Dairy company Heritage Foods reported consolidated net profit for the first quarter ended June declined 30% to ₹40.54 crore from the ₹58.42 crore a year earlier.
The lower net profit came on a 10% increase in revenue from operations to ₹1,136.75 crore (₹1,032.67 crore). It was the first time quarterly revenue surpassed the ₹1,100 crore mark.
Total income also rose more than 10% to ₹1,142.02 crore (₹1,038.23 crore). “While unseasonal rains in April–May temporarily impacted demand for value-added products (VAP) and weighed on profitability, June marked a healthy recovery,” Executive Director Brahmani Nara said.
From April through May across all core-markets, the unprecedented, unseasonal rains led to muted demand for VAP such as curd, buttermilk, flavoured milk and ice-creams resulting in VAP contribution to overall revenues declining to 36.1% from 37.5% y-o-y. However, the situation began normalising from June, resulting in Q1 VAP sales growing at 5.5%.
Raw milk prices increased by 4.74% in Q1 or ₹1.96/litre on Y-o-Y basis, against which blended revenue per kg or litre of milk and VAP increased by 4.1% or ₹2.47/kg. A drop in VAP contribution led to around 0.8% impact on blended net revenue, while some deliberate pricing choices made to address sluggish growth, further lowered net revenue by about 1.3%. Together, these factors put pressure on margins, compared to what could have been achieved, Heritage Foods said in a release.
The company’s board has approved the acquisition of an additional 44.4% stake in Heritage Novandie Foods (HNFPL), increasing the company’s total holding to 94.4% and consequently offering strategic control of yogurt supply chain.
Published – July 17, 2025 09:10 pm IST
