Heritage Foods Limited · NSE:HERITGFOOD
Heritage Foods — Q1 FY26 Earnings Presentation
45 slides from Heritage Foods's earnings presentation, Jul 17, 2025
Slide 1: Exchange filing cover letter for investor presentation
Ref: SECT: STOC: 85-25 July 17, 2025 To To The Manager The Manager, BSE Limited Listing Department, Phiroze Jeejeebhoy Towers, National Stock Exchange of India Limited Dalal Street, Exchange Plaza, C-1, G Block, Bandra-Kurla Mumbai - 400 001 Complex, Bandra (East), Mumbai – 400 051 Scrip Code: 51955
Slide 2: The Promise of Health and Happiness
The Promise of Health and Happiness Quality From Farm To Table Corporate Presentation Q1 - FY26
Slide 3: Q1 FY26 Highlights, Business Overview, Strategic Updates, Annexure
Q1 FY26 Highlights Business Overview Strategic Updates Annexure
Slide 4: Q1 FY26 Financial Highlights
Q1 FY26 Financial Highlights
Slide 5: Q1FY26 Overview
Q1FY26: Overview Mr. A V Girija Kumar Chairperson HERITAGE FOODS LIMITED We are happy to report a 10% growth in Q1FY26, with highest ever quarterly consolidated revenue surpassing INR 11,368 millions. This performance reflects the strength of our brand portfolio and robust procurement system. While
Slide 6: Q1 FY26 Consolidated Financial Performance
Q1 FY26 Consolidated Financial Performance (Rs. In Mn.) Revenue EBITDA PBT PAT Margins 9.1% 6.5% 7.5% 4.8% 5.7% 3.6% 938 778 584 11,368 739 10,327 550 406 Q1FY25 Q1FY26 Q1FY25 Q1FY26 Q1FY26 Q1FY25 Q1FY26 Category 1 Q1FY25 Milk Revenue VAP Revenue Fat Products Ice-cream 5,941 810 337 5,621 4,034 3,82
Slide 7: Weather-Led Blip in VAP; Category Fundamentals Remain Strong
Weather-Led Blip in VAP; Category Fundamentals Remain Strong No. of Rainy Days Rain Received (mm) 21 174 18 152 147 15 8 68 4 30 0 0 Apr May Jun Apr May Jun FY24 FY25 FY24 FY25 Temperature Deviations from 10Y average levels (°C) FY24 FY25 1.3 0.6 -0.5 -0.4 -0.8 -2.6 Apr May Jun 6
Slide 8: Control, Leaner Model: Yogurt's Next Chapter with Heritage
Control, Leaner Model: Yogurt’s Next Chapter with Heritage 01 HNFPL, a 50:50 JV between HFL and France’s Novandie. 02 HFL acquired 44.4% additional stake in HNFPL, increasing the Company’s total holding to 94.4% Heritage Foods Limited (HFL) 03 Integrated, leaner supply chain driving speed and effici
Slide 9: Heritage Nutrivet Limited – Wholly owned subsidiary
Heritage Nutrivet Limited – Wholly owned subsidiary Product Portfolio Leading livestock feed producer & distributor in 9 States across India. 15+ Feed Suppliment Products Fish Feed 4% 7% Serving farmers across 6 states. Cattle Feed 89% Strong farmer connect with deep understanding of rural practices
Slide 10: Crafting cold delights: Ice Cream Plant Taking shape at Shamirpet
Crafting cold delights: Ice Cream Plant Taking shape at Shamirpet 9
Slide 11: Consolidated Financial Performance
Consolidated Financial Performance Particulars (INR Mn) Q1FY26 Q1FY25 Y-o-Y (%) Q4FY25 Q-o-Q (%) Operating Income 11,368 10,327 10% 10,485 8% Expenses 10,629 9,389 13% 9,686 10% EBITDA 739 938 (21)% 799 (7)% EBITDA Margins (%) 6.5% 9.1% (258) Bps 7.6% (112) Bps Depreciation 187 166 12% 178 5% Financ
Slide 12: Q1FY26 Key Marketing Actions
Q1FY26 Key Marketing Actions Launched New Heritage Livo – Badam Milk and Yogurt Aiming to build an emotional bond with the consumer by establishing Heritage Milk as a Key markets: Duration: partner in Mom’s quest for pure milk AP/TG, TN, KA, Mumbai and Delhi April – July’25 nutrition for her childre
Slide 13: Q1FY26 Key Marketing Actions
Q1FY26 Key Marketing Actions Launched New Heritage Livo platform – for “Healthy Living” Livo as a platform to introduce and re-position dairy ready to consumer dairy products as healthy alternative to junk, unhealthy drinkables as well as foods and promoting active, holistic lifestyle for young prof
Slide 14: Business Overview
Business Overview
Slide 15: Heritage: Delivering across the Dairy Value Chain
Heritage: Delivering across the Dairy Value Chain Operating as a large FMCG company Winning Operational Business Balanced Full Model Excellence Metrics Stack Portfolio Deep relation with 3 Decades of Operations Revenue CAGR 16% 300,000+ farmers, built on (FY22-FY25) immutable principles. 2.5 MLPD Ch
Slide 16: Strong Volume Led Growth in Dairy
Strong Volume Led Growth in Dairy 3 Year CAGR (FY22-FY25) Product Mix Others FAT 3% 10% 5% Proven Expertise in 5% Scaling Milk VAP 26% Procurement FY22 to Match Sales Milk 66% Growth Milk Milk Procurement Sales Others FAT 3% 23% 8% 44% 31% 38% Driving balanced 23% 21% FY25 growth across VAP Milk por
Slide 17: From Dairy to Your Door: The Journey of Milk
From Dairy to Your Door: The Journey of Milk Milk Chilling Processing Distribution Procurement Centers Plant Network 300,000+ 190 18 2100+ Farmers across 9 states Chilling Centres / State of the art Vehicles Bulk Coolers Processing Plants 1.8 Mn Litres 7400+ Procurement per day Distributors Zero Dig
Slide 18: Mrs. Nara Bhuvaneswari, Vice-Chairperson & Managing Director
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. 17
Slide 19: Business Model Built on Multiple USPs
Business Model Built on Multiple USPs 01 Strong relationship with farmers Collaborative Business Planning 04 02 Federated Supply Chain R&D and Marketing Capabilities 05 03 Integrated Distribution Network Strategic Working Capital 06 Management 18
Slide 20: Strong relationship with farmers - Milk Procurement: Preferred Buyer
Strong relationship with farmers - Milk Procurement: Preferred Buyer 17.2 15.9 15.5 13 12.7 11.1 11.6 10.9 10.2 9.6 Transparency and accurate measurement Fair pricing based on measurement of solids (fat and SNF) delivered Faster and guaranteed cashflow to farmers - Thrice FY21 FY22 FY23 FY24 FY25 a
Slide 21: Federated Supply Chain - Operating as a large FMCG company
Federated Supply Chain - Operating as a large FMCG company Procurement - (25 kms radius) Chilling - 190 centres & Processing - 18 Plants (100 kms to market) This reduces distance traveled by milk and maintains freshness Distribution - 50-60 kms radius 20
Slide 22: Integrated Distribution Network - 75% of pin codes in 17 states
Integrated Distribution Network - 75% of pin codes in 17 states BUILT CHANNEL AGNOSTICITY • Happiness points revenue increased to 5-6% in FY25. • WhatsApp commerce 7400+ 2,05,000 16 859 421 Distributors Retail Outlets E Commerce Websites Heritage Parlors Happiness points has also been (Retail Trade)
Slide 23: Fostering Strategic Partnerships Through Collaborative Business Planning
Fostering Strategic Partnerships 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 24: R&D and Marketing Capabilities
R&D and Marketing Capabilities New Product Launches • ABECA 2025 (AmbitionBox Employee Choice Award) by the Naukri team, ranking among India’s Top Rated FMCG Companies • Certificate of Appreciation from Govt. of Telangana for groundwater management at Shamirpet Plant. • Bronze Medal at the 6th CII-F
Slide 25: Strategic Working Capital Management - Significant Reduction over last one year
Strategic Working Capital Management - Significant Reduction over last one year Working Capital Days 36 29 28 27 20 16 FY20 FY21 FY22 FY23 FY24 FY25 24
Slide 26: Mrs. Nara Brahmani, Executive Director
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. 25
Slide 27: Clear Strategic Priorities to Drive Future Growth
Clear Strategic Priorities to Drive Future Growth Margin Geographical Expansion Footprint Brand Highly Tech Building Enabled 26
Slide 28: Geographical Footprint
Geographical Footprint Maharashtra Tamil Nadu Andhra Pradesh INDICATORS : • Milk and Milk Products Sales - 17 States • Milk Procurement - 9 States Sangvi Vadamadurai Pammaru Telangana Manor Bayyavaram Karnataka Kalluru Bobbili Yadavanahalli Narket pally B. Kothakota Sindhanur Shamirpet Haryana Gokul
Slide 29: VAP portfolio to Improve Margins
VAP portfolio to Improve Margins Higher Contribution of VAP (exc. Bulk FATS) to Revenue Higher Gross Margins 32% 25% 27% 18% FY20 FY25 FY28E FY20 FY25 FY28E Factors Driving VAP growth : Industry Growth potential (By Category) : Organised CAGR • Urbanisation Category Market Share (next 7 years) • Uno
Slide 30: From Commoditized to Customized
From Commoditized to Customized - Shaping unique experiences in a world of sameness Truly Good Sweets Bring home the taste of tradition, every time SARVAGUNA Milk - the all - rounder your kitchen can count on. Truly Good Gawa ghee – Livo Drinkables – Sip Pure. Live More. Bengal’s own rich, aromatic
Slide 31: Digitally Enabled Operations
Digitally Enabled Operations DMS Customer Live Application helps Distributor Management System Heritage VET+ is a streamline sales and costs helps streamlining the primary one-stop solution for milch animal attributable while creating a and secondary sales process from management. It provides virtua
Slide 32: Dr. M. Sambasiva Rao, Whole Time Director
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. 31
Slide 33: Diversified and Growing Product Portfolio
Diversified and Growing Product Portfolio TOTAL SKU’s : 400+ 32
Slide 34: Focused on Shareholder Value Creation - Consistently Paying Dividend
Focused 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 F
Slide 35: Srideep Kesavan, CEO
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. 34
Slide 36: 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 (in Bn dollars) per capita availability Unorganized to Organised shift Production (Million Tonnes) 227.53 Per Capita Availibilty (gms/day) Organised Unorganised % of Organised to Total
Slide 37: 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) YOGURT, VAP, 28% 2% 350 SMP, 7% ICE CREAM, 2% 300 FLAVOURED 250 MILK, 1% 200 GHEE, 11% 150 BUTTER , 100 6% 50 OTHERS, 0 PANEER, MILK, 65% 2012
Slide 38: Environmental Social Governance
ESG Enviornmental Social Governance 6.46 MW 2,837 Total Board Size : solar capacity Cattle Health Camps Conducted 7 Whole Time Directors, 2 Independent 6.30 MW 72,853 Directors, 4 Non-Independent Directors, 244 wind capacity Cattle Treated years of cumulative corporate exposure Lowering carbon footp
Slide 39: Appendix
APPENDIX
Slide 40: 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 Finance. Former CMD of Or
Slide 41: Experienced Leadership Team with Proven Expertise
Experienced Leadership Team with Proven Expertise He brings over 28 years of experience, with two decades in the packaged food industry as a Mr. Srideep Kesavan seasoned marketer and business leader. He has held leadership roles at Coca- Cola India and Olam CEO International Singapore. He is an alum
Slide 42: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (INR Mn) FY23 FY24 FY25 Operating Income 32,407 37,939 41,346 Expenses 31,024 35,844 38,036 EBITDA 1,383 2,095 3,310 EBITDA Margins (%) 4.3% 5.5% 8.0% Depreciation 561 608 696 Finance Cost 39 91 154 Other Income 121 120 279 Share of Profit/(Loss)
Slide 43: Historical Consolidated Balance Sheet
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 7,259
Slide 44: Strengthening Financial Health: Key Balance Sheet Ratios (Standalone)
Strengthening Financial Health: Key Balance Sheet Ratios (Standalone) Debt/Equity Current Ratio ROCE FATR 0.18 6.2 1.8 23.1 6 15.8 0.16 1.7 FY24 FY25 FY24 FY25 FY24 FY25 FY24 FY25 Inventory Turnover ratio Receivables Turnover ratio Payables Turnover ratio Net Capital Turnover ratio 28.5 18.1 132.0
Slide 45: Thank You
THANK YOU Company Contact Mr. Umakanta Barik Company Secretary and Compliance Officer Mail id : hfl@heritagefoods.in Contact : 040-23391221/22 Investor Relations Contact : Garima Singla Sheetal Khanduja Go India Advisors Go India Advisors Mail id : garima@goindiaadvisors.com Mail id : sheetal@goindi