Britannia Consolidated Revenue Grows 10 percent and Profit from Operations Increases 57 percent in Q3

Mumbai / IN. (bil) Britannia Industries Limited (BIL), India’s leading food company, in February reported Consolidated revenue growth of 10 percent in Q3 and 12 percent for the nine months at 2’224 INR crores and 6’417 INR crores respectively. Consolidated Profit from operations increased 57 percent in Q3 and 65 percent for the nine months at 294 INR crores and 853 INR crores respectively. Consolidated Net Profit increased 51 percent in Q3 and 18 percent for the nine months at 208 INR crores and 616 INR crores respectively. Excluding the one-time profit on sale of land and building in Q2 of the previous year of 124 INR crores (post-tax), Net Profit for the nine months increased 55 percent.

On a standalone basis, revenue growth of 11 percent in Q3 and 12 percent for the nine months at 2’032 INR crores and 5’875 INR crores respectively. Profit from operations increased 66 percent in Q3 and 69 percent for the nine months at 280 INR crores and 801 INR crores respectively. Net Profit increased 61 percent in Q3 and 17 percent for the nine months at 193 INR crores and 565 INR crores respectively. Excluding the one-time profit on sale of land and building in Q2 of the previous year of 124 INR crores (post-tax), Net Profit for the nine months increased 58 percent.

Commenting on the performance, Varun Berry, Managing Director, said, «Our strategy of focussing on execution and commercializing potential consumption opportunities helped us deliver double digit revenue growth. This was made possible by the hard work and determination of our passionate and motivated team of Britannians. We achieved this in a sluggish demand scenario aggravated by floods in Tamilnadu and a dampened Diwali. Our initiatives to make in-roads in our weak states have progressed very well and helped us bolster the growth. The growth in the quarter and nine months ended December’ 2015 was impacted by approximately 100 bps due to phasing out of Excise Duty incentives available to the Company. While, the prices of key commodities started trending upwards, we continued to offer more value to our consumers in terms of organoleptically superior and competitively priced products which helped us deliver double digit volume growth. We have accelerated our innovation and premiumization drive which we believe would help drive consumer off-take and gain long term consumer loyalty, affinity and demand. In this regard, I am pleased to announce the launch of another delightful product from our stable called Pure Magic Deuce which is currently being test marketed in Bangalore. We have pursued our endeavour to strengthen our back end by setting up state of the art R+D centre which has the capability of delivering innovative and superior products for our consumers and technological superior factories which would help us realize economies of scale and enhance supply chain efficiencies. In this context, I am pleased to announce that our new factory and R+D centre in Karnataka is nearing completion and is expected to be commercialized soon. We strongly believe that our initiatives in building future-ready capability along with tight control on all elements of cost shall help us in delivering profitable revenue growth for our Company going forward».