Britannia Q3 profit up 22% YoY; here are the key highlights of analyst call

Britannia | The company reported higher profit at Rs 452.6 crore in Q3FY21 against Rs 368.9 crore in Q3FY20, revenue rose to Rs 3,165.6 crore from Rs 2,982.7 crore YoY.

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26 Aug, 2025 12:21

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Britannia Industries registered better-than-expected 22.4 percent year-on-year growth in consolidated profit for the quarter ended December 2020. Profit increased to Rs 452.6 crore in Q3 FY21 from Rs 368.9 crore in the year-ago period and revenue from operations grew by 6.1 percent year-on-year to Rs 3,165.6 crore in Q3FY21, the company said on February 5.

At the operating level, Britannia reported a 21.8 percent YoY growth in its earnings before interest, tax, depreciation and amortisation (EBITDA) at Rs 611.5 crore and 260 bps expansion in margin in Q3 FY21, driven by cost efficiencies.

Here are the highlights of Britannia's Q3 FY20 earnings call compiled by Narnolia Financial Advisors:

According to the management of Britannia Industries, the company witnessed robust general trade and rural growth this quarter; however, modern trade and institutional business remained muted. Diversification of purchase basket as unlocking has happened. Pantry stocking has also been normalized.

The biscuit maker saw 36 quarter of straight market share gains. It is focusing on distribution and marketing, innovation and cost optimisation and the company saw an increase in direct reach to 22.9 lakh outlets in December 2020.

Rural distribution is strong and the number of rural preferred dealers reached to 23,000 in December 2020. Hindi belt growth has improved by around 30-60 percent in 2020-21 YTD as compared to 2017-18 with Uttar Pradesh being the best performing among them, the management said.

The management of Britannia expects consumption to be normal in the next 3-6 months. Most of the pillar brands such as GoodDay, Bournbon, Tiger, 50-50, Nutri choice and cake portfolio are back on track. Factory productivity has improved to 1.07x as compared to pre-COVID. Middle-East and Africa have shown healthy growth. ROW is growing at a healthy pace, it added.

Bakery business:

Bread profitability has been upward while the rusk business has shown stable growth and increase in profitability. Wafers have shown growth of around 30 percent. Salted snacks will show substantial growth in the coming years, it said.

Dairy business:

Cheese is leading the growth in dairy while a decline in out of home consumption impacted drinks portfolio, however, out of home consumption is picking up gradually. Growth in drinks such as lassi and milkshakes has started to bounce back. Lower milk prices have also helped in increasing the profitability of the dairy business, it said.

The company expects an increase in revenue as distribution channels are back to normal. For Q3, e-commerce is at 1 percent of contribution while modern trade is 10 percent of the contribution. Capex is expected to be around Rs 200 crore for FY21. The company has accelerated the pace of innovation and new launches. It is innovating in products such as cakes and other affordable products so as to increase volume sales.

Britannia Industries is doing IT transformation project which will be concluded in next 3-6 months. In flour and milk, there is deflation of 7 percent and 15 percent respectively while on sugar and RPO inflation of 1 percent and 25 percent respectively. The company is expecting to maintain the margin in the coming quarters, the management said.