Britannia Industries Q2 falls short of estimates; revenue up 5%, net profit dips 9%

Bakery major Britannia Industries Ltd on Monday (November 11) reported a 9.4% year-on-year (YoY) dip in net profit at ₹531.6 crore for the second quarter that ended on September 30, 2024.

In the corresponding quarter of the previous fiscal, Britannia Industries posted a net profit of ₹586.5 crore, the company said in a regulatory filing. The CNBC-TV18 poll had predicted a profit of ₹616 crore for the quarter under review.

The company's revenue from operations increased 5.3% to ₹4,667.6 crore against ₹4,433 crore a year ago. The CNBC-TV18 poll had predicted revenue of ₹4,697 crore for the quarter under review.

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At the operating level, EBITDA fell 10.2% to ₹783.4 crore in the second quarter of this fiscal over ₹872.4 crore in Q2 of FY24. The CNBC-TV18 poll had predicted an EBITDA of ₹890 crore for the quarter under review.

The EBITDA margin stood at 16.8% in the reporting quarter compared to 19.7% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation. The CNBC-TV18 poll had predicted a margin of 18.9% for the quarter under review.

Britannia reported consolidated sales of ₹4,566 crore for the September quarter, marking a 4.5% YoY increase. Quarter-over-quarter, consolidated sales rose by 10.6%, while profit after tax increased by 5.1%.

For the six-month period ending September 30, 2024, consolidated sales saw a 4.3% increase, although profit after tax declined by 0.8% compared to the previous year.

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Varun Berry, Vice Chairman & Managing Director, said, "An 8% volume growth with a sequential increase in revenue and operating profits are satisfactory results in the face of severe commodity inflation leading to a tepid consumer demand scenario in most FMCG categories.

In the context of steep rise in prices of key commodities such as wheat, palm, cocoa etc, we demonstrated agility in initiating focused pricing actions and identifying new levers for cost optimisation across the value chain. As a result, we maintained a healthy operating margin of 15.5% during the quarter."

The results came after the close of the market hours. Shares of Britannia Industries Ltd ended at ₹5,425.30, up by ₹323.35, or 5.62%, on the BSE.