Non-biscuit portfolio key driver of Britannia Industries' growth

Unless there is a sharp upside surprise in terms of volumes, or some unusual gains in margins

Britannia Industries reported revenue growth of 4 per cent year-on-year (Y-o-Y) in Q1FY25 and volume growth of 8 per cent implying price trends were adverse. Other operating income jumped 195 per cent, due to the incentive received for the Ranjangaon plant

The non-biscuit portfolio (rusk, cake, bread) remained key to growth and contributed 25 per cent of the total revenue. Rusk delivered double-digit volume growth, while cheese posted double-digit revenue growth. Management remains positive about the outlook of the non-biscuit portfolio and expects it to grow 1.5 times the biscuit portfolio.

The gross margin expanded 150 basis