NEW DELHI :
Packaged meals firm Britannia Industries Ltd. (BIL), on Friday reported a 18.4% dip in December quarter revenue at ₹370 crore amid rising enter prices that prompted the corporate to speed up its value saving applications. Within the yr in the past interval—the corporate had reported a revenue Rs452.64 crore.
Complete income from operations on the biscuit and butter maker grew 13% to ₹3,574.98 crore in opposition to the ₹3,165.61 crore reported a yr in the past.
The corporate flagged a “important” slowdown in rural markets for makers of fast-moving shopper items.
“We delivered a excessive single digit quantity development considerably forward of the market and a resilient double-digit top-line development of 14%, pushed by superlative efficiency throughout divisions and channels. Whereas the agricultural markets throughout FMCG witnessed important slowdown, we have been in a position to preserve a major aggressive benefit by means of our focus to reinforce rural footprint and our diligent market practices, which is mirrored within the sturdy top-line development and constant acquire in market share,” mentioned Varun Berry, Managing Director, Britannia Industries Ltd.
Berry mentioned the corporate continued to witness elevated commodity costs with an inflation of 4% quarter-on-quarter and 20% over final yr.
Value of fabric consumed throughout the quarter grew 22% year-on-year for the maker of Good Day and Marie Gold biscuits. Complete bills throughout the quarter have been up 18.5% to the touch ₹3,123.02 crore year-on-year. That is regardless of the corporate reporting a marginal dip in worker profit bills.
As market leaders, we actioned worth will increase forward of competitors, mentioned Berry.
“Nevertheless, the upward trajectory in costs of commodities and gasoline impacted profitability, which led us to motion additional worth will increase and speed up value effectivity applications,” he mentioned.
Corporations throughout the board have been dealing with inflationary headwinds with costs of all the things from uncooked supplies to packaging materials and transportation transferring up. Mint had earlier reported that rival Parle Merchandise plans to proceed worth hikes until the tip of the present monetary yr.
Through the quarter the corporate relaunched its energy model “Good Day” backed by TV, print and outside media, and visibility drives, in direction of the tip of the quarter.
“We’re assured that our resilient manufacturers and strategic development initiatives will maintain us on a path of sustainable and worthwhile share acquire sooner or later as nicely,” mentioned Berry.
Supply: Live Mint