Britannia bottom line up 19 % on higher sales

CORPORATE SCORECARD

Britannia Industries (BIL), makers of biscuit brands such as Good Day and 50:50, has reported a 19.14 per cent increase in net profit at Rs 36.1 crore during the first quarter of 2007-08 compared with the corresponding period last financial year. The company attributed the increase in profit to higher sales.

The company achieved a top line of Rs 576.9 crore for the quarter, up by 19.42 per cent, compared with the corresponding quarter last year.

"The company is now strengthening the shape of its business and leveraging synergy benefits of recent acquisitions," said Britannia Industries Managing Director Vinita Bali. 
 

Rs crore	Quarter ended June
	2006	2007
Net sales	482.8	576.9
Other income	11.9	10.8
Expenditure	450.2	532.3
OP	44.5	55.4
Net profit	30.3	36.1
EPS (Rs)	12.7	15.1

However, on a sequential basis, the company's net profit is down by 9.3 per cent. Similarly, the net sales went down by 3.7 per cent during the quarter.

The company attributed the dip in profit and sales on a sequential basis to the increase in prices of wheat and dairy products.

"The unprecedented increase in prices of commodities, which started last year, is likely to continue in the current year as well," said Bali, indicating that profit growth may remain negative or flat on a sequential basis for the coming quarter.

During the quarter, 'Good Day Jumbo', a premium cookie, was introduced in the market. 'Chota Tiger', the popable biscuits in pouch pack, was extended nationally. "'50-50 Chutkule', the company's foray into snacking has been steadily growing since launch," Bali added.