Milk Mantra Returns to Profitability in FY24 with Strategic Cost Management
Source: The DairyNews
After a challenging fiscal year in FY23, Milk Mantra, a leading dairy technology company based in Bhubaneswar, has successfully returned to profitability in FY24. The company recorded a net profit of INR 9.8 Cr, marking a notable recovery from the previous year's net loss of INR 12.3 Cr.
Financial Overview:
Net Profit: INR 9.8 Cr in FY24, rebounding from a net loss of INR 12.3 Cr in FY23.
Operating Revenue: Grew marginally by 1.3% year-over-year to INR 276.4 Cr in FY24, up from INR 272.9 Cr in FY23.
EBITDA: Demonstrated an improvement with a 6% margin, signaling effective cost management and operational efficiency.
Revenue Breakdown:
Pasteurized Milk: Continued to be the largest revenue generator, with sales rising by approximately 3% to INR 167.4 Cr.
Curd: Saw the highest growth among product categories, increasing over 10% YoY to INR 65.7 Cr.
Cottage Cheese: Experienced a decline of 5.5% YoY to INR 27.2 Cr.
Buttermilk and Lassi: Sales plummeted by 27.5% YoY to INR 3 Cr.
Ghee: Witnessed a sharp decline of 57% to INR 26 Lakh, possibly indicating a strategic shift in product focus.
Operational Efficiency and Cost Reductions:
Total Expenses: Decreased significantly by over 7% to INR 269.1 Cr in FY24, down from INR 289.5 Cr in FY23.
Material Costs: Showed a substantial decrease, with costs of materials consumed dropping to INR 192.8 Cr from INR 207.4 Cr in the previous year.
Packaging Costs: Reduced by 5.1% YoY to INR 7.6 Cr.
Employee Benefits: Increased slightly by 1.6% to INR 18.9 Cr, reflecting the company’s investment in its workforce, including ESOPs.
Strategic Developments:
Founded in 2009 by Srikumar Misra and Rashima Misra, Milk Mantra began its operations in 2012 and quickly established itself as a significant player in the dairy industry with its innovative brands like Milky Moo and Moo Shake. The company’s focus on controlling operational costs and enhancing revenue streams from key product lines has paved the way for its return to profitability in FY24.
Despite a modest increase in operating revenue and the backdrop of economic pressures, Milk Mantra's strategic adjustments in operational management and cost efficiency have bolstered its financial standing. The company’s resilience and adaptive strategies signal a positive outlook for the upcoming fiscal year, with continued emphasis on innovation and market expansion.
Net Profit: INR 9.8 Cr in FY24, rebounding from a net loss of INR 12.3 Cr in FY23.
Operating Revenue: Grew marginally by 1.3% year-over-year to INR 276.4 Cr in FY24, up from INR 272.9 Cr in FY23.
EBITDA: Demonstrated an improvement with a 6% margin, signaling effective cost management and operational efficiency.
Revenue Breakdown:
Pasteurized Milk: Continued to be the largest revenue generator, with sales rising by approximately 3% to INR 167.4 Cr.
Curd: Saw the highest growth among product categories, increasing over 10% YoY to INR 65.7 Cr.
Cottage Cheese: Experienced a decline of 5.5% YoY to INR 27.2 Cr.
Buttermilk and Lassi: Sales plummeted by 27.5% YoY to INR 3 Cr.
Ghee: Witnessed a sharp decline of 57% to INR 26 Lakh, possibly indicating a strategic shift in product focus.
Operational Efficiency and Cost Reductions:
Total Expenses: Decreased significantly by over 7% to INR 269.1 Cr in FY24, down from INR 289.5 Cr in FY23.
Material Costs: Showed a substantial decrease, with costs of materials consumed dropping to INR 192.8 Cr from INR 207.4 Cr in the previous year.
Packaging Costs: Reduced by 5.1% YoY to INR 7.6 Cr.
Employee Benefits: Increased slightly by 1.6% to INR 18.9 Cr, reflecting the company’s investment in its workforce, including ESOPs.
Strategic Developments:
Founded in 2009 by Srikumar Misra and Rashima Misra, Milk Mantra began its operations in 2012 and quickly established itself as a significant player in the dairy industry with its innovative brands like Milky Moo and Moo Shake. The company’s focus on controlling operational costs and enhancing revenue streams from key product lines has paved the way for its return to profitability in FY24.
Despite a modest increase in operating revenue and the backdrop of economic pressures, Milk Mantra's strategic adjustments in operational management and cost efficiency have bolstered its financial standing. The company’s resilience and adaptive strategies signal a positive outlook for the upcoming fiscal year, with continued emphasis on innovation and market expansion.
