Heritage Foods Ltd, a leading dairy company, has reported a significant 117 percent year-on-year (YoY) profit growth for the second quarter of FY25. The company, listed on both the BSE (519552) and NSE (HERITGFOOD), announced its results for the quarter ended September 30, 2024. Profit after tax (PAT) for this quarter reached Rs 48.6 crore.
The company's consolidated revenue for Q2 stood at Rs 1,016.5 crore, reflecting a YoY growth of 4.2 percent. Earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose by 7.8 percent YoY to Rs 83.2 crore. For the first half of FY25, Heritage Foods posted revenues of Rs 2,052.2 crore, up 7.5 percent YoY, with PAT at Rs 107.1 crore, a remarkable 173 percent increase compared to the same period last year.
A key driver behind this robust performance has been the continued growth in the company's value-added products (VAP) segment. In Q2 FY25, VAP revenue surged by 15.5 percent to Rs 297.7 crore, contributing 29.6 percent to the company’s overall revenues. The milk sales volume also grew steadily, increasing by 5.11 percent YoY to 1.19 million liters per day (MLPD). The revenue growth in milk was slightly lower, with average milk selling prices at Rs 54.59 per liter, down 0.31 percent compared to last year.
Average milk procurement for Q2 FY25 was at 1.64 million liters per day, registering a growth of 11.46 percent, while average milk procurement prices for Q2 FY25 decreased by Rs 2.94 per liter (6.81 percent YoY) compared to Q2 FY24.
Heritage Foods' wholly-owned subsidiary, Heritage Nutrivet Limited, also recorded a strong performance, with an 18 percent YoY growth in revenue, reaching Rs 85.53 crore. PAT for the subsidiary grew by 117 percent YoY to Rs 4.29 crore.
Commenting on the results, Brahmani Nara, Executive Director of the company, said the robust performance was largely driven by strategic initiatives, including geographical expansion, enhancing supply chain networks, stepping up marketing efforts, and focusing on value-added products (VAP). She noted that these efforts have strengthened Heritage Foods' market position and helped the company navigate external challenges, including adverse weather conditions.
Founded in 1992, Heritage Foods Ltd. is one of the leading value-added and branded dairy products companies in India. It has a strong presence in 12 states. The company also operates in the cattle feed business through its subsidiary, Heritage Nutrivet Limited (HNL).