Britannia Q2 results update!
Last updated: 19 Oct, 2020 | 03:37 pm
Founded in 1892, one of India’s oldest existing companies, Britannia Industries sells its Britannia and Tiger brands of biscuits, breads and dairy products throughout India and in more than 60 countries across the world.
Profit: For the quarter ended September 2020, consolidated profit stood at ₹ 495.2 crore, driven by resilient performance in these challenging times and a healthy profitable growth for all the adjacent businesses.
Revenue and Expenses- Consolidated revenue grew at 12.1% year-on-year to ₹ 3,419.11 crore for the quarter ending September 2020. Expenses were up 7.8% from last year to ₹ 2,822.02 crore. However, an 82 percent increase in tax expenses impacted profitability, while raw material cost, including those of wheat and sugar grew 16.2% year-on-year to ₹ 1,812.45 crore.
“On the cost front, we witnessed moderate inflation in the prices of key raw materials and expect the prices to be stable going forward given the positive outlook on monsoon and harvest”, said managing director Varun Berry.
Operating Margin and EBITDA- Operating margin increased to 19.8% for the quarter. ‘’We sustained a large part of the efficiency gains that we witnessed in the previous quarter viz., supply chain efficiencies, reduction in wastages and fixed costs leverage,' said Berry.
Earning before Interest, tax, depreciation and amortisation (EBITDA) grew 37.2% year-on-year to ₹ 675.39 crore.
These factors helped Britannia sequentially sustain the shape of their business and record a 390 bps (3.9%) increase in operating profit during the quarter.
The company expects to perform well in these tough market conditions and is also keeping a check on changing consumer behaviour, macroeconomic factors, changing laws, and making a strategy to deal with such a dynamic environment.
Britannia closed at ₹ 3772.45, up 0.67% from yesterday while Nifty closed 0.94% higher at 11,873.05.