FNB News - Heritage Foods records YoY profit growth of 117% in Q2-FY25

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Heritage Foods records YoY profit growth of 117% in Q2-FY25

Saturday, 26 October, 2024, 12 : 00 PM [IST]

Our Bureau, Mumbai

Heritage Foods Limited, a leading dairy company offering milk and value-added dairy products, announced its results for the quarter ended September 30, 2024.

Q2-FY25 Operational Highlights:

The business registered a growth of 4.2% and has crossed Rs 10,000 million of quarterly revenues for a second time this year.
Milk sales volume continued its steady growth in Q2, registering a growth by 5.11% YoY to
1.19 MLPD. The revenue growth in milk was a tad lower, with the average Milk selling prices at Rs 54.59/Lt, down -0.31% compared to same period last year.
The growth momentum in Value Added Products continued in Q2 with a robust growth of 15.5% reaching Rs 2977 million in revenues and VAP contribution of revenue reached 29.6% compared to 26.8% in Q2 of FY’24.

(Revenue of Value-added products mentioned above is excluding consumer packs of Ghee/Butter. On including Ghee and butter, the VAP revenue was Rs 3506 million and grew at 19.2%, contributing 34.8% of revenue in Q2 FY’25, compared to 30.6% in the same period LY, up 4.2%).

Average milk procurement for Q2-FY25 was at 1.64 million liters per day (MLPD), registering a growth of 11.46% YoY, whereas average milk procurement prices for Q2-FY25 decreased by Rs.2.94/Lt (6.81% YoY) over Q2-FY24.
Ahead of the festive season, the company launched several engaging consumer promotions and advertising campaigns, such as the paneer TV campaign and the ‘scan and win’ offer across the range of Ghee and sweets, which is further accelerating the VAP momentum.
Heritage Nutrivet Limited, the Wholly Owned Subsidiary Company had a robust top-line growth of 18% Y-o-Y to Rs 855.37 million and a healthy growth of 117% in PAT to Rs 42.94 million.

Brahmani Nara, executive director, said, “The robust performance was largely driven by strategic initiatives, such as expanding the company's geographical presence, enhancing supply chain networks, stepping up marketing efforts and focusing on value-added products (VAP). VAP, which contributes significantly to overall sales, which has been a key factor in driving high margins. The company's efforts in innovation and expanding product offerings, particularly in the VAP segment are yielding positive results. The company has the ability to navigate external challenges including adverse weather conditions without compromising the performance. The company’s targeted marketing campaigns helped strengthen brand recognition and consumer engagement, positioning it for further growth in coming quarters.”