FMCG major Britannia has given a glimmer of hope amid the hard-hitting economic slowdown, saying that any such slowdown can not last for very long in nations such as India.
FMCG major Britannia has given a glimmer of hope amid the hard-hitting economic slowdown, saying that any such slowdown can not last for very long in nations such as India. “In this country, slowdown can only be short lived and our focused efforts on distribution & processes will help us get back on high growth trajectory,” Varun Berry, Managing Director, Britannia, said in a statement along with the release of the biscuit maker’s fiscal third quarter financial results. Britannia has posted strong earnings in the Q3 with its net profit witnessing a double-digit growth of 23.3% on-year despite the headwinds of a slowdown. However, due to an increase in key raw ingredients, Britannia faced moderate inflation. “There was a significant increase in milk prices which impacted our dairy business,” Varun Berry added.
Key takeaways from Britannia’s Q3 results
- Britannia’s net profit was up by 23.3% on-year and stood at Rs 370 crore in Q3FY20. The same was at Rs 301 crore last year in the comparable period.
- The FMCG major’s revenues swelled by 4% and the company reported the same as Rs 2983 crore as against last year’s Rs 2842 crore.
- Britannia reported EBITDA growth at double-digit 11.1%. The same is now at Rs 502 crore as against Rs 452 crore last year.
- The biscuit maker also posted margin growth at 16.8%; higher by 90 bps from last year’s 15.9%.
Meanwhile, commenting on Finance Minister Nirmala Sitharaman’s second budget, Varun Berry, MD, Britannia Industries said earlier this week that the budget will “activate multiple levers like rural, infrastructure, entrepreneurship and financial sectors to stimulate growth”. However, the company will wait to see how each of these levers will act, and to what extent. Further, in unison with other FMCG companies such as Dabur and Marico, Britannia said that it is optimistic that the government’s rural agenda will buoy consumer demand for the FMCG sector which has been witnessing the headwinds of slowdown for a year now.