Heritage Foods announces Q1 FY23 results

Consolidated Q1 FY23 revenue growth by 27% YoY

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Heritage Foods
Heritage Foods' Probiotic Curd. Photo Heritage Foods

Heritage Foods, a leading value-added and branded dairy products player in India, announced its financial results for Q1 FY23 recently.

Financial highlights of Q1 FY23 results (consolidated):

  • Revenue from operations was at Rs 820 crore during the quarter
  • EBIDTA stood at Rs 22 crore in Q1 FY23, compared to Rs 29.8 crore in Q4 FY22
  • Net Profit during the quarter stood at Rs 7.3 crore in Q1 FY23

Operational highlights

  • Average milk procurement during Q1 FY23 was at 14.66 lakh liters per day (LLPD), compared to 12.14 LLPD in Q1 FY22; registering a growth of 20.76% YoY
  • Average milk sales during Q1 FY23 was 10.93 LLPD compared to 9.50 LLPD in Q1 FY22; recording an increase of 15.05% YoY
  • Curd sales during Q1 FY23 were at 424.09 metric ton 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 Rs 283 crore in Q1 FY23 compared to Rs 174 crore in Q1 FY22.
  • VAP contributed 34.86% to the overall dairy revenue during Q1 FY23 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 Q1 FY23 revenue growth by 27% YoY, increases in procurement and operational costs kept the quarter’s net profits under check to Rs 7.3 crore. 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 behavior 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.”

Heritage Foods (NSE: HERITGFOOD; BSE: 519552), founded in the year 1992, is one of India’s leading value-added and branded dairy products companies. It has a presence in the cattle feed business through its subsidiary, Heritage Nutrivet (HNL).

Heritage Foods’ milk and milk products, such as curd, ghee, paneer, flavored milk, and immunity milk, among others, are consumed by more than 1.5 million households in 11 states across India. Heritage Foods enjoys strong brand affinity with its consumers and is primarily known for its product authenticity, quality and freshness. It also enjoys long-term relationships with over 3 lakh farmers and has a vast distribution network across the country, comprising 6,517 distributors and agents. The company is ESG responsible and has a total renewable energy generation capacity of 10.50 MW from both solar and wind for captive consumption within its dairy factories.

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