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Heritage Foods Q4 Review - Ebitda Margin Impacted By Rising Milk Procurement Prices: ICICI Securities

Heritage Foods Q4 Review - Ebitda Margin Impacted By Rising Milk Procurement Prices: ICICI Securities

<div class="paragraphs"><p> Heritage Foods Products (Source: Company website) </p></div>
Heritage Foods Products (Source: Company website)

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ICICI Securities Report

Takeaways from Heritage Foods Ltd.'s Q4 FY22:

  1. revenue grew 12.4% YoY driven by strong volume growth in dairy segment,

  2. gross margin declined 304 basis points YoY due to higher milk procurement prices but limited price hikes, and

  3. steady launch of new products continued during the quarter.

Steady value migration from co-operatives and un-organised players to private players is likely to benefit Heritage. We model the company to report profit after tax compound annual growth rate of 33.4% over FY22-FY24 with-

  1. high single-digit growth in milk procurement and

  2. steady increase in the share of value-added product portfolio.

We cut earnings estimates due to delay in price hikes.

Click on the attachment to read the full report:

ICICI Securities Heritage Q4FY22 Results Update.pdf

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