Heritage Foods Limited (BSE: 519552, NSE: HERITGFOOD), a leading dairy company specializing in milk and value-added dairy products (VAP), announced robust results for the quarter ending September 30, 2024. The company reported a 4.2% growth in revenue, surpassing Rs. 10,000 million in quarterly revenues for the second time this year.
Key Operational Highlights:
- Milk Sales: Volumes increased by 5.11% YoY to 1.19 million liters per day (MLPD). However, revenue growth in the milk segment was slightly lower, with average selling prices at Rs. 54.59/Lt, down 0.31% YoY.
- Value-Added Products (VAP): The VAP segment continued its upward trajectory, growing 15.5% to Rs. 2,977 million in revenue, contributing 29.6% of total revenue, up from 26.8% in Q2 FY24. Including consumer packs of ghee and butter, VAP revenue reached Rs. 3,506 million, a 19.2% YoY growth, contributing 34.8% to overall revenues.
- Milk Procurement: Average procurement rose by 11.46% YoY to 1.64 MLPD, while procurement prices dropped by Rs. 2.94/Lt (6.81% YoY).
- Promotional Campaigns: The company launched consumer-focused campaigns ahead of the festive season, including a paneer TV ad and a ‘scan and win’ promotion for ghee and sweets, driving further growth in VAP.
Heritage Nutrivet Limited, a wholly owned subsidiary, posted 18% YoY revenue growth to Rs. 855.37 million and a 117% rise in profit after tax (PAT) to Rs. 42.94 million.
Brahmani Nara, Executive Director of Heritage Foods, attributed the strong performance to strategic initiatives such as expanding geographical presence, enhancing supply chain networks, increasing marketing efforts, and focusing on VAP. She emphasized the company’s ability to overcome external challenges, including adverse weather conditions, without impacting performance.
With targeted marketing campaigns and innovative product offerings, Heritage Foods is well-positioned for continued growth in upcoming quarters.
