McCain India, the leading frozen foods brand known for its French fries and aloo tikki, reported a 29% decline in net profit for the financial year 2023–24 (FY24), as rising costs and a sharp increase in advertising spending weighed heavily on margins.
According to the company’s filings with the Registrar of Companies, net profit dropped to Rs 89 crore from Rs. 126 crores in the previous fiscal year, despite a modest 3% growth in operational revenue, which rose to Rs. 1,214 crore.
The profit dip comes amid a 63% surge in advertising expenses, which climbed to Rs. 88 crore, alongside higher management fees and operational costs. Overall expenses for the year rose to Rs. 1,125 crores, up from Rs. 1,020 crores in FY23.
Material procurement, the largest cost component, increased to Rs. 493 crore, accounting for nearly 44% of total expenditure. Employee costs rose 19%, while fuel, freight, storage, and contract labour expenses further pressured profitability.
Including income from interest and other non-operational sources, total revenue stood at Rs. 1,245 crore, compared to Rs. 1,189 crore in FY23.
McCain entered India in 1998 and has built a strong presence across retail, food service, and emerging quick-commerce channels such as Blinkit, Swiggy Instamart, and Zepto. However, the company now faces intensifying competition and shifting consumer preferences, particularly with a rising demand for healthier snacking alternatives.
While McCain continues to deliver a return on capital employed (ROCE) of 15.28% and an EBITDA margin of 4.58%, analysts suggest the company must optimize cost structures and expand its distribution in smaller towns to sustain long-term growth.