Britannia's Q3 Net Profit Plunges by 40%, Sales Inch Up Over 2%

Britannia Industries Ltd witnessed a 40% drop in Q3 net profit, totalling Rs 555.66 crore, despite a modest 2.2% rise in sales to Rs 4,191.83 crore. Varun Berry, Vice Chairman, attributed the decline to increased competition and highlighted resilience amidst challenging market dynamics.

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In the third quarter ending December 2023, Britannia Industries Ltd, a prominent bakery food company, experienced a significant 40.4% decline in its consolidated net profit, reaching Rs 555.66 crore. This contrasts starkly with the previous year's quarter when the company boasted a net profit of Rs 932.40 crore. Despite the profit setback, Britannia managed to achieve a slight growth in net sales, which rose by 2.2% to Rs 4,191.83 crore.

Varun Berry, serving as the Vice Chairman and Managing Director, commented on the company's performance amidst a progressively recovering demand landscape and heightened competition. He expressed satisfaction with the company's resilience and competitiveness despite the challenging environment.

The substantial decrease in net profit from the corresponding quarter of the previous year can be attributed to the gains Britannia made from selling a 49% equity stake in Britannia Dairy Private to Bel SA, a French cheese maker. The company's profit before exceptional items and tax witnessed a decline of 1.62% to Rs 761.13 crore.

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While revenue from operations for the December quarter increased to Rs 4,256.33 crore, marking a 1.41% rise, total expenses also surged by 1.98% to Rs 3,544.42 crore. Berry highlighted the company's strategic focus on expanding its direct reach and accelerating its rural presence, having partnered with over 29,000 rural distributors during the quarter. Total income for the quarter stood at Rs 4,306.89 crore, up by 1.4%.

Berry emphasized Britannia's vigilance in managing costs and ensuring profitability amidst evolving commodity prices and geopolitical uncertainties. Despite the challenges, Britannia Industries' shares settled at a modest 2.24% lower rate at Rs 5,006.20 apiece on the BSE.