Varun Berry, MD, Britannia on Monday said that the company is not evaluating any acquisition option as of now. “The Wadia’s are not looking to sell their stakes in Britannia,” he told CNBC TV18. Talking about the company Berry said, “it will take 3-6 months for volume to come back to double-digit terrain. We may see tepid growth in the first quarter of next FY.” “The EBITDA margin can be better. The team is looking at each and every possibility of cost savings,” he added.
Britannia recently reported 4.59 per cent increase in consolidated net profit at Rs 220.49 crore for the third quarter ended December 31, 2016. The company had posted a net profit of Rs 210.81 crore in October-December period a year ago, Britannia Industries said in a BSE filing. Net sales grew 6.13 per cent to Rs 2,338.08 crore during the quarter under review as against Rs 2,203.01 crore of the corresponding quarter in the previous fiscal. Total expenses was up 7.04 per cent to Rs 2,072.99 crore in Q3 of FY 2016-17 as against Rs 1,936.57 crore.
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Commenting on the result, Varun Berry said: “The impact in terms of liquidity crunch was felt by our consumers and channel partners, thereby impacting our revenues with sales dropping in Nov’16 sequentially over Oct’16 by more than 10 per cent.” Britannia’s International business continued to be under pressure “due to deteriorating geopolitical situation and currency fluctuations in geographies like Middle East and Africa,” Berry added.
He also said that on the commodity front, prices of key raw materials have not shown respite with inflation in Q3 in remaining in excess of 10 per cent. “However, our accelerated cost efficiency programme helped us mitigate it to a certain extent. We rationalised our Advertising spends as no amount of stimulus would have helped boost growth in the wake of demonetization. We also endeavoured to leverage our fixed costs to aid our operating margins,” Berry added.