On a consolidated basis, Britannia Industries announced a 23.9% rise in net profit to Rs 372.63 crore in Q3 December 2019 as against Rs 300.69 crore reported in Q3 December 2018.Net sales rose 3.8% to Rs 2935.98 crore in Q3 December 2019 from Rs 2827.40 crore reported in Q3 December 2018.
Profit before tax (PBT) for Q3 December 2019 stood at Rs 497.15 crore, up by 6.7% from Rs 465.82 crore in Q3 December 2018. Tax expenses stood at Rs 126.43 crore in Q3 December 2019, declining 23.5% from Rs 165.32 crore reported in Q3 December 2018.
Commenting on the Q3 performance, Varun Berry, Managing Director, said: "Our revenue grew 4%, operating profit 11% & PAT by 24%. We chose to focus on strengthening the building block of the business rather than pushing sales in the face of a low offtake scenario. We continued to expand the width and depth of distribution but additionally focused on improving distributor health and keeping the supply chain efficient. Further, 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. In context of innovation, we are consolidating our new launches and focusing on depth of distribution. On the cost front, we witnessed 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 & 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. We are hopeful that in this country, slowdown can only be short lived & our focused efforts on distribution & processes will help us get back on high growth trajectory and consistently enhance value for all our stakeholders."
Britannia Industries (BIL) is one of India's leading food companies. The company's product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt. BIL has a presence in more than 60 countries across the globe.
Shares of Britannia were trading 0.35% lower at Rs 3240.90 on BSE.
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