India · Delayed Price · Currency is INR Heritage Foods Earnings Call Transcripts
Fiscal Year 2027
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Q2 revenue rose 19% YoY and EBITDA margin improved 98 bps sequentially despite 11% milk procurement inflation. VAP growth, staged price increases and operating leverage support margin progress, while supply and weather risks persist.
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Record revenue grew 18% YoY, led by 40% VAP growth and a record 49% broader VAP revenue mix. Elevated milk and packaging costs compressed margins, while uncertain supply and weather drive ongoing phased pricing actions.
Fiscal Year 2026
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FY 2026 revenue reached ₹45,260 million, while Q4 margins remained pressured by milk inflation and supply constraints. VAP growth and new capacity underpin cautious FY 2027 optimism, with procurement costs and weather still key uncertainties.
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Q3 revenue grew 8% YoY, but constrained milk and butter supply drove cost pressure. VAP mix improved, and margin recovery depends on pricing, seasonal demand and better supply conditions.
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Q2 revenue rose 9% and PAT 5%, while EBITDA margin fell on higher milk costs and severe weather. Management expects a normal flush season, easing costs and stronger VAP growth to support recovery; ice cream capacity expansion is on track.
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Record Q1 revenue of INR 11,368 million came despite weather-driven demand weakness; June recovery supported a return toward mid-teens growth, while mix and input costs weighed on margins.
Fiscal Year 2025
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Milk procurement grew at a 10.6% CAGR over four years, while value-added products reached ~37% of revenue. Strategy centers on expanding branded products, distribution and capacity, with a ~50% value-added mix goal in 6–7 years.
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FY25 revenue rose 9% and EBITDA 58%, supported by volume growth and premiumization. Value-added products are central to the growth strategy, while raw-milk costs and weather remain key sources of volatility.
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Q3 revenue rose 10% YoY, with EBITDA up 43% and PAT up 60%; VAP grew 14.3% by volume. Management expects milk procurement inflation and is investing in VAP capacity, ice cream and deeper market reach.
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Q2 EBITDA and net profit grew sharply, while milk volumes and VAP remained strong; lower bulk-fat sales tempered reported revenue growth. Management retained a 7%–8% long-term EBITDA margin objective and cited weather and flat pricing as key constraints.
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Q1 revenue reached INR 1,033 crore, with EBITDA up 133% and net profit up 249% YoY. Value-added products gained share; management aims for 17%-18% revenue growth and a sustainable 7%-8% EBITDA margin corridor.
Fiscal Year 2024
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FY24 operating income grew 17%, EBITDA 52% and net profit 84%; Q4 earnings accelerated. VAP growth and mix expansion are central to the longer-term 40% VAP contribution ambition.
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Q3 revenue rose 20% YoY and net profit 96%, supported by VAP growth and softer milk costs. Bulk-fat disposals caused INR 15.5 crore of Q3 losses; management expects steady growth and is pursuing VAP pricing and mix improvements.
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Q2 revenue hit a record INR 979 crore, up 20% YoY, as VAP grew 18%; butter markdowns weighed on gross margin, while falling procurement prices supported an improving outlook.
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Q1 FY24 revenue reached a record ₹924 crore, up 12.5% YoY, while EBITDA and net profit rose sharply. Weather hurt summer demand, and a ₹10.5 crore one-time inventory provision weighed on margins; management retained longer-term margin and growth ambitions.