FMCG major Britannia has been a prominent player in the food industry for many years. Known for its high-quality products, the company has recently reported a significant rise in its consolidated net profit for the fourth quarter (Q4) ending March 2023. According to a regulatory filing, Britannia’s net profit reached INR 557.60 crore, marking a 47.5% increase from the same period in the previous fiscal year when the company reported a consolidated net profit of INR 377.95 crore.
In the fourth quarter (Q4) of fiscal year 2022-23, the company’s total revenue from operations increased to INR 4,023.18 crore compared to INR 3,550.45 crore in the corresponding quarter of the previous fiscal, indicating a growth in revenue.
As per the BSE filing, Britannia’s total expenses for the fourth quarter (Q4) of fiscal year 2022-23 were reported to be INR 3,322.48 crore, which is a slight increase from INR 3,085.45 crore incurred in the same period of the previous fiscal year.
Driven by noteworthy distribution gains, the company witnessed an 11% growth in the fourth quarter of the fiscal year 2022-23.
Varun Berry, Vice Chairman and Managing Director, said, “We continued to accelerate our rural journey with focus on enhancing reach, partnering with 28,000 rural distributors, and sustaining our diligent market practices.”
The FMCG firm expanded its portfolio of categories, including milkshakes and croissants, during the period. Additionally, the company has expressed its intention to build technologically advanced factories. Berry, while discussing the company’s growth, announced the commercialization of two biscuit greenfield units in the current quarter in Uttar Pradesh and Tamil Nadu, as well as a brownfield expansion in Orissa.
The company has added three new rusk production lines in this quarter as part of its strategy to manufacture in-house products and improve productivity, according to Britannia.
According to Berry, the company has increased the capacity of its drink and dairy production lines to take advantage of seasonal opportunities and improve supplies to the bakery division for captive consumption.
The company stated that on the cost and profitability front, input prices have eased due to a correction in palm oil and packaging materials, but the cost of flour has continued to rise.
Further, Berry said, “We are being vigilant of the competitive actions in the marketplace and closely monitoring the commodity situation in the country, especially around wheat and sugar. We shall deploy appropriate pricing actions to remain competitive and drive market share growth.”