Godrej Agrovet Acquires Full Stake in Godrej Tyson Foods; Reports Q1 FY25 Financials

On August 01, 2024, Godrej Agrovet Limited (GAVL), one of India’s largest food and agri-business companies, announced it had signed a definitive agreement with Tyson India Holdings Limited, a branch of Tyson Foods, Inc., to buy Tyson’s 49% stake in Godrej Tyson Foods Limited (GTFL). This move will give GAVL full ownership of GTFL, strengthening its business.

GAVL and an affiliate of Tyson Foods, Inc. started a joint venture in 2008 to produce and market processed poultry and vegetarian products. GTFL sells products under the brands ‘Real Good Chicken’ and ‘Yummiez’ and also markets live poultry birds.

Godrej Tyson Foods operates in the B2C market with value-added products like Real Good Chicken and Godrej Yummiez. In the B2B sector, it supplies processed chicken to well-known brands in top hotel chains and quick-service restaurants. The company has a presence in over 35 cities and is expanding. Additionally, it has started exporting Godrej Yummiez products to several countries.

Q1 FY25 Financial Summary

In Q1 FY25, the company reported consolidated revenues of ₹2,350.8 crore, down from ₹2,510.2 crore in Q1 FY24. However, consolidated EBITDA increased by 23% year-on-year, rising to ₹253.7 crore from ₹206.7 crore in the same period last year. Additionally, Profit Before Tax grew by 36% year-on-year, reaching ₹168.9 crore compared to ₹124.5 crore in Q1 FY24.

Segment-wise Business Highlights

In Animal Feed, volume growth was hindered by low milk prices, but segment margin and EBIT/MT improved significantly due to favourable commodity positions. Vegetable Oil revenues dropped due to a 9% decline in Fresh Fruit Bunch arrivals and lower opening stock, with profitability affected by a lower Oil Extraction Ratio. Crop Protection saw strong topline growth from Plant Growth Regulators and better pricing. Astec LifeSciences faced profitability issues due to pricing and demand challenges. Dairy’s EBITDA margin improved by 490 bps despite a flat topline. Godrej Tyson Foods’ revenues fell due to lower live bird volumes. ACI Godrej in Bangladesh saw a 13% revenue drop due to slow volume growth.

About Godrej Agrovet Limited

Godrej Agrovet Limited (GAVL) is a diverse, R&D-focused food and agri-business company committed to boosting Indian farmers’ productivity through innovative, sustainable products and services that increase crop and livestock yields.

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