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Heritage Foods surpasses milestones with quarterly, annual revenue up 9%, profit soars 77% YoY
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Monday, 19 May, 2025, 12 : 00 PM [IST]
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Our Bureau, Mumbai
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Heritage Foods Limited, a leading dairy company offering milk and value-added dairy products, announced its results for the quarter ended March 31, 2025.
Key Highlights: Market Leadership: Heritage Foods Ltd expanded its market share and consumer base in the key Value-Added Product segments of Curd and Paneer. It is now ranked among Top 5 brands. Acquisition Update: Heritage Foods has acquired a majority stake in Heritage Novandie Foods Pvt. Ltd. (HNFPL) for Rs 8.5 crore, enabling a strategic shift to a lean contract manufacturing model. Strong Growth in Milk Procurement: Milk procurement rose sharply by 10.4% YoY, reaching 1.72 million litres per day (MLPD) in FY25, ensuring robust supply chain continuity.
Q4-FY25 Business Highlights: Record Revenue Performance: Heritage Foods reported a 10.3% YoY revenue growth, achieving its highest-ever quarterly and annual revenues, with Rs 10,000+ million in quarterly revenue for the fourth straight quarter. Cost Optimisation in Procurement – In Q4FY25, the average milk procurement prices stood at Rs 42.9 per litre, up 3.1% YoY, while the company handled an average of 1.76 million litres per day (MLPD). For FY25, average prices declined 3.7% YoY to Rs 41.7/litre, driven by improved sourcing efficiencies and favourable flush season availability—supporting effective cost management despite market volatility. Steady Growth in Milk Sales Volume and Realisation: Milk sales rose by 4.5% YoY to 1.16 MLPD in FY25, driven by consistent consumer demand and robust distribution. The average selling price increased to Rs 55.6/litre from Rs 54.8/litre last year, reflecting stable market positioning and pricing strength. Improved margins and profitability - Gross Profit Margins (GPM) expanded by 425 basis points YoY during FY25 to 25% as against 20.7% in FY24, led by improved product mix, successful price realisation, and the company’s ability to command a pricing edge. Robust Value-Added Products (VAP) Growth: The VAP segment continued to gain traction, delivering a 19.3% YoY increase in revenue to Rs 3,362 million. Its contribution to total revenue rose to 32.5%, up from 30.1% in Q4 FY24. Expanded VAP Performance Including Ghee & Butter: When including Ghee and Butter consumer packs, VAP revenue surged to Rs 4,198 million, marking a 19% YoY growth. The segment now contributes 40.6% of total revenue, up from 37.7% in the same period last year. Heritage Nutrivet Limited Delivers Stellar Results: Our wholly owned subsidiary, Heritage Nutrivet Limited, posted a 15.5% YoY increase in revenue, reaching Rs 1,849 million. Profit after tax surged by an impressive 137% YoY to Rs 124 million, reflecting operational efficiency and strategic focus.
Brahmani Nara, executive director, said, “I’m pleased to share that we’ve delivered our highest-ever quarterly and annual revenue, crossing Rs 41,346 million in FY25. Excluding our bulk B2B segment, revenue growth remained consistently above 10% each quarter, reflecting the strength of our core portfolio and market strategy despite industry headwinds. Net profit grew 77% year-on-year to Rs 1883 million, driven by a 2.3% increase in Value-Added Products contribution, now at 32%, and favourable input costs. We continued to strengthen our omni-channel presence, with deeper penetration across traditional trade and the fast-growing Q-commerce space. It’s especially rewarding to see our brand retain the No.1 position in both ‘Top-of-Mind Awareness’ and ‘Loyalists’ for Curd and Paneer in our core markets, as per our latest Brand Health Tracker.”
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