Parag Milk Foods Limited (PMFL) has announced its financial results for the first quarter, showcasing strong growth and an ambitious strategy for its new age brands.

Record-Breaking Q1 Performance

The dairy FMCG company reported its highest-ever first-quarter revenue of ₹852.00 crore, marking a 12% year-on-year growth. This robust performance was driven by a 5% volume growth across its product portfolio, with core categories (ghee, cheese, and paneer) experiencing an impressive 14% value growth and 9% volume growth.

Financial Highlights

• EBITDA stood at ₹66.00 crore, with a margin of 7.7% compared to 8.1% in the previous year.
• Gross profit increased to ₹233.00 crore, maintaining a steady gross profit margin of 27.4%.
• Profit Before Tax (PBT) grew by 9% year-on-year to ₹29.00 crore.

Strategic Focus on Core and New Age Brands

Parag Milk Foods is strengthening its position in the value-added dairy FMCG segment:

• Core categories contributed 57% of total revenue.
• The company maintains market leadership with a 22% share in branded cow ghee and a 35% share in cheese.
• New age brands, including Pride of Cows and Avvatar, now constitute 9% of overall business, up from 6% last year.
• Revenue from new age businesses surged by 57% year-on-year.

Growth Strategy and Brand Building

PMFL has outlined a growth strategy focusing on expanding core categories and targeting a 39% compound annual growth rate (CAGR) in new age brands. The company plans to boost its direct-to-consumer (D2C) efforts while maintaining a focus on strong profitability.

Key initiatives include:

1. Strengthening core categories (ghee, cheese, paneer)
2. Brand building and innovation
3. Evolving route-to-market strategies
4. Strengthening new age businesses (Pride of Cows and Avvatar)
5. Driving financial growth

Market Expansion and Brand Visibility

The company has enhanced its brand visibility through various marketing initiatives:

• Partnerships with popular TV shows like Maharashtrachi Hasya Jatra and Zee Cine Awards
• Digital campaigns featuring influencers like Faye Dsouza, Jatin Sapru, and Soha Ali Khan
• Presence on quick commerce platforms to expand reach

Management Commentary

Devendra Shah, Chairman of PMFL, commented on the results: "Q1 has set a promising tone for PMFL as we begin the new financial year. Delivering our highest-ever first-quarter revenue reflects our strategic focus and disciplined execution. Our value-added product portfolio and purpose-led marketing are deepening consumer trust and supporting long-term value creation."

Looking Ahead

As the festive season approaches, Parag Milk Foods is well-positioned to meet the growing demand with its diverse portfolio of value-added products, including traditional sweets, ghee, and cheese. The company's focus on innovation, brand building, and expanding its new age businesses is expected to drive continued growth in the coming quarters.

With its strong performance in Q1 and clear strategic direction, Parag Milk Foods appears poised for sustained growth in the competitive dairy FMCG market.

Parag Milk Foods Limited (PMFL), a leading dairy-FMCG company in India, has announced its financial results for the first quarter, showcasing robust growth and operational performance.

Revenue Growth and Volume Expansion

The company reported its highest-ever first-quarter revenue of ₹852.00 crore, marking a significant 12% year-on-year growth. This impressive performance was underpinned by a solid 5% increase in overall volume, with core categories such as ghee, cheese, and paneer witnessing an even stronger 9% volume growth.

Financial Highlights

• EBITDA: Increased by 6% year-on-year to ₹66.00 crore
• Profit Before Tax (PBT): Rose by 9% to ₹29.00 crore
• Profit After Tax (PAT): Grew by 1% to ₹28.00 crore

Despite the growth in absolute terms, the EBITDA margin saw a slight contraction to 7.7% compared to 8.1% in the same quarter last year.

Core Categories and Market Position

Parag Milk Foods' core categories, primarily consisting of ghee, cheese, and paneer, contributed 57% to the total revenue. The company maintains a strong market position with:

• 22% market share in the branded cow ghee segment
• 35% market share in the cheese category

New Age Business Performance

The company's new age business, comprising Pride of Cows and Avvatar brands, showed exceptional growth:

• 57% year-on-year value growth
• Now constitutes 9% of overall business, up from 6% in the previous year
• Avvatar brand grew 8x over the past three Q1s

Operational Insights

• Average milk procurement: 16.5 lakh liters per day, up 10% quarter-on-quarter
• Average milk prices: ₹37.00/liter, an 18% year-on-year increase

Strategic Initiatives

Parag Milk Foods has been focusing on brand building and market expansion:

1. Engaged in regional marketing through popular TV shows
2. Launched the "What's the Source?" campaign for Pride of Cows
3. Expanded reach through quick commerce platforms
4. Implemented a 360-degree marketing strategy combining traditional and digital platforms

Management Commentary

Mr. Devendra Shah, Chairman of PMFL, commented on the results: "Q1 has set a promising tone for PMFL as we begin the new financial year. Delivering our highest-ever first-quarter revenue reflects our strategic focus and disciplined execution. Our value-added product portfolio and purpose-led marketing are deepening consumer trust and supporting long-term value creation."

He further added, "As the festive season approaches, we are energized by the growing momentum. Our growing portfolio of value-added products, including traditional sweets, ghee, and cheese, is well-positioned to meet the festive demand, powered by consumer trust and brand love."

Looking Ahead

With its strong performance in Q1, Parag Milk Foods appears well-positioned to capitalize on the upcoming festive season and continue its growth trajectory. The company's focus on value-added products, brand building, and expansion of its new age business segments are likely to be key drivers for future growth.

Investors and market observers will be watching closely to see if Parag Milk Foods can maintain this momentum in the coming quarters, especially in light of the evolving dairy market dynamics and consumer preferences in India.