Britannia Reports 20% Increase in Q2 Net Profit, with Sales Staying Steady at Rs 4,370.5 Crores
- ByStartupStory | November 2, 2023
Britannia Industries Ltd, the bakery food company, has reported a 19.55% increase in its consolidated net profit for the second quarter ending September 2023, reaching Rs 586.50 crore, primarily attributed to decreasing commodity prices. In the corresponding quarter the previous year, the company had posted a net profit of Rs 490.58 crore, according to a filing with the BSE.
During the reviewed quarter, the net sales of Britannia Industries saw a marginal increase to Rs 4,370.47 crore, compared to Rs 4,337.59 crore in the same period last year. The revenue from operations in the September quarter stood at Rs 4,432.88 crore, marking a 1.21% increase.
The company, known for its popular brands like Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold, experienced a 2.33% reduction in total expenses, amounting to Rs 3,685.56 crore.
Varun Berry, Executive Vice-Chairman and Managing Director of Britannia Industries, highlighted the company’s strong performance in a challenging economic environment, driven by two years of high inflation. He stated, “We delivered a good performance in a challenging environment on the back of 2 years of high inflation.” “Our potential in rural continues to remain high and hence, expansion in rural distribution continued despite reported rural slowdown. We have progressed well on our digital journey with digital marketing gaining momentum and leveraging digitalization to enhance decision-making & fine-tuning distribution reach.”
In response to heightened competition amid softening commodity prices, Britannia Industries strategically adjusted the pricing of key brands and stock-keeping units (SKUs), resulting in a recovery of market share for the company. Berry also expressed vigilance regarding volatile global commodity prices due to ongoing geopolitical conflicts.
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Despite the uncertainties in the Middle East and Russia, Britannia’s strategy remains focused on gaining market share while maintaining profitability.
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