Britannia Industries Q3 consolidated net up 23.26% to Rs 370 cr

Biscuits and bakery products maker Britannia Industries on Friday reported a 23.26 per cent increase in consolidated net profit at Rs 369.88 crore in the third quarter ended December 2019.

The company had posted a consolidated net profit of Rs 300.07 crore in the same quarter last fiscal, Britannia Industries said in a regulatory filing.

Total revenue from operations during the third quarter stood at Rs 2,982.68 crore as against Rs 2,842.44 crore in the year-ago period, it added.

Commenting on the company's performance, Britannia Industries Managing Director Varun Berry said,"we had a decent quarter in the face of an economic slowdown...We chose to focus on strengthening the building block of the business rather than pushing sales in the face of a low offtake scenario."

The company continued to expand the width and depth of distribution but additionally focused on improving distributor health and keeping the supply chain efficient, he added.

Further, Berry said,"during this phase of sluggish demand, we continued to invest in enhancing our brand equity through focused product campaigns. As a result of our efforts, we continue to strengthen our position as a dominant market leader."

On the cost front, he said there was moderate inflation in the prices of key raw materials for the bakery business.

"There was a significant increase in milk prices which impacted our dairy business. Our accelerated drive on cost efficiencies, reduction in wastage and leverage on fixed costs helped us improve the shape of our business and deliver highest ever operating profits in the quarter on the back of a previous best quarter," Berry said.

On the outlook, he said,"we are hopeful that in this country, slowdown can only be short lived and our focused efforts on distribution and processes will help us get back on high growth trajectory and consistently enhance value for all our stakeholders.