Britannia Industries Q4 Results: Profit Dips 3.8%, Revenue Rises Marginally
The consolidated net profit of the Marie Gold biscuit-maker fell 3.8% over the previous year to Rs 537 crore in the January-March quarter.
Britannia Industries Ltd.'s fourth-quarter profit declined, in line with analysts' estimates, amid sluggish demand and increased competition.
The consolidated net profit of the Marie Gold biscuit-maker fell 3.8% over the previous year to Rs 536.61 crore in the January-March quarter, according to an exchange filing on Friday. That compares with the Rs 542.4-crore consensus estimate of analysts tracked by Bloomberg.
Britannia Industries Q4 FY24 Highlights (Consolidated, YoY)
Revenue up 1.1% at Rs 4,069.36 crore, as against an estimate of Rs 4,108.6 crore.
Operating profit down 1.7% to Rs 787.45 crore, as compared with an estimate of Rs 782.35 crore.
Margin stood at 19.4% versus 19.9%. Analysts had forecast it at 19%.
For the full fiscal, the biscuit maker's net profit dipped 7.9% to Rs 2,134.22 crore as revenue grew only 2.8% to Rs 16,769.27 crore.
"In a tepid consumption scenario, our performance this year signifies resilience and competitiveness," said Varun Berry, vice-chairman and managing director, Britannia Industries.
Britannia, which sells Good Day and Jim Jam biscuits, has seen its market share rebound as a result of strategic pricing actions to maintain competitiveness and intensified investments in brands, supported by distribution expansion, he said. The company now reaches 27.9 lakh outlets directly and it added 2,000 rural distributors over the past year.
The company's focus markets, that include the Hindi belt covering Uttar Pradesh, Rajasthan, Gujarat, and Madhya Pradesh, outperformed other regions in terms of growth, despite a generally subdued rural demand.
"We bolstered our abilities to capitalise on rapidly growing channels like modern trade and e-commerce, both of which experienced double-digit growth compared to the previous year," Berry said.
The company will remain watchful of fluctuations in commodity prices and the evolving geopolitical landscape.
"Our cost efficiency programme continues to yield operational savings of 2% of revenue, ensuring healthy operating margin," he said. "We will continue to invest behind our brands and stay price-competitive with a clear objective of driving market share while sustaining profit."
Peer Hindustan Unilever Ltd., too, reported a decline in profit and revenue, missing analysts' estimates, but said a recovery in demand in rural areas was underway. Nestle India Ltd., on the other hand, posted a bigger-than-expected rise in profit, owing to higher product prices and demand.
The board recommended a dividend of Rs 73.5 per share for FY24.
Shares of Britannia Industries closed 0.6% lower on Friday, as compared with a 0.8% gain in the benchmark Nifty 50. The results were declared after market hours.
