Milky Mist reports net profit rising over 1,000% to ₹64.5 crore

Milky Mist reported a sharp increase in profitability for the first quarter, with net profit reaching ₹64.5 crore. The result represented growth of more than 1,000% compared with the same period a year earlier. Revenue rose by 45%, according to the company’s results.

The revenue increase was associated with strong summer demand across premium and temperature-sensitive dairy products. Yogurt sales increased by 153% year on year, while ice-cream revenue grew by 60%. The company also continued to sell core products including fresh paneer, curd and cheese.

The results showed higher operating profitability as well. Earnings before interest, taxes, depreciation and amortisation rose to ₹142.85 crore. The EBITDA margin increased by 278 basis points to 14.68% during the quarter.

Milky Mist’s management attributed the margin improvement to greater use of plant capacity and operating efficiencies across its integrated cold-chain network. It also cited relatively stable farmgate milk-procurement prices in southern milk-producing areas. The company did not provide further figures on capacity utilisation or procurement volumes in the material available.

Financial costs declined after the company’s initial public offering. Milky Mist used proceeds from the offering to repay about ₹497 crore of long-term debt. The reduction in outstanding borrowings lowered finance and interest expenses during the quarter and increased cash generation at the bottom line.

The quarterly figures therefore included changes in both operating performance and financing costs. Revenue growth came alongside increased sales in yogurt and ice cream, while the debt repayment following the IPO affected the company’s financial overhead. The reported EBITDA, margin and net-profit figures covered the same first-quarter period.