Britannia Q2 profit falls 23% to Rs 382 crore as operating income drops

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26 Aug, 2025 12:21

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Bakery products and biscuit maker Britannia Industries on November 8 reported a 22.9 percent year-on-year decline in Q2FY22 profit, dented by weak operating performance due to higher input cost.

Consolidated profit fell to Rs 381.8 crore in the quarter ended September 2021 from Rs 495.2 crore in the corresponding period of the last fiscal.

Consolidated revenue from operations grew by 5.5 percent year-on-year to Rs 3,607.4 crore during the September 2021 quarter.

"During the quarter, the impact of the second wave of Covid-19 started receding, and the economic activity started picking up. However, inflationary trends remained rampant around the globe, across sectors," said Varun Berry, Managing Director.

On the cost front, Berry said the global economy continued to witness supply-led constraints across various input materials, fuelling inflation. "As a result, we are witnessing unprecedented inflation in market prices of palm oil at 54 percent, industrial fuel at 35 percent and packaging materials at 30 percent leading to an overall inflation in the quarter of around 14 percent."

The company has increased prices across its portfolio to support profitability.

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"While we have been able to partially mitigate the impact through strategic forward covers and accelerated cost-efficiency programmes, we have also initiated necessary price increases across the portfolio all of which will address the cost push and normalise profitability," Berry said.

At the operating level, Britannia's earnings before interest, tax, depreciation and amortisation (EBITDA ) fell 17.4 percent year-on-year to Rs 558 crore and the margin declined 430 bps YoY to 15.5 percent in September 2021 quarter.

The stock price climbed 1.59 percent to close at Rs 3,708 on the BSE.