Heritage Foods' consolidated Q2 FY2022 revenue surges by 9.9% at Rs 6,703 million

Heritage Foods, one of India's leading private dairy players, today announced its financial results for the second quarter and half year ended on 30 September 2021.

Q2 FY2022 Results - Consolidated

The revenue from operations was at Rs 6,703 million during the quarter, up by 9.9% YoY. EBIDTA stood at Rs 637 million compared to Rs 873 million in Q2 FY2021; EBITDA Margin stood at 9.5% in Q2 FY2021. Net Profit was at Rs 328 million as compared to Rs 539 million in Q2 FY2021. The Board of Directors has proposed an Interim Dividend of Rs 2.50 per equity share (50% of Face Value of Rs 5 per equity share) for FY 2022.

H1 FY2022 Results - Consolidated

The revenue from operations was at Rs 13,184 million during H1 FY2022, up by 5.6% YoY. EBIDTA stood at Rs 1,158 million as compared to Rs 1,432 million in H1 FY2021; EBITDA Margin stood at 8.8% in H1 FY2021. Net Profit was at Rs 631 million as compared to *Rs 832 million in H1 FY2021. (#EBITDA before Exceptional Items; *Net Profit excludes exceptional items gain due to changes in fair value of derivative liabilities and fair value loss on FVTPL securities and includes profit and loss from continued operations)

Operations highlights

• Average milk procurement during Q2 FY2022 was at 1.3 million liters per day (MLPD) compared to 1.2 MLPD in Q2 FY2021

• Average milk sales during Q2 FY2022 was 1.04 MLPD compared to 0.96 MLPD in Q2 FY2021

• Curd sales during Q2 FY2022 was at 279.7 metric tonnes per day (MTPD) compared to 215.0 MTPD in Q2 FY2021; registering a growth of 30.1% YoY

• Revenue from Value-added products (VAP) grew by 31.6% YoY to Rs 1,696 million in Q2 FY2022. VAP contributed 25.7% to the overall dairy revenue during Q2 FY2022 as against 21.7% in Q2 FY2021

Commenting on the results, Brahmani Nara, executive director, said, "Heritage Foods has recorded strong recovery post-Covid wave-2, by continuing to deliver strong top-line growth, expanding its value-added product portfolio and strengthened its Balance Sheet. During the quarter, the company expanded its Value Added Products (VAP) portfolio with the launch of Heritage Kesar Shrikhand and Heritage Amrakhand in the Mumbai and Hyderabad markets. The company also expanded its presence in the paneer category with Heritage Malai Paneer Fresh in Mumbai. During the quarter, the company's revenue from VAP surged by 31.6% YoY to Rs 1,696 million and its share of total revenue contribution increased by 4% to 25.7%, vis-a-vis Q2 of the previous year. Heritage Foods is progressing well towards achieving 'debt-free status by the end of FY 2022."

"Heritage Foods has appointed Muthu Raju Paravasa Raju Vijay Kumar as a Non-Executive Independent Director and looks forward to gaining from his rich knowledge and experience in accomplishing the Company's long-term goals and vision," added Nara.

Muthu Raju Paravasa Raju Vijay Kumar is a fellow member of the Institute of Chartered Accountants of India (ICAI), Institute of Cost and Management Accountants of India (ICMA) and Institute of Company Secretaries of India (ICSI). He has 30+ years of experience and is presently serving as chief financial officer (CFO) of Sify Technologies, a Nasdaq Listed Company.

New products launch in Q2 FY2022

Heritage Foods expanded its portfolio of Value Added Products by launching Heritage Kesar Shrikhand, Heritage Amrakhand, and Heritage Malai Paneer Fresh.