Britannia Industries, the bakery food company, has significantly expanded its distribution network, reaching approximately 27.9 lakh outlets directly and has added around 2000 rural distributors over the past year, as stated in a regulatory filing on Friday.
During the fiscal year 2023-24, Britannia Industries observed an increase in its market share. This was attributed to strategic pricing measures aimed at maintaining competitiveness and increased investments in brand development, supported by the expansion of its distribution network.
The company emphasized its commitment to ongoing investment in its brands and maintaining competitive pricing, with a clear objective of increasing market share while also sustaining profits.
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Nevertheless, according to the BSE filing, the company has recorded a 3.76% decline in consolidated net profit, amounting to INR 536.61 crore in the fourth quarter (Q4) ended March 2024, compared to INR 557.60 crore net profit in the corresponding period of the previous year.
During the entire fiscal year 2023-24, Britannia reported a 3.5% increase in consolidated revenue, reaching INR 16,546 crore, alongside a 10.1% growth in operating profit despite a subdued consumption environment. In comparison, its consolidated revenue for the preceding fiscal year stood at INR 15,985 crore.
According to the filing, total expenses for the fourth quarter of FY24 increased to INR 3,388.28 crore, compared to INR 3,322.48 crore in the fourth quarter of FY23.
Regarding the company’s performance, Varun Berry, vice chairman and managing director, commented, “We remain attentive to commodity prices and the changing geopolitical environment in terms of cost and profitability. Our ongoing cost efficiency program consistently delivers operational savings of approximately 2% of revenues, thereby maintaining robust operating margins.”
Berry added, “We have strengthened our capabilities to leverage rapidly expanding channels such as Modern Trade and E-commerce, both of which witnessed double-digit growth compared to the previous year.”
Furthermore, as stated in the BSE filing, the Board of Directors has proposed a final dividend of INR 73.5 per share, with a face value of INR 1/- each.
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