Britannia’s standalone Q1 FY14 revenues matched our expectations by recording 14.9% yoy growth at Rs14bn driven by healthy volume growth, price hikes and premiumisation
Britannia’s standalone Q1 FY14 revenues matched our expectations by recording 14.9% yoy growth at Rs14bn driven by healthy volume growth, price hikes and premiumisation.
Operating margins for the quarter expanded sharply by 300bps to 8.3% aided by sharp 440bps and 200bps drop in raw material and overhead cost respectively. Higher outsourcing and advertising cost restricted further margin expansion. Gross margins expanded by 234bps aided by better product mix and improved realizations.
As a % of net sales |
Q1 FY14 |
Q1 FY13 |
bps yoy |
Q4 FY13 |
bps qoq |
Material costs |
47.9 |
52.3 |
(436) |
49.2 |
(122) |
Purchase of goods |
11.7 |
9.7 |
202 |
13.9 |
(213) |
Personnel costs |
3.5 |
3.1 |
38 |
1.9 |
155 |
Advertising cost |
9.0 |
8.1 |
94 |
8.4 |
65 |
Other overheads |
19.5 |
21.5 |
(198) |
18.9 |
64 |
Total costs |
91.7 |
94.7 |
(300) |
92.2 |
(51) |