Bakery food company Britannia Industries Ltd reported a 3.76 per cent decline in consolidated net profit at Rs 536.61 crore for the fourth quarter ended March 2024.
The company had posted a net profit of Rs 557.60 crore in the January-March quarter a year ago, according to a regulatory filing by Britannia Industries.
Its revenue from operations in the March quarter was Rs 4,069.36 crore, up 1.14 per cent. It was Rs 4,023.18 crore in the corresponding period a year ago.
Commenting on the performance, Varun Berry, vice chairman and managing director, said, ‘In a tepid consumption scenario, our performance this year signifies resilience and competitiveness. Over the past 24 months, we have achieved a strong 19 per cent growth in revenue, accompanied by a notable 43 per cent increase in operating profit. Our market share rebounded as the year progressed as a result of strategic pricing actions to maintain competitiveness and intensified investments in brands, supported by distribution expansion.’
Berry said Britannia significantly expanded its distribution network, reaching approximately 2.79 million outlets directly and added around 2,000 rural distributors over the past year. ‘Our focus states surpassed other regions in terms of growth, despite generally subdued rural demand. We bolstered our abilities to capitalize on rapidly growing channels like modern trade and ecommerce, both of which experienced double-digit growth compared to the previous year,’ he added. On the cost and profitability front, Berry said, ‘We will stay vigilant of the commodity prices and evolving geopolitical landscape. Our cost efficiency program continues to yield operational savings of about 2 per cent of revenues, ensuring healthy operating margins. We will continue to invest behind our brands and stay price competitive with a clear objective of driving market share while sustaining profits.’
The Indian fast-moving consumer goods (FMCG) industry’s volume grew by 6.4 per cent YoY in the December quarter with an uptick in consumption in both urban and rural areas, according to a report by analytics firm NielsenIQ. In 2024, the FMCG industry is poised to register growth between 4.5 per cent and 6.5 per cent, on the basis of the strength of the sector and the Indian economy, it said.
PTI
