Q1 2025 Heritage Foods Ltd Earnings Call Transcript
Key Points
- Heritage Foods Ltd (BOM:519552) achieved a record quarterly revenue of INR1,033 crore, marking a 12% year-on-year increase.
- EBITDA for the quarter surged by 133% year-on-year to INR94 crore, with EBITDA margins improving to 9.08%.
- Net profit for the quarter increased by 249% year-on-year to INR58 crore, resulting in PAT margins of 5.66%.
- Milk sales volumes grew by 4.26% year-on-year to 1.13 million liters per day, with average milk selling prices slightly up by 0.40%.
- Value-added products saw robust revenue growth of around 20%, contributing 41.5% to the total revenue, up from 38.6% in the same quarter last year.
- Despite the overall positive performance, the company faced a bulk fat loss of INR6.4 crore.
- The company noted increased competition in the market, particularly from local and unorganized players.
- There is uncertainty regarding the sustainability of current profit margins due to potential fluctuations in milk procurement prices.
- The company has not yet expanded its e-commerce operations to certain regions like Odisha, which could limit growth potential in those areas.
- The company’s growth in the milk segment is expected to be limited to mid-single digits, primarily due to the mature nature of the market.
Ladies and gentlemen, good day, and welcome to Heritage Foods Q1 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Anuj Sonpal. Thank you, and over to you, sir.
Thank you. Good morning, everybody. And a very warm welcome to you all. My name is Anuj Sonpal from Valorem Advisors. We are presenting Investor Relations of Heritage Foods Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings call for the first quarter of financial year 2025.
Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Such statements are based on management's beliefs as well as assumptions made by and information currently available to management.
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