Heritage Foods Q1FY25: Revenue Crossed ₹10,000 For First Time

Heritage Foods Limited, a leading dairy company in India, announced impressive results for the quarter ended June 30, 2024 (Q1FY25), marking significant milestones and strategic growth.

Revenue Surpasses ₹10,000 Crore for the First Time

The company achieved a noteworthy 11.8% growth in revenue, surpassing the ₹10,000 crore mark for the first time in a single quarter. This robust performance underlines Heritage Foods’ strong market position and growing customer base.

Value-Added Products Drive Growth

The momentum in Value Added Products (VAP) continued in Q1FY25, registering a significant 19.9% growth to reach ₹4,228 crore. This segment now contributes a substantial 41.5% to the company’s overall revenue, compared to 38.6% in the same quarter last year. This shift highlights the growing consumer demand for innovative and convenient dairy products.

Steady Growth in Milk Sales

Milk sales volumes maintained their steady growth trajectory, increasing by 4.26% YoY to 1.13 million litres per day (MLPD) in Q1FY25. The average milk selling price also witnessed a marginal increase to ₹54.81 per litre, indicating a stable and positive market environment.

Milk Procurement: Balancing Growth and Costs

While average milk procurement volume witnessed a healthy growth of 6.66% YoY to 1.62 MLPD, average procurement prices saw a decrease of ₹3.47 per litre (-7.75% YoY). This strategic approach helps manage overall costs while ensuring adequate milk supply to meet customer demand.

Summer and Festive Season Product Launches

Heritage Foods capitalised on seasonal trends by introducing enticing new products. This included three new Lassi flavours (Sweet, Mango and Strawberry) and three new Alpenvie ice-cream variants (Cotton Candy, Banana Strawberry and Bubble Gum). Additionally, the company launched long-shelf-life milk in UHT cartons, catering to consumer convenience.

Ahead of the festive season, Heritage Foods introduced a range of healthy yet indulgent Laddus under the ‘Heritage Truly Good’ brand in three variants: Ghee Besan, Ghee Jawar & Ghee Millet Laddu. These innovative offerings cater to evolving consumer preferences for healthy treats.

Subsidiary and Joint Venture Performance

Heritage Nutrivet Limited, a wholly-owned subsidiary, demonstrated a robust top-line growth of 29% YoY to ₹422 crore. Notably, the bottom line witnessed an exponential growth of 363% to ₹29.2 crore, showcasing strong financial performance.

Heritage Novandie Foods Private Limited, the joint venture company, also displayed positive progress by reducing losses by ₹2.3 crore YoY (₹33.36 crore to ₹31.06 crore). This signifies improved operational efficiency and a path towards profitability.

Commenting on the performance of the company, Mrs Brahmani Nara – Executive Director, said: “With the building blocks of our business falling in place, our performance in Q1-FY’25 has shown that we can sustain our momentum ahead of the industry even when faced with adverse weather, as we saw in the second half of this quarter. In this quarter, we stepped up our retail availability into more stores, expanded our distribution into more cities and recruited more consumers than ever before. Our sharply targeted marketing campaigns have delivered a strong uptick in top-of-mind awareness and faster offtake for our brands across retail shelves. This gives us confidence as we enter the upcoming festive season.”

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