Britannia Industries Ltd., India’s leading food company, on Tuesday reported a 25 percent increase in its consolidated net profit to Rs 263.16 crore in the quarter ended March 31, 2018 as compared to Rs 210.91 crore in the year-ago period.
On a comparable basis, its revenue from sale of goods in the quarter under review, stood at Rs 2,510 crore, up by 13 percent from Rs 2,230 crore in the corresponding period the previous year.
The biscuit maker reported a 14 percent rise in its net profit for 2017-18 to Rs 1,004 crore.
“We have witnessed positive momentum in the market growth over the last few months. Our double digit growth for the quarter is backed by a double digit volume growth on the back of investment in brands and widening our distribution network through focus on direct reach, rural market and weak states. We continued our premiumization and innovation journey,” its Managing Director Varun Berry said.
He said its international business grew in double digits despite a slow-down in many geographies like Middle East and Africa. While the growth in the dairy business has also been subdued due to its focus on driving value added products and reducing its play in the less profitable commoditised products, profitability has improved considerably.
“On the commodity front, prices of key raw material have seen a marginal inflation in the fourth quarter. Our accelerated cost efficiency programme and endeavour to leverage fixed costs have helped us improve our profitability,” he said.
In the coming year priority will be on bridging portfolio gaps in our bakery business and other adjacent macro snacking business opportunities, the company said.
The biscuit maker said its new greenfield factories at Guwahati, and SEZ in Mundra for servicing export markets have been commercialised.
“In addition we are also setting up an integrated food park at Ranjangaon, Maharashtra and a greenfield plant at Nepal which will be our fourth country with local manufacturing,” Berry added.