SUNDROP BRANDS LIMITED

Sundrop Brands Limited reported a consolidated revenue growth of 15% for Q1 FY27, with a sequential growth of 11%. The B2B segment grew by 18%, while e-commerce saw a significant increase of 32%. Management highlighted a focus on profitable growth, emphasizing improvements in EBITDA margins, which remained stable at 7%. The Sundrop business, comprising 56% of total revenue, grew by 16%, while Del Monte, accounting for 44-45%, saw a 14% growth. Management noted a strategic shift towards capital-efficient growth and highlighted the importance of innovation, with 100 new products launched in the last 24 months. Despite inflationary pressures, gross margins improved by 110 basis points. The company aims to maintain a growth trajectory through investments in core categories and expansion in emerging channels, including e-commerce and modern trade. Management expressed confidence in returning the Peanut Butter segment to growth through new product innovations.

Management emphasized strong growth and strategic initiatives to enhance profitability.