Heritage Foods Navigates Tight Milk Supply to Sustain Growth

Heritage Foods Ltd reported a 20% decline in net profit for the December quarter due to higher expenses amidst tight milk supply and elevated procurement costs. Despite challenges, the company achieved 8% revenue growth, driven by its consumer business and value-added products, with plans to expand ice cream and flavored milk capacities.

Heritage Foods Ltd announced a significant 20% drop in its consolidated net profit for the December quarter, totaling Rs 34.5 crore. This downturn is largely attributed to increased expenses resulting from a constrained milk supply and rising procurement costs, compared to Rs 43 crore in the previous year.

The company's total income rose to Rs 1,126.9 crore, up from Rs 1,042.26 crore the previous year, whereas expenses surged to Rs 1,080 crore from Rs 981.62 crore. Executive Director Brahmani Nara noted the challenging industry conditions marked by milk shortages and increased competition.

Despite these hurdles, Heritage Foods managed an 8% revenue growth, supported by robust performance in its consumer business and value-added product offerings. The company is set to enhance its production capabilities in ice cream and flavored milk to capture growing demand and bolster growth.

(With inputs from agencies.)