Milky Mist reports Rs 928 crore in revenue with a fourfold increase in profit in FY21
- ByStartupStory | June 27, 2022
Dairy companies have mostly depended on old supply chains and refrained from modernization. However, with the rise of businesses like Country Delight, which has been utilising contemporary methods and direct-to-consumer (D2C) channels for distribution, things are changing.
Along with new startups, established dairy businesses like Milky Mist are giving D2C and digital channels a lot of attention. The solely bootstrapped business is currently trying to obtain its first institutional financing round to build up new initiatives. While its reported revenue was over Rs 1,300 crore, its operational revenue in FY21 exceeded Rs 925 crore.
The company’s overall expenses increased 26.4 percent to Rs 886.6 crore in FY21 from Rs 701.4 crore in FY20 (FY20). ASAL Food Industries was purchased by Milky Mist for an unknown sum last year. Asal produces and distributes a variety of ready-to-cook dishes, including parotta, chapati, idli, and dosa batter.
From Rs 30.3 crore the previous fiscal year to Rs 40.65 crore in FY21, spending on advertising and promotion increased by 34.2 percent (FY20). To have more control over distribution and quality, the corporation itself entirely owns the logistics network. The cost of logistics and operating vehicles increased by about 30% to Rs 34.06 crore in FY21 from Rs 24.17 crore in FY20.
During FY21, Milky Mist’s cash inflow increased 2.3X to Rs 135 crore. ROCE and EBITDA margin were reported at 17.83 percent and 15.49 percent, respectively, with so many favourable factors.
The cost of materials naturally emerged as the largest cost centre for the company because it focuses more on the production and distribution of dairy products. They account for 67.5 percent of the total cost, which increased 30.2 percent to Rs 598.19 crore in FY21 from Rs 459.3 crore the year before.
Follow Startup Story
Related Posts
