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Milk Mantra achieves 6% EBITDA with steady revenue
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Saturday, 03 August, 2024, 13 : 00 PM [IST]
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Our Bureau, New Delhi
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Milk Mantra, a new-age dairy company with a 100% b2c mass premium branded play, has reported a remarkable financial turnaround for FY24. Although, the company saw its revenue with mostly flat growth to ?279 crore, up from ?272.90 crore in FY23, it dramatically improved its EBITDA from a loss of ?6.56 crore the previous fiscal to a positive 6% of revenue.
This significant swing back to profitability comes despite challenging market conditions, highlighting the effectiveness of the brand’s focus on value-added products and operational efficiency. Its value-added portfolio grew by 15% year-over-year, with its curd products maintaining an impressive 35% CAGR. The company has been sustainably positive for three years in the last four since breaking even in 2021.
Rashima Misra, co-founder and ED, Milk Mantra, said, "Our journey from a ?6.56 crore EBITDA loss to a positive 6% margin, coupled with our industry-leading 28% contribution margin, reflects the strength of our business model. This milestone enables us to further invest in innovation and expansion of our ‘Milky Moo’ brand, while continuing to support our network of 80,000 farmers."
The company’s unique B2C approach continues to drive its success, with 95% of revenue generated through its own general trade distribution channel. Its D2C initiative, 'Daily Moo', has gained significant traction, contributing 5% of total revenue and serving approximately 4,000 daily orders in Bhubaneswar alone.
The recent US$10 million funding from USDFC has further fueled the company’s expansion plans. It is on the verge of completing a new fermented products manufacturing plant, set to bolster the regional expansion of the Milky Moo brand.
Looking ahead, Milk Mantra plans to scale up its D2C model, expand into key markets, and introduce innovative niche products over the next two fiscal years. The company remains committed to growing its farmer network, reinforcing its dedication to ethical milk sourcing and rural economic development.
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