McCain India crosses Rs 1,200 Cr revenue in FY24; profit shrinks 29%

India boasts a vibrant landscape of fried snack brands that cater to the nation’s enduring love for crunchy and flavorful bites. Among them, McCain stands out as a major player. Having entered the Indian market in 1998, the brand has grown steadily over the years, emerging as the largest in its segment with revenues surpassing Rs 1,200 crore in FY24. From being synonymous with french fries and frozen food, the brand has expanded its portfolio to include a range of options.

McCain India’s revenue from operations increased by a modest 3% YoY growth to Rs 1,214 crore in FY24 from Rs 1,172 crore in FY23, as per its standalone financial statements sourced from the Registrar of Companies (RoC).

Income from the sale of its fried products was the sole revenue for McCain. It sells its products through a mix of retail, foodservice partnerships, and digital channels such as BlinkIt, Swiggy Instamart, Zepto, and others. The company also added Rs 31 crore, mainly from interest on deposits, which tallied the overall revenue to Rs 1245 crore in FY24, compared to Rs 1189 crore in FY23.

For the snack brand, material procurement remained the largest cost driver, accounting for 43.8% of total expenses. As the company scaled, this cost rose to Rs 493 crore in FY24. Meanwhile, employee benefit expenses grew by 19%, reaching Rs 100 crore in FY23.

McCain India’s advertising cost surged by 63% to Rs 88 crore in FY24. Its power/fuel, freight, contract labour, storage, management fees, and other overheads took the total expenditure to Rs 1,125 crore in FY24 from Rs 1,020 crore in FY23.

The jump in advertising and management fees led McCain to reduce its net profits by 29.4% to Rs 89 crore in FY24, compared to Rs 126 crore in FY23. Its ROCE and EBITDA margin stood at Rs 15.28% and 4.58% respectively. On a unit level, it spent Rs 0.93 to earn a rupee in FY24. 

In a market that is trending towards both the entry of new startups including those backed by strong groups such as ITC or the Godrej group, all offering edibles to a move towards healthy eating, McCain frequently finds itself  on the wrong side of comparisons when it comes to healthy eating. However, the love for fried products across India means the market is not going anywhere anytime soon, and the firm has much to aim for. A stronger cold chain logistics infra will always help it reach deeper into the hinterland, something that is finally taking shape now. We expect the firm to recover its growth mojo soon, unless there are more serious issues internally to manage.