FMCG major Britannia Industries posted 28 percent year-on-year growth in consolidated net profit at Rs 490 crore for the quarter ended September 2022. This was higher than analyst expectation of Rs 451 crore.
In the same quarter last fiscal, net profit stood at Rs 381.8 crore.
The company's consolidated revenue from operations jumped 21 percent YoY to Rs 4,379.61 crore from Rs 3,607.37 crore.
“Our go-to-market strategy and increase in distribution reach have converged to deliver a robust topline growth, aided by a mid-single-digit volume growth, as we record our highest quarterly revenue. We continue to have aggressive market share gains, consistently over the past 38 quarters and registered a 15-year high," Varun Berry, managing director of the company said.
Earnings before interest, taxes, depreciation, and amortization or EBITDA for the quarter came in at Rs 711.7 crore, higher by 27.5 percent YoY. EBITDA margins expanded to 16.3 percent from 15.5 percent in the same quarter last fiscal. Meanwhile, analysts had expected margins to contract due to high cost inventory.
"On cost and profitability front, commodity inflation remained on the boil on the back of rising inflation in flour and milk products. In this dynamic environment, as a result of our pricing actions and intensified cost efficiency programme, we have been able to improve our operating margins beyond pre-COVID levels," Berry said.
The company's direct distribution jumped to 26 lakh outlets, with an addition of 4 lakh outlets in the last 6 months. It now has 28,000 rural preferred dealers, which has led to consistent market share gains, it informed in its earnings press release.
On November 4, the stock closed 1.3 percent higher at Rs 3,796.85 crore on the National Stock Exchange. It is up only 4 percent in 2022 so far.
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