As per the consolidated financial results, milk sales volume registered a growth by 5.11 per cent YoY to 1.19 million litre per day (MLPD)
Driven by the enhancement in supply chain networks, Heritage Foods, a dairy company has reported 117 per cent year-on-year (YoY) growth in profits after tax (Pat or net profit) in the second quarter of the current financial year (Q2FY25). The net profit of the company stood at Rs 486 million in Q2FY25. The business registered a growth of 4.2 per cent and has crossed Rs 10,000 Mn of quarterly revenues for a second time this year.
As per the consolidated financial results of the company, milk sales volume registered a growth by 5.11 per cent YoY to 1.19 million litre per day (MLPD). However, the revenue growth in milk was a tad lower, with the average Milk selling prices at Rs 54.59 per litre, down -0.31 per cent compared to same period last year.
“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,” stated Brahmani Nara, Executive Director.
Average milk procurement for the recently concluded quarter was at 1.64 million litre per day (MLPD), registering a growth of 11.46 per cent YoY. The earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter was Rs 832 Million, while the EBITDA margin was 8.16 per cent, showcasing a YoY growth of 335 basis points.
As per the results, the average milk procurement prices for Q2FY25 decreased by Rs 2.94 per litre (6.81 per cent YoY) over Q2FY24. The consolidated net profit for the six months of the FY25 (6M FY25) stood at Rs 1,071 million, witnessing a YoY growth of 173 per cent.
