Britannia Q3 profit jumps 19.60% to Rs263.65 crore
Bengaluru: Biscuit maker Britannia Industries Ltd reported a 19.60% jump in profit for the October-December quarter aided by strong domestic consumer demand.
Profit rose to Rs263.65 crore from Rs220.44 crore a year ago, Britannia said in a BSE filing. Total revenue grew 8.81% to Rs2,603.42 crore during the period.
“Our double-digit domestic growth of 15% for the quarter is backed by double-digit volume growth on the back of investment in brands and widening our distribution network through focus on direct reach, rural and weak markets,” managing director Varun Berry said in a statement.
Britannia’s international business, however, continued to grow at a slower rate due to deteriorating geopolitical situation and currency fluctuations in markets like the Middle East and Africa. Growth in the company’s dairy business has also been subdued, even though profitability in this division has improved as it focuses on products with high profitability, the company said.
Britannia continued its premiuimisation and innovation journey through various launches during the fiscal third quarter including Pure Magic Deuce—a super-premium biscuit with a chocolate slab—and Good Day Choco Almond and Chocochips.
Good Day along with Tiger, NutriChoice, Tiger, 50:50 and Marie Gold are Britannia’s power brands.
Prices of key raw materials have been stable during the quarter, the company said, adding its cost efficiency program has also helped improve profitability.
“We have progressed well in our journey of building technologically superior factories. In this context, I am pleased to announce that our new greenfield factories at Guwahati, Assam and dedicated facility for servicing export markets at Mundra, Gujarat are nearing completion and are expected to be commercialised soon,” Berry said.
Britannia had originally announced its plans to set up the facilities in Assam and Gujarat last November. That is part of its wider strategy to invest Rs1,500 crore over the next three years to expand its manufacturing footprint, which includes what the company says will be its biggest manufacturing facility yet at Ranjangaon in Maharashtra.
The company also said it continues to work actively on bridging portfolio gaps in its biscuits business and other adjacent snacking opportunities to achieve profitable growth.