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Britannia Industries Q4FY23 PAT up 47% yoy at Rs559 crore on sales growth and significant distribution gains

May 5, 2023

By: BlinkX Research Team

Britannia Industries reported 13.3% growth in total revenues for the March 2023 quarter on consolidated basis at Rs4,023cr. On a sequential basis, the revenues were lower by -4.14%. The company also reported a growth of 47% in the operating profits for the quarter on a yoy basis. The company enhanced its rural reach in the quarter partnering with over 28,000 rural distributors. The company has made consistent market share gains in last 10 years.

The company had some benefits on the cost front. Input prices softened in the quarter with a sharp correction in palm oil and packaging material. Britannia has also implemented a cost efficiency program to squeeze more out of the distribution channels and to also reduce the inventory costs. However, the company did see spike in price of inputs like wheat and sugar.

Financial highlights for Mar-23 compared yoy and sequentially

On a yoy basis, Britannia saw expansion in OPM from 14.05% to 18.38% while the net profit margins expanded from 10.7% to 13.9%. the sharp fall in profit on a sequential basis is more due to the exceptional gains in the sequential quarter. In December 2022, the company had booked exceptional gains of Rs376 crore on account of the sale of the dairy products business to BEL SA of France.