Heritage Foods Q4 net profit falls 11 pc, expenses up

IANS May 16, 2025 357 views

Heritage Foods experienced an 11% drop in net profit for Q4 FY25, falling to Rs 38.16 crore. Despite this, the company saw a modest revenue increase of 1.40%, raising it to Rs 1,048.4 crore. Executive Director Brahmani Nara highlighted the achievement of record-high revenue for the quarter and the fiscal year, stressing strong core portfolio performance. With rising expenses and strategic growth initiatives, the company aims to continue expanding its presence across traditional and quick-commerce channels.

"We've delivered our highest-ever quarterly and annual revenue." - Brahmani Nara, Executive Director
Mumbai, May 16: Heritage Foods on Friday reported a decline of 11.36 per cent in its net profit to Rs 38.16 crore for the fourth quarter (Q4) of FY25, compared to Rs 43.05 crore in the previous quarter (Q3 FY25).

Key Points

1

Heritage Foods sees 11% Q4 profit drop

2

Expenses rise amidst modest revenue growth

3

Strategic growth initiatives boost annual revenue by 77%

The company also posted a 5.76 per cent fall in net profit when compared to the same period last fiscal, where profit stood at Rs 40.49 crore.

However, the company’s revenue grew modestly. Revenue for Q4 came in at Rs 1,048.4 crore, up by 1.40 per cent from Rs 1,033.9 crore in Q3.

Total income also rose by 1.23 per cent quarter-on-quarter (QoQ) to Rs 1,054.99 crore, while it jumped 10.46 per cent on a year-on-year (YoY) basis.

On the expenses side, the company reported total expenses of Rs 990.59 crore in Q4, slightly higher than Rs 981.6 crore in Q3 -- marking an increase of 0.92 per cent.

Compared to the year-ago quarter, expenses rose by 10.24 per cent, according to its stock exchange filing.

Profit before tax (PBT) from operations stood at Rs 54.17 crore in Q4, down 7.89 per cent from Rs 58.81 crore in Q3 and a slight decline of 1.19 per cent from Rs 54.82 crore in the same quarter last fiscal.

Net profit attributed specifically to the owners of the company was Rs 38.16 crore in Q4, falling by 11.26 per cent from Rs 43 crore in the previous quarter.

Commenting on the performance, Executive Director Brahmani Nara said: "I’m pleased to share that we’ve delivered our highest-ever quarterly and annual revenue, crossing Rs 4,134.6 crore in FY25."

"Excluding our bulk B2B segment, revenue growth remained consistently above 10 per cent each quarter, reflecting the strength of our core portfolio and market strategy despite industry headwinds," Nara stated.

She further added that net profit for the full year rose by 77 per cent YoY to Rs 188.3 crore, supported by a 2.3 per cent rise in the contribution of value-added products -- now at 32 per cent -- and favourable input costs.

"The company also continued to expand its omnichannel presence, with growth in both traditional trade and quick-commerce platforms," Nara mentioned.

Reader Comments

R
Rahul K.
Mixed results but overall not bad! Revenue growth is positive and full year profit up 77% is impressive. Maybe Q4 was just a temporary blip due to increased expenses. Heritage is a trusted brand in our household for milk products. 🐄
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Priya M.
As someone who invests in FMCG stocks, I'm concerned about the rising expenses. Input costs may be favorable now but what about next quarter? The 11% profit drop can't be ignored. Need to see their cost control measures.
S
Sanjay V.
Heritage has good products but their pricing is becoming premium. With Amul and local dairy brands offering competitive rates, they need to be careful. Still, 10% revenue growth in core segments is commendable in this market.
A
Ananya R.
The quick-commerce expansion is smart! I often order Heritage products on Blinkit. Their value-added products like flavored yogurt are really good. Hope they maintain quality while expanding. 32% contribution from value-added products shows good strategy.
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Vikram S.
Not surprised by the profit fall. Dairy industry is facing challenges everywhere - from cattle feed costs to logistics. The fact that they achieved record annual revenue shows resilience. Long-term investors shouldn't worry too much about one quarter.
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Neha P.
As a customer, I care more about product quality than quarterly profits. Heritage milk tastes better than many brands, though slightly expensive. Hope they don't compromise on quality to cut costs. Their omnichannel approach is convenient for busy families like ours.

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Heritage Foods Q4 financial results net profit drop revenue growth Brahmani Nara
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