Leading food company Britannia Industries Ltd on Friday reported a decline of 18.4 per cent in consolidated net profit at Rs 369.18 crore for the third quarter ended December 2021, impacted by rise in prices of raw material inputs. The company had posted a net profit of Rs 452.64 crore in the October-December quarter a year ago, Britannia Industries said in a BSE filing. However, its total revenue from operations was up 12.93 per cent to Rs 3,574.98 crore during the quarter under review. In the year-ago period, the same stood at Rs 3,165.61 crore.
Britannia Industries’ total expenses were at Rs 3,123.02 crore, up 18.54 per cent in the third quarter of the current fiscal compared to Rs 2,634.46 crore in the year-ago period. “We delivered a high single digit volume growth significantly ahead of the market and a resilient double-digit top-line growth of 14 per cent, driven by superlative performance across divisions and channels,” Britannia Industries Managing Director Varun Berry said. However, like other FMCG companies, Britannia also witnessed a “significant slowdown” in the rural markets, he said.
“On the cost front, we continued to witness increase in commodity prices with an inflation of 4 per cent sequentially (quarter on quarter) and 20 per cent over last year,” Berry said. He also said that the upward trajectory in prices of commodities and fuel impacted profitability, “which led us to action further price increases and accelerate cost efficiency programs”.
About the outlook, Berry said, “we are confident that our resilient brands and strategic growth initiatives will hold us on a path of sustainable & profitable share gain in the future as well”. Shares of Britannia Industries Ltd on Friday settled at Rs 3,507.35, up 0.45 per cent from BSE.