Bakery meals firm 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 beneficial properties from distribution growth, value administration and softening commodity costs.
The firm had posted a net profit of ₹377.95 crore within the January-March quarter a 12 months earlier, Britannia Industries stated in a BSE submitting.
Revenue from operations rose 10.93% to ₹3,892.02 crore through the quarter beneath evaluate in opposition to ₹3,508.35 crore within the year-ago interval.
“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 incomes assertion quoted Vice Chairman and Managing Director Varun Berry as saying.
The double-digit income progress was on the again of “significant” distribution beneficial properties, 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,” stated Mr. Berry.
The complete revenue of Britannia Industries within the March quarter elevated 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’ complete bills rose 7.68% to ₹3,322.48 crore within the fourth quarter of FY23 from ₹3,085.45 crore within the year-ago interval.
During the quarter, Britannia commercialised two biscuit greenfield models in Uttar Pradesh and Tamil Nadu, and a brownfield growth 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 famous.
Over the commodity inflation, Berry stated enter costs have softened. There is a correction in palm oil and packaging supplies.
“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 stated.
For the monetary 12 months ended March 2023, Britannia’s net profit elevated 52.8% to ₹2,316.32 crore. It was ₹1,515.98 crore in FY22.
Its consolidated income from operations in FY23 elevated 14.63% to ₹15,984.90 crore from ₹13,944.67 crore a 12 months 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 corporate stated.
Shares of Britannia Industries Ltd. on Friday settled at ₹4,623.90 apiece on the BSE, 0.85% greater than its earlier shut.
