Biscuit manufacturer Britannia unveiled its quarterly results for the period ending on December 31, 2023, on Tuesday. The company’s financial performance for the quarter revealed some notable shifts in key metrics.
Britannia’s Decline in Net Profit
Britannia reported a significant year-on-year decline of 40 percent in its consolidated net profit, which amounted to ₹556 crore. This figure starkly contrasted with the ₹937 crore reported in the corresponding quarter of the previous year, falling short of market estimates. Additionally, in sequential terms, Britannia’s profit experienced a 5 percent decline, totaling ₹587 crore.
Company Perspective
Varun Berry, Vice-Chairman & MD of Britannia, attributed the company’s performance to a “progressively recovering demand environment with heightened competition.” He highlighted a resilient revenue growth of 19 percent over the last 24 months, coupled with a commendable 52 percent increase in operating profit.
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Factors Influencing Growth
The subdued growth observed in the third quarter of fiscal year 2024 was influenced by various factors, including challenging comparison bases, price reductions, intensified competition, and modest single-digit volume expansion.
Revenue and EBITDA
Despite challenges, revenue from operations saw a slight increase to ₹4,256 crore from ₹4,196 crore in the corresponding quarter of the previous fiscal year. The company disclosed an EBITDA of ₹821 crore for the quarter, with margins registering at 19.29%.
Expansion Efforts
Britannia continued to expand its reach, particularly in rural areas, partnering with over 29,000 rural distributors during the quarter. New product offerings, including BeYou Bars, Makhanas, Jim Jam Pops, and unique cheese formats, contributed to consumer excitement and satisfaction. The international business also performed well, experiencing robust double-digit growths across key markets.
Consolidated Sales and Operating Profit
Consolidated sales for the quarter ended December 31, 2023, stood at ₹4,192 crore, marking a 2 percent increase over the previous year. Operating profit for the same period amounted to ₹743 crore.
Future Outlook
Britannia remains vigilant of commodity prices and the evolving geopolitical situation to maintain cost and profitability. The company intends to continue investing in its brands, ensuring price competitiveness while driving market share and sustaining profitability. Britannia reaffirms its commitment to the ESG framework of People, Growth, Governance, and Resources to build a sustainable and profitable business.
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