Britannia Reports 4.5% Growth In Q2 Sales, Profit Declines Amidst High Commodity Costs

Britannia Industries posted consolidated sales of Rs 4,566 crore for the quarter ending 30 September 2024, marking a 4.5 per cent year-over-year increase and a sequential growth of 10.6 per cent. However, net profit after tax declined by 9.6 per cent year-over-year to Rs 531 crore, though it rose by 5.1 per cent compared to the previous quarter. For the six months, sales rose by 4.3 per cent, while profit saw a slight 0.8 per cent decline.

Vice Chairman and Managing Director Varun Berry highlighted that the company achieved an 8 per cent volume growth despite challenging conditions from sharp commodity price increases in essentials like wheat, palm oil and cocoa. “We demonstrated agility in implementing focused pricing actions and cost-optimisation across our operations,” Berry noted, adding that Britannia maintained a healthy operating margin of 15.5 per cent for the quarter.

Britannia’s diversified product portfolio, including croissants, milkshakes, and wafers, continues to see robust growth, aligned with the company’s aim of becoming a "Total Global Foods Company." The company has also been piloting a new distribution strategy in 25 cities across 50,000 outlets, showing promising early results to enhance product reach and availability.

Reaffirming its commitment to sustainable growth, Britannia emphasised its focus on environmental, social, and governance (ESG) initiatives, aiming to build a responsible and profitable future.