Decline in Heritage Foods' Q1 Profit After Tax amounting to ₹40.50 crore due to adverse impact on Value-Added Products sales caused by unseasonal rains
Published on July 17, 2025
Unseasonal rains in April and May have had a significant impact on the demand for value-added dairy products at Heritage Foods Ltd., a leading dairy company in India.
The rains temporarily reduced demand for products such as curd, buttermilk, flavoured milk, and ice-creams, causing a dip in sales for these categories [1][2]. However, June saw a recovery with volumes rebounding across most categories, particularly in value-added products, which grew by 11% in that month [1][3].
The unseasonal rains weighed on the profitability of Heritage Foods as well, leading to a 31% fall in net profit for the first quarter [2][4]. Despite the initial impact, the company achieved its highest-ever quarterly revenue of INR 11,368 million, reflecting the resilience of its business model [1][5].
In a statement, Brahmani Nara, Executive Director of Heritage Foods Ltd., acknowledged the challenges faced by the company but remained optimistic about the long-term growth drivers. She mentioned that the upcoming greenfield ice cream project of Heritage Foods Ltd. is progressing on track [6].
The decline in the demand for value-added products led to a marginal decrease in their contribution to Heritage Foods' overall revenues, from 37.5% to 36.1% [7]. In a strategic move, the board of Heritage Foods Ltd. approved the acquisition of an additional 44.4% stake in HNFPL, increasing the company's total holding to 94.4% [8].
It is worth noting that no information about IHCL's net profit or Nuvoco Vistas Corpn's Q1 net profit was provided in this paragraph.
Despite the sales pressure from the inclement weather, Heritage Foods did not implement a planned price increase during the first quarter [3]. The cost of raw milk for Heritage Foods increased by 4.74% or INR 1.96 per litre during Q1 2025 [9].
This information about Heritage Foods' performance was reported to the Bombay Stock Exchange.
In conclusion, while the unseasonal rains have affected the demand and profitability of Heritage Foods Ltd., the company has shown resilience, with a strong focus on long-term growth and strategic acquisitions. The upcoming greenfield ice cream project and the recovery in demand during June provide a positive outlook for the future.
- The unseasonal rains led to a decline in the demand for value-added products, decrease in their contribution to Heritage Foods' overall revenues, and a 31% fall in net profit for the first quarter.
- Despite the initial impact, Heritage Foods achieved its highest-ever quarterly revenue of INR 11,368 million, reflecting the resilience of its business model.
- In a strategic move, the board of Heritage Foods Ltd. approved the acquisition of an additional 44.4% stake in HNFPL, increasing the company’s total holding to 94.4%.
- Heritage Foods did not implement a planned price increase during the first quarter, despite the sales pressure from the inclement weather.
- The rising cost of raw milk for Heritage Foods increased by 4.74% or INR 1.96 per litre during Q1 2025.
