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Britannia net up 20 pc in Q3

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Food major Britannia Industries Ltd on Monday reported consolidated net profit of Rs 264 crore for the third quarter of 2017-18, registering 20 per cent annual growth from Rs 220 crore in the same period year ago.

Britannia net up 20 pc in Q3
The company's international business, however, continued to grow slower due to deteriorating geo-political situation and volatile currency in Africa and the Gulf region

In a regulatory filing on the BSE, the city-based company said consolidated total income for the quarter under review grew annually 9 percent to Rs 2,603 crore from Rs 2.393 crore in the like period year ago.

Sequentially, however, net profit and revenue growth were flat (1.2 percent and 0.3 percent) from Rs 261 crore and Rs 2,596 crore last quarter.

“We had 15 percent growth in the domestic market for the quarter owing to double-digit volume growth on the back of investment in brands and widening distribution network,” said Varun Berry, Managing Director, Britannia in a statement.

The company’s international business, however, continued to grow slower due to deteriorating geo-political situation and volatile currency in Africa and the Gulf region.

“Though dairy business growth was subdued, profitability improved on driving products with high margin and reducing our play in the less profitable commoditised categories,” admitted Berry.

On the commodity front, prices of key raw material were stable during the quarter.

“We have progressed well in building superior factories. Our greenfield factories at Guwahati and a dedicated facility for servicing export markets at Mundra (Gujarat) are nearing completion for operating them soon,” added Berry.