Heritage Foods Ltd, a leading dairy company, has reported a 4.87% increase in consolidated net profit to Rs 50.99 crore for the July-September quarter. The company’s total revenue rose to Rs 1,112.5 crore, a 9% year-on-year growth, despite challenges such as adverse weather and higher procurement costs. The increase in revenue was driven by a 14.8% growth in value-added products, which contributed 31.4% to total revenue excluding fats.
The company’s milk procurement volumes fell by 2.1% to 16.1 lakh litres per day, while average milk procurement prices increased by 6.3% to Rs 42.8 per litre. However, milk sales volumes grew by 1.1% to 12.1 lakh litres per day, with average selling prices rising by 4.5% to Rs 57 per litre. The company took calibrated price actions to offset inflationary pressures and is confident that improving milk availability, GST-led tailwinds, festive demand, and seasonal recovery will drive a stronger second half.
Heritage Nutrivet Limited, the company’s wholly owned subsidiary, posted a 34% jump in revenue to Rs 58.1 crore, while profit before tax surged 80% to Rs 5.4 crore. The company’s expenses climbed to Rs 1,059.2 crore from Rs 957.49 crore in the year-ago period. Executive Director Brahmani Nara stated that the company is confident of a stronger second half, driven by improving milk availability and festive demand.
The company’s performance is a testament to its ability to navigate challenges and deliver growth despite adverse conditions. The increase in revenue and profit is a positive sign for the company, and it is well-positioned to capitalize on the opportunities in the dairy sector. With a strong focus on value-added products and a growing subsidiary business, Heritage Foods Ltd is poised for continued growth and success in the future. Overall, the company’s results are a positive indication of its ability to deliver sustainable growth and profitability.