NEW DELHI: Fast-moving consumer goods maker Britannia Industries on Friday delivered a strong performance driven by cost cutting, robust sales and operational growth. The company reported a massive 117 per cent increase in consolidated net profit for the first quarter of FY21, ended June. Profit rose to Rs 545.7 crore, compared to Rs 251.03 crore in corresponding period last fiscal.
Revenue from operations jumped 26.7 per cent year-on-year to Rs 3,420.67 crore. "Given the dynamic nature of the pandemic and associated uncertainty, we were quick to resort to cost efficiencies through extraction of supply chain efficiencies, reduction in wastages and fixed costs leverage. We also rationalised media spends considering the constraints of inventories due to higher market demand. These measures helped us improve the shape of our business and record a massive increase in operating profit during the quarter," Varun Berry, Managing Director said.
Britannia's domestic volume growth at 22 per cent in the June quarter as compared to low single-digit growth reported in the last few quarters. In June quarter 2019, domestic volume growth was at three per cent.
Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew sharply by 81.6 per cent year-on-year to Rs 717 crore and margin expanded 640bps YoY to 21 per cent in quarter ended June 2020.
Numbers beat analysts' estimates on all parameters. "This is possibly the best ever metrics --- highest sales and highest EBITDA margin of 21 per cent," Edelweiss Securities said. The country's largest biscuit maker also managed to buck up the trend of demand disruptions as consumer staples' segment was the least affected during the lockdown period and there was also huge surge in in-house consumption trends.
Berry added: "On the cost front, we witnessed moderate inflation in the prices of key raw materials and expect the prices to be stable going forward given the positive outlook on monsoon & harvest."
After the lockdown easing, Britannia said it also launched 'Winkin Cow Lassi' and a Rs 5 Layer cake pack to expand its reach. "All the adjacent businesses too delivered a healthy profitable growth," the company added.