Britannia Q1 profit up 14% to Rs 591 crore

Britannia Industries has reported a 14 per cent year-on-year increase in consolidated net profit to Rs 591 crore for the quarter ended June, compared with Rs 521 crore in the corresponding period last year. The growth was driven by robust sales across key categories and price increases undertaken during the quarter, the company said.

Consolidated net sales for the quarter rose 9.5 per cent to Rs 4,964 crore, according to the company’s regulatory filing.

Commenting on the performance, Managing Director and Chief Executive Officer Rakshit Hargave said the quarter began amid the West Asia conflict, which triggered a sharp rise in fuel costs and freight charges across both domestic and international operations.

“The year started with the West Asia conflict, leading to a steep increase in cost of fuel and shipment charges across our domestic & international businesses, which we’ve been able to navigate well during this quarter, delivering a healthy volume and value growth while also gaining ground against competition, with profits growing ahead of topline in doubledigit over last year,” Hargave said.

On a standalone basis, Britannia posted a 16 per cent rise in net profit to Rs 576.3 crore, while sales increased 10 per cent to Rs 4,791.88 crore from Rs 4,357.64 crore a year earlier.

Hargave said most of the company’s key categories witnessed sequential improvement during the quarter, with the business exiting the period with mid-teens revenue growth. The performance was supported by rapid expansion in e-commerce and strong growth in general trade, aided by higher advertisement, influencer and promotional spending.

The company’s consolidated expenses increased 7 per cent during the quarter, largely due to higher raw material costs, which rose to Rs 2,799.6 crore from Rs 2,550.8 crore in the year-ago period, along with an increase in other expenses.

Looking ahead, Hargave said Britannia will continue to closely monitor the evolving geopolitical situation in West Asia and volatility in crude oil prices for their potential impact on international operations and domestic input costs.

“While we continue to closely monitor the evolving geopolitical situation in West Asia and crude oil volatility for potential impact on international operations and domestic input costs, we will remain agile in our actions to deliver healthy, sustainable revenue growth amidst an improving domestic demand environment, driven by sharp innovation, strong brand investments, and disciplined margin management through accelerated cost efficiency initiatives,” he added.