Britannia Q2 Results Net Profit dips 9.4% YoY

Breads, biscuits, and dairy products are sold by Britannia Industries Limited, a multinational Indian food products company. Founded in 1892, it is one of the oldest companies still in operation in India and is a part of the Wadia Group, which is headed by Nusli Wadia. By 2023, around 80% of its total revenue came from biscuit products.

A decrease in Britannia Industries Ltd.’s profits

The net profit for the second quarter, which ended on September 30, 2024, dropped 9.4% year over year (YoY) to Rs. 531.6 crore, according to a statement released by major bakery company Britannia Industries Ltd. on Monday, November 11.

Britannia’s Q2 FY25 result summary

Britannia Industries reported a net profit of Rs. 586.5 crore in the same quarter of the previous fiscal year, according to a regulatory filing made by the business. Operational revenue for the company climbed 5.3% to Rs. 4,667.6 crore from Rs. 4,433 crore in the previous year. EBITDA decreased 10.2% at the operating level to Rs. 783.4 crore in the second quarter of this fiscal year compared to Rs. 872.4 crore in the second quarter of FY24.

The EBITDA margin for the reporting quarter was 16.8%, down from 19.7% during the same period in the prior fiscal year. Earnings before interest, taxes, depreciation, and amortization is known as EBITDA. For the September quarter, Britannia reported consolidated sales of Rs. 4,566 crore, representing a 4.5% YoY increase. While profit after taxes increased by 5.1%, consolidated sales increased by 10.6% on a quarterly basis. Consolidated sales increased 4.3% for the six-month period ending September 30, 2024, but profit after tax decreased 0.8% from the prior year.

Managing Director and Vice Chairman Varun Berry’s statement following the Q2 FY25 results

Vice Chairman & Managing Director Varun Berry stated: “In the face of severe commodity inflation that has resulted in a tepid consumer demand scenario in most FMCG categories, an 8% volume growth accompanied by a sequential increase in revenue and operating profits is a satisfactory result.”

We showed flexibility in starting targeted pricing actions and finding new levers for cost optimization throughout the value chain in the face of the sharp increase in the prices of important commodities like wheat, palm, cocoa, etc. We were able to sustain a healthy operating margin of 15.5% throughout the quarter as a consequence.

Today, Britannia’s stock dropped

The stock is currently trading at Rs. 5,250.50 per share, with a low trade of Rs. 5,213.00. Britannia’s decline was over 5% at the beginning of the day, and this is due to the Q2 FY25 results.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.