The net profit 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%.

The consolidated sales for the nine months ended 31 December 2022 grew 16% to Rs 12,093-crores, operating profit grew 24% to Rs 1,869-crores and net profit (including exceptional item) grew 54% to Rs 1,763-crore.

Varun Berry, vice-chairman and managing director, Britannia, said, “We have witnessed positive growth momentum over the last few quarters. Our go-to-market strategy and investments in brands and innovation have helped us register a robust topline growth of 16% YoY. Our growing consumer franchise and brand strength is evident in the consistent market share gains over the past 39 quarters. Continued focus on enhancing direct reach coupled with Rural agenda has helped us deliver solid growths over the past few quarters.”

He said that the company supported its brands and innovations with the requisite investments in the digital and mass media space. “We expanded the footprint of a few of our adjacent categories including croissants and cakes and made entries into new categories. As a part of continuous improvement, we relaunched products like Pure Magic Chocolush and Rusk with improved recipes. Some of our new launches like Biscafe, Golmaal, NC Seeds and Herbs and Marble cake have done extremely well & continue to grow aggressively quarter on quarter,” he added. 

On the cost and profitability front, Berry said the company’s pricing actions and intensified cost efficiency programme helped mitigate the inflation. On the back of opportunistic buying and moderation in inflation this quarter, the company’s operating margins improved by 330 basis points. We are being vigilant of the competitive actions in the marketplace and shall deploy appropriate pricing actions to drive market share.

“In line with our ambition to become a responsible total foods company, we entered into a strategic partnership with Bel, the renowned French cheese maker, to offer Indian consumers a world-class range of nutritious, delicious and accessible cheese products. Cheese is an under-penetrated category and this partnership will help us expand the nascent but fast-growing cheese category in India and is a leader in fulfilling evolving consumer needs,” he added.

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