our successful execution on our strategic initiatives, including our expanding product portfolio, which includes our recently launched Amira Organic business division. We have been encouraged by our customers’ responses to our organic products and are excited about the long-term potential for this segment of our business. Based on our year-to-date results and outlook for the remainder of the year, we are reiterating our annual revenue and EBITDA guidance.”
Fiscal 2014 Outlook
The Company reiterates its previously issued guidance and continues to expect full year fiscal 2014 revenue in the range of $480 million to $507 million and EBITDA in the range of $62 million to $66 million. This is in line with long-term guidance previously provided to the investment community in connection with Amira’s initial public offering. The Company’s guidance is based on foreign exchange rates as of September 30, 2013.
Comments & Business Outlook
First Quarter 2014 Financial Results :
Revenue increased 37.6% to $110.3 million, compared to $80.2 million in the first quarter of fiscal 2013
Basic and diluted earnings per share(1) was $0.21 compared to $0.13
For better quarter-over-quarter comparability, after using 35.7 million fully diluted shares, adjusted earnings per share was $0.21 compared to $0.09 in the first quarter of fiscal 2013
Karan A. Chanana, Amira�s Chairman and Chief Executive Officer, stated, �We are off to a strong start in fiscal 2014. In the first quarter, we generated robust revenue and EBITDA growth, reflecting the continued strong demand for our products and successful execution on our business strategy.�
Mr. Chanana continued, �In fiscal 2014, we believe we are positioned to benefit from the progress we made to our business last fiscal year, including the addition of new customers in both India and internationally and an expanded geographic footprint. We recently announced the launch of the Amira Organic business division, which we expect will enable us to enhance the strength of the Amira brand product offering and capitalize on the growing global demand for organic packaged foods for years to come.�
Fiscal 2014 Outlook
The Company reiterates its previously issued guidance and continues to expect full year fiscal 2014 revenue in the range of $480 million to $507 million and EBITDA in the range of $62 million to $66 million. This is in line with long-term guidance previously provided to the investment community in connection with Amira�s initial public offering. We note that the Company�s guidance is based on foreign exchange rates as of June 30, 2013 and takes into account the potential impact of foreign currency fluctuations for the remainder of our fiscal year.
