Heritage Foods Q1 results: Dairy company Heritage Foods Limited reported on Thursday that the company’s net profit fell sharply in the first quarter as it was net profit of Rs 40.5 crore in the April-June quarter, down 30.7% from Rs 58.4 crore in the same period last year (FY255 in the first quarter).
According to its stock exchange application, revenue increased by Rs 1,136.7 crore despite revenue up 10.1% year-on-year (10.1% year-on-year).
The company’s profits have been hit due to high input and operating costs. EBITDA fell to Rs 738 crore in the quarter from Rs 937 crore in the same period last year.
EBITDA margins also fell from 9% to 6.5%, reflecting pressure on profitability.
After earnings announcement, Legacy Foods shares fell 3.17% on the National Stock Exchange (NSE), down 463.65 at Rs 463.65 after hitting an intraday low of Rs 455.85.
In the past five days, the stock has fallen by Rs 22.9 or 4.7%. In the past month, the share price has risen by Rs 20.7 or 4.67%.
Stocks have risen by Rs 30.9 or 7.13% over the past six months. Stocks fell 19.75 rupees or 4.08%.
Meanwhile, the Heritage Food Commission approved the acquisition of an additional 44.4% stake in Heritage Nutrition (HNFPL).
Through this move, the company’s total stake in HNFPL will increase to 94.4%, thereby giving it strategic control over the yogurt supply chain.
Executive Director Brahmani Nara said non-seasonal rainfall in April and May temporarily affected demand for value-added products (VAP), which in turn affected profitability.
However, she noted that the company remains confident in its long-term growth as it recovers in June.
She also shared that the company’s Greenfield ice cream project is on track, highlighting the company’s continued focus on expanding its product offerings.
