Heritage Foods Ltd. posts impressive 20% revenue growth in Q2-FY24

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.