Biscuit major Britannia on Tuesday reported a 40.3% year-on-year (y-o-y) decline in net profit to Rs 556 crore for the quarter ended December 31, 2023. This was marginally lower than Street estimates, which had forecast proft at Rs 553 crore for the period.
Revenue from operations in Q3FY24 grew just 1.4% y-o-y to Rs 4,256 crore from Rs 4,197 crore reported in the same period last year. Bloomberg consensus estimates had pegged Q3 revenue at Rs 4,296 crore. Sequentially, too, Britannia’s revenue and profit slipped 4% and 5.3% in Q3 from Rs 4,433 crore and Rs 588 crore, respectively.
Earnings before interest tax depreciation and amortisation (Ebitda) in Q3 was flat at Rs 821 crore. Sequentially, it fell 5.9% fromRs 872 crore in the September quarter. Bloomberg consensus estimates had forecast Ebitda at Rs 813 crore for the period. Ebitda margin stood at 19.3% in Q3 versus 19.5% reported last year.
The muted growth in the quarter under review came on the back of a high base, some price cuts, high competition and low single-digit volume growth, sector experts said. Shares of Britannia closed trade down 2.24% on the BSE on Tuesday at Rs 5,006.20 apiece.
Varun Berry, Britannia’s vice-chairman & MD, said the company would remain vigilant on the commodity price and local competition fronts. “We will continue to invest behind our brands and stay price competitive with a clear objective of driving market share while sustaining profitability,” he said.
Berry said the company had expanded direct reach and partnered with 29,000 rural distributors during the December quarter. “As a result, our focus states outperformed other regions in terms of growth, despite a generally subdued rural demand within fast-moving consumer goods,” he said.
