Britannia Ind skids after Q4 PAT slips 3% YoY to Rs 360 cr

Britannia Industries fell 1.17% to Rs 3,498.45 after the company's net profit fell 3.3% to Rs 360.07 crore on 8.2% rise in net sales to Rs 3,038.13 crore in Q4 FY21 over Q4 FY20.

The FMCG company reported a consolidated revenue growth of 13% Y-o-Y (year-on-year) for the year to Rs 12,883 crore. Consolidated operating profit jumped 39% to Rs 2,311 crore in FY21 over FY20. Consolidated operating profit margin recorded an increase of 340 bps in FY21 from FY20. The return on capital employed stood at 40% for the year.

The operating profit of the FMCG major has been steadily growing & has increased from 4% in 2009-10 to 18% in the current year. Britannia Industries has been consistently gaining market share over the last several years.

Commenting on the Q4 performance, Varun Berry, the managing director of Britannia Industries, said: "The year has been difficult and challenging in every possible way. Despite the adverse conditions, we managed to deliver good results in terms of topline growth, profitability improvement and market share gains. During the last quarter of the year, we implemented three transformational digital projects namely S4 HANA, an Online Dealer Management System and an Integrated Vendor Management System. The delivery of these projects necessitated shutdown of operations for a few days in March which impacted primary billing for the quarter. We are confident that with all the core systems getting upgraded and integrated we are well poised to take our business efficiencies to the next level while leveraging the large amounts of data available to build business intelligence and analytics."

"During the quarter, we continued focussing on the basic building blocks of our business, direct reach, rural distribution & brand building. Our cost efficiency program for the year delivered the targeted results giving us strong cost leadership. On the commodity cost front, palm oil, packing material and dairy products witnessed sudden and steep increases while strategic buying helped the company manage the cost increases better. We are evaluating the long-term impact of these increases to action necessary price increases while ensuring competitiveness," he added.

Britannia is one of India's leading food companies. Its product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt.

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