Heritage Foods Results: Latest Quarterly Results & Analysis

Packaged Foods company Heritage Foods  announced Q3FY25 results

• Revenue: Rs 10,339 million YoY Growth: 10%.
• EBITDA: Rs 741 million YoY Growth: 43%.
• EBITDA Margin 7.2% YoY, Growth: 164 Bps.
• PAT Rs 431 million YoY Growth: 60%.

Brahmani Nara – Executive Director, said: “I am pleased to announce that Heritage Foods Limited has had 10000 million revenue for the third consecutive quarter. In 3QFY25, our revenue grew by 10% YoY, reaching Rs 10,339 million. EBITDA for the quarter was Rs 741 million, resulting in a 7.2% margin. Notably, our net profit increased significantly by 60% YoY to Rs 431 million, resulting in a 4.2% margin, reinforcing our strong financial standing.

Heritage Foods has set an extraordinary benchmark, revolutionizing the dairy industry with its innovative approach and unwavering commitment to quality. By establishing a robust, integrated supply chain, adopting a cutting-edge omni-channel presence, expansion of the company’s geographic footprint, diverse and customer-centric product portfolio that not only meets seasonal demands but also fosters long-term customer engagement. A strong emphasis on value-added products (VAP), which have become a key driver of both revenue and high margins and continues to strengthen our market position. In parallel, our targeted marketing campaigns have played a crucial role in enhancing brand recognition and deepening consumer engagement.

We remain confident that our commitment to innovation, quality, and customer engagement will enable us to not only navigate but thrive amidst future challenges. As always, we remain dedicated to creating shareholder value with unwavering passion and commitment. In the upcoming quarters, we will continue to focus on enhancing our business model by advancing up the value chain, ensuring our ongoing success.”

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Packaged Foods company Heritage Foods announced H1FY25 & Q2FY25 results

Q2FY25 Financial Highlights:

• Revenue: Rs 10,195 million, YoY growth: 4.2%.
• EBITDA: Rs 832 million, YoY growth: 76.8%.
• EBITDA Margin: 8.16% YoY growth: 335 Bps.
• PAT: Rs 486 million YoY growth: 117%.

H1FY25 Financial Highlights:

• Revenue: Rs 20,522 million YoY growth: 7.9%
• EBITDA: Rs 1,770 million YoY growth: 102.7%
• EBITDA Margin: 8.63% YoY growth: 404 Bps
• PAT: Rs 1,071 million YoY growth: 173%

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 2,977 million in revenues and VAP contribution of revenue reached 29.6% compared to 26.8% in Q2FY’24.
• Average milk procurement for Q2FY25 was at 1.64 million liters per day (MLPD), registering a growth of 11.46% YoY, whereas average milk procurement prices for Q2FY25 decreased by Rs 2.94/Lt (6.81% YoY) over Q2FY24.
• Ahead of the festive season, we launched several engaging consumer promotions and advertising campaigns, such as the paneer TV campaign and the ‘scan and win’ offer across our range of Ghee and sweets, which is further accelerating our VAP momentum.

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

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Packaged Foods company Heritage Foods announced consolidated Q1FY25 results:

Financial Highlights:

• Revenue: Rs 10,327 million YoY, Growth: 11.8%
• EBITDA: Rs 938 million YoY, Growth: 133%
• EBITDA Margin: 9.08% YoY, Growth: 472 Bps
• PAT: Rs 584 million YoY, Growth: 249%

Operational Highlights:

• The business registered a growth of 11.8%, and crossed Rs 10,000 million revenue mark in a quarter for the first time.
• Momentum in Value Added Products continued in Q1 with a robust growth of 19.9% reaching Rs 4,228 million in revenues, with VAP contribution at 41.5% compared to 38.6% in Q1FY24.
• Milk sales volumes continued its steady growth in Q1, registering a growth by 4.26% YoY to 1.13 MLPD, and average Milk selling prices averaged Rs 54.81/Lt, up 0.40%
• Average milk procurement for Q1-FY25 was at 1.62 million liters per day (MLPD), registering a growth of 6.66% YoY, whereas average milk procurement prices for Q1FY25 decreased by Rs 3.47/Lt (-7.75% YoY) over Q1-FY24.
• Summer launches included 3 new variants of Lassi – Sweet, Mango & Strawberry and 3 new variants of ball ice-creams under Alpenvie brand – Cotton Candy, Banana Strawberry and Bubble Gum. We also launched long shelf-life milk in UHT cartons of various sizes.
• Ahead of festive season, we launched a range of healthy, yet indulgent range of Laddus under ‘Heritage Truly Good’ brand in 3 variants – Ghee Besan, Ghee Jawar & Ghee Millet Laddu.
• Heritage Nutrivet Limited, the Wholly Owned Subsidiary Company had a robust top-line growth of 29% YoY to Rs 422 million and an exponential growth of 363% in bottom line to Rs 29.2 million.
• Heritage Novandie Foods Private Limited, the Joint Venture Company has reduced losses by Rs 2.3 million YoY (Rs 33.36 million to Rs 31.06 Mn).

Commenting on the performance of the Company, Brahmani Nara – Executive Director, said: “With the building blocks of our business falling in place, our performance in Q1FY25 has shown that we can sustain our momentum ahead of the industry even when faced with adverse weather, as we saw in the second half of this quarter. In this quarter, we stepped up our retail availability into more stores, expanded our distribution into more cities and recruited more consumers than ever before. Our sharply targeted marketing campaigns have delivered strong uptick in top-of-mind awareness and faster offtake for our brands across retail shelves. This gives us confidence as we enter the upcoming festive season.”

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Packaged Foods company Heritage Foods announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Revenue: Rs 9,506 million YoY Growth: 16.3%
• EBITDA: Rs 702 million YoY Growth: 67.5%
• EBITDA Margin: 7.39% YoY Growth: 226 bps
• PAT: Rs 405 million YoY Growth: 126.3%

FY24 Financial Highlights:

• Revenue: Rs 37,939 million YoY Growth: 17.1%
• EBITDA: Rs 2,095 million YoY Growth: 51.5%
• EBITDA Margin: 5.52% YoY Growth: 125 bps
• PAT: Rs 1,065 million YoY Growth: 83.6%

Commenting on the performance of the Company, Brahmani Nara – Executive Director, said: “Q4-FY24 and FY24, have been extremely strong on both financial performance and operational excellence. The strategies we laid out few years ago of becoming more consumer centric, strengthening our portfolio with the launching of a dozen innovative products, expanding our availability with an omni-channel route to market approach, intense marketing programs step changing our brand preference, have all started bearing fruit. After a few years of headwinds, the dairy sector is finally seeing green shoots and we are confident that Heritage Foods will outperform in the coming financial year.”

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Packaged Foods company Heritage Foods announced Q2FY24 & H1FY24 results:

• Consolidated Q2FY24:

  • Revenue for Q2FY24 is Rs 9,786 million, with a year-on-year (YoY) growth of 19.9%.
  • EBITDA for Q2FY24 is Rs 471 million, showing a YoY growth of 18.1%.
  • EBITDA Margin in Q2FY24 is 4.81%.
  • Profit After Tax (PAT) for Q2FY24 is Rs 224 million, with a YoY growth of 17.7%.
     

• Consolidated H1FY24:

  • Revenue for H1FY24 is Rs 19,022 million, with a YoY growth of 16.2%.
  • EBITDA for H1FY24 is Rs 873 million, indicating a significant YoY growth of 36.9%.
  • EBITDA Margin in H1FY24 is 4.59%.
  • Profit After Tax (PAT) for H1FY24 is Rs 392 million, showing a substantial YoY growth of 49.0%.

Commenting on the performance of the Company, Brahmani Nara – Executive Director, said, “We had a good performance this quarter, primarily driven by higher volume growth in VAP. This is a testament to our strategic initiatives playing out to drive high margin VAP growth, which is backed by an ever-expanding geographical footprint and supply chain network.”

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Packaged Foods company Heritage Foods announced Q1FY24 results:

• The company crossed Rs 900 crore in revenue in a quarter for the first time, with revenue growth of 12.5% YoY and 13.01% QoQ.
• EBITDA of Rs 403 million with YoY growth of 67.9%
• EBITDA Margin 4.36% with YoY growth of 144 bps
• PAT of Rs 167 million with YoY growth of 128.8%
• The continued strong momentum in revenue growth was driven by Value added products (VAP) that registered a growth of 13.5% YoY to reach Rs 3,221 million.
• With this the overall VAP contribution reached 38.7% of dairy revenues in the quarter, up from 38% in Q1FY24. Out of this, VAP contribution without fat products stood at 35.3%.
• Average milk procurement was at 1.52 million litres per day (LPD), registering a growth of 9% YoY
• Average milk procurement prices increased by Rs 3.78/Ltr over Q1FY23 to Rs 44.55/Ltr

Commenting on the performance of the Company, Brahmani Nara – Executive Director, said: “I’m pleased to inform you that our company had a very healthy revenue growth in Q1FY24 driven by a better pricing strategy, which enabled us to cross the Rs 900 crore quarterly revenue mark for the first time. Furthermore, the company recorded an even stronger growth in profitability. We have continued to deepen our footprint in the geographies we operate in by investing in chilling capacities and enhancing our sales and distribution network. The company has also continued to innovate and expand its VAP portfolio with the VAP sales contributing to over 38.7% of overall sales in Q1FY24.”

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Packaged Foods company Heritage Foods announced Q3FY23 results:

• Consolidated Q3FY23:
  • Revenue Rs 7,860 million YoY Growth: up 17.8%
  • EBITDA Rs 326 million YoY Growth: down 19.9%
  • EBITDA Margin 4.15% YoY Growth: down 195 Bps
  • PAT Rs 137 million YoY Growth: down 33.8%
• 9MFY23:
  • Revenue Rs 24,231 million YoY Growth: up 22.0%
  • EBITDA Rs 963 million YoY Growth: down 39.5%
  • EBITDA Margin 3.97% YoY Growth: down 405 Bps
  • PAT Rs 400 million YoY Growth: down 52.2%

Commenting on the performance of the Company, Mrs. Brahmani Nara – Executive Director, said – “We had another consecutive quarter of growth registering around 18% YoY growth in revenues, while the raw material price trend also continued to increase by around 17% YoY, impacting the margins, which was marginally offset by price increases. Unfortunately, the flush season was adversely affected with the ongoing Lumpy skin disease and prolonged monsoon season in South India which kept pressures on the milk procurement prices. Our share of Value-Add products for the nine months ended of financial year 2023 has now reached to around 29% of overall sales.”

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Heritage Foods announced Q2FY23 results:

• Q2FY23:
  • Revenue is Rs 8,162 million, YoY Growth: 21.76%
  • EBITDA is at Rs 398 million, YoY Growth: -38.80 %
  • EBITDA Margin is 4.88%, YoY Growth: -484 Bps
  • PAT is Rs 190 million, YoY Growth: -41.88%
• H1FY23:
  • Revenue is Rs 16,371 million, YoY Growth: 24.17%
  • EBITDA is Rs 638 million, YoY Growth: -46.19 %
  • EBITDA Margin is 3.90%, YoY Growth: -509 Bps
  • PAT is Rs 263 million, YoY Growth: -58.21%

Commenting on the performance of the Company, Mrs. Brahmani Nara – Executive Director, said – “The company continued its trend of positive sales growth with consolidated Q2-FY23 revenue growth at 22% YoY. Unfortunately, raw material price trend also continued to increase by 19% YoY against the same period in the previous year, resulting into historically high milk procurement prices. These abnormally high prices were primarily driven by the continuous spread of the Lumpy Skin Disease (LSD) across many states. Furthermore, due to the second wave of Covid-19 disease in the last year, animal healthcare has been neglected across the country reducing fertility rates and reducing the overall supply of milk this year, while demand continued to increase with the opening up of the economy and consumption centres across the country. And although historical trends suggest that October onwards milk availability is higher and demand also drops post the Diwali festival season, which should rationalize the procurement costs, we need to wait and watch if and how this pans out. To protect the company against these market volatilities, our strategy and focus has been to consistently increase the share of Value Add products, which now contribute to around 27% of overall sales from a mere 3% in 2007. The company aims to increase this share further to 40% in the coming years, which will over a period of time bring stability in the margin profile.”

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Packaged Foods firm Heritage Foods Announced Q1FY23 Result :

• Solid consolidated Q1FY23 revenue growth by 27% YoY, to INR 8,209 million
• 756 bps YoY growth in Value Added Products (VAP) contribution to 34.86% of Q1FY23 ’s revenue
• Revenue from operations was at INR 8,209 million during the quarter
• EBIDTA stood at INR 220 million in Q1FY23, compared to INR 298 million in Q4 FY22
• Net Profit during the quarter stood at INR 73 million in Q1FY23

Commenting on the results, Mrs. Brahmani Nara, Executive Director, said, “Amidst the challenging environment, the Company is making efforts to grow sustainably. Even though we posted solid consolidated Q1FY23 revenue growth by 27% YoY, increases in procurement and operational costs kept the quarter's net profits under check to INR 73 million. The Company is continually expanding its portfolio of value-added products and, in Q1 FY23, we launched 3 value added products. Along with expanding our value-added range, we are continually focusing on extending our customer and geographical reach. Parallelly, we are implementing strategic initiatives to focus on quality growth and improving profitability. Our marketing strategies are being redesigned to understand consumer preferences and behaviour patterns, and are being aligned more closely with our portfolio. As we continue to enjoy strong sequential demand growth for our products, we are placing concerted efforts for improving our profitability in the coming quarters.”

Result PDF