APEX FROZEN FOODS Apex frozen foods is a good buy the volumes are increasing and price retest after breakout,
Apex Frozen Foods Ltd
About
Apex Frozen Foods is an integrated producer and exporter of shelf stable quality aquaculture products.
Apex Frozen Foods Ltd, one of the leading producers and exporters of processed shrimp began its operations in 1995 The company’s operations comprise hatchery, farming, pre-processing, processing, and exporting of shelf-stable quality aquaculture products like shrimp.
Key Points
Product
The company produces variants of processed White shrimp (L. Vannamei) and Black Tiger shrimp (P. Monodon). These are primarily sold under the brands owned by the customers and through its own brands namely Bay Fresh, Bay Harvest, and Bay Premium.
Co. also manufactures ready-to-eat shrimp products. The share of the revenue from this segment has increased to 20% as of FY 22.
Customers
Food Companies, Retail Chains, Restaurants, Club Stores and Distributors spread across USA, European Union and China etc.
Geographical Mix % 9MFY24
USA : 63%
European Union : 30%
China & Others : 7%
Shrimp Sales Mix 9MFY24
RTE : 18%
RTC : 82%
Impact on Net Revenue in Q3FY24
1 Company had lower Volumes at 2,117 MT in Q3FY24, due to subdued demand from its key market – USA. Regulatory approvals are still awaited for RTE sales in the EU.
2 Lower Realization at Rs 663/ Kg in Q3FY24, on account of tapering global shrimp prices.
Distribution Network and Manufacturing
Its processing facility is located at Kakinada and G. Ragampeta with an additional pre-processing and processing arrangement at Bapatla. The processing facilities are supplemented by cold storage facilities located at Kakinada and Bapatla and the company has its own vehicles with freezing capabilities. It has hatcheries at Bhogapuram(North of Vizag), Srikakulam, and Ongole
Manufacturing Plant
** 3 Shrimp Seed (Hatchery): Capacity - 1.2 to 1.4 billion SPF* seed
2 Shrimp Processing : Capacity - 34,240 MTPA
Cold Storage – 3,500 MT
Location** - ~20 kms from Kakinada port and ~150 kms from Vizag port.
Low Capacity utilization
Sales to Capacity is below 50%
Expansion in Ready to eat Segment
Co. expanded their RTE capacity to 10,000 MTPA and commissioned in May-23**.
