Food and consumer goods company Britannia on Monday posted a profit before tax of Rs 498 crore for the second quarter ended September 30, 2019, a rise of 8.5 per cent when compared with the corresponding period of the previous fiscal.
The net profit for the period grew 33 per cent to Rs 403 crore on a yoy basis on account of re-measurement of deferred tax in accordance with lower corporate tax rate.
"During this phase of sluggish demand, we continued to invest in enhancing our brand equity through focused product campaigns. This is on the belief that the recent measures announced by the government will kick start the economy and boost consumer demand as we move forward,” said Varun Berry, MD, Britannia Industries.
The company reported a consolidated revenue growth of 6 per cent for the quarter at Rs 3,049 crore on a yoy basis, in line with industry estimates.
The Good Day biscuits maker said it witnessed moderate inflation in the prices of key raw materials for the bakery business while an inordinate increase in milk prices impacted its dairy business. “We, however, accelerated the drive on cost efficiencies & leveraged fixed costs which helped us improve the shape of our business and deliver highest ever operating profits in the quarter,” said Berry.
Britannia’s plan is to scale up salted snacks category in the West and croissants in the East and southern parts of the country.