Britannia Inds Q2 net profit up to Rs 53 crore

CORPORATE SCORECARD

Britannia Industries, the Bangalore-based food company, today said its second quarter net profit rose only 9.9 per cent to Rs 53.30 crore as the company was hit by high input costs and lower margins.

However, the company’s net sales rose 27.2 per cent to Rs 838.5 crore during the quarter, while operating profit was up 8.05 per cent to Rs 67.3 crore.

During the period, the company witnessed a jump of 35.5 per cent in raw material costs, which stood at Rs 510.7 crore compared to the year ago period.

Commenting on the performance, Britannia Industries Managing Director Vinita Bali said, “Revenue growth was driven by focused investment in brands, geographies and channels. Volume growth was 17.5 per cent. All of our power brands grew double digit and Tiger — our largest brand — saw its highest share increase in a very competitive market. High input inflation continues to challenge margins and our cost-effectiveness initiatives are being further strengthened to contain cost.”

Britannia continues to evolve its portfolio of brands to meet the market trends of health and nutrition on the one hand and more indulgent products on the other. Its latest offering of NutriChoice 5Grain has got good traction and the Diwali gift packs (Shubh Kaamnayein) have broken all past records. The Treat brand has embarked upon an extensive school contact programme across the country.

Britannia also unfolded its new communication, which covers its entire portfolio of brands under a common platform of “Britannia — Zindagi Mein Life”.