Tag: Britannia

Britannia Q4 Results: Profit dips 3% to ₹537 crore, annual revenue up 3%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Britannia, a leading player in the fast-moving consumer goods (FMCG) sector, reported its quarterly financial performance for the period ending March 2024 (Q4FY24) on Friday, May 3. The conglomerate witnessed a 3.2% decline in consolidated net profit, amounting to ₹536.61 crore as compared to ₹557.60 crore in the same period last year. Despite this downturn, the company experienced a 3% in revenue from operations, reaching ₹4,069.36 crore, up from ₹4,023.18 crore reported in the corresponding period of the previous fiscal year.

In a regulatory filing to the stock exchanges, Britannia disclosed its recommendation for a final dividend of 7,350%, translating to ₹73.5 per equity share for the fiscal year 2023-24. This decision is scheduled to be formalised at the company’s upcoming 105th annual general meeting (AGM) slated for August 12, 2024.

Commenting on the financial results, Britannia’s Vice Chairman and Managing Director Varun Berry expressed satisfaction with the company’s resilience in a challenging economic climate. Berry highlighted the strategic pricing measures undertaken to maintain competitiveness and emphasised the expansion of distribution channels, particularly in rural areas.

“In a tepid consumption scenario, our performance this year signifies resilience and competitiveness. Over the past 24 months, we have achieved a strong 19% growth in revenue, accompanied by a notable 43% increase in operating profit. Our market share rebounded as the year progressed as a result of strategic pricing actions to maintain competitiveness and intensified investments in brands, supported by distribution expansion,” Berry said.

Also read: MRPL Q4 net profit slumps 40%, company declares dividend of ₹2

Despite facing headwinds in certain markets, Britannia reported robust growth in key regions, surpassing expectations. The company made significant strides in modern trade and e-commerce channels, both witnessing double-digit growth compared to the previous fiscal year.

However, on the operational front, Britannia experienced a slight decline in earnings before interest, taxes, depreciation, and amortisation (EBITDA) during the March quarter, dropping 1.7% to ₹785.5 crore compared to ₹800.9 crore in the corresponding period last year. Margins also experienced a marginal decrease, falling by 50 basis points to 19.4%.

Looking ahead, Britannia remains cautiously optimistic, keeping a close eye on commodity prices and global geopolitical developments. The company intends to maintain its focus on cost-efficiency initiatives while continuing to invest in brand building and market share expansion.

Also read: Q4 results: NSE to give ₹90 dividend per share and 4 bonus shares for every 1 share held

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This food product company is offering ₹3 lakh for 1-day internship, but can you pronounce croissant correctly?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Britannia, India’s leading food products company, is looking for a ‘Croissant’ pronunciation expert, offering a lucrative internship opportunity. For this unique one-day internship, the brand is offering ₹3 lakh to the winner, whose only job will be to walk around the company’s office and correct the employees who pronounce ‘croissant’ incorrectly.

Does it seem like simple money? As long as you can pronounce ‘croissant’ right, it is.

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Widely popular in Indian restaurant chains, bakeries and eateries, Croissant is a French pastry made from puff pastry in a crescent shape. However, a lot of people in the country often pronounce ‘croissant’ incorrectly. Hence, Britannia Treat Croissant has come up with this one-day special internship initiative where the lucky winner will be given ₹3 lakh.

Who can apply?

Anyone who is above the age of 18 years is eligible to apply for the ‘Croissant’ pronunciation expert internship programme.

How to apply?

Those interested should apply for the one-day internship by registering on Britannia’s Whatsapp channel. The link for online registration is available on the Instagram channel of Britannia Croissant.

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Once a candidate answers a few basic questions on WhatsApp, he/she will be directed to Instagram to complete two steps — follow the Britannia Croissant’s handle and write in the comment section as to why they deserve to be chosen for the internship.

Stipend and duration

The one person selected for the internship will be given ₹3 lakh. The duration of the internship is only a day.

Last date to apply?

The application process was started on March 4, and the last date to apply for it is Sunday, March 10.

The special internship programme has been conceptualised by Youngun, a meme marketing agency, according to Afaqs.

“In India, the perception of croissants tends to be as a luxurious snack, and with this campaign, we wanted to shift the conversation around the snack to be more inclusive and consumed by the general audience, not just the elite class,” Aman Hussain, founding member and creative head, Youngun said.

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Britannia Q2: Net profit up 19% to ₹586 crore, revenue up 1.2%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Britannia Industries Ltd announced its financial results for the second quarter of FY24 on November 1, revealing a 19.55% surge in consolidated net profit to reach ₹586.50 crore, compared to the previous year’s figure of ₹490.58 crore.

The company also reported a 1.21% increase in total revenue from operations, reaching ₹4,432.88 crore, compared to ₹4,379.61 crore in the corresponding quarter a year ago.

#2QWithCNBCTV18 | Britannia’s Q2 earnings increase on a YoY basis pic.twitter.com/kcGUm76u4H

— CNBC-TV18 (@CNBCTV18Live) November 1, 2023

Additionally, Britannia showcased its robust financial performance through an impressive operating margin, as its earnings before interest, depreciation, taxes, and amortisation (EBIDTA) soared to ₹872.4 crore in the September 2023 quarter. This represented an increase of 22.5% when compared to the ₹711.7 crore reported during the same period the previous year.

Despite the positive financial results, the company did face a slight rise in the costs of materials consumed, which increased by 1.6% to ₹2,282.58 crore during the July-September quarter, up from ₹2,245.94 crore in the same quarter the prior year.

On November 1, Britannia shares settled at ₹4,397.30 on the National Stock Exchange (NSE), which was up ₹29.20 or 0.66% lower than the previous day’s close.

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Consumer stock focus: Bullish on Pidilite, Marico upside limited, says Nuvama Instl Equities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pidilite Industries, a manufacturer of adhesives and construction chemicals, may see buying if its stock falls. However, the company will see the full benefit of margin expansion in the financial year 2024. This is likely due to Pidilite’s recent investments in its supply chain and distribution network, which should result in greater efficiency and cost savings. Additionally, Pidilite’s entry into the decorative paints segment reflects a larger trend in the industry.

In an interview with CNBC-TV18, Abneesh Roy, Executive Director of Nuvama Institutional Equities said that Pidilite may see buying if its stock falls.

“The EBITDA growth for Pidilite will be strong. Pidilite has also entered decorative paints, which we think is a step in the right direction. But we don’t think that Pidilite will be spending very high on advertising. It’s just through the existing distribution and channels, they will try to sell incremental paints. It will not be a cutthroat battle with the market leaders,” said Roy.

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In addition to its traditional product lines, Pidilite has also entered the decorative paints segment. This move mirrors the strategy of another consumer goods company, Marico. However, Roy believes that the near-term upside for Marico is limited, and he prefers Britannia over Marico at current levels.

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Talking about Marico, he said, “We like Marico from a longer-term perspective, but given the recent move, the near-term upside will be limited. In fact, we prefer Britannia over Marico given the numbers Britannia reported with 12 percent profit after tax (Pat) growth, but Marico’s margin performance was decent.”

It’s interesting to note how companies in the consumer goods industry are diversifying their product offerings to stay competitive. Pidilite’s entry into the decorative paints segment is just one example of this trend. However, it’s important for investors to consider the potential upside and limitations of these moves when making investment decisions.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Britannia’s pricing-led growth likely to taper off and price cuts may lead to shrinking margin: Analysts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Fast moving consumer goods (FMCG) company Britannia beat CNBC-TV18 poll estimates on most fronts in its earnings for the January to March 2023 quarter, however, missed revenue and volume growth projections.

Britannia saw its sales volumes grow by a percent during the three month period as against the poll expectation of 4-5 percent. The firm’s consolidated net profit rose 47.5 percent year-on-year to Rs 557.60 crore helped by gains from distribution expansion, cost management and softening commodity prices.

Brokerages have a mixed stance on the company following its results. While JPMorgan and Morgan Stanley have raised their target prices on the firm’s stock with neutral and overweight ratings, respectively, CLSA recommends selling the FMCG company’s shares.

JPMorgan said the firm’s gross margin delivery continued to surprise positively, while revenue growth is likely to rebalance ahead. The company expects EBITDA this fiscal to be similar to that of FY23.

The brokerage expects margin to moderate sequentially to 18 percent in FY24 as pricing moderates, brand spends increase and operating income normalises.

Morgan Stanley, meanwhile, believes that Britannia is leading charge on driving distribution, innovation and premiumisation (DIP) led growth in its biscuit and non-biscuit businesses. It sees the focus on top-line growth over margins as a key strategy going ahead.

CLSA is of the view that Britannia’s price-led growth largely in the past and that the firm’s earnings per share growth in the financial 2023-2024 shall lag peers. It noted that revenue growth cooled down in the fourth quarter while margins remained flat sequentially.

The brokerage expects pricing-led growth shall taper off and that the price cuts may lead to a sequential contraction in margins. It, noted that the FMCG firm’s execution remains strong on all fronts but valuations are full at c.45x FY25 EPS.

Macquarie, meanwhile, said Britannia’s sales this fiscal will be led by volume and will be closer to high single digit levels.

It noted that the company guided for a YoY flattish EBITDA margin this year given the need for price cuts. The brokerage said it broadly maintains FY24/25 EPS despite strong gross margin beat in Q4.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Marketbuzz podcast with Ekta Batra: Sensex, Nifty 50 likely to open in green amid positive global cues

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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As the trading week begins on May 8, here are all the cues and news you need to watch out for in trade today.

On Friday, markets recorded what was the biggest single day fall seen in two months as HDFC twins stocks fell sharply. The MSCI rejig news led to a fall of around 6 percent each HDFC and HDFC Bank, which was one of the biggest in three years.

However, overnight, there was some amount of global reprieve. For the US markets on Friday, the Dow jumped 500 points as regional banks and Apple shares surged while April jobs data too was better than expected.

However, Goldman Sachs says that despite the strong jobs data, it still expect a pause from the Fed in the June meet because of the consecutive rate hikes undertaken by the US central bank until now.

Asia was mixed as at the time of recording this podcast with SGX indicating a positive start.

Another positive queue on the fringe is Brent crude which closed down 5 percent last week. It was the third straight negative week for Brent crude.

Overall, while Friday was a weak session, the larger queue for the Indian markets is that the trend seems positive because on a week to day basis, last week, 35 of the 50 stocks recorded gains last week inclusive of the likes of Asian Paints and Titan, which were top gainers.

Listen in to the Marketbuzz Podcast for more cues ahead of today’s trading session

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Britannia Q4 profit jumps 48% YoY to Rs 558 crore; beats estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The FMCG major Britannia Industries reported its quarterly results on Friday, May 5. The consumer goods firm posted a 47.5 percent year-on-year rise in its net profit at Rs 557.6 crore for the January-March quarter (Q4) of the financial year 2022-23. The profit was higher than CNBC-TV18‘s poll of Rs 498 crore.

Revenue from operations came in at Rs 4,023 crore for the reporting period, showing a growth of 13 percent on-year. The revenue is in-line with estimates.

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Britannia’s operating profit, calculated as earnings before interest and tax, depreciation and amortization (EBITDA), came in at Rs 801 crore, while margins were up 20 percent. The company’s volume growth came in at 1 percent as against 4 to 5 percent expected.

“We delivered a robust growth of 11 percent in this quarter on the back of significant distribution gains, which reflects our execution strength across businesses & channels. We continued to accelerate our rural journey with focus on enhancing reach, partnering with 28,000 rural distributors, and sustaining our diligent market practices. Our brand & distribution strength also reflects in the consistent market share gains over the last 10 years,” said Varun Berry, Vice Chairman and Managing Director.

“On cost and profitability front, input prices softened on the back of correction in Palm Oil & Packaging materials, while Flour continued to trend higher. Our intensified cost efficiency program coupled with moderation in commodity inflation led to a healthy operating margin in this quarter,” Berry said.

He further added, “We are being vigilant of the competitive actions in the marketplace and closely monitoring the commodity situation in the country, especially around Wheat and Sugar. We shall deploy appropriate pricing
actions to remain competitive and drive market share growth.”

Despite a on-year rise in input costs, staff, and other expenses, the confectionary and dairy products maker reported a whopping 475 basis points expansion in margins in Q4 to 20.4 percent.

Raw material costs rose around 12 percent YoY to Rs 1,717 crore. Raw materials made up 54 percent of the total expenses in the fourth quarter.

Britannia Industries has an average target price of Rs 4,638.42 per share, implying 0.27 percent upside, according to data from Trendlyne.

Shares of Britannia Industries Ltd climbed 0.89 percent to settle at Rs 4,625.65 apiece in Friday’s trade. On a year-to-date basis, the stock rose 7.77 percent, while it surged 40 percent in the last one year.

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Britannia Earnings Preview: Low raw material costs to aid margin performance

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Britannia Industries will be reporting its March quarter results today. A CNBC-TV18 poll expects revenue growth to be in the mid-teens, while net profit may rise over 30 percent from the same period last year.

On the operational front, it is likely to be a strong performance from the biscuits and confectionary maker.

Britannia is likely to report volume growth of 4-5 percent during the quarter, coupled with a 8-10 percent price mix. Margin expansion of 190 basis points will be aided by lower input costs.

Britannia’s gross margin is likely to expand by 400 basis points this quarter and it is this gross margin expansion, which will aid in the expansion of the company’s operating margin as well.

Britannia’s management told CNBC-TV18 during an interaction in February that it aims to achieve 35 percent of its revenue from the non-biscuit portfolio over the next three years and has a long-term target of 50 percent.

The management said that the new businesses like Biscafe, Golmaal, NC Seeds & Herbs and Marble cake are growing faster than the average rate.

Britannia is aiming to achieve growth in the mid-teens and volume growth of 10 percent for the core business.

Last month, Britannia approved an interim dividend of Rs 72 per share for the financial year that ended on March 31. This is the highest dividend payout by the confectionary company in the past three years.

Shares of Britannia are up 6.7 percent so far this year and are just 3 percent away from their all-time high. At current levels, the stock is trading at 51 times financial year 2024 earnings.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow