Britannia Q2 Profit Jumps 23% to Rs 655 Crore, Beats Estimates
Britannia Industries delivered strong September-quarter results with profit surging 23.1% year-on-year to Rs 654 crore, significantly exceeding analyst expectations. The biscuit major’s performance was driven by stable commodity costs and operational efficiencies, though revenue growth remained subdued due to GST transitional challenges.
Key Takeaways
- Net profit rose 23.1% to Rs 654 crore, beating estimates of Rs 592 crore
- EBITDA grew 21.8% to Rs 955 crore with margins expanding to 19.7%
- Revenue increased 3.7% to Rs 4,841 crore, below street expectations
- Company appoints Rakshit Hargave as new CEO effective December 15
Strong Financial Performance
Britannia’s consolidated EBITDA reached Rs 955 crore in Q2 FY25, well above Bloomberg consensus estimates of Rs 855 crore. The company’s EBITDA margins expanded significantly by 290 basis points to 19.7% compared to 16.8% in the same quarter last year.
Varun Berry, Executive Vice-Chairman, MD & CEO, attributed the profit growth to “sustained efforts to optimise costs across the value chain.” He confirmed that GST-related transitional issues would normalize in the third quarter.
“The recent GST rate rationalisation will stimulate consumer demand and uplift the overall economic sentiment in the country. But transitional challenges arising from the GST rate changes in the supply chain, trade, and channels had a short-term impact on business,” Berry stated.
Growth Strategy and Market Position
Looking forward, Britannia aims to drive business through volume-led growth while strengthening its presence across different geographies. The company plans to implement regional, consumer-centric product and distribution strategies while ensuring competitive pricing.
Berry emphasized the company’s focus on leveraging its brand strength to sustain market leadership amid growing competition from local players across various states.
Analysts have noted that local competition may intensify in an environment of benign commodity prices, potentially putting pressure on established FMCG players like Britannia.
New Leadership Appointment
In a significant development, Britannia announced the appointment of FMCG veteran Rakshit Hargave as its new CEO, effective December 15. The board of directors approved Hargave’s appointment for a five-year period.
Hargave, currently serving his notice period at Birla Opus where he was CEO, will exit that company on December 5. During his tenure at Birla Opus (owned by Grasim Industries), he led the company to the number two position in decorative paints with a 24% capacity share.
