Britannia profits soar 67%

Biscuit maker Britannia Industries has reported a 67 per cent rise in net profits for the April-June 2015 quarter at ~190 crore, compared with ~114 crore in the year-ago quarter, on the back of improved consumer off-take and operational efficiencies.

Income from sales increased 13 per cent to ~2,003 crore in the quarter under review, while revenues, including other operating income, stood at ~2,019 crore. The company had registered revenues of ~1,787 crore in the April-June 2014 quarter.

“Our results are a reflection of our focus on driving consumer offtake and operational efficiencies to generate sustainable and profitable growth, despite the slowdown that is being witnessed in the FMCG (fast-moving consumer goods) sector,” Varun Berry, managing director of Britannia, said in a statement.

The Britannia stock closed at ~3,177.40 a share on Tuesday on the BSE, up 1.34 per cent from the previous close.

Volumes increased as the company passed on the benefit from lower commodity prices to consumers, and sold more biscuits.

The company is pushing for higher premium products such as Good Day, while consolidating its volume brands. It launched ‘Pure Magic Chocolush’ a premium product, during the quarter under review.

“We’ve passed off the benefits of benign commodity prices and made our brands more affordable to the consumers. We continued our efforts to expand our distribution footprint and ensure efficiency in operations through reduction in wastages and tight management of fixed costs,” Berry said in the statement. In February, Britannia had said it had increased its distribution both in the urban

and rural markets.