Dodla Dairy reports notable growth in Q3 and 9MFY24 results, showcasing industry resilience

Dodla Dairy Ltd., a leading integrated dairy company in India, has recently announced its financial results for the third quarter and nine months ending December 31st, 2023. The company, listed on both BSE and NSE reported a robust increase in its operating revenues and a significant expansion in EBITDA margin.

Impressive Revenue Growth and EBITDA Margin Expansion

The company’s operating revenues in Q3 FY24 reached ₹7,468 Mn, marking a 10.6% year-on-year (YoY) increase. This growth is even more pronounced in the context of the nine-month fiscal period (9MFY24), where revenues grew by 12.0% YoY to INR 23,380 Mn. Notably, the EBITDA margin expanded significantly by 315 basis points YoY to 11.1% in Q3 FY24, underlining the company’s efficient operational management.

Boost in Value-Added Product Sales

Dodla Dairy’s focus on value-added products (VAP) has paid dividends, with sales in this segment reaching ₹1,863 Mn in Q3 FY24, a 21.5% increase YoY. Over the nine months, VAP sales continued to show strong momentum, growing by 15.3% YoY to INR 6,402 Mn. This growth in VAP sales reflects the company’s successful strategy in diversifying its product portfolio and catering to evolving consumer preferences.

Managing Director’s Insights on the Company’s Performance

Dodla Sunil Reddy, Managing Director of Dodla Dairy, shared his satisfaction with the company’s performance, attributing the success to the peak 2023-24 flush season and festive spending enthusiasm. He highlighted the company’s strategic procurement capabilities, which reached a record high of 17.5 Lakh Liter Per Day (LLPD), registering a growth of 36.7% YoY.

Operational Highlights and Future Outlook

Operational highlights for the quarter include an average milk procurement of 17.5 LLPD, representing a 36.7% YoY growth, and curd sales at 291.7 MTPD, up by 12.3% YoY. The company’s focus on expanding its distribution network and leveraging its strong brand recall contributed significantly to its performance.

Dodla Dairy’s impressive financial results in Q3 and 9MFY24 are indicative of its strong market position and operational efficiency. The company’s focus on value-added products and strategic procurement capabilities are key drivers of its growth, positioning it well for continued success in the competitive dairy industry.