InvestorQ : Do you find the results of Britannia for the Dec-20 quarter attractive?
Riya Dwivedi made post

Do you find the results of Britannia for the Dec-20 quarter attractive?

shrinidhi Rajan answered.
4 months ago

One of India’s most formidable turnaround cases in the FMCG sector, Britannia Industries reported a 22.4% increase in consolidated net profit at Rs.453 crore for the Dec-20 quarter. It may be recollected that Britannia had posted net profits of Rs.370 crore in the Dec-19 quarter. Total revenues from operations were up 6.13% at Rs.3166 crore during the Dec-20 quarter and continue to be one of the top performers in the premium biscuit segment.

Its largest business vertical which is the General Trade, which is the largest channel for us, continues to grow at a healthy pace on the back of buoyancy in the rural economy and a gradual recovery in the urban markets. Apart from the General Trade channel, the Modern Trade and Institutional business continued to face challenges due to consistently lower footfalls in stores, offices, schools where normalcy is yet to be fully restored.

Strategically, Britannia continues to focus on rural distribution, range selling, enhanced throughput, salesmen efficacy and investing in brand equity via focused product campaigns. The company has also made attempts to sharpen its ecommerce initiatives due to the new model that appears to be emerging in the market.

There was moderate inflation in materials prices except Palm oil where there was a significant increase in prices adding to input costs. However, Britannia managed to successfully counter the inflation impact on raw materials by accelerating cost efficiencies and through sustained new efficiencies and similar strategies introduced specifically during the COVID period.