Britannia net profit up 22% at Rs 453 cr, revenue rises 6% in Dec quarter
Led by buoyancy in rural economy and recovery in urban markets, Britannia Industries on Friday reported a 22 per cent increase in net profit for the third quarter of FY21 at Rs 452.6 crore as compared to the corresponding period a year ago.
The consolidated revenue for the December quarter stood at Rs 3,106 crore, a rise of 6 per cent YoY. However, on a sequential basis the revenue fell 7.3 per cent. It was Rs 3,354 crore in the September quarter.
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“General trade, which is the largest channel for us, continues to grow at a healthy pace on the back of buoyancy in rural economy and recovery in urban markets. The other channels such as modern trade, institutional business continue to face challenges with lower footfalls in stores and offices, schools, railway services coming back to normalcy gradually,” said Varun Berry, Managing Director, Britannia Industries. In addition, Britannia has been gaining market share over the past several quarters, said the company in a BSE filing.
On the cost front, the Good Day maker witnessed moderate inflation in the materials prices, except palm oil. “We neutralised the inflation by accelerating our cost efficiencies and sustained the new efficiencies that we witnessed during the Covid-19 induced lockdown. These measures helped us record a 260 bps increase in operating profit during the quarter versus last year,” said Berry.
Going forward, the company will continue to accelerate the pace of innovation and new launches as the purchase basket of the consumers begins to see diversification. “We will strengthen our distribution infrastructure and continue to focus on brand building to drive growth and market share,” said Berry.
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