ADVERTISEMENT

Heritage Foods Q3 Review - Price Hike To Increase Spreads: ICICI Securities

Heritage Foods Q3 Review - Price Hike To Increase Spreads: ICICI Securities

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

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Key takeaways from Heritage Foods Ltd.'s Q3 FY22 result:

  1. Heritage Foods’ revenue grew 10.3% YoY driven by strong volume growth in dairy segment,

  2. however, its gross margin declined 658 basis points YoY due to higher milk procurement prices but no price hikes, and

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

The company also introduced Novandie products in Bengaluru market. Steady value migration from co-operatives and unorganised players to private players is likely to benefit Heritage Foods.

We model the company to report profit after tax compound annual growth rate of 7.6% over FY21-FY24 with:

  1. high single-digit growth in milk procurement and

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

Click on the attachment to read the full report:

ICICI Securities Heritage Q3FY22 Results Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.