Britannia Industries: Q1FY15 Result Analysis

Britannia Industries posted consolidated net sales of Rs 1772.63 crore in the quarter ended June 2014 as compared to Rs 1539.62 crore posted in June 2013, registering a growth of 15%. The cost of raw materials consumed by the company came in at Rs 948 crore in the current quarter as against Rs 778.5 crore in the same quarter last year. The advertisement and sales promotion expense in the current quarter came down to Rs 138.43 crore against Rs 147.11 crore last year. However, the total expenses jumped by 15% to reach Rs 1649 crore in the current quarter from Rs 1433 crore in June 2013.

EBITDA of the company went up by 23% and came in at Rs 169.6 crore in June 2014 as compared to Rs 137.7 crore in June 2013. While the EBITDA margin stood at 9.56% in the current quarter against 8.9% in the same quarter last year. The net profit was helped by higher revenue and higher operating profit, despite higher raw material cost and stood at Rs 113.66 crore in the current quarter against Rs 89.49 crore in the same quarter last year, registering a growth of 27%.

Commenting on the performance, Varun Berry, Managing Director, Britannia Industries said “Our results are a reflection of our focus on driving consumer off-take & leveraging fundamental levers of operations to generate sustainable and profitable growth. Our team of passionate Britannias is creating a solid infrastructure and culture to take the business to new heights. Our approach is to build each element of the business block by block.”