Britannia Q1 net rises 19% to Rs 2.58 bn on double-digit volume growth

FMCG major Britannia Industries on Monday reported a 19.41 per cent rise in consolidated net profit at Rs 2.58 billion for the quarter ended June 30, 2018, driven by double-digit volume growth.

The company had posted a net profit of Rs 2.16 billion in the April-June period a year ago.

Its total income stood at Rs 25.85 billion in the quarter under review. It was Rs 23.75 billion in the corresponding period of the previous financial year, Britannia Industries said in a BSE filing.

The company said reported revenue, part of total income, for the quarter ended June 30, 2018, is not comparable to the revenue reported in the previous period due to the implementation of GST with effect from July 1, 2017.

"Excise duty has subsumed into GST, and hence revenue from the sale of goods for the period commencing July 1, 2017, does not include excise duty," it added.

"We have witnessed positive momentum in the market over the last few quarters. Our double-digit growth for the quarter is backed by a double-digit volume growth primarily due to our investment in brands and widening our distribution network through the focus on direct reach, rural market and weak states," Britannia Industries MD Varun Berry said.

Britannia said its international business remained flat due to slow-down in geographies like Middle East and Africa.

"The growth in dairy business has been subdued due to our focus on driving value-added products and reducing our play in the less profitable commoditised products, which has helped us improve our profitability," Britannia said.

The company said in its 100th year it will enter into " many unchartered territories" to secure disruptive growth.

In a separate filing, the company said its board of directors has recommended and approved the issuance of secured redeemable non-convertible debentures as bonus debentures of Rs 50 in the ratio of 1 bonus debenture for every 1 equity shares held by the shareholders of the company.

Shares of Britannia Industries were trading at Rs 6,318.95 apiece, down 1.19 per cent, on BSE.