Britannia sees steady demand recovery, expects revenue and volume growth

Another set of price hikes in first 2 months of Q1

Britannia Industries expects gradual recovery in demand to continue and it hopes to see both revenue as well as volume to grow.

 

Talking about demand recovery, Varun Berry, executive vice-chairman, managing director and chief executive officer (MD&CEO) of Britannia, told investors in a post-earnings conference call that he is reasonably optimistic about recovery.

 

“It's not going to be a hockey stick, we have seen gradual recovery, and I do think that this trend is going to continue through financial year 2025-26 (FY26) as well,” Berry said.

 

On price increases, Berry said it will take another set of hikes in the first two months of the ongoing quarter (Q1) of FY26. The company had effected steep price increases in the previous quarter (Q4FY25).

 

“There will be some remnants of the price increase, which will move into the first two months of Q1, but thereafter, I think the way the commodity situation looks, it might not be necessary to take pricing beyond that. However, it will all depend on how the trends move through the quarter and we will have to take a call based on those trends,” he said.

 

Talking about hiring a new CEO, Berry said the succession planning is at play, and it will definitely be clearer in the next three-to-four months.

 

Rajneet Kohli, the previous CEO of the company, left in March after holding the position for 2.5 years.

 

The biscuit major currently sees 4 per cent of its sales come from quick commerce (qcom) and ecommerce (ecom) — a large part of it is from qcom.

 

“It has been growing fast, but still reasonably small in the overall contribution... But in our case, I see this move from, let's say, 4 per cent to 8 per cent in the next three years, but not beyond that,” he added.