Britannia Industries reported a strong performance in the quarter ending in September, with the consolidated net profit improving by 19.55 per cent y-o-y to ₹586.5 crore, surpassing market estimates of a 7.9 per cent improvement.
In September 2022, the FMCG major reported a net profit of ₹490.58 crore. Sequentially, the net profit improved by 28.77 per cent.
Consolidated sales for the second quarter showed a marginal 1 per cent improvement, totaling ₹4,370 crore compared to ₹4,337.59 crore in the same quarter the previous year. However, these sales fell short of market estimates, which expected a 3 per cent y-o-y revenue growth due to price cuts.
The company’s EBITDA (operating margin) in the September 2023 quarter stood at ₹872.4 crore, marking a 22.5 per cent increase compared to ₹711.7 crore reported in the same period last year.
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Varun Berry, Vice Chairman and Managing Director, Britannia Industries, said, “Our potential in rural areas continues to remain high, and hence, expansion in rural distribution continued despite the reported rural slowdown. We have progressed well on our digital journey, with digital marketing gaining momentum and leveraging digitalization to enhance decision-making and fine-tune distribution reach.”
The company has also made strategic pricing corrections to maintain competitiveness and recover market share and is said to be closely monitoring the impact of global commodity price fluctuations due to ongoing geopolitical issues in the Middle East and Russia.