Parag Milk Foods Limited (PMFL) has reported strong financial results for the second quarter of fiscal year 2024. The key highlights includes:
Financial Performance:
- Revenue: INR 7,981.6 million (20.1% YoY growth)
- Gross Profit: INR 1,834.3 million (Gross profit margin of 23.0%)
- EBITDA: INR 583.8 million (EBITDA margin of 7.3%)
- Profit After Tax: INR 251.9 million (121.1% YoY growth)
- Cash Flow from Operations: INR 489.3 million
Business Segments:
- Core Categories (Ghee and Cheese): 6.2% YoY growth
- D2C Brand Avvatar: 62.7% YoY growth, 57% volume growth
- Premium Dairy Business (Pride of Cows): Healthy traction, expanding product portfolio and distribution footprint
Distribution and Reach:
- Overall business growth across all channels
- Investment in Sales and Distribution (S&D) infrastructure for expanded retail reach
Brand Building Initiatives:
- Collaborations with Kaun Banega Crorepati (KBC) for consumer connect and brand strengthening
- Content-led impact marketing campaigns
Procurement:
- Average milk procurement: 15 lac litres per day
- Average milk price: INR 35.6 per litre
- Stable global market and favorable flush season
Strategic Initiatives:
- Business transformation drive in partnership with Boston Consultancy Group (BCG)
- Focus on unlocking new growth avenues and streamlining operations for long-term sustainability
Chairman’s Statement:
- Revenue growth of 20.1% YoY to INR 7,981.6 million
- Gross and EBITDA margin expansion by 220 and 160 basis points respectively
- Strong Cash Flow from Operations of INR 489.3 million
- Confidence in sustained growth in profitability in the coming quarters
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