Companies

Britannia net jumps 23% to ₹495 crore in Q2

Our Bureau. Kolkta | Updated on October 19, 2020 Published on October 19, 2020

Varun Berry, Managing Director, Britannia Industries   -  Nishant Ratnakar

Biscuit-maker Britannia Industries reported a 23 per cent jump in consolidated net profit to ₹495 crore for the quarter ending September 30. The net profit for the corresponding quarter last year stood at ₹403 crore.

Consolidated sales, during the quarter under review, saw an 11 per cent jump year-on-year to ₹3,354 crore (₹3,023 crore).

On a standalone basis, net profit and sales stood at ₹462 crore and ₹3,161 crore respectively.

According to Varun Berry, Managing Director, Britannia Industries, the company, in Q2FY21, was able to get its “full range of products to the market” and focussed on efficiency in distribution, followed continuous replenishment system of distribution and inched closer to normalcy in advertising and promotions.

“All adjacent businesses too delivered a healthy profitable growth,” he said adding that Covid-19 brought tectonic shifts in economic growth and consumer behaviour. Although the Government-ended lockdown, “it appears that it will take a while for the situation to normalise”.

Moderate inflation

On the cost front, Britannia said it “witnessed moderate inflation in price of key raw materials”. Accordingly, it expects prices to be stable going forward, “given the positive outlook on monsoon and harvest.”

“We sustained a large part of the efficiency gains that were witnessed in the previous quarter viz., supply chain efficiencies, reduction in wastages and fixed costs leverage. These measures helped us sequentially sustain the shape of our business and record a massive 390 bps increase in operating profit during the quarter versus last year,” Berry said in a statement.

The company is keeping a close watch on macro-economic factors, changes in laws, evolving consumer behaviour and is framing its medium-term strategy in accordance with this “dynamic situation”, the statement added,

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Published on October 19, 2020
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