ADF Foods Limited (NSE: ADFFOODS) Q4 2025 Earnings Call dated May. 15, 2025
Corporate Participants:
Sumer Thakkar — Promoter and also the General Manager, Sales and Strategy
Shardul Doshi — Chief Financial Officer
Unidentified Speaker
Analysts:
Sumit Desai — Analyst
Bhumin Shah — Analyst
Unidentified Participant
Pallavi Deshpande — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the ADF Foods Limited Q4 and FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing zero on your touchstone phone. I now hand the conference over to Mr Sumit Desai from EY. Thank you, and over to you, sir.
Sumit Desai — Analyst
Thank you,, and good afternoon, everyone. We welcome you to the Q4 and FY ’25 earnings conference call at ADF Foods Limited. To take us through the results and to answer your questions, we have with us the top management of ADF Foods Limited, we presented by Mr Bimal Thakkar, the Promoter and also the Chairman and Managing Director; Mr Sumit Thakkar, General Manager, Sales and Strategy; and Mr Doshi, the Chief Financial Officer. We will start the call with an overview of the business and the recent business updates by Mr Birmal; and then Mr Doshi will give us his comments on the financials. As usual, the standard Safe-Harbor clause of life while we start the call . With that said, I now hand over the call to. Over to you,.
Sumer Thakkar — Promoter and also the General Manager, Sales and Strategy
Thank you, Sumit. Good afternoon, everyone. On a full-year basis, our consolidated revenues reached INR590 crores, reflecting a 13.3% increase compared to financial year ’24. Our consolidated EBITDA stood at INR98.3 crores with a margin of 16.7%. Our flagship brand, Ashoka demonstrated steady growth on a high base and performed well in-markets other than US. Recognizing the need for strategic adjustments in North-America region.
We have implemented key changes, including enhancements to our sales force and modifications at the distributor level. With these changes now complete, we are optimistic about achieving strong growth momentum in financial year ’26 and beyond. Additionally, we’ve established a new team in Australia to strengthen the Ashoka narrative. Our truly Indian brand has seen good growth led by new listings during the year.
We added new retail chains, including Safeway,. We have also expanded our sales team for the Truly Indian brand. The Truly Indian brand is also going through a brand refresh featuring a new vibrant visual identity characterized by contemporary steel street style appearance and bold bright colors. With a presence in over 1,400 stores across the US. Truly Indian is well-positioned for significant scalability.
We have launched the range on Frozen range under our India focused brand ADF Soul, complementing our existing dips and pickles. These products are available through quick commerce and select modern trade outlets. We continue to see significant opportunities in India, hence we have reorganized the sole team and are dedicated to ongoing investments in the brand. Reflecting our ongoing strategic investments in brand development and enhancement of our management team, our consolidated EBITDA for quarter was reported at INR24.6 crores with a margin of 15.5%. This achievement is particularly noteworthy given the challenges posed by rising raw-material and labor costs as well as increased expenditures in brand and marketing.
We’ve successfully navigated these challenges through stringent cost-control measures and improved process efficiencies. Our distribution business has backed the rights for West Coast of the Lipton teas for the US, making it — making us the nationwide distributors for the US market. We expect that this enhancement, combined with our UK presence will enable this vertical to record steady growth pace going-forward.
Overall, we expect our core business to regain its base, the truly Indian brand to accelerate its growth trajectory and our investment in Seoul to start generating momentum over the medium-to-long term. The expansion of our Surat greenfield facility to support both new and existing frozen product lines is actively underway and we anticipate to begin operations by the second-half of financial year ’26. We are confident that our ongoing investments will enable our brand and private-label business to significantly scale in future. Overall, we remain committed to achieving strong and sustainable financial growth. I’ll now hand over to Shartul, our CFO, who will comment on the financials.
Shardul Doshi — Chief Financial Officer
Thank you, Biman, and good afternoon, everyone. I’ll first share the standalone performance. Starting with the full-year FY ’25 performance. For the full-fiscal year 2025, our standalone operations generated revenues of INR478.4 crores, a 15.5% year-on-year increase. EBITDA reached INR105.2 crores, up 3.1% Y-on-Y, resulting in an EBITDA margin of 22%, a 260 basis-point decrease Y-on-Y. Profit-after-tax stood at INR80.2 crores, a 0.7% Y-on-Y increase with a PAT margin of 16.8%. On cost front, as previously mentioned by Bimal, the increase in raw-material cost due to inflation had impact reducing our gross profit margin by 1.25%.
Labor cost also had an impact of 1% and further there was incremental freight cost that also added 1.4%. But better cost management across all other operational areas have helped to mitigate the — mitigate the overall impact on our profitability as overall impact on our EBITDA margin was reduced by 260 basis-points. In the 4th-quarter of FY ’25, standalone revenues were INR134.6 crores, reflecting a 4.4% Y-on-Y growth and an 11.2% quarter-on-quarter increase. EBITDA for the quarter was INR29.2 crores, down 8.1% Y-on-Y, but up 14.8% Q-on-Q. The EBITDA margin was 21.7%, a decrease of 300 basis-points Y-on-Y and an increase of 70 basis-points Q-on-o-Q.
Quarterly PAT was INR21.5 crores, a 15.1% Y-on-Y decrease and a 6.4% Q-on-Q increase with a PAT margin of 15.9%. Please also note that there are certain regrouping and reclassification done in accounts, which doesn’t have any P&L impact. But consequently, you may have to adjust your model for the previous period to look at the right comparison between the cost heads with the previous — in the previous period.
Moving on the consolidated performance for the full-year ended, 31 March 2025, revenues from operations reached INR589.6 crores, a 13.3% Y-on-Y increase. Consolidated EBITDA was INR98.3 crores, a 6.3% Y-on-Y decrease with an EBITDA margin of 16.7%, which is a 350 basis-point decrease Y-on-Y. Consolidated PAT was INR69.2% crores, down 6.2% Y-on-Y, resulting in a PAT margin of 11.7%. In Q4 FY ’25, consolidated revenues were INR159.1 crores, a 3.5% Y-on-Y increase and a 7.9% Q-on-Q increase.
Consolidated EBITDA for the quarter was INR24.6 crores, down 28.1% Y-on-Y and 6.5% Q-on-Q with an EBITDA margin of 15.5%. Consolidated PAT for the quarter was INR16.4 crores, a 34.4% Y-on-Y decrease and a 12.5% Q-on-Q decrease, resulting in a PAT margin of 10.3%. The bridge between standalone and consolidated numbers is primarily distribution business and are our subsidiaries engaged in creating business for ADF in India and truly Indian in US markets.
Our US subsidiary managing Truly Indian has effectively generated significant value from invested capital. Truly Indian achieved a four old increase in top-line this calendar year — sorry, this financial year compared to the last year, which was a smaller place though and the products are now available in 1,400 stores. We will continue to invest in this brand given its substantial growth potential.
Conversely, ADF Soul has underperformed against expectations, achieving a top-line of INR6 crores, necessiting a more cautious strategic approach in this market to reduce cash burn. We have planned to invest another INR9 crores in this business. Similarly, we are also investing in our US business. We anticipate that our ongoing investment in strengthening our brands and enhancing our team will be key drivers of growth across all business segments.
Our capital expenditure program is proceeding according to schedule with investment of around INR50 crores in FY ’25. The expansion of our Surat greenfield facility is also progressing well and remains on-schedule for commissioning in second-half of financial year 2026. Our balance sheet remains net-debt free — net debt-free as of today with a strong cash balance of INR118 crores.
We continue to strategically invest in our manufacturing capabilities and brand-building initiatives to drive greater long-term returns. With this, I now return to Sumit to open the floor for question-and-answer. Thank you.
Questions and Answers:
Operator
Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles Capital. The first question is from the line of Bhumin Shah from Sameeksha Capital. You may proceed.
Bhumin Shah
. Yeah, good afternoon. So I have two questions. First is on the distribution business.
Operator
So we can’t hear you very clearly, Mr Shah okay hello, Amita Thiejas. You may proceed.
Bhumin Shah
Yeah, good afternoon, sir. Am I audible?
Shardul Doshi
Yes, you are.
Bhumin Shah
Thank you, sir for the opportunity. Sir, like given the recent margin pressures, like what are your expectations for PAT growth in FY ’26.
Shardul Doshi
Yeah. Our focus is on the top-line as we — our target is to reach INR1,000 crores by FY ’27. I think that’s something which stands. Our investments are going to continue on-brand for both the brands, as well as for Truly Indian. Even the raw-material prices which we have seen going up in the last quarter, we are seeing there — I think some the pressure is now reducing on the raw-material prices. So hopefully, we should be back to our high-teens number, which is say around or we are around 18 odd percent overall business on at EBITDA level.
Bhumin Shah
And sir, what is the current operational status of the Najas facility following the GPCB notice?
Shardul Doshi
So that is — the facility is working. We’ve got a three-month extension and we hope to comply with all the requirements of within that time. So the factory is operational. We didn’t have a shutdown at all for even a single day.
Bhumin Shah
Thank you, sir. I’ll join back the queue. Thank you.
Shardul Doshi
Thanks.
Operator
Thank you. The next question is from the line of Ravin from Investment. You may proceed.
Unidentified Participant
Yes, is I am shareholder since last 10 years and watching the company very manually, you mentioned company has invested in branding and marketing. We — you also mentioned about rising in raw-material cost, freight and labor cost. It means we could not able to pass this cost to buyers, right?
Shardul Doshi
To some extent, we were not. Yeah, you’re right. But there was a lot of investment which was done in the new brands, right? So to that extent, that was one of the main reasons also for the reduction in EBITDA. So the raw-material and the cost in labor had come up, but with better product mix, we were still able to maintain our gross margins to the maximum possible extent. But a lot of the investments on the brand-building for the two new brands was the reason for a reduction on the EBITDA.
Bhumin Shah
Understand, since Five-Year, I am watching very minutely, we are debt-free, doing everything in good direction, but couldn’t increase our bottom-line as percentage of net profit to our top-line. When cost rises, we couldn’t pass. And in last five years, our top-line grew, but not bottom-line in same direction. In-spite of so much efforts, our distribute — distribution business couldn’t go further. Any commentary you want to give to our shareholder?
Shardul Doshi
I’m going to let take this call. And this question.
Sumit Desai
Yeah. So as far as distribution business is concerned, yes, there was kind of a stagnation for last few years. I was saying that Bimal just announced that we have got the incremental rights for West Coast in the US market. So now we are the distributor for entire US so that itself will give us the organic growth into the business. In addition to this, the now principal for Liptan, they are also — they have also decided to invest into this market because they want incremental share in this. So that should give us better numbers in the distribution business in the next financial year.
And you know the whole takeover by the new company from Unilever, they had certain transition issues, which have now all been resolved. And from last year, we’ve started seeing growth happening on the distribution side. And as far as the bottom-line goes for the past few years, I’m going to let comment, but we have been — the bottom-line has been growing, sir.
Bhumin Shah
Yeah. Understand Vimal by but since the last Five-Year, we are getting hops only not numbers.
Shardul Doshi
Okay. So if you see the bottom-line also has doubled in last, I’ll say more than in last five years. So it’s — it’s not that it’s not grown. In last Five-Year March ’20, it was INR43 crore and still it is INR69 crore. So you can say it is not double.
Okay. So this year there is a dip, but otherwise if you look at the last year and then I think I mentioned that anyway, I am not discussing a number, but just coming — bringing your Northeast, see the performance is not up to month. That is my point. So yes, point taken and we are doing everything to make sure that this year — this financial year is a much better year. But you have to keep in mind, there was nearly in excess of INR15 crores, which was invested in brand-building for the two new brands. So that is an investment which we’ve made. If we wouldn’t have done that, your bottom-line would have increased by a further INR15 crores. So these investments are being done for the future.
Bhumin Shah
Okay. Okay. Nimal. Thank you.
Operator
Thank you. The next question is from the line of Pal Lavi from Sameksha. You may proceed. Yes, sir.
Pallavi Deshpande
Thanks. Thank you for taking my question. So just three questions here. What would be, you know this brand-building exactly where — how is it television — I mean, which media would have been used for that INR15 crores spend? And second would be how do we see revenue growth for next year given this push from the brand-building side, how do we see that play-out? And third would be any impact you’re expecting because of the tariffs?
Shardul Doshi
Okay. So the brand-building was primarily — the monies were spent more on social media and digital marketing for both our brands, Seoul, which is for India and the truly Indian brand, which is which was launched in the US. So that’s where primarily the monies were spent and you will — the truly Indian brand even in the US, which is at a — as last year grew by about 4 times, though it was on a very small base. This year, we are expecting it to grow upwards of 100% in the US so we will continue to invest in that brand as we go along. The sole brand also in India, that’s the brand for India where a lot of the investments were done again.
As you know, all these brands take time to build and the investment requires — it requires a few years before you can start seeing the results. So we continue to remain committed behind both these brands because we believe both these brands are going to be our future strong brands for India as well as for the US mainstream market. What the second question was? On the tariffs, so at the moment, where I believe our governments are still negotiating with our government is still negotiating with the US government.
At the moment, there is a 10% tariff which gets applicable from end of this month, I believe. So at the moment, there are no plans of with better cost controls, we should be able to absorb the part of these tariffs ourselves. And some of the other part of this tariff will be passed on to the — through the value chain, which would be some taken by the distributor, some by the retailers and minimal pass-on to the consumer.
Pallavi Deshpande
Yeah. And sir, just one last one here. What would be our breakup between our B2B and B2C business and the margins over there? So at the moment, about 70% of our business is our own brands and about 30% is B2B , which is B2B margins. Our difference profile would be like this.
Shardul Doshi
Yes. So the margins, even in our B2B and our private-label business because these are value-added products, we still work on healthy margins. The margins are — are — gross margins could — is about 30-odd percent. And on our brands, the margins go from 40% to 60% on our own branded business.
Pallavi Deshpande
Right, and just one last one is on the freight side, what would have been the percentage for the year?
Shardul Doshi
On the side?
Pallavi Deshpande
Freight. Freight cost
Shardul Doshi
Freight was around 9% of our top-line last year.
Pallavi Deshpande
Right. Thank you so much.
Shardul Doshi
Thank you.
Operator
Thank you. The next question is from the line of Shalini Gupta from East India Securities. You may proceed.
Unidentified Participant
Yes, thanks for the opportunity. I had a few questions. One is the FY ’26 guidance, you’ve said in the past that you’re looking at doubling of revenue does and EBITDA margin being maintained. So does this guidance hold? For FY ’26, that’s for FY ’27, sorry, my mistake. FY ’27, yes, we are working towards the INR1,000 crore number and we feel fairly confident of being able to achieve that right. And margins?
Shardul Doshi
Yeah, in high-teens, sir, EBITDA margin should be in high-teens.
Unidentified Participant
EBITDA margin should be in high-teens. And then sir, I wanted to ask you, what is the capex plan for financial year ’26?
Shardul Doshi
We have undertaken for the Surat factory, the capex plan was about INR100 crores. We’ve done some expansion, I mean some brownfield expansions, which all would end-up at about INR50 crores total. So in this year, we are looking at another — so total of INR150 crores between last year and this year is what we are planning.
Unidentified Participant
Okay. And sir, lastly, what has been the investment in brand promotion? I mean, what was it this year and what do you expect it to be in financial year ’26.
Shardul Doshi
So for — as Vimal mentioned, for these two brands, we had an investment of INR15 crores in truly Indon and Seoul. And for the next year also the number will be in same around same number.
Unidentified Speaker
Yeah. This is for the new brands. I mean for the two brands where we are in an investment mode. Then apart from that for the Ashoka brand on a regular basis, we promote that brand and there the investment is about upwards of INR15 crores as well.
Unidentified Participant
All right. Thank you, sir.
Shardul Doshi
Yeah.
Operator
Thank you. The next question is from the line of Priyam Shah from Value.
Unidentified Participant
Thanks for the opportunity. I just have two questions. Just wanted to know what are the changes which impacted Ashoka’s growth, especially when Q4 the better growth traction for us? And my second target, my second question is, have we revised the target for sole brand and if like — and what is the strategies are we deploying to reach INR1,000 crore target?
Shardul Doshi
Right. So the Ashoka brand continues to remain our flagship brand. The brand has grown in high-teens across all other markets. US for us for the Ashoka brand has been the main market, so it’s at a very-high pace. And this year, we did — we saw a flat growth of Ashoka in the US market. There are a few reasons for that. There are certain changes which we have now made in our sales team in our distribution structure, and we feel confident that the brand will be back up to the mid-teens in the US for this current financial year. And as far as the sole brand goes, the Indian market has — I mean, we’ve had a very good response with the — with the brand and we’ve just recently in the — in February of this year, launched some frozen products as well in the Indian market in some select modern trade stores.
We feel this market will need some more time for getting us to the INR100 crores. So in the next three years, our guidance for this brand will be anywhere between INR50 crores to INR75 crores as we feel the Indian market will still take time. And our focus in the Indian market is going to be, again, only on e-commerce, quick commerce and modern trade. And modern trade also, we will — we will do it cautiously in select cities and expand over the next three years.
To get to the INR1,000 crores, again, our flagship brand, Ashoka will play a very important part. The truly Indian brand will continue to grow. Our B2B and private-label business will again be important for that. And of course, the distribution and other businesses. We are — we are looking at mainstream, helping us grow much faster. We’ve had good success on mainstream and we hope to get some new accounts this year for certain mainstream big, large clients for the truly Indian brand and for the Ashoka brand as well.
So we feel fairly optimistic of getting to that INR1,000 crore by as projected for FY ’27.
Unidentified Participant
Okay. All right. Thank you so much, sir. That was helpful.
Shardul Doshi
Thank you. Thanks.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Alpit Jain, an Individual Investor. You may proceed.
Unidentified Participant
Good afternoon, sir. You Sir, my question — as my question was regarding Ashoka brand, but it was already answered in the previous question. But still, can you please give more clarity on the reason for slowdown? And as we are expecting and giving guidance for, 20% 25% growth for next year — mean coming year. So how can the growth can come so please guide some things for that.
Shardul Doshi
I think I already answered that how we are looking at getting to our INR1,000 crores. The various brands like the Ashoka brand will continue. Our brand, Ashoka has grown in high-teens in all other markets, only the US market was flat. Our corrections have been done and we expect it to get back-in the mid-teens this year itself. We are opening — growing aggressively in the mainstream market, which will help grow our business. There is the B2B business, which we are growing — which is growing as well for us and lots of other new mainstream accounts is where we are looking at our growth coming from.
Unidentified Participant
Okay, sir. Okay. And sir, second and last question, as we are doing more investments in soul and truly Indian brands, so what margins we can expect in the mid to near-term?
Shardul Doshi
Okay. So before I think these brands are in terms of gross margins, very-high contributors. But because of the investment required to build these brands, you will start only seeing positive returns of — for these brands after about three years. It takes that much time to build a brand and start getting returns from there. So I am asking about consolidated level EBITDA margin for remain in the high-teens as we’ve mentioned in the past, the EBITDA — consolidated margins will be in the high-teens.
Unidentified Participant
Okay. Okay, sir. Thank you
Operator
Thank you. The next question is from the line of Neil Utpar Mehta from ICICI Securities. You may proceed.
Unidentified Participant
Hi, am I audible?
Sumit Desai
Yes, you are.
Unidentified Participant
Hi, hi. Congratulations
Unidentified Participant
On a great set of numbers. Even though we missed a bit of operating margin, but great ROEs, I believe. I’m so sorry, I joined a bit late. I heard you say that you mentioned the reason on the US missing its growth and being flattish. If you could repeat that, one, if you’re targeting a capex of INR150 crores, I believe our cash-flow should be somewhere near INR80 crore to INR100 crores. Will the remaining be debt or will you dilute from net-worth?
And my third question is, are you seeing any pushback because of tariffs? I understand you have divided and broken-down on the pricing that it will be passed on to multiple people in the supply-chain. But any pushback in-demand are you seeing from US if inflation is actually cooling down.
Shardul Doshi
So Neil, as far as the Ashoka brand goes, we’ve had some the slowdown has — I mean, the flat growth has only been in the US and there were a couple of reasons for it and the corrections have been taken. I mean, we’ve made certain changes in our sales team and also certain distributor changes have been done. So with those changes put in-place in these last few months, we feel fairly optimistic of getting back up to the mid-teens growth level in the US with the Ashoka brand.
The second one on — was your second question first, capex funding. Capex funding. So the INR150 crores is over the last two years. So last year, we’ve already spent about INR50-odd crores okay, last financial year. And this fiscal year, we are looking at about another INR100 crores. We have adequate funding for that. We have enough cash flows for that. So we will — we will be taking some debt because there will be — there are certain government subsidies, which we are getting in the Surat plant for which we need to show some debt. So there will be a nominal debt which we will take.
But otherwise everything will be funded through internal accruals. And the tariffs we are not seeing any — the tariffs will be applicable. This 10% will start from last week of this month, which is from next week onwards. So-far, we haven’t seen any pushback and this is going to apply to every — every brand, every product which comes in from India.
So we’ve worked out — we’ve had discussions with our channel partners and this is how we plan to pass-on the — I mean, take the 10% — share the 10% between all of us.
Unidentified Participant
Makes sense, sir. If I’m just allowed to slide 1 and that’s it. Is the ESG issue that our factories have sorted or is it still ongoing with the government? Just wanted to know.
Shardul Doshi
So wait, firstly, there was no shutdown. Okay, we received this notice. We took corrective action and we’ve received a three months extension from the GPCB and we will — whatever corrective actions that to be taken will be done before the deadline and it’s all under control.
Unidentified Participant
Okay. Thank you so much, sir. Always a pleasure. All the best.
Shardul Doshi
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Palavi from Sameksha. You may proceed.
Pallavi Deshpande
Yes, sir. Just wanted to understand on the UK FTA, how does that impact us? And what were the duties prior to this FDA?
Shardul Doshi
So the duties were ranging from zero to about 10%, 12%. It was varying from product-to-product. And now with a zero duty, it will be a very good where certain products were with a duty of 10% or whatever, there will be a price reduction. I mean, cost-saving for us, not a price reduction. We don’t intend to pass-on any of those benefits as yet. At least that’s not what the plan is. So it’s a welcome change for us with this new agreement, which India and UK have done.
Pallavi Deshpande
And in terms of this percentage to revenues, UK would be roughly 70% or more. Or no, UK will be about INR20.
Shardul Doshi
Yeah, only UK will be around 20%
Pallavi Deshpande
Of total consolidated revenue, yes. Standalone
Shardul Doshi
Of the standalone revenue, man.
Pallavi Deshpande
Yeah, I understand. And sir, the Tesco agreement last year, I believe there were three products on the shelf. Has that been expanded to include more?
Shardul Doshi
Yes, we have. And in fact, we should start seeing the new products listing from July onwards. We’ve got some new products added and they have increased the number of stores as well.
Pallavi Deshpande
So how many new products would that be now?
Shardul Doshi
So if I recollect, it’s about three or four new products, which have come in and they have expanded it to another 100 odd stores,
Pallavi Deshpande
Right? So in terms of the distribution business, the US, earlier there were some supply-side issues as I Call-IT, and that was also hindering the growth is — I mean — and now you’re saying you’re going — you’ve got the rights for the entire US. So the supply-side issues are totally sorted-out.
Shardul Doshi
Yes, yes, they have. I mean, the whole transition from Unilever to Acadera took longer than they expected, which hampered supplies to us. But since the last six months, things have been — have improved a lot in terms of their supply. So we hope this year now we will have a full — we are confident we’ll have full supplies from them this year.
Pallavi Deshpande
This additional investment in the US subsidiaries that you gave the notification for the $2.5 million, that’s for the distribution or it’s for
Shardul Doshi
Working capital for the truly Indian brand company, the ADF Foods USA and for Vibrant Foods, which is a distribution company.
Pallavi Deshpande
In terms of the total address — the distribution businesses, if it’s entire, what is the increase in the total addressable market for you? Is it 2x of what it was before?
Shardul Doshi
No. So we had — earlier, our distribution rights were East Coast, Midwest and the South. It was only the West Coast, which was taken out. So in terms of percentage, I would say about 30% was not there with us. Now we will have that additional business coming in.
Pallavi Deshpande
All right. Thank you so much, sir.
Shardul Doshi
Thank you.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Amit Agicha from Edgi. You may proceed.
Unidentified Participant
Thank you for the follow-up opportunity. Sir, like how do you see the growth in the USA versus other markets like Germany, UK and the Middle-East?
Unidentified Speaker
Yeah. So US is one of our major markets as you would know. So we still feel there is a lot of growth opportunities for us in the US, especially now that we are addressing another market, which is the mainstream market. So it’s a totally different consumer base. And that has just started-off for us over the last one year. So we feel fairly confident and of growing in high-teens or upwards of 20% in the US market. All the other markets also continue to grow.
Some markets will grow much higher. I mean, Australia, we feel fairly confident that we will be able to grow by about 40% 50% this year. There are some new listings, which we hope to get-in the Australian market in the next one month or so. So all that will help grow. But those market — a lot of those markets are on a lower base. So that’s why the growth is 40%, 50%. But we’ve — US continues to be our biggest market, which we feel confident of being able to grow by 20% at least.
Unidentified Participant
Understood, understood. And sir, what’s the current contribution of private-label products to total revenue and what is the future target? So as I mentioned, 70% is our own brands, 30% is B2B and private-label. But in future, do you expect this number to go on?
Shardul Doshi
No, I think we’ll be around that similar lines, maybe a few percent here or there?
Unidentified Participant
Is there any plans to replicate the US coal chain model in other markets like EU or GCC?
Shardul Doshi
The US, what model?
Unidentified Participant
The US model.
Unidentified Speaker
Well, we’ve still got — we would like to do that later on in — probably in Australia
Unidentified Speaker
Or in the UK. But just now we just want to focus on the US market because we have opportunities of having more distribution centers in the US itself. So till we exploit the US fully, we don’t want to move elsewhere at the moment.
Unidentified Participant
Understood, sir. Thank you for the — and all the best for the future.
Shardul Doshi
Thank you.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question thank you. Thank you. As there are no further questions, I now hand the conference over to Mr Vimal Thakka for his closing comments. Thank you, everyone have a great day. Thank you thank you. On behalf of ADF Foods Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines