Parag Milk Foods reports robust Q1FY25 results: 10% volume growth and 77% PBT increase

Parag Milk Foods, a leading manufacturer and marketer of dairy-based branded products in India announced its unaudited financial results for the quarter ended June 30, 2024.

Key Consolidated Financial highlights- Q1FY25

o   Revenue INR 758 Crore; growth of 1% YoY

o   Gross profit INR 204 Cr; margin of 26.9 %; up by 550 bps YoY

o   EBITDA INR 61 Cr; margin of 8.1%; up by 160 bps YoY

o   Profit before tax INR 27 Cr; growth of 77% YoY

o   Profit after tax INR 27 Cr, growth of 27% YoY

Key Business highlights – Q1FY25

●      Robust volume growth - The business has witnessed strong double digit volume growth of 10% YoY aided by healthy volume growth in its core categories. The Ghee, Cheese and the New age businesses have witnessed volume growth of 15%, 12% and 51%YoY respectively.

●      Improved Market share- As per the latest IMARC report 2024; the flagship brand Gowardhan Ghee commands an improved 22% market share in the branded cow ghee segment, while the brand “Go Cheese” sustained its 35% market share in the Cheese category.

●      Soft raw material prices-   The average milk prices during Q1FY25 were at INR 31 per  litre; down 16% YoY, while the company handled ~15.5 lac liters of milk per day.

●      Improved margins & profitability - Gross Profit Margin (GPM) expanded by 550 basis points YoY during Q1FY25 to 26.9% as against 21.4% in Q1FY24, led by benign milk prices and improved value- added product mix.

Commenting on the performance, chairman of Parag Milk Foods, Devendra Shah, said, “I am elated to share that, we have delivered double digit volume growth across our Core Categories during the quarter, reflecting our brand strength and enhanced consumer reach.  Our flagship brand “Gowardhan Ghee” has witnessed 2% improvement in its market share, and now commands 22% market share in the Branded Cow Ghee segment; while the trusted “Go Cheese” brand enjoys a strong and steady market share of 35% in the Cheese market.  The company has delivered a 550 bps expansion in its Gross margins and further continues to remain focused on sustainable profitable growth."

"The company focuses on product innovation leveraging its strong R&D capabilities. The foray into the traditional sweets category with brand “Gowardhan” is being well received and is expected to witness a full launch during the festivities."

"The company continues to strengthen its building blocks and is well poised to grow exponentially towards achieving INR 10,000 crore turnover target.”