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Packaged Foods company Britannia Industries announced Q3FY24 & 9MFY24 results:
Financial Performance Highlights
- Sales Growth: Britannia's consolidated sales for Q3FY24 grew by 2% YoY, reaching a total of Rs 4,192 crore.
- Operating Profit: The operating profit stood at Rs 743 crore, which indicates a healthy operating margin of 17.7%.
- Nine-Month Revenue and Profit: For 9MFY24, the consolidated revenue was Rs 12,532 crore, marking a growth of 3.6%. The operating profit for this period grew significantly by 15.6% to Rs 2,162 crore.
Business Strategy and Expansion
- Brand Investments: Britannia focused on capitalizing on its brand power and executed judicious price corrections to remain competitive and increase market share.
- Rural Market Expansion: The company expanded its presence in the rural market by partnering with over 29,000 rural distributors; focus states saw higher growth compared to other regions.
- New Product Offerings: The introduction of new products such as BeYou Bars, Makhanas, Jim Jam Pops, and unique cheese formats aimed at meeting consumer demand.
Varun Berry, Vice Chairman & Managing Director of Britannia Industries, commented on the quarter's performance, stating, “In a progressively recovering demand environment with heightened competition, our performance this quarter reflects our resilience and competitiveness. Over the last 24 months, we achieved a robust 19% growth in revenue, coupled with a commendable 52% increase in operating profit. We capitalized on the power of our brands with requisite investments, and actioned judicious price corrections, which helped us maintain competitiveness and gain market share.
We continued to expand our direct reach and accelerate our rural journey, partnering with more than 29,000 rural distributors during the quarter. As a result, our focus states outperformed other regions in terms of growth, despite a generally subdued rural demand. Our new offerings viz. BeYou Bars, Makhanas, Jim Jam Pops and unique cheese formats continued to excite & delight our consumers. Our international business performed extremely well with robust double-digit growths across key markets.
On Cost & Profitability front, we will stay vigilant of the commodity prices & evolving geopolitical situation. We will continue to invest behind our brands and stay price competitive with a clear objective of driving market share while sustaining profitability.
We remain committed to the ESG framework of People, Growth, Governance and Resources to build a sustainable and profitable business.”
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