Parag Milk Foods Q1FY25 results: Robust growth and market share gains in dairy sector

Parag Milk Foods Limited, a leading manufacturer and marketer of dairy-based products in India, has unveiled its unaudited financial results for the first quarter of the fiscal year 2025, ended June 30, 2024. The company’s latest performance reflects robust growth across key metrics, underscoring its strong position in the dairy sector.

Parag Milk Foods achieved a revenue of INR 758 crore for the quarter, marking a modest growth of 1% year-on-year (YoY). The company’s gross profit stood at INR 204 crore, with a gross profit margin (GPM) of 26.9%, reflecting an improvement of 550 basis points compared to the same period last year. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter was INR 61 crore, translating to a margin of 8.1% and an increase of 160 basis points YoY. Notably, profit before tax (PBT) surged by 77% YoY to INR 27 crore, while profit after tax (PAT) also grew by 27% YoY to INR 27 crore.

During the first quarter, Parag Milk Foods reported a substantial 10% increase in volume. This growth was driven by strong performances in its core categories, including Ghee, Cheese, and its newer product lines. Specifically, the Ghee segment experienced a 15% volume growth, Cheese saw a 12% increase, and the New Age business grew by a remarkable 51% YoY.

The company has also seen an improvement in market share. According to the latest IMARC report for 2024, Gowardhan Ghee now holds a 22% market share in the branded cow ghee segment, up from the previous period. Similarly, the “Go Cheese” brand maintained a steady 35% market share in the cheese category.

Parag Milk Foods benefitted from lower raw material costs during Q1FY25. The average milk price was INR 31 per litre, down 16% YoY. The company managed approximately 15.5 lakh litres of milk daily. This decline in raw material costs contributed to a significant expansion in gross profit margins. The GPM improved by 550 basis points YoY, reaching 26.9% due to lower milk prices and an enhanced product mix that included more value-added products.

Mr. Devendra Shah, Chairman of Parag Milk Foods, expressed his satisfaction with the company’s performance. He highlighted the double-digit volume growth across core categories and the improved market share of flagship brands like Gowardhan Ghee and Go Cheese. Shah emphasized the company’s focus on sustainable growth and innovation, noting that the introduction of traditional sweets under the Gowardhan brand is expected to gain traction during upcoming festive periods.

Shah also discussed the company’s strategic goal of reaching a INR 10,000 crore turnover, driven by its continued emphasis on product innovation and market expansion. Parag Milk Foods’ integrated business model, which includes advanced manufacturing facilities and a large dairy farm with over 3,000 cows, supports its growth ambitions.

Established in 1992, Parag Milk Foods Limited is the largest private dairy FMCG company in India, with a national presence. The company operates manufacturing facilities in Manchar, Maharashtra; Palamaner, Andhra Pradesh; and Sonipat, Haryana. Its product portfolio includes cow’s milk-based offerings under brands like Gowardhan and Go. Parag Milk Foods has also ventured into the premium dairy segment with “Pride of Cows” and launched India’s first 100% vegetarian whey protein under the brand Avvatar.