Britannia Inds Q1 PAT down 13% YoY to Rs 337 cr

Britannia Industries' consolidated net profit declined 13.4% to Rs 337.44 crore despite of a 9% increase in net sales to Rs 3,653.80 crore in Q1 FY23 over Q1 FY22.

Total expenditure during the quarter was Rs 3,293.15 crore, which is higher by 12.28% as compared with the same period last year.

Consolidated operating profit for the quarter was Rs 450 crore. Operating margin declined to 12.15% in Q1 FY23 as against 14.84% in Q1 FY22. Profit before tax in Q1 FY22 stood at Rs 463.16 crore, up by 12.8% from Rs 531.18 crore in Q1 FY22.

Varun Berry, managing director, said, We have been delivering consistent topline growths in this challenging economic environment, reflecting our team's execution strength & Go-To-Market strategy and evident in our consistent market share gain over the last 36 quarters. Our rural footprint witnessed further additions and we now reach approximately 27,000 rural preferred dealers, which also reflects in rural market share gain being better than urban.

On cost & profitability front, global factors continued to impact the economy, which led to further surge in inflation during the quarter. Certain commodities, relevant to bakery business, such as wheat & industrial fuel witnessed steep sequential inflation during the quarter ranging between 15 and 20%. While we actioned necessary price increases to cover this, the full impact of price correction should reflect in the ensuing quarter. Further, drop in prices of some of the commodities like palm oil & crude along with our intensified cost efficiency program should help sustain & improve profitability in the coming quarters.

We stay committed to our ESG framework of people, growth, governance and resources and are happy to inform that we have achieved 100% plastic waste neutrality. We shall continue to focus on our ESG initiatives to build a sustainable profitable business.

Britannia Industries is one of India's leading food companies. Its product portfolio includes biscuits, bread, cakes, rusk, and dairy products including cheese, beverages, milk, and yogurt.

The scrip shed 0.60% to Rs 3755.05 on the BSE.

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