Conference Call with Dodla Dairy Management and Analysts on Q1FY24 Performance and Outlook. Listen to the full earnings transcript.
Packaged Foods company Dodla Dairy announced Q1FY24 results: Operating Revenues at Rs 8,234 million in Q1FY24 as compared to Rs 7,170 million in Q1FY23 – registering growth of 14.8% YoY. The Company’s Domestic business grew by 16.1% YoY to Rs 7,628 million whereas, the International business revenues stood at Rs 606 million in Q1FY24 EBITDA grew by 33.9% YoY to Rs 603 million in Q1FY24. EBITDA margin expanded by 104 bps YoY to 7.3% owing to lower raw material prices (44 bps YoY) and a decline in other expenses (89 bps YoY). However, employee expenses grew by 29 bps YoY in Q1FY24 Profit After Tax surged by 40.3% YoY at Rs 350 million in Q1FY24. PAT margin expanded by 77 bps YoY to 4.2% in Q1FY24 EPS for Q1FY24 stood at Rs 5.82 as compared to Rs 4.16 in Q1FY23 Average milk procurement during Q1FY24 was at 15.9 LLPD as compared to 14.8 LLPD in Q1FY23, registering 7.4% YoY growth Average milk sales during Q1FY24 were at 11.1 LLPD as compared to 10.4 LLPD in Q1FY23, registering 6.2% YoY growth Curd sales during Q1FY24 was at 439.7 MTPD as compared to 426.3 MTPD in Q1FY23, increasing by 3.1% YoY Revenue from Value Added Products (VAP) including fat & fat-based products grew by 12.9% YoY to Rs 2,586 million in Q1FY24 vis-à-vis Rs 2,290 million in Q1FY23. VAP including fat & fat-based products contribution stood at 32.0% of the overall dairy revenue during Q1FY24 as compared to 32.5% contribution of the overall dairy revenue during Q1FY23 Commenting on the performance, Managing Director of Dodla Dairy, Dodla Sunil Reddy said, “Dodla Dairy surpassed the Rs 8,000 million quarterly revenue milestone for the first time, registering 14.8% YoY growth at Rs 8,234 million in Q1FY24. The Company’s Value-Added Products (VAP) and Fat & Fat products sales surged by 12.9% YoY to Rs 2,586 million aided by the extended summer season coupled with a diversified product portfolio and strong brand recall. Dodla’s VAP sales contributed 32.0% to the overall revenues in Q1FY24.” He also added, “The industry has already started to experience some benefits of the upcoming flush season of 2023-24 which is likely to peak by September-October 2023. Dodla Dairy aims to maintain its competitive edge in the industry with a farmer-centric approach, thrust on quality & innovation, regular capacity expansion plans, and the ability to adapt to the evolving market dynamics, thereby leading the Company towards sustainable growth.” Result PDF