Heritage Foods announces Q1FY23 results

Heritage Foods, a leading value-added and branded dairy products player in India, announced its financial results for Q1FY23 on 29 July 2022.

Financial Highlights of Q1FY23 Results (consolidated)

• 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

Operational Highlights

• Average milk procurement during Q1FY23 was at 14.66 lakh litres per day (LLPD), compared to 12.14 LLPD in Q1 FY22; registering a growth of 20.76% YoY

• Average milk sales during Q1FY23 was 10.93 LLPD compared to 9.50 LLPD in Q1 FY22; recording an increase of 15.05% YoY

• Curd sales during Q1FY23 were at 424.09 metric tonnes per day (MTPD) compared to 291.70 MTPD in Q1 FY22; registering a growth of 45.39% YoY

• Revenue from Value added products (VAP) grew by 62.5% YoY to INR 2,838 million in Q1FY23 compared to INR 1,746 million in Q1 FY22.

• VAP contributed 34.86% to the overall dairy revenue during Q1FY23 against 27.3% in Q1 FY22, up by 756 bps YoY.

New Value Added Products (VAP) launch in Q1 FY23 :

• Gulab Jamun and Rasgulla

• Cup buttermilk

• Ghee in spout packs

Commenting on the results, 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."