Parag Milk Foods Limited, a prominent player in the Indian dairy market, has announced its financial results for the second quarter and half-year ended September 30, 2024. The company reported significant growth in revenue and profitability, driven by strong volume performance across its key dairy categories, including Ghee, Cheese, and Paneer.
Consolidated Financial Performance – Q2FY25
- Revenue: Rs 871 crore, with a 10 percent volume growth and 9 percent value growth
- Gross Profit Margin (GPM): 23.0 percent, stable YoY
- EBITDA: Rs 76 crore, up 25 percent YoY; EBITDA Margin at 8.8 percent compared to 7.7 percent last year
- Profit Before Tax (PBT): Rs 36 crore, a 46 percent YoY increase
- Profit After Tax (PAT): Rs 29 crore, a 16 percent YoY increase
Consolidated Financial Performance – H1FY25
- Revenue: Rs 1629 crore, with 11 percent volume growth and 5 percent value growth
- Gross Profit Margin (GPM): 24.8 percent, an increase of 2.6 percent YoY
- EBITDA: Rs 138 crore, up 26 percent YoY; EBITDA Margin at 8.4 percent compared to 7.1 percent last year
- Profit Before Tax (PBT): Rs 62 crore, a 58 percent YoY increase
- Profit After Tax (PAT): Rs 57 crore, a 21percent YoY increase
- Cash Flow from Operations: Rs 92 crore
Key Business Highlights – H1FY25
- Volume Growth: The company reported a strong double-digit volume growth of 11 percent YoY, particularly driven by healthy growth in its core categories. Ghee, Cheese, and Paneer experienced volume growth of 17 percent for Q2FY25 and 18 percent for H1FY25.
- Market Share Gains: According to the latest IMARC report 2024, the flagship brand Gowardhan Ghee now holds a 22 percent market share in the branded cow ghee segment, while Go Cheese maintained a 35 percent market share in the cheese category.
- Raw Material Prices: The average milk prices were Rs 33/litre in Q2FY25, down 8 percent YoY, and Rs 32/litre in H1FY25, down 13 percent YoY. The company processed around 15 lakh liters of milk per day.
- Improved Margins: The Gross Profit Margin (GPM) improved by 260 basis points YoY during H1FY25, reaching 24.8 percent compared to 22.2 percent in H1FY24. This improvement was attributed to lower milk prices and a stronger mix of value-added products.
New Business Segments
- Avvatar: The Direct to Consumer brand Avvatar recorded impressive growth, with a 98 percent YoY increase in H1FY25. The protein portfolio continues to gain market share.
- Pride of Cows (PoC): As part of its premiumization strategy, Pride of Cows continues to show strong demand. The brand is expanding both its product range and distribution network.
Devendra Shah, Chairman of Parag Milk Foods said, “As we continue to expand Parag Milk Foods’ reach and impact, our focus remains steadfast on delivering top-quality, innovative products that cater to evolving consumer needs. We are happy to announce that this quarter, we have achieved our highest ever sales, reaching INR 871 crores in revenue. This is a testament to the growing trust consumers place in our brand. Our recent launch of Gowardhan Sweets reinforces our commitment to purity. Made with Gowardhan Ghee and cow milk, it offers an authentic and wholesome choice in a market increasingly plagued by adulteration concerns. Gowardhan Ghee continues to be a market leader with a 22% share in the branded cow ghee segment. Similarly, the new Go Cheese campaign showcases how our cheese varieties add delight and versatility to everyday meals. Newer business segments, Avvatar and Pride of Cows, are also gaining strong traction. It is overwhelming and delightful that our brand Gowardhan’s association with Kaun Banega Crorepati continues for the third consecutive year, and our Go Cheese brand enters the house of Big Boss.“
“With a robust pipeline for new product developments, I am confident that our deep-rooted commitment to provide customer-centric products will propel us towards our ambitious INR 10,000 crore target and beyond. We have built this company on a foundation of trust and quality, and I am proud to see that legacy continue to grow,” he concluded.
Parag Milk Foods continues to make strides in both the retail and dairy sectors, maintaining its focus on innovation and quality to meet the growing demand for dairy products in India.