Parag Milk Foods Registers Highest Ever Revenue with Healthy Profits for FY24
20.05.2024 - 14:01:54
Business Wire India
Key Highlights Consolidated Q4 FY24:
Dividend: The Board of Directors have recommended a dividend for the year ended 31st March 2024 of INR 0.5 per equity share (face value of 10/- each) amounting to ~ INR 6 Cr.
Business Update:
The business performance this year signifies focus on sustainable profitable growth. The revenue has crossed INR 3,000 crore mark on the back of strong brand equity and competitive market positioning. The focus on margin expansion continues with overall GP margin expansion of 4.2% YoY. The performance outlines robust operating cash flows of INR 99 crore for FY24. The Company has bolstered its abilities in the rapidly growing new-age channels like Modern Trade and E-commerce, both of which have contributed to the overall growth. The Company has capitalized on the benign milk prices and expanded its gross margin profile along with premiumization and improvement in the value-added product portfolio. The Company continues to invest in brand building with the overall advertising & promotion spends at 4.2% for FY24 vs 2.5% in FY23.
Brand building initiatives- The Company has strengthened its brand equity reach by adopting unique content led impact marketing and branding activities. Some of the recent activities include participation in “Kaun Banega Crorepati” (KBC) – this impact campaign has enabled it to widen its reach in tier 2 and tier 3 towns and cities through strong brand messaging ‘Garv Se Gowardhan’. In keeping with the core theme “Make it amazing” the brand Go Cheese has participated in the content-based shows like India’s Got Talent and has also undertaken very focused print marketing.
Procurement: The average milk procurement stood at 16 lac litres per day; aided by stable global market coupled with good flush season; the milk prices have stabilized. For FY24 the average milk price stood at INR 33.8 per litre.
New Developments:
Mr. Devendra Shah, Chairman, Parag Milk Foods Ltd said "It gives me an immense pleasure to state that our consolidated revenues for FY24 have crossed the milestone of INR 3,000 crore; along with improvement in margins and profitability. The Profit after tax for the year was at INR 91 crore, with healthy operating cash flows of INR 99 crore. Over the last few quarters, the milk procurement prices have been benign, and now we expect an upward bias. Despite of tailwinds; we are geared up for improving our margin profile.
We would continue to enhance our industry-leading R&D capabilities and infrastructure to drive innovation and delight our consumers across the globe. Our forward integration of brand ‘Gowardhan’ into the traditional sweets category is an initiative in this direction. The initial response of the prototype is very positive and encouraging and we aim to target a bigger launch around the festivities. We are inching up on our business process transformation along with driving efficiency across the value chain. With an ensuing expansion and acceleration of the distribution footprint, we plan to incorporate a foreign wholly owned subsidiary (WOS) in Dubai, to cater the international market. With strong foundation in place, we are confident of posting industry leading growth and profitability ahead."
About Parag Milk Foods Ltd
Parag Milk Foods Limited, established in 1992, is the largest private dairy FMCG Company with a Pan India presence. We have our manufacturing facilities with in-house technology which are strategically located at Manchar in Maharashtra, Palamaner in Andhra Pradesh, and Sonipat in Haryana. We sell 100% cow’s milk products that are healthy and nutritious. Our integrated business model and strong R&D capabilities have helped us emerge as the leader in innovation. Our dairy farm, Bhagyalaxmi Dairy Farm Limited house more than 3,500 cows, with a mechanized milking process. Under brand “Gowardhan”, we offer traditional products like Ghee, Dahi, Paneer, etc. Under the brand name “Go” we offer products like Cheese, UHT Milk, Buttermilk, Lassi, Yoghurt etc.
“Pride of Cows”, the flagship brand of Parag Milk Foods was introduced with a proposition of Farm to Home concept targeted towards customers seeking premium quality dairy products. The Company has also ventured into the B2C segment for Whey Protein with the brand Avvatar – India’s 1st 100% vegetarian whey protein, first of its kind manufactured in India. Our goal is to become the largest dairy FMCG Company that emphasizes health and nutrition to consumers through innovation.
For more information, please contact, Ms. Pournima Surve, Head – Corporate Communication and PR, Parag Milk Foods, Pournima.surve@parag.com
FY24 Revenue INR 3,139 Cr; 8.5% YoY growth
FY24 Profit After Tax (PAT) INR 91 Cr; 70% YoY growth
FY24 Cash Flow from Operations INR 99 Cr
FY24 Profit After Tax (PAT) INR 91 Cr; 70% YoY growth
FY24 Cash Flow from Operations INR 99 Cr
Parag Milk Foods Limited, a leading manufacturer and marketer of dairy-based branded products in India announced its audited financial results for the financial year ended March 31, 2024.
Key Highlights Consolidated FY24:
Key Highlights Consolidated FY24:
- Revenue of INR 3,139 Cr; a growth of 8.5% YoY
- Gross profit (GP) INR 749 Cr; with a GP margin of 23.9% vs FY23 GP INR 569 Cr GP margin of 19.7%. Overall GP margin expansion of 4.2% YoY.
- EBITDA at INR 222 Cr; with an EBITDA margin of 7.1% vs FY23 EBITDA INR163 Cr, EBITDA margin of 5.7%. Overall EBITDA margin expansion of 1.4% YoY.
- Profit after tax at INR 91 Cr up from FY23 PAT INR 53 Cr, a growth of 70% YoY.
Key Highlights Consolidated Q4 FY24:
-
Cr
- Gross profit (GP) INR 194 Cr; with a GP margin of 24.6%
- EBITDA at INR 44 Cr; with an EBITDA margin of 5.6%
- Profit After Tax at INR 10 Cr
Dividend: The Board of Directors have recommended a dividend for the year ended 31st March 2024 of INR 0.5 per equity share (face value of 10/- each) amounting to ~ INR 6 Cr.
Business Update:
The business performance this year signifies focus on sustainable profitable growth. The revenue has crossed INR 3,000 crore mark on the back of strong brand equity and competitive market positioning. The focus on margin expansion continues with overall GP margin expansion of 4.2% YoY. The performance outlines robust operating cash flows of INR 99 crore for FY24. The Company has bolstered its abilities in the rapidly growing new-age channels like Modern Trade and E-commerce, both of which have contributed to the overall growth. The Company has capitalized on the benign milk prices and expanded its gross margin profile along with premiumization and improvement in the value-added product portfolio. The Company continues to invest in brand building with the overall advertising & promotion spends at 4.2% for FY24 vs 2.5% in FY23.
Core categories: Core categories of Ghee and Cheese have seen continuous traction throughout the year and have posted a growth of 3.5 % YoY.
New age business- Brand Avvatar: Our consumer brand “Avvatar” is consistently growing at 100% CAGR for now two years in a row. The overall protein portfolio has continued to record market share gains.
Premium Dairy Business: In line with the Company’s premiumization agenda- the brand Pride of Cows continues to witness healthy traction. The brand is aggressively expanding its product portfolio as well as distribution footprint and now is present across seven cities. The Company is expanding its Bhagyalakshmi Dairy Farm (100% subsidiary), which supplies exclusively under “Pride of Cows” brand.
New age business- Brand Avvatar: Our consumer brand “Avvatar” is consistently growing at 100% CAGR for now two years in a row. The overall protein portfolio has continued to record market share gains.
Premium Dairy Business: In line with the Company’s premiumization agenda- the brand Pride of Cows continues to witness healthy traction. The brand is aggressively expanding its product portfolio as well as distribution footprint and now is present across seven cities. The Company is expanding its Bhagyalakshmi Dairy Farm (100% subsidiary), which supplies exclusively under “Pride of Cows” brand.
Distribution reach: The overall business growth was broad-based with all the distribution channels contributing to the performance. For FY24, the General Trade, Modern trade & e-commerce posted a growth of 3% YoY, 6% YoY, respectively.
Brand building initiatives- The Company has strengthened its brand equity reach by adopting unique content led impact marketing and branding activities. Some of the recent activities include participation in “Kaun Banega Crorepati” (KBC) – this impact campaign has enabled it to widen its reach in tier 2 and tier 3 towns and cities through strong brand messaging ‘Garv Se Gowardhan’. In keeping with the core theme “Make it amazing” the brand Go Cheese has participated in the content-based shows like India’s Got Talent and has also undertaken very focused print marketing.
Procurement: The average milk procurement stood at 16 lac litres per day; aided by stable global market coupled with good flush season; the milk prices have stabilized. For FY24 the average milk price stood at INR 33.8 per litre.
New Developments:
- Forayed into Sweets category under brand Gowardhan: The Company has forward integrated into traditional sweet segment under the brand ‘Gowardhan’. Currently it has seven delectable sweets range namely Kaju Katli, Malai Pedha, Kesar Pedha, Kaju Pista Roll, Mawa Gujiya, Mysore Pak, and Malai Modak. With an estimated branded market size of INR 7000-8000 crore, the Indian sweets market presents vast opportunities for growth and innovation.
- Expansion in International market: The company plans to incorporate a foreign wholly owned subsidiary (WOS) in Dubai, UAE. This will help the company to expand its reach and build a seamless supply chain operations worldwide to cater the international market.
Mr. Devendra Shah, Chairman, Parag Milk Foods Ltd said "It gives me an immense pleasure to state that our consolidated revenues for FY24 have crossed the milestone of INR 3,000 crore; along with improvement in margins and profitability. The Profit after tax for the year was at INR 91 crore, with healthy operating cash flows of INR 99 crore. Over the last few quarters, the milk procurement prices have been benign, and now we expect an upward bias. Despite of tailwinds; we are geared up for improving our margin profile.
We would continue to enhance our industry-leading R&D capabilities and infrastructure to drive innovation and delight our consumers across the globe. Our forward integration of brand ‘Gowardhan’ into the traditional sweets category is an initiative in this direction. The initial response of the prototype is very positive and encouraging and we aim to target a bigger launch around the festivities. We are inching up on our business process transformation along with driving efficiency across the value chain. With an ensuing expansion and acceleration of the distribution footprint, we plan to incorporate a foreign wholly owned subsidiary (WOS) in Dubai, to cater the international market. With strong foundation in place, we are confident of posting industry leading growth and profitability ahead."
About Parag Milk Foods Ltd
Parag Milk Foods Limited, established in 1992, is the largest private dairy FMCG Company with a Pan India presence. We have our manufacturing facilities with in-house technology which are strategically located at Manchar in Maharashtra, Palamaner in Andhra Pradesh, and Sonipat in Haryana. We sell 100% cow’s milk products that are healthy and nutritious. Our integrated business model and strong R&D capabilities have helped us emerge as the leader in innovation. Our dairy farm, Bhagyalaxmi Dairy Farm Limited house more than 3,500 cows, with a mechanized milking process. Under brand “Gowardhan”, we offer traditional products like Ghee, Dahi, Paneer, etc. Under the brand name “Go” we offer products like Cheese, UHT Milk, Buttermilk, Lassi, Yoghurt etc.
“Pride of Cows”, the flagship brand of Parag Milk Foods was introduced with a proposition of Farm to Home concept targeted towards customers seeking premium quality dairy products. The Company has also ventured into the B2C segment for Whey Protein with the brand Avvatar – India’s 1st 100% vegetarian whey protein, first of its kind manufactured in India. Our goal is to become the largest dairy FMCG Company that emphasizes health and nutrition to consumers through innovation.
For more information, please contact, Ms. Pournima Surve, Head – Corporate Communication and PR, Parag Milk Foods, Pournima.surve@parag.com
