Britannia Q2 up 12.5% on higher demand
Britannia has stepped up its focus in the rural markets over the last few years.
Biscuit maker Britannia reported a 12.5% rise in net profit in the second quarter helped by a return of consumer demand post the implementation of the Goods and Services Tax (GST) in July.
Net profit rose to Rs 262 crore, for the quarter ended September 30, from Rs 232.7 crore, a year earlier. Revenue rose 4.36% to Rs 2,536 crore. Margins rose 116 bps to 15.1%.
"Trade channels have normalised post GST and we are witnessing improved consumer off-take. Mid-single digit volume growths on the back of investment in brands and widening our distribution network through focus on direct reach, rural market and weak states," managing director Varun Berry said.
The maker of Bourbon and Good Day biscuits has stepped up its focus in the rural markets over the last few years to drive growth and sustain market share. The company is also working on filling gaps in its portfolio and will launch a host of new products, such as Treat Chocolate & Vanilla and Good Day Wonderfulls which were launched last quarter.
Key raw material prices remained stable in the quarter which helped the company improve margins while international business grew in spite of deteriorating geopolitical climate in regions like the Middle East and Africa.
The company added it will set up an integrated food park at Ranjangaon, Maharashtra by investing Rs 1,000 crores in the next three years to make biscuits, cake, rusks and croissants. It will also set up a dairy plant there and a facility in Mundra, Gujarat for servicing market from India and operations in Nepal for local servicing.
Net profit rose to Rs 262 crore, for the quarter ended September 30, from Rs 232.7 crore, a year earlier. Revenue rose 4.36% to Rs 2,536 crore. Margins rose 116 bps to 15.1%.
"Trade channels have normalised post GST and we are witnessing improved consumer off-take. Mid-single digit volume growths on the back of investment in brands and widening our distribution network through focus on direct reach, rural market and weak states," managing director Varun Berry said.
The maker of Bourbon and Good Day biscuits has stepped up its focus in the rural markets over the last few years to drive growth and sustain market share. The company is also working on filling gaps in its portfolio and will launch a host of new products, such as Treat Chocolate & Vanilla and Good Day Wonderfulls which were launched last quarter.
Key raw material prices remained stable in the quarter which helped the company improve margins while international business grew in spite of deteriorating geopolitical climate in regions like the Middle East and Africa.
The company added it will set up an integrated food park at Ranjangaon, Maharashtra by investing Rs 1,000 crores in the next three years to make biscuits, cake, rusks and croissants. It will also set up a dairy plant there and a facility in Mundra, Gujarat for servicing market from India and operations in Nepal for local servicing.
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