Heritage Foods Limited · NSE:HERITGFOOD
Heritage Foods — Q4 FY25 Earnings Presentation
42 slides from Heritage Foods's earnings presentation, May 2025
Slide 1: The Promise of Health and Happiness
The Promise of Health and Happiness Quality From Farm To Table Corporate Presentation Q4 - FY25 1
Slide 2: Table of Contents
Table of Contents 1 Q4 & FY25 Highlights 2 Business Overview 3 Strategic Updates 4 Annexure
Slide 3: Q4 & FY25 Financial Highlights
Q4 & FY25 Financial Highlights 3
Slide 4: Q4FY25: Overview
Q4FY25: Overview Procurement volumes peaked to 1.76 MLPD (11%) and procurement prices increased to Rs 42.9/L (3.1% higher), however FY25, average prices declined 3.7% YoY to INR 41.7/litre, driven by improved sourcing efficiencies and favorable flush season availability Milk Sales volumes peaked to
Slide 5: Control, Leaner Model: Novandie's Next Chapter with Heritage
Control, Leaner Model: Novandie’s Next Chapter with Heritage HNFPL, a 50:50 JV between HFL and France’s Novandie, has operated a loss-making plant near Mumbai since FY21. HFL proposes to acquire majority stake in Heritage Foods HNFPL for ₹8.5 Cr, paving the way for majority Limited control by FY26.
Slide 6: Churning Growth: Ice Cream Plant Construction in Progress
Churning Growth: Ice Cream Plant Construction in Progress 6
Slide 7: Q4 & FY25 Consolidated Financial Performance
Q4 & FY25 Consolidated Financial Performance (Rs. In Mn.) Milk Revenue VAP Revenue Fat Products Others* 485 3362 837 5534 5801 443 711 Q4FY25 2818 Q4FY24 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 23282 13035 3046 3181 22190 11063 1848 1640 FY25 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 7 * Othe
Slide 8: Q4 & FY25 Consolidated Financial Performance
Q4 & FY25 Consolidated Financial Performance (Rs. In Mn.) Revenue EBITDA PBT PAT Margins 7.4% 7.6% 5.8% 5.2% 4.3% 3.6% 799 405 10485 548 382 542 9506 702 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 Q4FY24 Q4FY25 Margins 5.5% 8.0% 3.8% 6.2% 2.8% 4.6% 1883 41346 3310 2582 37939 2095 1451 1066 FY2
Slide 9: Consolidated Financial Performance
33 Consolidated Financial Performance Particulars (INR Mn) FY25 FY24 Y-o-Y (%) Q4FY25 Q4FY24 Y-o-Y (%) Operating Income 41,346 37,939 9% 10,485 9,506 10% Expenses 38,036 35,844 6% 9,686 8,803 10% EBITDA 3,310 2,095 58% 799 702 14% EBITDA Margins (%) 8.0% 5.5% 248 bps 7.6% 7.4% 23 bps Depreciation 69
Slide 10: Q4 Key Marketing Campaigns
Q4 Key Marketing Campaigns New Product Launches Festivals and Events Targeting an all rounder milk Heritage x ChaiBisket proposition, - Brought out a unique SARVGUN milk is a cultural nuance of Telugu unique blend which is Audience to celebrate suitable for every biggest Telugu festival of occasion
Slide 11: Business Overview
Business Overview 11
Slide 12: Heritage: Delivering across the Dairy Value Chain
Heritage: Delivering across the Dairy Value Chain Operating as a large FMCG company Winning Model Operational Excellence Business Metrics Balanced Full Stack Portfolio ❑ Deep relation with 3 Decades of Operations Revenue CAGR 16% (FY22-FY25) 300,000+ farmers, built on immutable principles. As on FY2
Slide 13: Strong Volume Led Growth in Dairy
Strong Volume Led Growth in Dairy 3 Year CAGR (FY22-FY25) Product Mix Proven Expertise in Scaling Milk Procurement to Others Match Sales Growth FY22 FAT 3% 5% 10% 5% VAP 26% Milk 66% Milk Milk Procurement Sales Driving balanced growth across portfolio FY25 Others FAT 3% 44% 8% 23% 38% 31% 21% 23% VA
Slide 14: From Dairy to Your Door: The Journey of Milk
From Dairy to Your Door: The Journey of Milk Milk Chilling Processing Pasteurization Distribution Procurement Centers Plant Centers 300,000+ 195 18 Excess fat separated 2000+ Farmers across 9 states Chilling Centres/Bulk State of the art and converted to fat Vehicles Coolers Processing Plants produc
Slide 15: A balanced portfolio that works in every season
A balanced portfolio that works in every season March-May Jun-Aug Sep-Feb Drinkables, Curd and Ice- Milk and paneer sales Festive and winter period creams lead the sales boom with ‘return to when Ghee, butter and school Sweets sales lead 15
Slide 16: Geographical Footprint
Geographical Footprint Geographical Footprint INDICATORS Milk and Milk Products Sales - 17 States Haryana Milk Procurement - 9 States Telangana Rai Kalluru Narket pally Maharashtra Uppal Shamirpet Sangvi Manor Andhra Pradesh Karnataka Pammaru Bayyavaram B.Kothakota Yadavanahalli Sindhanur Tamil Nadu
Slide 17: Mrs. Nara Bhuvaneswari, Vice-Chairperson & Managing Director
“At Heritage, we drive sustainable shareholder value through innovation, operational efficiency, and environmental stewardship, ensuring long-term growth, market leadership, and prosperity for all stakeholders.” Mrs. Nara Bhuvaneswari Vice-Chairperson & Managing Director 17
Slide 18: Business Model Built on Multiple USPs
Business Model Built on Multiple USPs Federated Supply Chain Strong relationship with farmers Multiple fit-for-purpose Route to Market Strong relationship with all major customers R&D and Marketing Capabilities Strategic Working Capital Management 18
Slide 19: Federated Supply Chain
Federated Supply Chain Operating as a large FMCG company Procurement Processing (25 kms radius) 18 Plants (100 kms to market) Chilling Distribution 195 centres 50-60 kms radius This reduces distance traveled by milk and maintains freshness 19
Slide 20: Strong relationship with farmers
Strong relationship with farmers Milk Procurement: Preferred Buyer Milk Procured (LLPD) Milk Sales (LLPD) • Transparency and accurate measurement 17.2 15.9 16.3 • Fair pricing based on measurement of solids 13.8 13.8 13.2 12.7 13 (fat and SNF) delivered 11.6 11.4 11.1 11.5 11.1 10.9 10.4 10.5 9.6 10
Slide 21: Integrated Distribution Network
Integrated Distribution Network 75% of pin codes in 17 states 16 E Commerce Websites 859 0.18 mn (Retail Trade) Heritage Retail Outlets Parlors (Retail Trade) (Owned Network) BUILT CHANNEL 7300+ AGNOSTICITY 386 Distributors Happiness points (Retail Trade) (Owned Network) • Happiness points revenue i
Slide 22: Building Strong Bonds Through Collaborative Business Planning
Building Strong Bonds Through Collaborative Business Planning Brick and Mortar Ecommerce • Annual Strategic Business Planning with Channel Partners • Fostering Long-Term Partnerships and Unmatched Customer Loyalty 22
Slide 23: R&D and Marketing Capabilities
R&D and Marketing Capabilities New Product Launches Awards and Accolades • Certificate of Appreciation from Govt. of Telangana for groundwater management at Shamirpet Plant • Bronze Medal at the 6th CII-FACE Kaizen Awards 2024 for food safety and quality at Bayyavaram Plant • Gold at E4M IMA South 2
Slide 24: Strategic Working Capital Management
Strategic Working Capital Management Significant Reduction over last one year Working Capital Day Days 36 29 28 27 20 16 FY20 FY21 FY22 FY23 FY24 FY25 24
Slide 25: Diversified and Growing Product Portfolio
Diversified and Growing Product Portfolio TOTA L S KU ’ s : 4 1 9 25
Slide 26: Mrs. Nara Brahmani, Executive Director
“We create value by staying flexible, introducing innovative products, and expanding into high-growth markets to meet consumer needs and drive sustainable growth.” Mrs . Nara Brahmani Executive Director 26
Slide 27: Clear Strategic Priorities to Drive Future Growth
Clear Strategic Priorities to Drive Future Growth Synergy in Margin Highly Tech Leadership Expansion Enabled 27
Slide 28: VAP portfolio to Improve Margins
VAP portfolio to Improve Margins Higher Contribution of VAP to Revenue Higher Projected Gross Margins 40% 25% 32% 27% 18% FY20 FY25 FY28E FY20 FY25 FY28E Factors Driving VAP growth: Industry Growth potential (By Category): Category Organised Market CAGR ( next 7 ✓ Urbanisation Share years) ✓ Unorgan
Slide 29: Digitally Enabled Operations
Digitally Enabled Operations 1 2 3 DMS Customer Live Application Distributor Management Heritage VET+ is a one- helps streamline sales and System helps streamlining stop solution for milch costs attributable while the primary and secondary animal management. creating a responsible and sales process
Slide 30: Dr. M. Sambasiva Rao, Whole Time Director
“We prioritize the highest standards of quality in every product we produce, ensuring that our consumers receive only the best, fresh, and nutritious dairy options.” Dr. M. Sambasiva Rao Whole Time Director 30
Slide 31: Focussed on Shareholder Value Creation
Focussed on Shareholder Value Creation Consistently Paying Dividend The company maintained its commitment to shareholders by continuing to pay dividends, even during the challenging COVID years. PERCENTAGE OF DIVIDEND OF FACE VALUE 100% 100% 50% 50% 50% 50% 40% 40% 40% 30% 30% FY15 FY16 FY17 FY18 FY
Slide 32: Srideep Kesavan, CEO
"At Heritage, we transcend the identity of a dairy company, embodying the essence of a progressive FMCG brand. Rooted in tradition yet driven by innovation, we craft products that enrich lives, inspire trust, and uphold uncompromising quality. Srideep Kesavan CEO 32
Slide 33: Unlocking Convenience with a Dynamic FMCG-Inspired Range
Unlocking Convenience with a Dynamic FMCG-Inspired Range Heritage Foods Limited Heritage Nutrivet Limited Heritage Novandie Foods Pvt Ltd (Wholly owned Subsidiary) (Joint Venture) 33
Slide 34: Appendix
APPENDIX 34
Slide 35: India's Dairy Industry: Poised for Significant Growth
India's Dairy Industry: Poised for Significant Growth Indian Dairy market size Steady growth in milk production and Unorganized to Organised shift (in Bn dollars) per capita availability Milk sales (INR Bn) Organised Unorganised % of Organised to Total Production (Million Tonnes) 44% 227.53 Per Capi
Slide 36: Shifting Towards VAP: Unlocking New Growth Opportunities
Shifting Towards VAP: Unlocking New Growth Opportunities Product contribution to organised Dairy sector Revenue Disposable Personal Income in India (INR Mn) SMP, YOGURT, 350 7% VAP, ICE 2% CREAM, 28% 2% 300 250 GHEE, FLAVOURED 11% 200 MILK, 1% VAP 150 BUTTER , 6% 100 OTHERS, PANEER, 50 MILK, 1% CHEE
Slide 37: Board of Directors
Board of Directors Board of Directors Mr. Angara Venkata Girija Kumar Mrs. Bhuvaneswari Nara Chairperson, Non-Executive Independent Director Vice Chairperson/Managing Director Commerce graduate, MBA, AIII, and Member of FSIB, Ministry of Bachelor of Arts with rich business experience, leading Herita
Slide 38: Experienced Leadership Team with Proven Expertise
6 Experienced Leadership Team with Proven Expertise Mr. Srideep Kesavan CA A. Prabhakara Naidu Mr. J Samba Murty Mr. Umakanta Barik, CEO CFO COO Company Secretary An MBA from XLRI and a A Fellow Member of the He holds an MBA in He holds a Master’s in B.Tech from CET, he brings Institute of Chartered
Slide 39: Historical Consolidated Income Statement
33 Historical Consolidated Income Statement Particulars (INR Mn) FY20 FY21 FY22 FY23 FY24 FY25 Operating Income 27,259 24,731 26,813 32,407 37,939 41,346 Expenses 25,974 22,062 24,906 31,024 35,844 38,036 EBITDA 1,284 2,669 1,907 1,383 2,095 3,310 EBITDA Margins (%) 4.7% 10.8% 7.1% 4.3% 5.5% 8.0% De
Slide 40: Historical Consolidated Balance Sheet
34 Historical Consolidated Balance Sheet Particulars (INR Mn) FY23 FY24 FY25 Particulars (INR Mn) FY23 FY24 FY25 Equity And Liability Assets Equity Share Capital 464 464 464 Non-Current Assets Reserve and Surplus 6,795 7,618 9,256 Property, Plant and Equipment 6,133 6,968 7,411 Shareholders Fund 7,2
Slide 41: Strengthening Financial Health: Key Balance Sheet Ratios
Strengthening Financial Health: Key Balance Sheet Ratios Debt/Equity (x) Current Ratio (x) ROCE (%) FATR (x) 0.18 1.8 23.1 6.2 6 15.8 1.7 0.16 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 Inventory Turnover ratio (x) Receivables Turnover ratio (x) Payables Turnover ratio (x) Net Capital Turnover ratio (x
Slide 42: Thank You
THANK YOU Investor Relations Contact Company Contact Garima Singla Mr. Umakanta Barik Go India Advisors Company Secretary and Compliance Officer garima@GoIndiaAdvisors.com hfl@heritagefoods.in M:+91 9780042377 Contact: 040-23391221/22 Sheetal Khanduja Go India Advisors sheetal@GoIndiaAdvisors.com M: