Heritage Foods reports record revenue and profit in Q1-FY25 amid strong market expansion

Heritage Foods Limited (BSE: 519552, NSE: HERITGFOOD), a major player in India’s dairy industry, has announced remarkable financial results for the quarter ending June 30, 2024. The company has recorded a year-on-year (YoY) profit growth of 249%, driven by strong revenue performance and significant gains in operational efficiency.

Heritage Foods achieved a consolidated revenue of INR 10,327 million for Q1-FY25, marking an 11.8% increase from the previous year. The company’s EBITDA surged by 133% to INR 938 million, reflecting a substantial improvement in profitability. The EBITDA margin also expanded by 472 basis points to 9.08%. The standout performance was in net profit, which soared to INR 584 million, representing a remarkable 249% YoY growth.

The quarter saw an impressive 19.9% growth in the Value-Added Products (VAP) segment, reaching INR 4,228 million in revenue. This segment now contributes 41.5% to the company’s total revenue, up from 38.6% in Q1 of FY24. Notably, excluding Ghee and Butter, VAP revenue grew to INR 3,823 million, accounting for 37.5% of total revenue, compared to 35.3% in the same period last year.

Milk sales volumes increased by 4.26% YoY to 1.13 million litres per day (MLPD). The average selling price of milk was INR 54.81 per litre, up by 0.40%. Average milk procurement stood at 1.62 MLPD, reflecting a 6.66% growth YoY, while procurement prices decreased by INR 3.47 per litre, or 7.75% YoY.

Heritage Foods introduced several new products during the quarter. Summer launches included three new Lassi variants – Sweet, Mango, and Strawberry – as well as three new Alpenvie ball ice-cream flavours – Cotton Candy, Banana Strawberry, and Bubble Gum. Additionally, long shelf-life milk in UHT cartons was launched in various sizes. Ahead of the festive season, the company rolled out a range of Laddus under the ‘Heritage Truly Good’ brand, featuring Ghee Besan, Ghee Jawar, and Ghee Millet Laddu.

Heritage Nutrivet Limited, a wholly-owned subsidiary, reported a robust 29% YoY growth in revenue to INR 422 million, with an impressive 363% increase in net profit to INR 29.2 million. Heritage Novandie Foods Private Limited, a joint venture, managed to reduce its losses by INR 2.3 million YoY, from INR 33.36 million to INR 31.06 million.

Brahmani Nara, Executive Director of Heritage Foods, expressed confidence in the company’s performance, highlighting the successful expansion of retail presence and distribution into new cities. Nara attributed the strong results to effective marketing strategies that have increased brand awareness and consumer engagement. She noted that despite facing adverse weather conditions, the company’s ability to sustain growth and expand its market reach positions it well for the upcoming festive season.

Founded in 1992, Heritage Foods Limited is a leading Indian dairy company known for its high-quality milk and dairy products. The company serves over 1.5 million households across 12 states and maintains long-term relationships with over 300,000 farmers. With a broad distribution network of more than 6,500 distributors and agents, Heritage Foods is committed to product authenticity and sustainability. The company also emphasizes its environmental responsibility, generating 11.70 MW of renewable energy from solar and wind sources for its dairy operations.