 "Britannia Q2 net dips 19% to Rs 218 cr")
Britannia Industries Ltd reported 19.1 per cent dip in second quarter profits to Rs 218.63 crore on phasing of excise incentives and increased higher advertising costs to promote its products.
Sales of the biscuit major increased by 11.8 per cent to Rs 2,208.65 crore. Britannia, which sells biscuits such as Good Day, Tiger and Nutrichoice reported profits of Rs 270.46 crore on sales of Rs 1,974.51 crore in July to September period last year, the company said in a notification to the Bombay Stock Exchange.
Employee costs during the quarter increased to Rs 82.31 crore as against Rs 65.55 crore in the second quarter last year. Advertisements and sales promotion increased to Rs 184.68 crore as against Rs 143.48 crore in the corresponding quarter.
Britannia managing director Varun Berry said the growth was impacted in the second quarter by 100 basis points or one per cent due to phasing out of excise duties available to the company.
"While the prices of key commodities remained benign, we expect that our initiatives of offering more value to consumers along with re-stage of our key brands like GoodDay and Milkbikis would help drive consumer off-take and accelarate the growth for the company in the future," he said in the statement.
Britannia has begun commercial production from its factory in Tamil Nadu, it said.
EYE ON NUMBERS
- Sales of the biscuit major increased by 11.8 per cent to Rs 2,208.65 crore
- Advertisements and sales cost increased to Rs 184.68 crore against Rs 143.48 crore in the corresponding quarter last year
