Heritage Foods Ltd
NSE:HERITGFOOD
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Heritage Foods Ltd
NSE:HERITGFOOD
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IN |
Heritage Foods Ltd
Heritage Foods Ltd. engages in dairy, retail, agri, bakery and renewable energy businesses. The company is headquartered in Hyderabad, Telangana and currently employs 3,009 full-time employees. The firm operates through three segments, such as Dairy vertical, Renewable energy vertical and Feed vertical. The Dairy vertical segment is engaged in manufacturing and marketing a complete range of dairy products including fresh milk, curd, buttermilk, lassi, ice cream, paneer, table butter, milk powder, flavored milk, ultra-heat treatment (UHT) milk, Indian sweets and dairy whitener. The Renewable energy vertical segment produces power for captive consumption through its solar and wind power plants. The Feed vertical segment manufactures a variety of cattle and fish feeds. The Company’s product portfolio of ice-creams includes tubs, bars, kulfi, cones, cups, juicy bars and family packs. Its fat products include cow Ghee, buffalo ghee, hi aroma ghee, cooking butter, table butter and fresh cream. The firm has approximately 32 distribution centers in 11 states across India.
Heritage Foods Ltd. engages in dairy, retail, agri, bakery and renewable energy businesses. The company is headquartered in Hyderabad, Telangana and currently employs 3,009 full-time employees. The firm operates through three segments, such as Dairy vertical, Renewable energy vertical and Feed vertical. The Dairy vertical segment is engaged in manufacturing and marketing a complete range of dairy products including fresh milk, curd, buttermilk, lassi, ice cream, paneer, table butter, milk powder, flavored milk, ultra-heat treatment (UHT) milk, Indian sweets and dairy whitener. The Renewable energy vertical segment produces power for captive consumption through its solar and wind power plants. The Feed vertical segment manufactures a variety of cattle and fish feeds. The Company’s product portfolio of ice-creams includes tubs, bars, kulfi, cones, cups, juicy bars and family packs. Its fat products include cow Ghee, buffalo ghee, hi aroma ghee, cooking butter, table butter and fresh cream. The firm has approximately 32 distribution centers in 11 states across India.
Revenue Growth: Heritage Foods reported consolidated revenue of INR 11,192 million for Q3, up 8% year-on-year, marking the third consecutive quarter above INR 11,000 million.
Margin Pressure: Margins were squeezed by sharp increases in milk procurement costs, which rose about 9% YoY, and industry-wide butter shortages, outpacing price hikes passed on to consumers.
EBITDA & PAT: EBITDA was INR 629 million and PAT reached INR 346 million, but both were impacted by higher input costs and a one-time employee benefit expense.
Milk Procurement Decline: Q3 milk procurement averaged 16.73 lakh liters per day, down 9% YoY due to weather-related supply constraints; 9M procurement also declined marginally.
Value-Added Products (VAP): VAP volumes grew 6.8% YoY and now contribute 38% of revenue, up from 33.8% last year; ice cream and paneer showed strong growth.
Cost Pressures & Outlook: Management expects margins to progressively normalize as supply improves, more pricing is passed on, and VAP contribution increases.
Capacity Expansion: New ice cream and flavored milk plants are on track, with commercial production to begin soon, positioning the company for future growth.
Marketing Investment: Marketing spend increased as a share of revenue to support brand building and future sales, seen as a timely strategic investment.
