Dairytech Startup Milk Mantra Net Profit Fell 36% To Rs 13.6 Cr In FY22 Despite 47% Jump In Sales

Due to an increase in expenses, Bhubaneswar-based dairy tech firm Milk Mantra reported a more than 36% decline in earnings to INR 13.6 Cr during the financial year 2021-22 (FY22) from INR 21.3 Cr in FY21.

The firm, which claims to be the nation's first venture capital (VC)-backed dairy startup, had a 48% increase in total revenue from FY21 to FY22, going from INR 182 Cr to INR 271 Cr. However, the increase in costs was slightly greater than the increase in revenue. From INR 170.7 Cr in FY21, total expenses increased by almost 50% to INR 256.4 Cr in FY22.

The firm backed by Eight Roads Ventures had an almost 47% increase in operating revenue in FY22, from INR 181.9 Cr to INR 266.4 Cr. The expansion of the product portfolio is to blame for the rise in operational revenue.

Milk Mantra sells goods under the labels Milky Moo and Moo Shake, according to its website. It offers flavoured milkshakes, packaged milk, curd, paneer, lassi, and mishti dahi.

In terms of finished goods sold by the company in FY22, pasteurised milk accounted for the majority. During the year, it sold pasteurised milk worth INR 170.5 Cr, while INR 53 Cr and INR 25 Cr, respectively, were spent on curd and cottage cheese (paneer). Sales of INR 3.1 Cr. were primarily attributed to buttermilk and lassi.

In FY22, the startup earned INR 3.8 Cr from sources other than sales, up from INR 1.4 Cr the year before. Interest from bank savings and security deposits are two common examples of alternative income.

Due to its expansion plans in eastern India, the startup's expenses increased by roughly 50%. The cost of the material used during the year accounted for roughly 71% of total expenses, or INR 182 Cr, a 46% increase from INR 124.6 Cr in FY21.

Raw materials and packaging materials cost Milk Mantra INR 172.7 Cr and INR 9.2 Cr, respectively. In FY21, it had spent INR 28 Cr on raw materials and INR 6.1 Cr on packaging materials, respectively.

Employee benefits costs at Milk Mantra increased by almost 80% to INR 18.5 Cr from INR 10.3 Cr in FY21. Employee salary, gratuities, PF contributions, and other employee welfare benefits are included in employee benefit expenditures.

Srikumar and Rashima Misra founded Milk Mantra in 2009, however, the company didn't start operating until 2012. The firm currently operates dairy processing facilities in the Odisha cities of Gop, Konark, Hatibari, and Sambalpur. According to Milk Mantra, there are approximately 75,000 dairy farmers in Odisha and its neighbouring states that supply milk.

The startup's founders stated in an interview that they aim to increase their company's revenue to INR 1,000 Cr within the next five years. Startups like Country Delight, Stellapps, Happy Milk, and dairy goliaths like Amul and Mother Dairy compete against Milk Mantra.