Britannia reports 47% net profit in Q4

The consolidated sales for the full year ended 31 March 2023 grew 15% to Rs 15,985-crore, operating profit grew 30% to Rs 2,605-crore and net profit (including exceptional items) grew 46% to Rs 3,033-crores. Net profit for the year includes an exceptional gain (net of tax) of Rs 359-crore, pursuant to a joint venture agreement with Bel SA for the cheese business and consequent sale of 49% equity stake in its subsidiary and fair valuation of the residual stake of 51%.

Varun Berry, vice-chairman and managing director, Britannia, said: “We delivered a robust growth of 11% in this quarter on the back of significant distribution gains, which reflects our execution strength across businesses and 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 and distribution strength also reflects in the consistent market share gains over the last 10 years. We supported our brands and innovations with the requisite investments in the digital and mass media space. We further expanded portfolio of few of our adjacent categories including milk shakes (in aseptic PET bottles) and croissant.”

He added that the company has progressed well in its journey of building technologically superior factories. “In this context, I am pleased to announce commercialisation of two biscuit greenfield units in this quarter – in Uttar Pradesh and Tamil Nadu and brownfield expansion in Orissa. We also commercialised three new lines of rusk this quarter. This is in line with our strategy to make in-house, our exclusive range of products, and further enhance productivity. We efficiently scaled-up the capacity of our drinks and other dairy lines to better leverage seasonal opportunities and enhance supplies to bakery division for captive consumption.”

On the sustainability front, Berry said the company stayed committed to its ESG framework of people, growth, governance and resources and shall continue to focus on our initiatives to build a sustainable profitable business.