Britannia, famously known for brands like Marie Gold, JimJam and Good Day, is expected to release its third quarter ended December 31, 2024, results on Thursday, February 6, 2025.
Brokerages tracked by Business Standard estimate the revenue of Britannia to grow 5.3 per cent year-on-year (Y-o-Y), on average, to Rs 4,485 crore as compared to Rs 4,256.33 crore a year ago. The grow is expected to be led by volume in Q3FY25. However, on a quarter-on-quarter (Q-o-Q) basis, revenue is forecasted to slip 3.9 per cent.
Britannia's profit after tax (PAT) for the quarter that ended December 31, 2024, is estimated to decline 5.1 per cent to Rs 530.1 crore, on average, as compared to Rs 559.1 crore a year ago. On a quarterly basis, the PAT is expected to slip marginally by 0.45 per cent.
Analysts and investors will keep an eye on management's commentary on the company's growth and margin outlook.
Here's how brokerages expect Britannia to fare in Q3:
HDFC Securities: The brokerage expects high single-digit volume growth for the company amid benefits of grammage increase, split route adopted for each main category along with distribution expansion.
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Analysts at HDFC Securities expect volume for Q3 at 7 per cent as compared to 5.5 per cent a year ago. They estimate gross margin to remain under pressure owing to sharp surge in key raw material cost.
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The gross margin for Q3 is expected at 40.6 per cent as against 43 per cent a year ago.
The Earnings before interest, tax, depreciation and amortisation (Ebitda) margin is likely to see significant contraction despite strong volume growth owing to price correction as well as brand equity investments. They peg Ebitda for Q3 at Rs 784.4 crore as compared to Rs 821.1 crore a year ago.
Motilal Oswal: Analysts expect 7 per cent revenue growth Y-o-Y, primarily led by volume growth of 5 per cent in Q3FY25.
The revenue for the quarter under review is estimated at Rs 19,220 crore as compared to Rs 18,020 crore a year ago.
Gross profit margin of the company is expected to decline 190 basis points (bps) Y-o-Y to 42 per cent as compared to 43.9 per cent and Ebitda margin is expected to decline 160 bps Y-o-Y to 17.7 per cent as against 19.3 per cent due to rise in agri commodity prices.
Ebitda is likely to come in at Rs 6,820 crore as compared to Rs 6,500 crore a year ago. The company will focus on innovation and distribution channel to gain market share, as per brokerage.
Centrum Institutional Research: The brokerage expects Britannia’s revenue to increase 5.6 per cent Y-o-Y to Rs 4,495.8 crore as compared to Rs 4,256.3 crore a year ago driven by 4 per cent volume growth.
As per Centrum's channel check, management has taken price increases in several packs and has gained market share from Parle and new product development of the portfolio has been well-received by the consumer.
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Given rising raw material costs, Ebitda is expected to decline 6.8 per cent to Rs 765.6 crore as compared to Rs 821.1 crore a year ago. Ebitda margin may settle at 17 per cent, down 226 bps Y-o-Y as compared to 19.3 per cent. Adjusted PAT is likely to see a cut of 6.8 per cent Y-o-Y to Rs 521.6 crore as compared to Rs 559.9 crore.
JM Financial: Analysts forecast 4 per cent volume growth, lower against 1H owing to grammage cuts, pricing to turn positive.
Higher input costs and lack of operating leverage may result in Ebitda decline of 7.5 per cent Y-o-Y to Rs 759.8 crore as compared to Rs 821.1 crore.