Dodla Dairy (DODLA) Q1 24/25 earnings summary

Executive summary

• Achieved record-high consolidated revenue of ₹9,116 million in Q1 FY25, up 10.7% YoY, with strong growth in value-added products (VAP) and international business, and profitability supported by improved product mix and operational efficiency.

• VAP contributed 35.4% of total revenues, with international business sales up 38% YoY to ₹836 million.

• EBITDA grew 74.2% YoY to ₹1,051 million (margin 11.5%), and PAT rose 85.9% YoY to ₹650 million (margin 7.1%).

• Strategic price reductions in milk and expanded distribution supported volume and cost management.

• Unaudited consolidated results reviewed and approved by the Board and Audit Committee, with an unmodified auditor's opinion.

Financial highlights

• Revenue from operations reached ₹9,116 million, up from ₹8,234 million in Q1 FY24 and ₹7,874 million in Q4 FY24.

• Gross margin improved by 543 bps to 29.1% YoY, with gross profit at ₹2,656 million.

• EBITDA margin rose to 11.5% from 7.3% YoY; PAT margin increased to 7.1% from 4.2% YoY.

• EPS for Q1 FY25 was ₹10.93, compared to ₹5.88 in Q1 FY24.

• Employee expenses increased 13.1% due to increments and new hires; other expenses rose 21.1% due to procurement, advertising, and storage.

Outlook and guidance

• Double-digit revenue and 18%-20% EBITDA/PAT growth expected for FY2025, with VAP to remain 33%-34% of revenue and EBITDA margins of 12%-13%.

• Africa business revenue projected to rise from ₹2,180 million to ₹3,600 million, and Orgafeed from ₹820 million to ₹1,600 million in FY2025.

• Focus on expanding procurement, VAP growth, brand building, and capacity utilization in new plants.

• 835,024 equity shares allotted under ESOP scheme post quarter-end.