Britannia Industries Q3 PAT declines 18% YoY to Rs 369 cr

29 Jan 2022 , 09:29 AM

Consolidated profit before tax (PBT) dropped 17.7% to Rs 505.40 crore in Q3 FY22 from Rs 613.73 crore in Q3 FY21. Total tax expense fell 15.43% to Rs 136.22 crore in Q3 December 2021 from Rs 161.09 crore in Q3 December 2020. Total expenses grew 18.54% to Rs 3,123.02 crore in Q3 FY22 from Rs 2,634.46 crore in Q3 FY21.

Commenting on the Q3 performance, Varun Berry, the managing director (MD) of Britannia Industries, said, We delivered a high single digit volume growth significantly ahead of the market and a resilient double-digit top-line growth of 14%, driven by superlative performance across divisions and channels. While the rural markets across FMCG witnessed significant slowdown, we were able to maintain a significant competitive advantage through our focus to enhance rural footprint and our diligent market practices, which is reflected in the robust topline growth and consistent gain in market share.

We continued to invest behind our brands and relaunched Good Day, one of our power brands, with the concept of Multiple Smiles in a pack backed by TV, print & outdoor media, and visibility drives, towards the end of the quarter. On the cost front, we continued to witness increase in commodity prices with an inflation of 4% sequentially (quarter on quarter) and 20% over last year. As market leaders, we actioned price increases ahead of competition. However, the upward trajectory in prices of commodities and fuel impacted profitability, which led us to action further price increases and accelerate cost efficiency programs.

We have made rapid strides in our Sustainability agenda with robust increase in our score by Dow Jones Sustainability Index, which is a testimony to our efforts. We are committed towards our pillars of ESG framework – People, Growth, Governance and Resources and are confident of delivering on the targets that we have set for ourselves. We are confident that our resilient Brands and strategic growth initiatives will hold us on a path of sustainable & profitable share gain in the future as well, Mr Berry signed off.

On a standalone basis, the companys net profit slipped 16.8% to Rs 356.57 crore on a 14.1% surge in net sales to Rs 3,327.42 crore in Q3 FY22 over Q3 FY21.

Shares of Britannia Industries rose 0.45% to end at Rs 3,507.35 on BSE yesterday, 28 January 2022. Britannia Industries is one of Indias leading food companies. Its product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk and yoghurt.

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