Leading food company Britannia Industries is not looking to raise product prices in the coming quarters as raw material costs are seen easing, managing director Varun Berry said during the company’s quarterly earnings call on May 12.
The company said that its revenue grew 5.5 percent more than volumes, mainly due to earlier price hikes, and helped by stabilizing commodity costs. Britannia doesn't expect to raise prices further, unless market trends shift significantly, said the management.
Read More: Britannia Industries - Volume-led growth, margin recovery on the cards
Pricing action and resilient rural demand led Britannia to report higher topline growth in the March quarter. The company was able to maintain a six percent volume growth as compared to other FMCG peers which struggled to grow amid cost headwinds and muted urban demand. Britannia delivered a solid Q4 performance, surpassing expectations with 9 percent on year revenue growth (vs estimate of 7.6%) despite a softer consumption environment. Read More
Going ahead, Britannia expects both revenue and volume to grow, though revenue might slightly outpace due to recent price hikes taken to manage inflation. These price hikes were implemented late in the year, hence their full impact is still being seen, said Berry.
"There has been a lot of inaction this year and we started to take price increases pretty late in the year. Even if there is a correction as far as inflation is concerned, I don't see a reaction of price cuts from smaller players. It might just be that thereafter we might not need any more price increases. So, that's why we are keeping an eye on the ball just to make sure that we do not miss the trend," he said.
Britannia is strengthening its adjacent categories with new product launches across bakery, biscuits, cheese, and beverages. In FY25, the non-biscuit portfolio saw strong momentum, with croissants and wafers growing over three times faster than biscuits, fuelled by expanded distribution channels.
Commenting on the appointment of a new CEO, Berry said the succession planning is in play, and it will definitely be clear in the next 3-4 months.
In March, former CEO Rajneet Kohli had stepped down to pursue an external opportunity, and was replaced by Berry as the new CEO, while also serving as executive vice-chairman and managing director.
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