Dodla Dairy announces record high financial results for FY24

Dodla Dairy Ltd., a leading integrated dairy company in India, reported its highest-ever operating revenues of ₹31,255 million for the fiscal year ended March 31, 2024, marking an 11.1% increase year-over-year (YoY). The company’s value-added products (VAP) also saw a notable rise, with sales reaching ₹8,619 million, up by 16.3% YoY.

Exceptional Annual Growth and Operational Expansion

For FY24, Dodla Dairy exhibited significant growth across various financial parameters. The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 51% YoY to ₹2,888 million, with an EBITDA margin expansion of 244 basis points (bps) to 9.2%. Profit After Tax (PAT) increased by 36.4% YoY to ₹1,667 million, with an EPS (Earnings Per Share) of ₹27.75, reflecting a 36.1% improvement over the previous year.

The company’s operational highlights include a 21.2% YoY growth in average milk procurement, reaching 16.8 lakh liters per day (LLPD). Milk sales averaged at 10.9 LLPD, showing a 1.6% increase YoY. Curd sales grew by 8.1% to 349.9 metric tonnes per day (MTPD).

Dodla Dairy Q4 FY24 Performance Insights

In the fourth quarter of FY24, Dodla Dairy continued its upward trajectory with operating revenues of ₹7,874 million, an 8.7% increase YoY. The company’s EBITDA for the quarter was ₹754 million, a remarkable 123.7% growth from the previous year, and the EBITDA margin expanded by 492 bps to 9.6%. PAT for Q4 stood at ₹468 million, up by 107.9% YoY, and the EPS was ₹7.79.

Strategic Developments and Market Expansion

During FY24, Dodla Dairy embarked on several strategic initiatives to bolster its market position. The company commenced commercial production at its new dairy plant in Kenya with a capacity of 100,000 liters per day, aimed at boosting its revenues in the Africa segment in the coming years. Additionally, the company’s cattle feed business, Orgafeed, saw a capacity enhancement by five times to 480 MTPD, strengthening ties with dairy farmers and enhancing productivity and profitability.

Commenting on the year’s performance, Mr. Dodla Sunil Reddy, Managing Director of Dodla Dairy, highlighted the management’s efforts towards higher procurement, expanding distribution, and a focused approach on Value Added Products. “Our EBITDA margin expanded by 244 bps YoY to 9.2% in FY24, benefitting from the flush season coupled with higher VAP sales,” said Reddy.

Future Outlook and Industry Position

Looking forward, Dodla Dairy is poised for continued growth with its strong procurement network, robust distribution channels, and strategic focus on value-added and fat-based products, which now constitute 28.3% of the total revenues. The company’s integrated business model and commitment to creating value for its stakeholders set a solid foundation for future success.

Dodla Dairy’s FY24 performance is a testament to its strategic focus and operational excellence in the dairy industry. The company’s significant growth in both revenue and profitability, coupled with strategic expansions in domestic and international markets, positions it well for sustained success in the coming years.