Britannia Industries Limited is an Indian multinational food company that produces biscuits, bread, and dairy products. Established in 1892, it is one of the oldest companies in India and is currently part of the Wadia Group, led by Nusli Wadia. By 2023, approximately 80% of the company’s revenue was generated from its biscuit products.
Britannia Industries Ltd. has started to raise prices by 3-5% on some of its products, effective from the third quarter of fiscal 2025. During an analyst call, the company highlighted the significant increase in inflation, particularly in flour and cocoa prices.
Additionally, the recent increase in import duties on palm oil has led to nearly a 40% rise in consumer costs for this ingredient, as noted by Britannia’s Chief Executive Officer, Rajneet Singh Kohli.
Kohli explained that the company is actively working to manage escalating costs through various cost-optimisation initiatives. He mentioned that Britannia is striving to prevent the entire burden of commodity price increases from being passed on to consumers.
“However, it’s clear that price increases in certain areas are unavoidable. We have discussed a 3-5% price rise, which may not suffice to cover the inflation-related costs. The key point here is that these price increases will be implemented in phases, with some already commencing in December,” he stated. “These adjustments are being introduced gradually, with additional changes expected in the fourth quarter of this financial year.”
The Q2 FY25 results for Britannia Industries Limited revealed a 5.3% increase in revenue year-on-year, reaching ₹4,667.57 crore, bolstered by an 8% growth in volume despite challenges such as rising commodity prices. However, the profit after tax (PAT) fell by 9% to ₹531.55 crore due to higher input costs and a decline in consumer demand.
The company’s operating margin stood at approximately 15.5%, bolstered by effective cost management measures and pricing strategies. Additionally, Britannia has made headway in its distribution approach and has seen growth in sectors such as croissants, milkshakes, and wafers, aligning with its ambition to evolve into a “Total Global Foods Company.”
At 3:07 PM on the NSE, the share price of Britannia Industries Ltd. had fallen by over 1% to ₹4826.80.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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