Parag Milk Foods released its audited financial results for the financial year ending March 31, 2024. The company reported FY24 revenue of Rs 3,139 crore, an 8.5 per cent increase year-over-year and a 70 per cent rise in profit after tax to Rs 91 crore. Operating cash flow was strong at Rs 99 crore.
The company achieved a gross profit (GP) of Rs 749 crore, resulting in a GP margin of 23.9 per cent, an increase from the 19.7 per cent margin recorded in FY23.
The EBITDA for FY24 stood at Rs 222 crore, with an EBITDA margin of 7.1 per cent, up from 5.7 per cent in the previous year. This rise in EBITDA margin indicates the company’s success in optimising its earnings before interest, taxes, depreciation and amortization, highlighting strong overall financial health.
For the fourth quarter of FY24, Parag Milk Foods reported revenue from operations of Rs 790 crore. During this period, the company achieved a gross profit of Rs 194 crore and an EBITDA of Rs 44 crore. These quarterly figures reflect consistent performance and the company’s ability to maintain profitability and growth momentum throughout the fiscal year.
The Board of Directors has recommended a dividend of INR 0.5 per equity share, totalling approximately INR 6 crore.
The company’s performance underscores its focus on sustainable and profitable growth, leveraging strong brand equity and competitive market positioning. Key drivers include margin expansion and significant operating cash flows. Parag Milk Foods has enhanced its presence in modern trade and ecommerce, which have been pivotal in its growth trajectory.
The core categories of ghee and cheese have continued their positive momentum, posting a 3.5 per cent YoY growth.
The brand ‘Avvatar‘ has been a standout, growing at 100 per cent CAGR over the past two years. This growth has significantly boosted the company’s protein portfolio.
The “Pride of Cows” brand has seen healthy growth and expanded its presence to seven cities. The company is also expanding its Bhagyalakshmi Dairy Farm, which exclusively supplies the ‘Pride of Cows’ brand.
Parag Milk Foods’ growth has been supported by broad-based distribution channels, with general trade, modern trade and ecommerce posting growth rates of 3 per cent and 6 per cent YoY, respectively. The company has also invested in unique marketing initiatives, including participation in popular television shows like ‘Kaun Banega Crorepati’ and ‘India’s Got Talent’, enhancing its reach and brand equity.
The company’s average milk procurement stood at 16 lakh litres per day, with stable milk prices averaging Rs 33.8 per litre for FY24.
New Developments
Parag Milk Foods has undertaken a new range of traditional Indian sweets under the brand ‘Gowardhan’, tapping into a market estimated at Rs 7000-8000 crore. The initial product lineup includes Kaju Katli, Malai Pedha, Kesar Pedha, Kaju Pista Roll, Mawa Gujiya, Mysore Pak and Malai Modak.
The company plans to establish a wholly owned subsidiary in Dubai, UAE, to enhance its global footprint and streamline supply chain operations for international markets.
Devendra Shah, Chairman, Parag Milk Foods said “It gives me an immense pleasure to state that our consolidated revenues for FY24 have crossed the milestone of INR 3,000 crore; along with improvement in margins and profitability. The Profit after tax for the year was at INR 91 crore, with healthy operating cash flows of INR 99 crore. Over the last few quarters, the milk procurement prices have been benign, and now we expect an upward bias. Despite of tailwinds; we are geared up for improving our margin profile.
We would continue to enhance our industry-leading R&D capabilities and infrastructure to drive innovation and delight our consumers across the globe. Our forward integration of brand ‘Gowardhan’ into the traditional sweets category is an initiative in this direction. The initial response of the prototype is very positive and encouraging and we aim to target a bigger launch around the festivities. We are inching up on our business process transformation along with driving efficiency across the value chain. With an ensuing expansion and acceleration of the distribution footprint, we plan to incorporate a foreign wholly owned subsidiary (WOS) in Dubai, to cater the international market. With strong foundation in place, we are confident of posting industry leading growth and profitability ahead.”
