 "Britannia Industries")
Bengaluru-based Britannia Industries posted a net profit of Rs 536.6 crore during the fourth quarter ended March, down 3.8 per cent from the same quarter of the previous year, on muted rural demand. On a sequential basis, profit was down 3.4 per cent.
The Nusli Wadia group firm’s consolidated net sales during the March quarter increased by 3.1 per cent year-on-year (YoY) to Rs 4,014 crore.
The operating margins contracted by 110 basis points to 17.3 per cent during the March quarter from 18.4 per cent in the year-ago period due to price cuts undertaken during the quarter under review.
Commenting on the performance, Varun Berry, vice chairman and managing director, said, 'In a tepid consumption scenario, our performance this year signifies resilience and competitiveness. Over the past 24 months, we have achieved a strong 19 per cent growth in revenue, accompanied by a notable 43 per cent increase in operating profit. Our market share rebounded as the year progressed as a result of strategic pricing actions to maintain competitiveness and intensified investments in brands, supported by distribution expansion.'
Berry said Britannia significantly expanded its distribution network, reaching approximately 2.79 million outlets directly and added around 2,000 rural distributors over the past year. 'Our focus states surpassed other regions in terms of growth, despite generally subdued rural demand. We bolstered our abilities to capitalize on rapidly growing channels like modern trade and ecommerce, both of which experienced double-digit growth compared to the previous year,' he added.
On the cost and profitability front, Berry said, 'We will stay vigilant of the commodity prices and evolving geopolitical landscape. Our cost efficiency program continues to yield operational savings of about 2 per cent of revenues, ensuring healthy operating margins. We will continue to invest behind our brands and stay price competitive with a clear objective of driving market share while sustaining profits.'
The Indian fast-moving consumer goods (FMCG) industry's volume grew by 6.4 per cent YoY in the December quarter with an uptick in consumption in both urban and rural areas, according to a report by analytics firm NielsenIQ. In 2024, the FMCG industry is poised to register growth between 4.5 per cent and 6.5 per cent, on the basis of the strength of the sector and the Indian economy, it said.
Britannia declared its earnings after market hours on Friday. Ahead of the earnings, its shares were down 0.69 per cent to close at Rs 4,747.30 on the BSE.
| Q4 FY24 | Q4 FY23 | YoY Change | |
| Revenue (Rs crore) | 4014 | 3892 | 3.1% |
| Net profit (Rs crore) | 536.6 | 557.6 | -3.8% |
| Operating Margin (%) | 17.3 | 18.4 |
-110 basis points |
