Amira Nature Foods Ltd (NYSE:ANFI), a leading global provider of packaged Indian specialty rice, reported financial results for the third quarter and nine months ended Dec. 31, 2013.

Third quarter financial highlights:

Karan A. Chanana, Amira’s chairman and chief executive Officer, stated, “Our strong financial performance in the third quarter highlights the increasing demand for our premium products, the positive response to our expanding product line, and our growing geographic footprint. Our successful execution on all aspects of our business model enables us to increase our revenue by 25.1 percent and EBITDA by 29.3 percent in the third quarter.”

Mr. Chanana continued, “Based on our year-to-date performance and outlook for the final quarter, we remain confident in our ability to deliver a record year in fiscal 2014 and are raising our annual revenue and EBITDA guidance. Our business will benefit from recently announced key contracts, including the launch of Amira branded products in Reliance Retail Limited stores across India and our acquisition of a German branded business of basmati rice. We look forward to finishing the year on a strong note and well positioned for fiscal 2015.”

Third quarter fiscal 2014 results
Revenue for the third quarter of fiscal 2014 increased 25.1 percent to $142.5 million, compared to $113.9 million for the same period in fiscal 2013. The revenue increase was primarily due to increased sales volume and price of Basmati rice both in India and internationally. Revenue in the third quarter of fiscal 2014 for Amira and third party branded products was 95.8 percent of total revenue, compared to 99.0 percent for the same period in fiscal 2013. Institutional sales in the third quarter of fiscal 2014 contributed 4.2 percent of total revenue, compared to 1.0 percent of total revenue, for the same period in fiscal 2013.

Cost of materials including change in inventory of finished goods increased $23.7 million, or 28.3 percent, to $107.4 million in the third quarter of fiscal 2014 from $83.7 million in the third quarter of fiscal 2013. This increase primarily reflects the growth in revenue. As a percentage of revenue, cost of material increased to 75.4 percent in the third quarter of fiscal 2014, compared to 73.5 percent in the third quarter of fiscal 2013 due to increase in raw material prices.

EBITDA increased 29.3 percent to $17.7 million in the third quarter of fiscal 2014, compared to $13.7 million in the same period last year. A reconciliation of EBITDA to the IFRS measure of profit after tax is provided in the “Non-IFRS Financial Measures” section of this release.

Profit after tax for the third quarter of fiscal 2014 increased 85.5 percent to $7.7 million, compared to $4.2 million in the quarter of fiscal 2013. Basic and diluted earnings per share was $0.20 compared to $0.11 for the third quarter of fiscal 2013.

For better quarter over quarter comparability, after using 35.7 million fully diluted shares, adjusted earnings per share was $0.22 compared to $0.17 in the third quarter of fiscal 2013. Reconciliations of adjusted earnings per share, to basic and diluted earnings per share are provided in the “Non-IFRS Financial Measures” section of this release.

First nine months fiscal 2014 results
For the first nine months of fiscal 2014, net revenue increased 31.9 percent to $360.8 million, compared to $273.4 million for the same period of fiscal 2013. EBITDA increased 35.8 percent to $46.2 million, compared to $34.0 million for the same period in fiscal 2013. Profit after tax increased 98.8 percent to $21.4 million, compared to $10.7 million in the same period in fiscal 2013. Basic and diluted earnings per share was $0.58 compared to $0.37 for the first nine months of fiscal 2013.

For better quarter over quarter comparability, after using 35.7 million fully diluted shares, adjusted earnings per share was $0.60 for the first nine months of fiscal 2014 compared to $0.35 for the same period in fiscal 2013. Reconciliations of adjusted earnings per share, to basic and diluted earnings per share are provided in the “Non-IFRS Financial Measures” section of this release.

Balance sheet and cash flow highlights
At Dec. 31, 2013, the Company’s cash and cash equivalents were $34.8 million and adjusted net working capital was $262.9 million. Net debt (after deducting cash and cash equivalents) as of Dec. 31, 2013 was $125.5 million. The Company’s harvest season began in the third quarter in October and ended in January. During this period, the Company prudently increased inventory in order to meet expected demand, as of Dec. 31, 2013, inventory increased $72.5 million to $253.9 million from $181.5 million as of March 31, 2013. As of Dec. 31, 2013, trade receivables were $74.7 million, an increase of $7.9 million from $66.8 million as of March 31, 2013. Reconciliations of adjusted net working capital and net debt to the IFRS measures of working capital and total current and non-current debt, respectively, are provided in the “Non-IFRS Financial Measures” section of this release.

Fiscal 2014 outlook
The Company raises its previously issued guidance and expects full year fiscal 2014 revenue in the range of $507 million to $517 million and EBITDA in the range of $66 million to $68 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 Dec. 31, 2013.