India’s leading food company’s consolidated net profit rose 28.48% to Rs 490.58 crore on 21.41% increase in net sales to Rs 4,379.61 crore in Q2 September 2022 over Q2 September 2021.Profit from operations stood at Rs 660 crore, growing at 30% for the quarter. Britannia’s market share reached a new 15-year high.
On a consolidated basis, profit before tax in Q2 FY23 stood at Rs 659.2 crore, up 26.08% from Rs 522.84 crore in Q2 FY22.
During the quarter, total expenses rose 20% YoY to Rs 3719.57 crore. Cost of materials consumed rose 17.3%, employee expenses climbed 5.8% and finance cost increased 39% YoY.
Net cash generated from operating activities stood at Rs 731.43 crore in six months ended 30 September 2022 as against Rs 492.37 crore in six months ended 30 September 2021.
Varun Berry, managing director, said: “We have witnessed positive growth momentum over the last few months. Our Go-to-market strategy & increase in distribution reach have converged to deliver a robust topline growth of 22% YoY & 19% QoQ, aided by a mid-single digit volume growth, as we record our highest quarterly revenue.
We continue to have aggressive market share gains, consistently over the past 38 quarters & registers a 15-year high, which is a testimony of our Brand strength & team’s execution capability. Our direct distribution jumped to 26 lakhs outlets, with an addition of 4 lakhs outlets in the last 6 months. We continue to make strides in our Rural journey and we now have appointed ~28,000 Rural Preferred Dealers, which has led to consistent market share gains.
We supported our strong brands with the requisite media investments in the digital & mass media space. It was a quarter of consolidation where we supported our newly launched products eg. Treat Croissant, NC Seeds & Herbs, Biscafe, Potazos, 50-50 Golmaal, Marble cake & Rs 5 Muffils across geographies & channels. Some of our new launches have done extremely well & continue to grow aggressively quarter on quarter.
On cost & profitability front, commodity inflation remained on the boil on the back of rising inflation in Flour & Milk products. In this dynamic environment, as a result of our pricing actions and intensified cost efficiency program, we have been able to improve our operating margins beyond pre-covid levels.”
Britannia Industries is one of India’s leading food companies. It manufactures India’s favorite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold. Britannia’s product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt.
Shares of Britannia Industries rose 1.46% to Rs 3801.30 on Friday, 4 November 2022.
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