Dodla Dairy reports 14.8% YoY revenue growth in Q1 FY24

Dodla Dairy Ltd., an integrated dairy company in India, announced strong Q1 FY24 financial results, showcasing a 14.8% YoY growth with operating revenues at ₹8,234 million. This compares to ₹7,170 million in Q1 FY23. Domestic business growth was reported at 16.1% YoY, accounting for ₹7,628 million, while international business revenues accounted for ₹606 million.

The company also reported a significant EBITDA growth of 33.9% YoY, hitting ₹603 million in Q1 FY24. Factors like lower raw material prices and a decrease in other expenses contributed to the 104 bps YoY expansion of the EBITDA margin to 7.3%. However, employee expenses experienced a slight increase of 29 bps YoY.

Profit After Tax (PAT) surged by 40.3% YoY to ₹350 million, with the PAT margin expanding by 77 bps YoY to 4.2%. Dodla Dairy’s Earnings Per Share (EPS) stood at ₹5.82 for Q1 FY24, compared to ₹4.16 in Q1 FY23.

In terms of operational highlights, average milk procurement increased by 7.4% YoY to 15.9 LLPD in Q1 FY24. The average milk sales also saw a growth of 6.2% YoY to 11.1 LLPD, and curd sales increased by 3.1% YoY to 439.7 MTPD.

Revenue from Value Added Products (VAP), including fat & fat-based products, grew by 12.9% YoY to ₹2,586 million. Despite the increase, their contribution to overall dairy revenue slightly dipped from 32.5% in Q1 FY23 to 32.0% in Q1 FY24.

Dodla Dairy’s Managing Director, Dodla Sunil Reddy, expressed his enthusiasm over surpassing the ₹8,000 million quarterly revenue milestone for the first time. He attributed this success to the extended summer season, diversified product portfolio, and strong brand recall, boosting the sales of Value-Added Products (VAP) and fat & fat products by 12.9% YoY.

He also indicated that the industry had already started experiencing some benefits of the upcoming flush season of 2023-24, which is likely to peak by September-October 2023. Dodla Dairy’s continuous focus on quality, innovation, regular capacity expansion plans, and the ability to adapt to evolving market dynamics are all part of the company’s strategy for sustainable growth.