Britannia's Q2 net profit jumps 66%

Firm elevates Varun Berry to its board

Britannia Industries posted a second consecutive rise in quarterly profit this financial year as an increase in sales and margins helped net profit for the quarter jump 66 per cent, even as growth in demand began to slow in the last couple of months. The company’s second quarter net profit rose to Rs 97.7 crore from Rs 59.02 crore in the same quarter last year.

Net sales for the maker of Good Day and Tiger biscuits also climbed about 13 per cent to Rs 1740.48 crore, from Rs 1542.67 crore in the corresponding quarter in 2012.

“This is in part the result of our whole strategy of cost management and revenue management. The other part is a reflection of the commodity price increase that has moderated in this year from the last,” said Vinita Bali, managing director, Britannia Industries.

Expands board
India’s largest publicly held bakery company expanded its Board and elevated Varun Berry to the position of executive director, with immediate effect, in less than a year of his induction into the company. Berry currently heads the company’s India operations, joins the likes of Chairman Nusli Neville Wadia on Britannia’s now 13-member strong board of directors.

Appointing Berry as an additional director of the company, is the third elevation given to him in eleven months. After joining Britannia on January 7 this year, Berry was designated vice president and chief operating officer with effect from February 1, with functions like marketing, sales and product development for bread, cake and rusk.

On May 28, he was made head of the company’s Indian operation which accounts for about 95 per cent of the company’s close to Rs 6000 crore sales. Managing Director Vinita Bali who was heading the business until Berry’s appointment was handed the company’s international operations.  Berry’s elevation to the position of India head came at a time when Britannia was losing market share to ITC with its lower-priced product portfolio and older competitors like Parle showing up their presence in the rapidly growing consumer products market.