• Brand investment: Investments over the last 5 to 6 quarters have supported Almond Drops’ growth momentum and stronger traction and profitability in the growth portfolio. Inflation weighed on gross margins, but overall growth and operating leverage helped deliver strong EBITDA growth.
• Pricing actions: The company plans roughly a 5% price increase this quarter to offset raw material costs: around half through price increases and half through grammage reduction. Prices will rise by around 2.5% to 3%, with around 2.5% to 3% volume out in some SKUs.
• Export strategy: International business grew faster than the company in H1, with profitability also improving. For the coming 2 to 3 years, the focus is on neighboring markets such as Nepal, Bangladesh and the Middle East, mainly using the current portfolio; western markets and new products are a later-stage opportunity.
• Domestic priorities: The company plans to sustain Almond Drops’ growth, develop growth-portfolio categories to gain disproportionate market share, and expand direct distribution through Aarohan 2.0. It is targeting 10% direct-reach expansion for the coming year.