India’s Heritage Foods reported a more than three-fold jump in quarterly profit on Tuesday, as scorching summer boosted demand for ice creams and milkshakes.
The dairy producer said its consolidated profit rose 249% to 584.3 million rupees ($6.98 million) in the three months to June 30, marking the sixth consecutive quarter of growth.
Revenue from operations rose 11% to 10.33 billion rupees.
KEY CONTEXT
Unprecedented heat during the June quarter lifted demand for ice creams, lassi, buttermilk and flavored milk, benefiting dairy producers such as Heritage Foods.
Also, rising incomes mainly in urban India and preference for healthier options drove demand for branded dairy products.
Earlier this month, peers Dodla Dairy and Hatsun Agro Products had reported 85% and 63% gains in quarterly profits, respectively.
Mother Dairy aims for a 13 per cent increase in turnover to INR 17,000 crore this fiscal year, anticipating strong demand for its dairy and edible oils products. The company, a key milk supplier in Delhi-NCR, also markets ‘Dhara’ branded edible oils nationwide and operates around 400 ‘Safal’ retail outlets in Delhi-NCR for fresh fruits and vegetables.
Analysts and investors have voiced concerns for several quarters about food, beauty and household products makers not being able to win back shoppers they alienated when they hiked prices for over two years in the wake of the pandemic. The inflation sparked a global cost-of-living crisis, with increases in North America spreading to Europe and the rest of the world.
