Britannia June-qtr net falls 30% as costs rise

Britannia June-qtr net falls 30% as costs rise

Mumbai: Biscuit maker Britannia Industries Ltd on Monday said rising costs pulled down the June-quarter profit, despite a modest jump in sales.

The firm posted a net profit of Rs32.80 crore in the June quarter, down 30% from Rs47.37 crore a year ago, while sales rose 25% to Rs913 crore.

A Reuters poll of brokerages had forcast a net profit of Rs46.03 crore on net sales of Rs830 crore.

“We have delivered a 25% (sales) growth, well ahead of the market, across our portfolio, backed by a strong 20% growth in volume," Vinita Bali, managing director, said in a statement.

“The real challenge for the industry is the continuing and high inflation in key commodities like flour and sugar that adversely impacted margins," she added.

Britannia’s popular brands include Marie, Snax, Little Hearts, Fifty Fifty and Tiger.

At 11.55 a.m., shares of the firm were down 2.51% at Rs2,213.55 in a flat Mumbai market.