Paper Boat FY20 Losses Touch INR 100 Cr As It Bulked Up Its Product Lineup

Paper Boat earned INR 235 Cr in FY2020, but with expenses growing to INR 324 Cr owing to higher spending for stock-in-trade purchases

The company expanded its traditional Indian packaged snacks lineup in early 2020 before it had to pause production due to the pandemic after March

With the uptake in sales in FY2020, the company’s spending on advertising also reduced by 32%, which arrested a deeper slide into the red

Gurugram-based Hector Beverages, which runs beverage and snack brand Paper Boat, has reported a 20% increase in revenue in the financial year 2020 that ended in March last year. The company’s revenue grew from INR 195 Cr in FY2019 to INR 235 Cr in FY20, but the higher spending on new product launches, stock-in-trade resulted in losses widening 60% from INR 60 Cr to over INR 100 Cr.

For Paper Boat, revenue from operations continued to be the major source of income. It earned INR 235 Cr in FY2020 by selling fruit-based drinks and traditional snacks, compared to INR 189.5…