Latest news with #BritanniaIndustries'
Economic Times
5 days ago
- Business
- Economic Times
Britannia Industries reports strong demand growth in rural and urban markets
Synopsis Britannia Industries witnessed a surge in demand across both rural and urban markets, with the Hindi belt showing exceptional growth, leading to market share gains. The company is restructuring its distribution network and focusing on rural markets, while also seeing significant contributions from quick commerce for innovative products. Biscuit major Britannia Industries' managing director Varun Berry said there has been an uptick in demand across both rural and urban markets. The company's growth rate in rural India was in double digits in the April-June quarter, while in urban it was 'very high single digits' including general trade, retail chains and e-commerce, he to analysts during the company's first quarter earnings call on Wednesday, Berry said the Hindi belt has been 'really good' this quarter with four states growing in very high double digits. He did not specify which four states. The Hindi belt typically includes markets like Bihar, Haryana, Jharkhand, Chhattisgarh, Himachal Pradesh, Uttar Pradesh, Rajasthan, Madhya Pradesh and the National Capital Region.'The growth (in Hindi belt) is 2.7 times of what it was for our other states. This led to a market share gain of 65 basis points (bps) during Q1 in the Hindi states,' Berry said. A basis point is a hundredth of a percentage point. Britannia has improved its market share in the Hindi belt where it gained market share in some regions. The optimism in demand for daily necessities such as biscuits comes after more than 12-13 quarters with consumption impacted for a prolonged period due to high inflation in daily lives amidst marginal to little growth of earnings for the vast majority of the rural areas showed some early signs of demand recovery in the last 1-2 quarters, this is the first time there is definitive sign of urban demand per latest government data, India's food inflation in June is -1.06% as compared to last year's same period due to lower prices of vegetables, pulses, meat and fish, cereals, sugar, confectionery, milk and dairy products, and is restructuring its distribution by creating larger distributors which impacted the performance in the East where several regional players ate into its market share.'We are focussing on our rural markets by focussing on our distributors, where we are planning to take our distributors to full scale distributors, as when they become full scale distributors, it becomes even better,' said Berry. He said the local players in East benefitted a bit from the company stumbling chief commercial officer Vipin Kataria said out of the total digital commerce business, almost 75% is from quick commerce. Total digital commerce is 4% of its overall business.'The category is very salient in quick comm, so that is how the entire ratio is changing… Our innovative products, like for croissants almost 35% of the sales is coming from ecommerce, the Pure Magic star that we recently launched, almost half of that sale is coming from quick commerce, and similarly for brownie and other innovations,' said said the adjacency business for the company is doing well -- rusk grew double digit with improvement in profits, wafers grew 2.7 times of biscuits, and 40% growth in general trade for on Tuesday reported a marginal 0.8% year-on-year (yoy) drop in standalone net profit at Rs 498.27 crore for the first quarter ending June 30th, while standalone revenue from operations grew 8.8% yoy at Rs 4,452.74 crore.
Business Standard
5 days ago
- Business
- Business Standard
Britannia Inds Q1 PAT rises 3% YoY to Rs 521 cr
Britannia Industries' consolidated net profit increased 2.98% to Rs 520.72 crore on 8.75% jump in revenue from operations to Rs 4,622.22 crore in Q1 FY26 over Q1 FY25. Profit before tax (PBT) rose 2.92% year on year to Rs 701.02 crore in Q1 FY26. Total expenses increased 10.38% to Rs 3,973.36 crore in Q1 FY26, compared with Rs 3,599.51 crore in Q1 FY25. The cost of material consumed stood at Rs 2,550.87 crore (up 15.32% YoY), employee benefit expenses was at Rs 241.86 crore (up 19.76% YoY) and finance cost stood at 26.15 crore (down 9.76%YoY) during the period under review. Varun Berry, Executive Vice-Chairman, Managing Director & CEO, said: "Our performance this quarter reflects the strength of our focused execution strategy. We concentrated on maximizing value from existing outlets, improving agility in servicing key stores, and driving operational efficiencies across our extensive distribution network. These efforts resulted in approximately 10% sales growth, alongside robust double-digit growth in our four focus states and adjacent bakery categories such as rusk, wafers, and croissants. We observed a marginal uptick in consumption across both urban and rural markets, supported by easing inflation. This favourable environment enabled us to return to double-digit growth after a few challenging periods. Our journey of premiumization continues through innovation and exciting new product launches. Recent additions to our premium biscuit portfolio including the revamped Pure Magic range and Crafted Cookies under the Good Day brand have further enriched our offerings. At the same time, we remain committed to building our core brands through focused media and marketing efforts. Looking ahead, we are focused on sustaining a healthy growth trajectory while maintaining margins in an increasingly competitive landscape. We will continue investing in brand building and product innovation to reinforce our market leadership. Our ESG framework anchored in People, Growth, Governance, and Resources remains central to our strategy. We are committed to building a business that is not only profitable but also sustainable for the long term." Britannia Industries (BIL) is one of India's leading FMCG companies. The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products. Shares of Britannia Industries shed 1.78% to Rs 5,530.90 on the BSE.
Business Standard
09-05-2025
- Business
- Business Standard
Britannia Inds Q4 PAT rises 4% YoY to Rs 560 cr; declares dividend of Rs 75/sh
Britannia Industries' consolidated net profit increased 4.02% to Rs 559.95 crore on 8.29% jump in revenue from operations to Rs 4,495.21 crore in Q4 FY25 over Q4 FY24. Profit before tax (PBT) increased 4.19% YoY to Rs 559.13 crore in Q4 FY25. Total expenses increased 10.34% to Rs 3,738.63 crore in Q4 FY25, compared with Rs 3,388.28 crore in Q4 FY24. The cost of material consumed stood at Rs 2,439.63 crore (up 18.66% YoY), employee benefit expenses was at Rs 164.51 crore (up 1.53% YoY) and finance cost stood at 30.65 crore (up 15.92%YoY) during the period under review. On a full year basis, the companys net profit rose 2.01% to Rs 2,184.58 crore on 6.98% rise in revenue from operations to Rs 18,196.76 crore in FY25 over FY24. Varun Berry, vice chairman & managing director, said: With a high single-digit value growth of 9% during the last quarter of the year amidst a tight consumption scenario, the performance underscores our resilience in a challenging operating environment marked by rising commodity prices, changing channel dynamics, and subdued demand across FMCG categories. Strategic Pricing actions, nimble approach in emerging channels, combined with robust cost efficiency initiatives delivering savings of approximately 3% of revenue, helped us sustain our growth and profitability as we navigated the year effectively. Our distribution footprint now directly caters to about 29 Lakh outlets across the country, with the rural distributors aiding towards strengthening our presence in the rural markets. New launches across the product categories, such as the E-comm first launch of our Premium range of Pure Magic Choco Frames, Winkin Cow Grow further reinforced our adjacent businesses while we continued to invest behind the legacy brands through distinctive promotions for Marie Gold and Good Day during the quarter. As we enter the new financial year, we will continue to closely monitor commodity prices and evaluate their impact, while staying focused on driving healthy, profitable growth and strengthening our market leadership. We reaffirm our commitment to our ESG framework of People, Growth, Governance and Resources and shall continue to focus on our initiatives to build a Sustainable and Profitable business. Meanwhile, the board of directors recommended a final dividend of Rs 75 per share of face value Re. 1/- each. Britannia Industries (BIL) is one of India's leading FMCG companies. The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products. The scrip rose 0.33% to currently trade at Rs 5,411.40 on the BSE.
