Britannia Industries Q2 Results: PAT falls 10% YoY to Rs 531 crore, revenue up 5%

FMCG player Britannia Industries Ltd on Monday reported 10% decline in its consolidated net profit at Rs 531 crore in the quarter ended September 2024. It was Rs 588 crore in the year-ago quarter.

Revenue from operations, meanwhile, rose 5% YoY to Rs 4,668 crore in the second quarter, compared with Rs 4,433 crore in the same quarter of last year.

Both profit and revenues were below the Street expectations of Rs 630 crore and Rs 4,769 crore, respectively.


On a sequential basis, consolidated sales grew 11% while the profit after tax rose 5%.

The company reported a 8% volume growth during the second quarter and the management said the sequential increase in revenue and operating profits are satisfactory results in the face of severe commodity inflation leading to a tepid consumer demand scenario in most FMCG categories.

In the context of steep rise in prices of key commodities such as Wheat, Palm, Cocoa etc, the company said it demonstrated agility in initiating focused pricing actions and identifying new levers for cost optimization across the value-chain.

As a result, it maintained a healthy operating margin of 15.5% during the quarter.

"We are committed to investing in capability enhancement and brand development with the clear objective of driving market share and sustaining profits," said Varun Berry, Vice Chairman & Managing Director, Britannia said.

The company's agenda of being a total global foods company is said to be progressing well with its adjacent businesses such as Croissant, Milk Shakes, Wafers and International growing at a healthy pace.

Making strides in this direction, Britannia is working on redefining its distribution strategy to optimize range distribution and improve outlet servicing.

"The preliminary results of the pilots across 25 cities covering more than 50,000 outlets are encouraging," Britannia said.

On Monday, Britannia shares closed nearly 6% lower at Rs 5404.9 on NSE.