Britannia Industries posted its fiscal second quarter earnings with profit at Rs 586.50 crore, up 19.6 per cent in comparison to Rs 490.58 crore during the corresponding quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 4,432.88 crore, up 1.2 per cent as against Rs 4,379.61 crore during Q2FY23. The company EBITDA stood at Rs 872.4 crore. According to a CNBC TV18 poll, Britannia was expected to record Q2 profit at Rs 544 crore and revenue was expected to be at Rs 4,511 crore.
Britannia’s consolidated sales for the quarter ended 30th September 2023 stood at Rs 4,370 crore. While the sales growth over last year is 1 per cent, the 24-months growth is 23 per cent, it said. Britannia’s operating profit stood at Rs 801 crore, up 21 per cent over last year, with the 24-months growth at 58 per cent.
“We delivered a good performance in a challenging environment on the back of 2 years of high inflation. Our innovation this quarter was led by Jim Jam Pops and 50-50 Golmaal, delivering a robust performance. We also launched differentiated cheese formats this quarter making focused inroads to retail shelves. Our potential in rural continues to remain high and hence, expansion in rural distribution continued despite reported rural slowdown,” said Varun Berry, Vice Chairman & Managing Director, Britannia Industries.
The company is also leveraging technology to enhance decision making and fine-tuning distribution reach.
“Our journey of building technologically superior factories progressed well with commercialization of our new Greenfield in Bihar during the quarter, in addition to our recent greenfield additions in Uttar Pradesh and Tamil Nadu. With capacity and capability enhancements planned in Ranjangaon Food Park, we are well poised to further extract productivity and enhance competitiveness in these growing markets,” he said.
Varun Berry further added that with commodity prices softening this quarter and pricing activity by competition in certain categories, Britannia too took strategic pricing corrections in some of its key brands and SKUs. This, he said, has helped in the brand’s market recovery during the quarter. “With the ongoing strife in the Middle East & Russia, the global commodity prices remain volatile. We are being watchful of the situation and its impact on our business. Our strategy will remain focused on driving market share while sustaining profitability,” he said.
