Britannia Industries on Friday reported a 22 per cent jump in consolidated net profit to ₹453 crore for the quarter ending December 31, 2020. The net profit in the year-ago period was ₹370 crore.

During the quarter under review, the total consolidated revenue stood at ₹3,166, a growth of over 6 per cent, year-on-year.

A statement issued by the company said, it is “consistently gaining market share over the last several quarters”.

On a standalone basis, it reported a net profit of ₹428 crore for Q3 FY21.

According to Varun Berry, Managing Director, Britannia, general trade — which is its largest channel — continues to grow at a healthy pace “on the back of buoyancy in rural economy and recovery in urban markets.”

Trade channels

Other channels such as modern trade and institutional business “continue to face challenges with lower footfalls in stores and offices”. Railway services are coming back to normalcy gradually, he said.

“Essentials were at elevated levels of demand at the beginning of the year due to pantry up-stocking, and it has started to normalise, with diversification of the purchase basket of the consumers. We continue to focus on direct reach, rural distribution, range selling, higher through-put, salesmen productivity and investing in enhancing our brand equity through focused product campaigns,” he said.

On the cost front, Britannia witnessed moderate inflation in materials prices, except for palm oil.

“We neutralised the inflation by accelerating our cost efficiencies. These measures helped us record a 260 basis points increase in operating profit during the quarter (over last year),” Berry added.

The company said it will look to accelerate the pace of innovation and new launches.

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