Britannia Industries’ profit missed Street estimates: Key takeaways

Mumbai: Food company Britannia Industries’ consolidated net profit for June quarter dropped 2.78 per cent on a year-on-year (YoY) basis to Rs 251.03 crore and missed analysts’ estimates. The company had posted Rs 258.22 crore profit for the corresponding quarter a year ago.

Analysts in an ETNow poll had estimate the profit number to come in at Rs 282 crore. Adjusted net profit grew 3 per cent YoY to Rs 267 crore.

Here are key takeaways


Modest revenue growth: The company reported consolidated revenue growth of 6 per cent for the quarter at Rs 2,677 crore.

Phase of sluggish demand: The company said it outpaced market growth and strengthened its market position during this phase of sluggish demand. “Our journey to become a “Total Foods Company” is progressing well with good response to our new products Treat Wafers and Winkin Cow Milkshakes,” the company said.

Path ahead: The company’s priority now is to scale up recent product launches and achieve profitable growth.

Higher costs: On the cost front, the company witnessed moderate inflation in prices of key raw materials for the bakery business. However, an inordinate increase in milk prices impacted profitability of its dairy business adversely.

Cost efficiency initiatives: Further, with a focus on tightening our belt in this phase of low growths, the company said it has accelerated the cost efficiency initiatives to maintain the shape of business.

Expectations: The company is hopeful that the government will take requisite measures to boost the economy and get it back on a high growth trajectory.