Heritage Foods Limited (HERITGFOOD) — Announcement

📢 Key Event
Heritage Foods reports record Q1 FY27 revenue of ₹13,381 million, up 18% YoY, with VAP contributing 44% of revenue.

🔄 What Changed
VAP revenue grew 39% YoY to ₹6,322 million; VAP contribution rose to 44% from 36.1%; full ownership of Peanutbutter & Jelly Limited acquired; stake in Heritage Novandie Foods increased to 71%; procurement prices up 7% YoY

🔮 What's Next
VAP portfolio to improve margins; focus on margin expansion, geographical footprint, brand building; target higher gross margins; industry growth potential in ice cream (18-20% CAGR), curd (21-23% CAGR); VAP to drive sustainable growth as conditions normalize

💡 Investor Takeaway
Heritage Foods is strengthening its high-margin value-added products segment through strategic acquisitions and portfolio expansion, positioning for long-term profitable growth despite near-term input cost pressures.

Heritage Foods reported record Q1 FY27 revenue of ₹13,381 million, up 18% YoY, driven by strong volume growth and a 44% contribution from value-added products (VAP), which grew 39% YoY to ₹6,322 million. Despite elevated milk procurement costs and constrained supply, the company expanded its VAP portfolio, acquired full control of Peanutbutter & Jelly Limited, and increased stake in Heritage Novandie Foods. Procurement volumes rose 2% YoY to 1.81 MLPD, with prices up 7% to ₹46.61/L. Milk sales remained stable at 1.16 MLPD, while average selling price increased 4% to ₹58.68/L. The company emphasized strategic investments in procurement, innovation, and distribution to sustain long-term growth amid industry headwinds.

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