Britannia forecasts around 3% input cost inflation for FY24: MD Berry

Britannia Industries Ltd, India's largest biscuit maker, has forecast low single-digit input cost inflation for the current fiscal year.

The company said it is closely monitoring input costs and will remain watchful of competitive pricing activities.

Britannia's plan has taken into account the low single-digit inflation of around three per cent for FY'24, company vice-chairman and MD Varun Berry told analysts at an earning concall.

"We are now in a phase where inflation is going to be moderate and not what we've seen in the last two years," he said.

Berry said Britannia haS taken pricing actions to offset inflation in the last fiscal year. However, with some softening of material prices in the second half of the year and stepped-up cost efficiencies, the company is evaluating if any corrections in price need to be made.

Certain brands and packs have already seen price reductions or promotions, officials said.

Britannia which had a very low volume growth in the last fiscal expects an increase this year.

Flour, sugar and dairy remain under inflationary pressure, while palm oil has seen some easing. Packaging materials such as laminates and corrugated boxes have also seen some deflation, the company said.

Dairy has seen the highest inflation during the March quarter versus last year by 54 per cent.

Britannia stated that its snacks brand 'Timepass' is still being evaluated in the test markets and the company wants to ensure it has a winning combination before spreading it across the country.

The company said that the ongoing capex will be deployed in Uttar Pradesh, Tamil Nadu, Bihar and Odisha.

It had earlier announced an investment of Rs 700 crore to ramp up its capacities at various locations. The projects could be completed during the current fiscal.

In 2022-23, the company had sales of Rs 15,985 crore registering a growth of 15 per cent.