Amira Nature Soars as Q4 Profit Entices Bulls

Monique Judge  |

Dubai-based Amira Nature Foods Ltd (ANFI)  jumped as high as 30% to $17.01 Tuesday after their fourth-quarter earnings exceeded analysts’ expectations.

Amira, a producer of specialty foods including Basmati rice, announced that profit for Q4 nearly doubled to $16.8 million, or 47 cents per share, versus $8.5 million, or 24 cents per share, from the same period a year ago. Revenue for the quarter jumped 33% to $186.6 million from $140.2 million a year ago. Analysts polled by FactSet expected earnings of 33 cents per share on revenue of $162.2 million.

The company posted a similar increase for full fiscal year 2014, with net income increasing over 98 percent to $38.1 million, or $1.14 per share, as compared with $19.2 million, or 59 cents per share, for 2013. Revenue for 2014 grew 32.3% to $547.3 million from $413.7 million a year ago.

Amira’s Growth Strategy Paying Off

Amira says the revenue growth was driven by “increased pricing and volume gains both internationally and in India.” Pricing, efficiencies of scale, and improvements in cost of materials contributed to margin increases.

Amira looks to expand their brand through newly acquired distribution relationships, including Basmati Rice GmbH, a specialty distributor of premium specialty rice in Germany. They have eight new distribution centers, and plans for a new factory in India to be completed by late fiscal year 2015, which will more than double their processing capacity.

Their brands are currently sold in 4,000 stores across Europe, and more than 340 stores in the US, including HEB, Wegmans and The Fresh Market.

Outlook for Amira Nature Foods

Amira anticipates that fiscal 2015 revenue will rise by more than 20%, and it has a long-term forecast for $1 billion in revenue.  

Jefferies' analyst Kevin Grundy, who downgraded Amira in May to hold from buy, noted that while the quality of the quarterly performance could have been a bit better, it’s still a good step in restoring investor confidence. Grundy has a $15 price target on Amira.

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Symbol Name Price Change % Volume
ANFI Amira Nature Foods Ltd 1.11 -0.03 -2.63 88,027 Trade
RPX:CA Red Pine Exploration Inc 0.04 0.00 0.00 100,000



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