Heritage Foods announces impressive YoY growth, with profits soaring by 126% in Q4 FY24

Heritage Foods Limited (BSE: 519552 & NSE: HERITGFOOD), a leader in the dairy sector, has announced its robust financial results for the fourth quarter and fiscal year ending March 31, 2024. The company reported a staggering 126% growth in profit after tax (PAT) for Q4 FY24, alongside an 83.6% increase for the full year, signaling strong market performance and operational efficiency.

Heritage Foods Q4 FY24 Financial Performance Highlights

In the fourth quarter of FY24, Heritage Foods showcased significant financial improvements across various metrics:

– Revenue: INR 9,506 million, up by 16.3% year-over-year.

– EBITDA: INR 702 million, marking a 67.5% increase from the previous year, with the EBITDA margin expanding by 226 basis points to 7.39%.

– Profit After Tax: INR 405 million, a remarkable 126.3% growth compared to the same period last year.

Heritage Foods FY24 Annual Financial Overview

For the entire fiscal year, the company continued to demonstrate strong financial health:

– Annual Revenue: Reached INR 37,939 million, a 17.1% increase year-over-year.

– Annual EBITDA: INR 2,095 million, with a growth of 51.5%, and an EBITDA margin improvement of 125 basis points to 5.52%.

– Annual PAT: INR 1,065 million, up by 83.6%.

Operational Achievements and Strategic Expansions

Throughout Q4 FY24, Heritage Foods also reported substantial operational growth and strategic developments:

– Milk Procurement: Averaged 1.59 million liters per day, an 11.32% increase year-over-year, with a reduction in average milk procurement prices.

– Milk Sales Volume: Grew by 3.74% year-over-year, with average selling prices rising by 1.78%.

– Value-Added Products: Saw a revenue increase of 21.82% in Q4 and 18.67% annually, highlighting the successful introduction of new ice-cream variants like Fig Honey Cashew & Berry Burst and Vibez Ice cream.

Comments from the Executive Board

Brahmani Nara, Executive Director of Heritage Foods, commented on the year’s performance, “Q4-FY24 and FY24 have been exceptionally strong in terms of both financial performance and operational excellence. Our consumer-centric strategies, innovative product launches, and expanded market presence have all started to yield substantial results. With the dairy sector showing signs of robust growth, we are poised to outperform in the upcoming financial year.”

Dividend Announcement

Reflecting the company’s strong performance, the Board of Directors has recommended a final dividend of 50%, amounting to Rs.2.50 per equity share, for FY24, pending shareholder approval at the upcoming 32nd Annual General Meeting scheduled for August 21, 2024.

Heritage Foods Ltd’s remarkable growth in FY24 not only underscores its leadership in the dairy industry but also reflects the successful execution of its strategic initiatives, setting a robust foundation for continued growth and market expansion.