ICICI Securities: Heritage Foods’ Lower Procurement Prices Leading To Highest Ebitda Margin In Past Decade
Heritage Foods Products (image: Company website)

ICICI Securities: Heritage Foods’ Lower Procurement Prices Leading To Highest Ebitda Margin In Past Decade

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

Three highlights from Heritage Foods Ltd.’s Q2 FY21 -

1. Ebitda margin expanded 1110 basis points due to reduction in milk procurement prices. We expect milk procurement prices to be lower even in H2 FY21 due to commencement of flush season,

2. The revenue decline of 10.2% was largely attributable to reduction in hotel restaurant cafe sales and lower out-of-home consumption. Gradual reopening up of economy will steadily lead to higher revenues,

3. The company has initiated some cost saving measures which has also helped to improve margins. We believe some cost saving measures are structural in nature.

Click on the attachment to read the full report:

ICICI Securities Heritage Q2FY21 Results Update.pdf

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