Britannia Industries (BIL), a dairy and bakery food products company, reported 66.6% rise in consolidated net profit at Rs 190 crore for the first quarter ended June, compared to Rs 114 crore in the same quarter last year.
Britannia Industries (BIL), a dairy and bakery food products company, reported 66.6% rise in consolidated net profit at Rs 190 crore for the first quarter ended June, compared to Rs 114 crore in the same quarter last year. Its revenue grew 13% for the quarter at Rs 2,003 crore. Operating profit for the June quarter went up 89.1% to Rs 261 crore compared to Rs 138 crore a year ago.
This is the third successive quarter in which the biscuits major has reported revenues in excess of Rs 2,000 crore. “Our results are a reflection of our focus on driving consumer off-take and operational efficiencies to generate sustainable and profitable growth, despite the slowdown that is being witnessed in the FMCG sector,” MD Varun Berry said.
The company has passed off the benefits of benign commodity prices and made its brands more affordable to consumers during this quarter. “We continued our efforts to expand our distribution footprint and ensure efficiency in operations through reduction in wastages and tight management of fixed costs. We moved ahead on our innovation journey with the launch of ‘Pure Magic Chocolush’ in the quarter,” Berry said. Britannia is committed to tap new sources of growth and focus on commercialising consumption opportunities across its product portfolios, he added. The company’s shares ended 1.34% higher at
Rs 3,177.40 on the BSE.
New plants may become operational by December
Britannia Industries on Tuesday said its two greenfield plants – in Tamil Nadu and Bangalore — are expected to be operational by December this year, with an investment of about Rs 250 crore. The biscuit major, which is aiming to be a leading integrated food company, has lined up a total capital expenditure of Rs 500 crore this financial year. “We sell 800,000 tonne of product every year. And if the volume grows by 10%, then we will require additional 80,000 tonne every year. So that is the kind of capacity expansion which will be required year after year,” MD Varun Berry told reporters.
He said that after the greenfield plants are operational, total capacity was expected to enhance by 1,00,000 tonne per year. The company, which overtook Parle Products to become the country’s top biscuit maker, has 14 own plants and 28 contract manufacturing plants across the country.
“For the last 10 quarters, we have been growing our market share as well as revenue,” Berry said, adding the company had continuously been emphasising on “innovations” in product, packaging and distribution to grow faster than the market. Britannia would also try to expand capacity of some of its existing plants. “Instead of small plants, our objective is to build skilled facilities,” the MD said. Meanwhile, the company is relaunching its leading brand ‘Good Day’, expecting that it would give rich dividend. Currently, the brand garners a revenue of around Rs 200 crore.