Heritage Foods Q4 Review - Highest Ebitda Margin In Past 17 Years: ICICI Securities

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ICICI Securities Report

Three highlights from Heritage Foods Ltd.'s Q4 FY21:

1. Ebitda margin expanded 350 basis points due to reduction in milk procurement prices. However, there is QoQ decline in Ebitda margin with sequential increase in milk procurement prices,

2. revenue decline of 5.1% was largely attributable to consumers not returning to urban regions and lower hotel-restaurant-face consumption.

Re-opening up of economy, vaccination drive and price hikes (after a gap of six quarters) will lead to higher revenues in FY22,

3. company has sold the stake in Future Retail Ltd. which will reduce the debt and interest cost in FY22.

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