New Delhi: Biscuit maker Britannia Industries Ltd’s second quarter profit jumped 33% to touch ₹403 crore as the maker of Good Day cookies and NutriChoice biscuits rode on cost efficiencies amid escalating raw material costs.
For the quarter ended 30 September, the company reported a 7% jump in total revenue at ₹3,117 crore. Consolidated net profit for the quarter was up at ₹403 crore compared to ₹303 crore the company clocked in the year ago period.
“During this phase of sluggish demand, we continued to invest in enhancing our brand equity through focused product campaigns. This is on the belief that the recent measures announced by the government will kick start the economy and boost consumer demand as we move forward," Varun Berry, managing director, Britannia Industries Ltd said in a filing to the stock exchanges on Monday.
“On the cost front, we witnessed moderate inflation in the prices of key raw materials for the bakery business while there was an inordinate increase in milk prices which impacted our dairy business. We, however, accelerated the drive on cost efficiencies and leveraged fixed costs which helped us improve the shape of our business and deliver highest ever operating profits in the quarter," Berry added.
The company continued to premiumise its biscuits portfolio during the quarter and launched new flavours for some of its existing brands. The company witnessed a pickup in its new category of other bakery products as well. “We have also seen sequential growths in some of the new category launches and our plan is to scale up salted snacks in West and croissant in East and South," Berry added.
Shares of Britannia Industries Ltd on Monday settled at ₹3,116.25 apiece on the BSE, down 1.43 per cent from the previous close.