Heritage Foods shares soar 10% after firm reports 126% jump in Q4 PAT at ₹40.5 crore

Revenue rose 16.3% YoY to ₹950.6 crore during the quarter while earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 67.5% YoY to ₹70.2 crore. The EBITDA margin improved by 226 basis points (bps) YoY during the quarter to 7.39%.

For the full fiscal year 2024, the company reported an 83.6% YoY rise in its consolidated net profit at ₹106.5 crore. Revenue grew 17.1% YoY to ₹3,793.9 crore while EBITDA jumped 51.5% to ₹209.5 crore during the year. The fiscal also witnessed an improvement in the EBITDA margin by 125 bps YoY to 5.52%.

The company pointed out that average milk procurement for Q4FY24 stood at 15.9 lakh litres per day, registering a growth of 11.32% YoY. At the same time, average milk procurement prices for the quarter decreased by ₹3.47/litre to ₹41.70/litre.

Heritage Foods expanded its distribution network during the quarter with the addition of 432 milk distributors, 33 value-added product distributors and 11 fresh value-added product distributors.

Brahmani Nara, executive director of the company said the fourth quarter and the fiscal year have been extremely strong on both financial performance and operational excellence. “The strategies we laid out a few years ago of becoming more consumer-centric, strengthening our portfolio with the launching of a dozen innovative products, expanding our availability with an omnichannel route to market approach, and intense marketing programs step changing our brand preference, have all started bearing fruit,” Nara said.

The board of directors of the firm has recommended a final dividend of ₹2.50 per equity share.

Shares of the company have gained over 35% since the beginning of the year. The stock has risen nearly 93% in the last one year.