Britannia Industries on Wednesday reported a 60 per cent year-on-year (YoY) increase in consolidated net profit at Rs 932.40 crore for the third quarter ended on 31 December, compared to the same quarter last year at Rs 369.18 crore.
Company’s consolidated sales grew 16 per cent to Rs. 4,101 crore for the quarter gone by, as per the company regulatory filing.
Its operating profit grew 55 per cent to Rs. 760 crore and Net Profit grew 151 per cent to Rs. 932 Crores.
“The Net Profit includes an exceptional gain (net of tax) of Rs. 359 Crores, pursuant to a Joint Venture agreement with Bel SA for the Cheese business and consequent sale of 49 per cent equity stake in its subsidiary & fair valuation of the residual stake of 51 per cent,” read the company’s filing.
Britannia Industries’ total costs in the third quarter of FY23 were Rs 3,475.31 crore, up 11.28 per cent from Rs 3,123.02 crore in the same time the previous year.
Commenting on the performance, Varun Berry, Vice Chairman & Managing Director, said “We have witnessed positive growth momentum over the last few quarters.”
“Our growing consumer franchise and Brand strength is evident in the consistent market share gains over the past 39 quarters. Continued focus on enhancing direct reach coupled with Rural agenda have helped us deliver solid growths over the past few quarters,” he added.
The company relaunched products like Pure Magic Chocolush & Rusk with improved recipes. Some of its new launches like Biscafe, Golmaal, NC Seeds & Herbs and Marble cake have done extremely well & continue to grow aggressively quarter on quarter, he said.
“On the back of opportunistic buying and moderation in inflation this quarter, our operating margins improved by 330 Bps. We are being vigilant of the competitive actions in the marketplace and shall deploy appropriate pricing actions to drive market share,” he said
The company entered into a strategic partnership with Bel, the renowned French cheese maker, to offer Indian consumers a world-class range of nutritious, delicious and accessible cheese products, Berry said.
“Cheese is an under-penetrated category and this partnership will help us expand the nascent but fast growing cheese category in India and being a leader in fulfilling evolving consumer needs,” he added.
Britannia Industries shares closed 1.19 percent higher at Rs 4,369.30 on the BSE on Wednesday.