Britannia Industries on Thursday reported a 13.6% year-on-year rise in consolidated net profit to Rs 591 crore for the June quarter (Q1) of FY27, helped by volume and price increases. However, the company missed street estimates of Rs 606 crore for the quarter, as the company battled inflation in fuel and logistics amid geopolitical uncertainty.
Consolidated revenue was up 8.2% year-on-year to Rs 5,000 crore in the June quarter, in line with street estimates of Rs 4,999 crore for the period. Earnings before interest tax depreciation and amortisation (Ebitda) rose 11% year-on-year to Rs 840 crore, below street estimates of Rs 871 crore for the quarter. Ebitda margins were almost flat at 16.8% in Q1 versus 16.4% reported in the year ago period.
Britannia’s total expenses stood at Rs 4,262.24 crore, up 7.27% year-on-year in the quarter under review.
The company, facing competition from local rivals, said it was gaining ground against competition.
“Most key categories saw positive sequential momentum as we exited the quarter with a mid-teens revenue growth, anchored by rapid scaling in e-commerce and robust growth in general trade, aided by higher advertisement, influencers and promotional spends,” Rakshit Hargave, CEO & MD, Britannia Industries, said.
Moreover, Britannia’s international business also recovered sequentially as supply chain constraints began normalising in the last part of the quarter, said Hargave. Britannia derives around 93-95% of its revenue from domestic operations. 5-7% of total revenue comes from international businesses.
Over the outlook, the company said it will continue to closely monitor the evolving geopolitical situation in West Asia and crude oil volatility for potential impact on international operations and domestic input costs.
“We will remain agile in our actions to deliver healthy, sustainable revenue growth amid an improving domestic demand environment, driven by sharp innovation, strong brand investments, and disciplined margin management through accelerated cost efficiency initiatives,” he said.
Shares of Britannia settled at Rs 5,430 apiece on the BSE on Thursday, down 0.26% from the previous day’s close.