Britannia Q3 results: Net profit declines over 40% YoY to ₹556 crore, revenue up 1%

Biscuit manufacturer Britannia revealed its quarterly results ending on December 31, 2023 on Tuesday. The company posted a 40 percent year-on-year decline in its consolidated net profit, which stood at ₹556 crore, in contrast to ₹937 crore reported in the corresponding quarter of the previous year, missing market estimates.

In sequential terms as well, Britannia's profit experienced a 5 percent decline, amounting to ₹587 crore.

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"In a progressively recovering demand environment with heightened competition, our performance this quarter reflects our resilience and competitiveness. Over the last 24 months, we achieved a robust 19 percent growth in revenue, coupled with a commendable 52 percent increase in operating profit," said Varun Berry, vice-chairman & MD, Britannia.

The subdued growth observed in the third quarter of fiscal year 2024 can be attributed to several factors, including a challenging comparison base, price reductions, intensified competition, and modest single-digit volume expansion.

Despite these challenges, revenue from operations saw a slight increase to ₹4,256 crore from ₹4,196 crore in the corresponding quarter of the previous fiscal year. Analysts' projections had anticipated a year-on-year revenue growth of 3 percent, reaching ₹4,303 crore for the quarter.

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The company disclosed an EBITDA of ₹821 crore for the quarter, with margins registering at 19.29%.

“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,” Berry said.

Britannia’s consolidated sales for the quarter ended 31st December 2023 stands at ₹4,192 crore, growing 2 percent over last year and operating profit stands at ₹743 crore. For the nine months ended 31st December 2023, consolidated revenue stands at ₹12,532 crore, growing 3.6 percent over previous year and operating profit stands at ₹2,162 crore, growing 15.6 percent over previous year.

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“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. We remain committed to the ESG framework of People, Growth, Governance and Resources to build a sustainable and profitable business,” he added.