Britannia Industries posted healthy set of numbers for the Q4FY19; revenue met estimates, however, it was a miss on operating fronts. Revenue growth for the quarter stood at 10.3% yoy to Rs2,799cr, broadly in-line with estimates. Gross margin for the quarter expanded by 273bps yoy to 41.2%, primarily aided by premiumisation. Due to higher other income, EBITDA growth was restricted to 9.9% yoy to Rs436.6cr (~6% below estimates) and EBITDA margin was flat on yoy basis at 15.6% (estimate 16.8%). PAT was up 11.8% yoy to Rs294.3cr, ~7% lower than estimates.
Company continued its premiumisation and innovation journey and launched Treat Burst, Treat Stars, and Milk Bikis Chocolate Cream. It also renovated the cakes portfolio and bridged portfolio gaps with launch of Swiss Rolls, Layer Cakes and Brownie. It also launched Treat Croissant and TimepassSalted Snacks as a pilot in few channels/geographies.
The company commissioned the greenfield unit at Nepal in April 2019. It has also commissioned Croissant line at Ranjangaon & Salted Snacks line in Bangalore.
In the coming quarters, company aims at focusing on scaling up the new categories launched (Cream Wafers, Flavoured Milk Shakes, etc.) to stay ahead of market and achieve profitable growth. In line with its organization goals, the company has also set up strategic business units for adjacent Bakery, Dairy & International Business.
Depreciation cost was up 10.7% yoy, however, interest outgo was down 47.3% yoy.
Other income for the quarter was up by 39.1% yoy to Rs61.8cr.
Tax rate for the quarter stood at 34.6%, 105bps higher than the base quarter.
Company has indicated that it has witnessed some slowdown in market place in the recent months, however expects it to improve with a favourable monsoon and stable government post elections.
Britannia Industries Ltd ended at Rs. 2,893.10, down by 74.3 points or 2.5% from its previous closing of Rs. 2,967.40 on the BSE.
The scrip opened at Rs. 2,970 and touched a high and low of Rs. 3,000 and Rs. 2,879.15 respectively. A total of 4,90,294 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.
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