Britannia Q1 net profit surges 11% YoY to Rs 524 crore, misses street estimates

Britannia Q1 earnings: Britannia Industries has released its earnings for the first quarter of the current financial year (Q1FY25), reporting a net profit of Rs 506 crore compared to 458 crore reported in the same quarter last fiscal (Q1FY24)

The country’s FMCG major has missed the street estimates as the branded consumer goods makers face tough competition from smaller rivals that offer cheaper alternatives.

Britannia’s revenue for the quarter has risen by 6 per cent to Rs 425 crore during Q1FY25, declining from a more than 8 per cent rise in the corresponding quarter in the last fiscal.

The total expense of the company has recorded a 4.5 per cent rise as the company battles a consumption slowdown, particularly in the rural markets.

For the first quarter of the fiscal, the consumer goods makers have reported mixed results.

Reacting to the quarterly results of the company Varun Berry, Vice Chairman & Managing Director, Britannia Industries said, “We come out of a challenging financial year that witnessed consumption slowdown, particularly in Rural India. Our performance this quarter reflects the agile approach to a dynamic market environment and diligent market practices. We delivered a modest revenue growth of 4 per cent during the quarter, driven by high single-digit volume growth, and improved operating margins over last year.

Berry remarked that the company’s market share has progressed well due to sustained investments in brands, product improvement, and innovation. 

“We continue to make positive strides in Rural as we expand our distribution footprint and enhance product offerings to align with regional preferences, and well positioned to benefit from the consumption growth in Rural,” added Berry. 

In the earnings release, Britannia also shared that it is actively leveraging the growing trade and e-commerce channels to boost sales and also introduced Pure Magic Stars and Golmaal variants during the quarter, which have contributed to heightened consumer excitement. 

Berry in his official statement also talked about the Cost & Profitability front. He said, “We remain vigilant of the commodity price fluctuations and evolving geopolitical landscape. Our Cost Efficiency Program continues to yield operational savings, ensuring robust operating margins. We are committed to investing in capability enhancement and brand development while maintaining price competitiveness with the clear objective of driving market share and sustaining profits.” 

On August 2, the share of Britannia Industries settled at 0.39 per cent up at Rs Rs 5,751 apiece.