Britannia Q2: Net profit surges 19% to Rs 586 crore, revenue up 1.2%

Britannia announced its Q2FY24 results.

Britannia Industries Ltd on November 1, reported a consolidated net profit of Rs 586.50 crore for the September quarter of FY24, registering a growth of 19.55 percent from Rs 490.58 crore posted in the same quarter a year back.

The company's total revenue from operations increased 1.21 percent to Rs 4,432.88 crore from Rs 4,379.61 crore a year ago, the company said in a regulatory filing.

The company's earnings before interest, depreciation, taxes and amortisation (EBIDTA) or operating margin came in at Rs 872.4 crore in the September 2023 quarter, witnessing a jump of 22.5 percent as against Rs 711.7 crore reported in the same period last year.

According to a poll of brokerages, Britannia’s net profit was expected at Rs 549 crore and revenue at Rs 4,474 crore.

Britannia’s consolidated sales for the quarter ended September stood at Rs 4,370 crore, up 0.76 percent compared with 4,337 crore the same quarter a year ago.

Costs of materials consumed have increased by 1.6 percent to Rs 2,282.58 crore in the July-September quarter, compared to Rs 2,245.94 crore recorded in the same quarter a year ago.

The company's operating margin during the quarter rose to 18.04 percent compared to 15.07 percent during the same period a year ago.

Commenting on the performance, Varun Berry, Vice Chairman & Managing Director, said the company achieved strong results despite a challenging economic climate marked by two years of significant inflation. He attributed the success this quarter to the introduction of new products like Jim Jam Pops and 50-50 Golmaal.

Varun Berry said: “We delivered a good performance in a challenging environment on the back of 2 years of high inflation. Our innovation this quarter was led by Jim Jam Pops and 50-50 Golmaal, delivering a robust performance. We also launched differentiated cheese formats this quarter making focused inroads to retail shelves. Our potential in rural continues to remain high and hence, expansion in rural distribution continued despite reported rural slowdown. We have progressed well on our digital journey with digital marketing gaining momentum and leveraging digitalization to enhance decision-making & fine-tuning distribution reach."

Berry also highlighted that they have made significant strides in developing advanced technological facilities, marking progress in establishing superior factories, and this includes the successful launch of new Greenfield facility in Bihar during the quarter, alongside recent expansions in Uttar Pradesh and Tamil Nadu.

"We took strategic pricing corrections in some of our key brands & SKUs. As a result, our market share recovered this quarter. With the ongoing strife in the Middle East & Russia, the global commodity prices remain volatile. We are being watchful of the situation and its impact on our business. Our strategy will remain focused on driving market share while sustaining profitability," Berry also stated.

On November 1, Britannia shares settled at Rs 4397.30 on the NSE, which was up Rs 29.20 or 0.66 percent lower than the previous day's close.