Heritage Foods Limited, a distinguished dairy company in India, has unveiled its impressive Q2-FY24 results, reporting a substantial 20% revenue growth, reaching INR 9,786 Mn, and an 18% profit growth YoY.

Detailed Q2-FY24 Financial Insights

Heritage Foods recorded an EBITDA of INR 471 Mn, marking a growth of 18.1% YoY. The EBITDA margin stood at 4.81%, with a slight dip of 8 Bps YoY. The PAT (Profit After Tax) for this period was INR 224 Mn, observing a growth of 17.7% YoY.

H1-FY24: A Quick Glance at the Half-Yearly Performance

For H1-FY24, the company reported a revenue of INR 19,022 Mn, growing by 16.2% YoY. The EBITDA and PAT witnessed significant growths of 36.9% and 49.0%, respectively.

Operational Highlights & Key Achievements in Q2-FY24

Among the significant operational highlights:

• The company observed a 1% YoY growth in average milk procurement, amounting to 1.48 Mn LPD.
• The average milk procurement prices saw an uptick, rising by 6.3% over Q2-FY23.
• Milk sales experienced a growth of 1% YoY, and the selling prices surged by 7.6% YoY.
• The quarter also witnessed a commendable 18% YoY growth from Value Added Products (VAP), contributing 26.8% to the overall revenue.
• With business expansion in new geographies and persistent growth in VAP, the company’s revenues flourished.
• Notably, new products were introduced in the market, such as the Premium Buffalo Milk in Hyderabad and the Cow Ghee in smaller jars targeting temple markets and e-commerce platforms.
• Heritage Foods enhanced its reach by introducing 437 new distribution points and also commissioned new production facilities at B Kothakota Plant in Andhra Pradesh.

Executive Insights on the Q2-FY24 Performance

Brahmani Nara, the Executive Director of Heritage Foods, reflected on the company’s achievements, stating, “We had a good performance this quarter, primarily driven by higher volume growth in VAP. This is a testament to our strategic initiatives playing out to drive high margin VAP growth, which is backed by an ever-expanding geographical footprint and supply chain network.”

In sum, Heritage Foods Ltd. continues its path of growth and expansion, emphasizing its dominance in the dairy sector.

  Brahmani Nara, Heritage Foods, India