Bakery food company Britannia Industries on Thursday said its consolidated net profit fell 13.24 per cent to Rs 335.74 crore in the April-June quarter of FY23 due to impact of inflationary headwinds.
The company had posted a net profit of Rs 387.01 crore in the April-June quarter a year ago, Britannia Industries said in a BSE filing.
However, its total revenue from operations increased 8.74 per cent to Rs 3,700.96 crore during the quarter under review as against Rs 3,403.46 crore in the year-ago period.
Britannia Industries’ total expenses were at Rs 3,293.15 crore in the first quarter of FY23, up 12.28 per cent from Rs 2,932.96 crore in the year-ago period.
Britannia Industries Managing Director Varun Berry said on the cost and profitability front, global factors continued to impact the economy, which led to a further surge in inflation during the quarter.
“Certain commodities relevant to bakery business such as wheat and industrial fuel witnessed steep sequential inflation during the quarter ranging between 15 and 20 per cent. While we actioned necessary price increases to cover this, the full impact of price correction should reflect in the ensuing quarter,” he said.
However, Berry also added the company has been delivering consistent top line growths in this challenging economic environment, reflecting its execution strength and go-to-market strategy. It is also evident in its consistent market share gain over the last 36 quarters, he added.
“We continue to expand our market leadership through reach and diligent market practices. Our rural footprint witnessed further additions and we now reach 27,000 rural preferred dealers, which also reflects in rural market share gain being better than urban,” he said.
Berry also said that a drop in prices of some of the commodities like palm oil and crude along with its cost efficiency programme should help sustain and improve profitability in the coming quarters.
Shares of Britannia Industries Ltd on Thursday settled at Rs 3,777.60 on BSE, 0.23 per cent higher than the previous close.
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