Britannia Industries December quarter profit falls 40% to Rs 556 crore

Biscuit maker Britannia Industries consolidated net profit fell 40 per cent to Rs 556.39 crore in third quarter of current financial year from Rs 932.39 crore in the year ago period. The sharp drop in profit came on the back of subdued rural demand and elevated competition from smaller packaged food makers.

Britannia, which sells Jim Jam and NutriChoice biscuits, reported revenue from sale of goods of Rs 4,191.83 crore, up 2 per cent from Rs 4,101.49 crore in the year ago period.

Britannia's earnings before interest, taxes, depreciation, and amortisation (EBITDA) also known as operating profit rose 5 per cent to Rs 757 crore as against Rs 722 crore during the same period last year.

Its operating profit margin also known as EBITDA margin improved 48 basis points to 18.13 per cent from 17.65 per cent.

“We continued to expand our direct reach and accelerate our rural journey, partnering with more than 29,000 rural distributors during the quarter. As a result, our focus states outperformed other regions in terms of growth, despite a generally subdued rural demand. Our new offerings viz. BeYou Bars, Makhanas, Jim Jam Pops and unique cheese formats continued to excite & delight our consumers. Our international business performed extremely well with robust double-digit growths across key markets,” said Varun Berry, vice chairman and managing director of the company.

“On Cost & Profitability front, we will stay vigilant of the commodity prices & evolving geopolitical situation. We will continue to invest behind our brands and stay price competitive with a clear objective of driving market share while sustaining profitability,” he added.

Britannia Industries shares ended 2.24 per cent lower at Rs 5,006 crore ahead of earnings announcement.