Britannia Industries might need to take some pricing actions in FY25, but it won't be as substantial as in the past, Varun Berry, Vice Chairman and Managing Director of the company, said during a post-earnings conference call on August 5. "We might have to take a little bit of pricing, but it will not be what we saw in the past," Berry noted when asked about pricing growth in FY25.
Berry explained that although inflation was high recently, it is expected to moderate to around 4-5 percent in the future. "We expect a 4-5 percent inflation in the coming months on the back of flour, sugar, and cocoa. If that happens, we will start to take slight price increases in the future," Berry clarified.
Follow our live blog for all the market action
Britannia has experienced a marginal increase in commodity costs. "Flour and costs are up. Palm is the balancing factor. The cocoa costs are completely through the roof," Berry said. "The two, three costs which are balancing out flour, sugar, and cocoa are palm, laminates, and corrugated boxes. While milk powder has been okay till now, milk costs are up," he added.
Berry said that while commodity prices are trending upwards marginally, this is inflation that the company can manage. "We are seeing a trend of prices going up marginally, but this is inflation that we can manage. And we are hoping that it remains within that manageable range," he said.
Britannia will closely monitor the commodity situation and assess its impact. "I think it's important that we balance the commodity increases as well as the competitive pricing actions," Berry said.
Also Read | Britannia Industries Q1 results: Net profit rises14.5% to Rs 524 crore
On August 2, Britannia Industries reported a consolidated net profit of Rs 524 crore for the June quarter, marking a 14.5 percent increase from Rs 458 crore in the same quarter of the previous fiscal year. Revenue for the company reached Rs 4,130 crore, a 4 percent rise from Rs 4,010.70 crore in Q1 FY24.
A Moneycontrol poll of ten brokerages showed Britannia's revenue growing 4 percent YoY to Rs 4,178 crore, with the net profit anticipated to increase nearly 13 percent YoY to Rs 517 crore.
At 11.55 AM, Britannia shares were trading nearly 1 percent higher at Rs 5,775. The stock has gained 13 percent in the past six months, slightly outperforming the Nifty 50 index, which gained 11 percent during the same period.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
