Parag Milk Foods, a manufacturer and marketer of dairy-based branded products in India on Modnay reported 109 per cent year-on-year (YoY) rise in its net profit at Rs 214 million for the first quarter of the financial year 2024.
The company witnessed an 8.5 per cent YoY growth in its revenue at Rs 7,496 million, “Our focus on our core categories of Ghee, cheese along with our new age business – Avvatar and Pride of Cows remain high and we would continue to invest in our marketing and brand building initiatives,” the company said.
Going forward, the company would continue to invest in its extensive distribution reach and outlet coverage, coupled with its innovative offering and portfolio premiumisation.
According to Parag Milk Foods, the milk procurement prices are in the stabilisation mode led by steady demand and the early onset of the flush season that resulted in the margin expansion for the quarter.
Devendra Shah, Chairman said, “We are pursuing market share gain across categories and investing in various capabilities and retail network expansion. Going forward, on the back of a softening input cost environment and with the onset of the festive demand the growth momentum is expected to accelerate and, we expect to deliver healthy profitability”.
According to the company, the core categories of Ghee, and cheese have seen continuous traction throughout the quarter and have posted a growth of 22.9 per cent YoY.
Its new age business, Brand Avvatar, the protein portfolio continued its momentum and recorded robust 116 per cent growth YoY, led by 62 per cent volume growth YoY. The protein portfolio continued to record market share gains.
The brand Pride of Cows continues to witness healthy traction. The brand is aggressively expanding its product portfolio as well as distribution footprint. Recently, the brand entered Bangalore market, and now the brand is present across six cities. The company is expanding its Bhagyalakshmi Dairy Farm (100 per cent subsidiary), which supplies exclusively under the “ Pride of Cows” brand to over 15,000 cows by 2027.
For the Q1FY24, Bhagyalakshmi has posted revenue growth 21.2 per cent YoY growth ; with 14.5 per cent EBITDA margin
The overall business growth was largely broad-based with all channels posting good growth. In line with its targeted initiative of expanding its retail reach and presence; it continued to grow and has expanded its ghee distribution reach by 37 per cent YoY and has almost doubled its Cheese distribution reach on a YoY basis.
The average milk procurement stood at 15 lac litres per day; a growth of 5 per cent YoY. Aided by a stable global market coupled with the early onset of flush; milk prices have stabilized. For the quarter (Q1FY24) the average milk price stood at Rs 37.7 per litre; down by 4.3 per cent from the last quarter (Q4FY23).
The company expanded the Avvatar portfolio with an addition of Mango Flavour – Avvatar Mango Rush. The company has also introduced various new products- Masala Tadka chass, plain and mango lassi in pouches under fresh categories.
