Bakery food company Britannia Industries Ltd. on Friday reported a 47.53% rise in consolidated net profit to ₹557.60 crore for the fourth quarter ended March 2023, helped by gains from distribution expansion, cost management and softening commodity prices.
The company had posted a net profit of ₹377.95 crore in the January-March quarter a year earlier, Britannia Industries said in a BSE filing.
Revenue from operations rose 10.93% to ₹3,892.02 crore during the quarter under review against ₹3,508.35 crore in the year-ago period.
“On the cost & profitability front, input prices softened on the back of correction in palm oil and packaging materials, while flour continued to trend higher. Our intensified cost efficiency programme coupled with moderation in commodity inflation led to a healthy operating margin in this quarter,” Britannia’s earning statement quoted Vice Chairman and Managing Director Varun Berry as saying.
The double-digit revenue growth was on the back of “significant” distribution gains, he added.
“We continued to accelerate our rural journey with a focus on enhancing reach, partnering with 28,000 rural distributors, and sustaining our diligent market practices. Our brand and distribution strength also reflects in the consistent market share gains over the last 10 years,” said Mr. Berry.
The total income of Britannia Industries in the March quarter increased 13.18% to ₹4,079.55 crore.
“We supported our brands and innovations with the requisite investments in the digital and mass media space. We further expanded portfolio of few of our adjacent categories, including milkshakes [in aseptic PET bottles] and Croissant,” he added.
Britannia Industries’ total expenses rose 7.68% to ₹3,322.48 crore in the fourth quarter of FY23 from ₹3,085.45 crore in the year-ago period.
During the quarter, Britannia commercialised two biscuit greenfield units in Uttar Pradesh and Tamil Nadu, and a brownfield expansion in Odisha.
“We also commercialised 3 new lines of rusk this quarter. This is in line with our strategy to make in-house, our exclusive range of products, and further enhance productivity,” Mr. Berry noted.
Over the commodity inflation, Berry said input prices have softened. There is a correction in palm oil and packaging materials.
“We are being vigilant of the competitive actions in the marketplace and closely monitoring the commodity situation in the country, especially around wheat and sugar. We shall deploy appropriate pricing actions to remain competitive and drive market share growth,” he said.
For the financial year ended March 2023, Britannia’s net profit increased 52.8% to ₹2,316.32 crore. It was ₹1,515.98 crore in FY22.
Its consolidated revenue from operations in FY23 increased 14.63% to ₹15,984.90 crore from ₹13,944.67 crore a year earlier.
“Net profit for the year includes an exceptional gain (net of tax) of ₹359 crore, pursuant to a joint venture agreement with Bel SA for the Cheese business and consequent sale of 49% equity stake in its subsidiary and fair valuation of the residual stake of 51%,” the company said.
Shares of Britannia Industries Ltd. on Friday settled at ₹4,623.90 apiece on the BSE, 0.85% higher than its previous close.
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