NEW DELHI :
Biscuit maker Britannia Industries on Friday reported a 23.26% jump in consolidated net profit for the December quarter at ₹369.88 crore as it improved its reach and distribution to parts of the country in the quarter when growth in India’s fast moving consumer goods market remained tepid.
For the three months ended December 31, 2019, the maker of Good Day and Tiger biscuits posted a 5% jump in total revenue from operations at ₹2,982.68 crores up from Rs2,842.44 crore it reported in the year ago period.
“We continued to expand the width and depth of distribution but additionally focused on improving distributor health and keeping the supply chain efficient," Varun Berry, managing director, Britannia Industries Ltd in a press statement. In context of innovation, we are consolidating our new launches and focussing on depth of distribution," Berry said. He added that in the face of a overall sluggish demand, the company “focussed on strengthening the building block of the business rather than pushing sales in the face of a low offtake scenario."
During the quarter, significant increase in milk prices impacted the company’s dairy business.
Total expenses for the quarter were up 4.7% to ₹2551.02 crore from a year ago period. “On the cost front, we witnessed moderate inflation in the prices of key raw materials for the bakery business," Berry added.
"We are hopeful that in this country, slowdown can only be short lived & our focused efforts on distribution and processes will help us get back on high growth trajectory and consistently enhance value for all our stakeholders," he said.