Milk Mantra, a contemporary dairy company with a 100% B2C mass premium focus, has reported a notable financial turnaround for FY24. Despite a modest revenue increase to ₹279 crore from ₹272.90 crore in FY23, the company has significantly improved its EBITDA, transforming from a loss of ₹6.56 crore in the previous fiscal year to a positive 6% of revenue.
Key Financial Improvements
The impressive recovery to a positive EBITDA margin comes in the face of challenging market conditions, underscoring the effectiveness of Milk Mantra’s strategic focus on value-added products and operational efficiency. The company’s value-added portfolio saw a 15% year-over-year growth, with its curd products achieving a remarkable 35% CAGR. This financial turnaround reflects the company’s strong business model and its ability to navigate market fluctuations effectively.
Sustainable Growth and Profitability
Milk Mantra has maintained a sustainable positive financial trajectory over three of the last four years, having broken even in 2021. Rashima Misra, Co-founder and Executive Director, discussed the significance of the milestone: “Our journey from a ₹6.56 crore EBITDA loss to a positive 6% margin, coupled with our industry-leading 28% contribution margin, reflects the strength of our business model. This achievement allows us to further invest in the innovation and expansion of our ‘Milky Moo’ brand, while continuing to support our network of 80,000 farmers.”
Distribution and Revenue Channels
The company’s unique B2C approach remains a key driver of success, with 95% of revenue generated through its own general trade distribution channel. The direct-to-consumer initiative, ‘Daily Moo,’ has also gained traction, contributing 5% of total revenue and serving approximately 4,000 daily orders in Bhubaneswar alone. This model underscores Milk Mantra’s commitment to reaching consumers directly and efficiently.
Expansion and Future Plans
The recent US$10 million funding from USDFC has bolstered Milk Mantra’s expansion efforts. The company is on track to complete a new fermented products manufacturing plant, which will support the regional growth of the Milky Moo brand. Looking forward, Milk Mantra plans to scale its D2C model, enter key markets, and introduce innovative niche products over the next two fiscal years. The company remains dedicated to ethical milk sourcing and rural economic development, reinforcing its commitment to growing its farmer network and contributing positively to the dairy industry.
Milk Mantra’s progress highlights its successful navigation of financial challenges and its ongoing commitment to innovation, quality, and sustainable growth.