Parag Milk Foods registers revenue of Rs 3,139 crore

Highest-ever revenue with healthy orofits for FY24

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Parag
Parag Milk Foods registers revenue of Rs 3,139 crore

Parag Milk Foods Limited, a leading manufacturer and marketer of dairy-based branded products, has announced its audited financial results for the financial year ended March 31, 2024.

In FY24, the company recorded a revenue of Rs 3,139 crore, a 8.5% YoY growth. Profit after trax (PAT) in FY24 was Rs 91 crore, a 70% YoY growth. Cash flow from operations was recorded att Rs 99 crore. The board of directors have recommended a dividend for the year ended 31st March 2024 of Rs 0.5 per equity share (at face value of Rs 10 each) amounting to about Rs 6 crore.

Devendra Shah, chairman of Parag Milk Foods, said, “It gives me an immense pleasure to state that our consolidated revenues for FY24 have crossed the milestone of Rs 3,000 crore; along with improvement in margins and profitability. The profit after tax for the year was at Rs 91 crore, with healthy operating cash flows of Rs 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.”

The company says business performance this year signifies focus on sustainable profitable growth. It has bolstered its abilities in the rapidly growing new-age channels like modern trade and eCommerce, both of which have contributed to the overall growth. 

The company has capitalized on the benign milk prices and expanded its gross margin profile along with premiumization and improvement in the value-added product portfolio. It continues to invest in brand building with the overall advertising & promotion spends at 4.2% for FY24 vs 2.5% in FY23.

The core categories of ghee and cheese have seen continuous traction throughout the year and have posted a growth of 3.5 % YoY. Its consumer brand ‘Avvatar’ is consistently growing at 100% CAGR for now two years in a row. The overall protein portfolio has continued to record market share gains.

In line with the company’s premiumization agenda- the brand Pride of Cows continues to witness healthy traction. The brand is aggressively expanding its product portfolio as well as distribution footprint and now is present across seven cities. The company is expanding its Bhagyalakshmi Dairy Farm (100% subsidiary), which supplies exclusively under ‘Pride of Cows’ brand.

New developments

It forayed into the sweets category under brand Gowardhan. Currently it has seven delectable sweets range namely Kaju Katli, Malai Pedha, Kesar Pedha, Kaju Pista Roll, Mawa Gujiya, Mysore Pak, and Malai Modak. With an estimated branded market size of Rs 7000-8000 crore, the Indian sweets market presents vast opportunities for growth and innovation.

The company plans to incorporate a foreign wholly owned subsidiary (WOS) in Dubai, UAE. This will help the company to expand its reach and build a seamless supply chain operations worldwide to cater the international market.

Parag Milk Foods Limited, established in 1992, is one of India’s largest private dairy FMCG companies with a pan-India presence. Its manufacturing facilities with in-house technology are located at Manchar in Maharashtra, Palamaner in Andhra Pradesh, and Sonipat in Haryana.

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