Britannia flags weak demand, rising input costs despite FY25 revenue growth

Britannia Industries said consumer demand remained subdued for most part of the year due to inflationary pressures and overall economic slowdown even as rivals put pressure on pricing and profitability. The Nusli Wadia-owned biscuit maker said while demand trends were stabilising, rising costs of key commodities is an issue.

"High input prices especially for key commodities like wheat, edible oil, cocoa etc., remain a significant concern. Any adverse developments in monsoon or crop yield could intensify inflationary pressures and impact growth especially in rural markets. Additionally, the competitive intensity in both organised and unorganised segments continues to put pressure on pricing and margins, particularly in price-sensitive markets," it said in its latest annual report.

Briannia posted a 7% increase in revenues at Rs17943 crore during FY25 while net profit rose 2% to Rs2178 crore. Remuneration of Varun Berry, the company's executive vice chairman and managing director fell 8% to Rs15.74 crore during the year. The percentage increase in the median remuneration of employees of the company was 13.37%.


Demand for daily groceries, household and personal products worsened to a two-year low in the March quarter. FMCG volume sales growth in Jan-Mar quarter was 3.5%, slowest since March quarter 2023. A year ago, the market had grown 5.5% in the same quarter, according to Kantar.

The company behind Good Day and Tiger biscuits said rural markets began showing signs of recovery, supported by rise in agricultural income and increased manufacturing activities in some sectors.

“Amidst this challenging business environment, Britannia maintained its market leadership by focusing on distribution expansion, consistent brand investments and competitive pricing. Additionally, strategic investments such as supply chain optimisation and implementation of technology driven solutions along with robust cost efficiency programs helped the company mitigate rising costs while ensuring product availability across urban and rural markets,” added Britannia.