Milk Mantra's back in profit with 6% EBIDTA

After eight consecutive years of profitability, Milk Mantra posted a net loss of INR 12.3 Cr in FY23. The Bhubaneswar-based dairy tech startup then returned to profitability in FY24 with a net profit of INR 9.8 Cr, a significant improvement as it managed to control its expenses. Founded in 2009 by Srikumar Misra and Rashima Misra, Milk Mantra began its operations in 2012, selling products under the brands Milky Moo and Moo Shake, including packaged milk, curd, paneer, lassi, mishti dahi, and flavored milkshakes.

In FY23, the startup had slipped into a loss despite an operating revenue of INR 272.9 Cr, which represented a modest growth of 2% year-on-year (YoY). The struggle for growth continued in FY24, with operating revenue rising by a mere 1.3% YoY to INR 276.4 Cr. This performance fell short of the INR 13.6 Cr net profit achieved in FY22.

REVENUE GROWTH

Milk Mantra’s operating revenue grew only marginally by 1.3% YoY to INR 276.4 Cr in FY24, with growth seen only in the pasteurized milk and curd categories. Pasteurized milk remained the biggest revenue source, generating sales of INR 167.4 Cr in FY24, up by about 3% from INR 162.6 Cr in FY23. Revenue from curd saw the highest jump among products, rising over 10% YoY to INR 65.7 Cr in FY24. However, other products experienced declines, with cottage cheese revenue dropping 5.5% YoY to INR 27.2 Cr and buttermilk and lassi sales plummeting 27.5% YoY to INR 3 Cr. Revenue from ghee saw a significant decline, slumping 57% to INR 26 Lakh in FY24 from INR 61 Lakh the previous year. Traded goods revenue, including cattle feeds, breakfast items, raw milk, and milk powder, declined to INR 12.7 Cr from INR 17.1 Cr in FY23, with milk powder revenue falling to nil from INR 2.8 Cr the previous year, indicating a possible discontinuation of sales.

Despite these challenges, Milk Mantra’s total income, which includes other operating revenue like scrap sales and non-operating revenue, stood at INR 279.2 Cr in FY24, slightly up from INR 277.2 Cr in FY23.

EXPENSES

Total expenses fell by a little over 7% to INR 269.1 Cr in FY24 from INR 289.5 Cr the previous year, driven by a sharp decline in major operating costs related to materials and procurement. The cost of materials consumed dropped to INR 192.8 Cr in FY24 from INR 207.4 Cr in FY23. The startup had INR 6.2 Cr of raw materials inventory at the beginning of the year, and spending on new raw materials increased by 1.3% YoY to INR 192.3 Cr. However, when adjusted, the total raw material cost declined by 7.2% YoY to INR 185.3 Cr. The cost of packaging materials also fell by almost 5.1% YoY to INR 7.6 Cr in FY24.

Milk Mantra’s purchases of stock-in-trade, including cattle feed and raw milk, amounted to INR 11.5 Cr in FY24, down from INR 13.3 Cr in FY23. Employee benefits expenses rose slightly by 1.6% to INR 18.9 Cr in FY24 from INR 18.6 Cr the previous year, with increased spending on other employee benefits, including ESOPs, despite a slight decline in spending on salaries, wages, and bonuses. Freight and forwarding charges also saw a reduction, declining over 10% YoY to INR 13.4 Cr in FY24.