Parag Milk Foods Reports 27% Surge in Q1 Profit, EBITDA Climbs to Rs 61 Crore
Source: The DairyNews
Parag Milk Foods has announced a significant 27% year-over-year increase in its consolidated net profit, reaching Rs 27 crore for the first quarter of FY25, up from the previous fiscal year. This growth comes on the heels of a modest 1% rise in revenue, which stood at Rs 758 crore during the same period.
According to the company, the profit boost was driven by robust double-digit volume growth across its core categories, notably in Ghee, Cheese, and new-age business segments, which saw increases of 15%, 12%, and 51% respectively. This performance is underpinned by strong market positions, with the flagship brand Gowardhan Ghee holding a 22% market share in the branded cow ghee segment, and Go Cheese maintaining a 35% market share in the cheese category, as reported by the IMARC 2024 report.
The company also benefited from lower milk prices, which dropped 16% year-over-year to Rs 31 per litre, and processed nearly 15.5 million liters of milk daily. These factors contributed to a 550 basis point expansion in Gross Profit Margin (GPM), which rose to 26.9% in Q1 FY25 from 21.4% in the previous year.
EBITDA for the quarter improved by 27%, reaching Rs 61 crore compared to Rs 48 crore in Q1 FY24, with the EBITDA margin increasing to 8.1% from 6.5% year-over-year.
Devendra Shah, chairman of Parag Milk Foods, expressed satisfaction with the company's performance, noting, "We have delivered double-digit volume growth across our Core Categories during the quarter, reflecting our brand strength and enhanced consumer reach."
The company continues to innovate, leveraging its strong R&D capabilities, notably venturing into the traditional sweets category under the Gowardhan brand, which is anticipated to fully launch during the upcoming festive season.
With manufacturing facilities in Maharashtra, Andhra Pradesh, and Haryana, Parag Milk Foods remains focused on strengthening its foundations and is strategically poised to achieve its ambitious Rs 10,000 crore turnover target.
The company also benefited from lower milk prices, which dropped 16% year-over-year to Rs 31 per litre, and processed nearly 15.5 million liters of milk daily. These factors contributed to a 550 basis point expansion in Gross Profit Margin (GPM), which rose to 26.9% in Q1 FY25 from 21.4% in the previous year.
EBITDA for the quarter improved by 27%, reaching Rs 61 crore compared to Rs 48 crore in Q1 FY24, with the EBITDA margin increasing to 8.1% from 6.5% year-over-year.
Devendra Shah, chairman of Parag Milk Foods, expressed satisfaction with the company's performance, noting, "We have delivered double-digit volume growth across our Core Categories during the quarter, reflecting our brand strength and enhanced consumer reach."
The company continues to innovate, leveraging its strong R&D capabilities, notably venturing into the traditional sweets category under the Gowardhan brand, which is anticipated to fully launch during the upcoming festive season.
With manufacturing facilities in Maharashtra, Andhra Pradesh, and Haryana, Parag Milk Foods remains focused on strengthening its foundations and is strategically poised to achieve its ambitious Rs 10,000 crore turnover target.
