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NSE Announcements on Britannia
Posted by :
MMB MessengerBritannia Industries Ltd has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2009 as follows: Net Sales of Rs. 311221 lacs for year ending on 31-MAR-2009 against Rs. 258480 lacs for the year ending on 31-MAR-2008. Net Profit / (Loss) of Rs. 18040 lacs for the year ending on 31-MAR-2009 against Rs. 19100 lacs for the year ending on 31-MAR-2008....
BSE Announcements on Britannia
Posted by : Akash
Can we buy Britannia at 1750 fot target 2000+ tomorrow? Any idea?
- Akash...
BSE Announcements on Britannia
Posted by : MMB MessengerWith reference to the earlier annoucement dated May 20, 2009 regarding Board to consider Dividend, Britannia Industries Ltd has now informed BSE that the Board of Directors at their meeting scheduled to be held on May 27, 2009, inter alia, would consider declaration and payment of interim dividend on the paid up Equity Share Capital of the Company for the year ended March 31, 2009. ...
NSE Announcements on Britannia
Posted by : MMB MessengerBritannia Industries Ltd has submitted to the Exchange a copy of disclosure of the change in the shareholding of Arisaig partners Asia Pte Ltd, pursuant to Regulation 13 (6) of the SEBI (Prohibition of Insider Trading) Regulations, 1992. Further, the present aggregate holding of Arisaig Partners asia Pte Ltd. is 7.17% of the Companys paid-up share capital. A copy of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements)....
BSE Announcements on Britannia
Posted by : MMB Messenger
Britannia Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on May 27, 2009, inter alia, to :
1. Consider and approve the audited accounts of the Company for the year ended March 31, 2009.
2. to recommend to the Members of the Company the payment of dividend, if any, on the Companys Equity Share Capital for the year ended March 31, 2009....
ITC focussing on profitability has eased competitive pressure
Posted by : BAZEEGAR
Dear omu,
thx for your view....
ITC focussing on profitability has eased competitive pressure
Posted by : omu
rise of every one rupee in sugar prices will affect britannia by at least Rs. 10 crores....
if sugar rates harden... avoid britannia....
We lower earnings estimates, target price : INDIA INFO
Posted by : BAZEEGAR
We have lowered our FY10 and FY11 EPS estimates for Britannia by
13% and 11% respectively, to reflect the raw-material pressures and
lower expansion in gross margins. We also revise our target price based
on 14x FY11ii EPS estimates, which is a 20% discount to Britannia’s 3-
year trading average. Our new 1-year target price is Rs1,850. We
maintain BUY on the stock because of the strong sales growth visibility
and margin expansion likely to play out in FY11....
ITC focussing on profitability has eased competitive pressure
Posted by : BAZEEGAR
ITC is no longer pursuing its aggressive discounting strategy in glucose
biscuits and is focusing on profitability, as losses mount in other new
personal-care categories. ITC gained 8% market share by 2007 by
aggressively driving glucose biscuits, with price discounts and consumer
promotions. This put a lot of pressure on Britannia, which was also
forced to keep prices low and take a hit on margins. With the shift in
ITC’s strategy, Britannia is no longer under pricing pressure to maintain
market share. This will further help the company maintain growth at the
industry growth rate....
Biscuits: shift from unbranded to branded will drive growth
Posted by : BAZEEGAR
The Indian biscuits market is characterised by large presence of
unorganised players, which account for an estimated 40% of the total
market. The branded biscuits market, estimated at Rs80bn, has been
growing at 10-15% pa over the last few years, on the back of increasing
conversion of consumers from unorganised segment to branded biscuits
and constant product innovation. We expect the growth uptrend in
biscuits category to be sustained over the next three years....
Sales growth momentum will sustain at over 15%
Posted by : BAZEEGAR
In 9MFY09, Britannia’s sales rose by a robust 24%, on c15% volume
growth. Growth momentum has sustained in the last seven quarters,
with volume growth at 10-15% despite 10%+ price increase. We expect
Britannia to sustain 15% sales CAGR over FY09-11, as growth drivers
for the category are intact. Furthermore, ITC’s reducing competitiveintensity will also help Britannia maintain its market share. We expect
sales growth to be a mix of YoY price increases of 3-4% and volume
growth of 10-12% in FY10....
Substantial EBITDA margin expansion unlikely in FY10
Posted by : BAZEEGAR
Given the sharp rise in Britannia’s raw-material index, we believe that
the substantial margin expansion expected in FY10 will not play out. The
raw-material index is now 5% higher than the FY09 average. In our
view, Britannia will mitigate the consequent pressure on EBITDA
margins with a 3-4% YoY price increase in FY10, including the impact of
the staggered price hikes taken in FY09. However, substantial margin
expansion is unlikely, in our view. We estimate that Britannia’s EBITDA
margin can expand by 40bps at the most in FY10. The only lever the
company has to expand margins further is to cut advertising expense.
However, Britannia has little room to cut ad spend, which is already low
at c7% of sales, and other biscuit makers continue to spend on TV
advertising. Britannia may see healthy margin expansion in FY11, as
most raw-material prices are likely to stabilise by then, while sugar
prices are likely to fall after October 2009. We build in 70bps expansion
in EBITDA margin for FY11....
Wheat, sugar prices likely to hold up this year
Posted by : BAZEEGAR
Prices of wheat and sugar, which account for 42% of raw material cost
for Britannia, have firmed up substantially in the past three months.
Sugar prices in India have risen by over 40% YoY after a dip in
production. Sugar prices are firming up further, despite the government
allowing duty-free imports into India, and the slowdown in industrial
demand for ethanol. We expect sugar prices to remain firm at current
levels for at least the next two quarters before they start easing as the
next crushing season begins in October. Industry estimates that sugar
production will rise by 15% YoY during the next sugar season, bringing
prices down. Wheat prices increased by 7-8% after the governmentannounced an 8% increase in the minimum support price (MSP). With
domestic demand maintaining stable growth, we expect wheat prices to
hold up the YoY increase through the rest of the year....
High material costs limit scope for margin expansion
Posted by : BAZEEGAR
Britannia’s raw-material cost index has increased by 9% in three months and is now 5% higher than the FY09
average, owing to the surge in prices of wheat and sugar. We expect wheat prices to remain firm this year,
while sugar prices will hold till at least October 2009—ruling out any significant margin expansion in FY10.
Sales growth, however, remains robust, with revenues up 24% in 9MFY09, on ~15% volume growth.
Continued conversion from unbranded to branded biscuits and reducing competitive intensity from ITC should
help Britannia sustain sales growth. We expect the company’s EBITDA margin to expand in FY11, when wheat
prices are likely to stabilise and sugar prices are likely to fall. We lower FY10 and FY11 EPS estimates by 13%
and 11% respectively, forecasting 18% EPS CAGR over FY09-11ii. Our new target price is Rs1850, based on
14X FY11 earnings. We maintain BUY.
Sugar, wheat price increases delay substantial margin expansion: Britannia’s raw-material cost index (IIFL
estimate) has increased by 9% in the past three months after softening in November 2008, as prices of wheat and sugar
(42% of raw material cost) have risen sharply. The raw-material index is 5% higher over the FY09 average. This, we
reckon, will limit the EBITDA margin expansion in FY10 to 40bps. Sugar prices are up 40% YoY due to lower production,
while wheat prices are up 7%, following government’s increase in MSP for wheat. We expect sugar prices to remain high
till the next sugar season in October 2009, while wheat prices are likely to remain high for the year. FY11 should see
greater margin expansion as sugar prices are expected to come down, while wheat prices could stabilise.
Sales growth will sustain at over 15%: Britannia’s sales growth momentum remains strong, with revenues up 24% on
volume growth of c15% in 9MFY09. We reckon Britannia can register 15% sales CAGR over FY09-11, on: i) continued
consumer shift from unorganised to branded biscuits at the bottom end and strong growth in premium biscuits; and ii)
reduced competitive intensity from ITC, which is now focussing on profitability in its biscuits business.
Change in earnings estimates, target price: We lower the FY10 and FY11 EPS estimates by 13% and 11% respectively
and revise our target price to Rs1850, based on 14x FY11ii earnings, a 20% discount to its 3-year trading average. We
maintain BUY in view of the strong sales growth visibility and likely margin expansion in FY11....
NSE Announcements on Britannia
Posted by : MMB MessengerBritannia Industries Ltd has informed the Exchange that : "Britannia Industries Limited has entered into an agreement dated April 28, 2009 with M/s. Fonterra Brands (Mauritius Holding) Limited, Mauritius, for acquiring the latters 49% Equity and Preference shareholding in Britannia New Zealand Foods Private Limited (BNZF), their Joint Venture Company engaged in Dairy business. This acquisition is subject to Reserve Bank of India approval. With this acquisition, Britannia along with its wholly owned subsidiary will hold the entire Equity and Preference capital of BNZF"....
