Britannia Q4 net profit rises 47.5% to Rs 557.6 cr, sales up 11% at Rs 3,892 cr

The double-digit revenue growth was on the back of 'significant' distribution gains, the company said

Bakery food company Britannia Industries Ltd on Friday reported a 47.53 per cent rise in consolidated net profit to Rs 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 Rs 377.95 crore in the January-March quarter a year ago, Britannia Industries said in a BSE filing.

Its revenue from operations rose 10.93 per cent to Rs 3,892.02 crore during the quarter under review against Rs 3,508.35 crore in the year-ago period.

Read | World food prices rise for first time in a year: FAO

"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," said Britannia's earning statement quoted its 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 Berry.

The total income of Britannia Industries in the March quarter increased 13.18 per cent to Rs 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 per cent to Rs 3,322.48 crore in the fourth quarter of FY23 from Rs 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 Orissa.

"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," 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.

Also Read | India's gold demand in Jan-Mar drops by 17% to 112.5 tonnes due to high prices: WGC

For the financial year ended March 2023, Britannia's net profit increased 52.8 per cent to Rs 2,316.32 crore. It was Rs 1,515.98 crore in FY22.

Its consolidated revenue from operations in FY23 increased 14.63 per cent to Rs 15,984.90 crore from Rs 13,944.67 crore a year ago.

"Net Profit for the year includes an exceptional gain (net of tax) of Rs 359 crore, pursuant to a joint venture agreement with Bel SA for the Cheese business and consequent sale of 49 per cent equity stake in its subsidiary and fair valuation of the residual stake of 51 per cent," the company said.

Shares of Britannia Industries Ltd on Friday settled at Rs 4,623.90 apiece on BSE, 0.85 per cent higher than its previous close.