Parag Milk Foods, the India-based dairy group, has reported nine-month losses of over INR128m (US$1.9m) despite sales rising year-on-year.
The company booked a loss of INR128.3m for the nine months to the end of December, compared to a profit of INR312.3m a year ago.
Go deeper with GlobalData
Revenue was up 5.8% at INR13.02bn, indicating an acceleration in Parag Milk Foods’ sales in the third quarter of its financial year. First-half revenues had risen 1.5%.
However, higher losses on the changes in inventories of finished goods, work-in-progress and stock-in-trade, as well as an increase in “other expenses” weighed on Parag Milk Foods’ profitability.
Parag Milk Foods has been working on moving the product mix within its value-added business towards more “margin-accretive” lines, such as whey, UHT, beverages and cheese. It has set a target for its value-added products to account for 70% of sales in three years’ time, up from 66% at present. It is investing in cheese production and said it expects “robust growth” in UHT and whey products.
See Also:
Earlier this month, Parag Milk Foods revealed plans to introduce an “absolute whey protein” product under the Avataar brand.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
