About the company:
Britannia Industries Limited is one of India’s leading food and beverage companies, specializing in biscuits, dairy products, cakes, and bread. Headquartered in Bengaluru, the company has a strong brand portfolio, including Good Day, Marie Gold, Bourbon, Little Debbie, and Winkin’ Cow. Britannia has a pan-India distribution network and exports to over 75 countries. With a focus on innovation, premiumization, and health-oriented products, Britannia continues to expand its market presence in both domestic and international segments.
Key Business Updates
High Inflation Challenges:
Food inflation at double digits, with key inputs like palm oil (+43%) and cocoa (+103%) driving costs.
Commodity cost inflation at 11%, mitigated partially by forward buying strategies.
Implementing price increases (~6.5%) to offset rising input costs.
Distribution & Expansion:
Direct reach expanded to 28.8 lakh outlets (from 27.9 lakh in March 2024).
Rural distributor base grew to 31,000 (from 30,000).
E-commerce & Modern Trade contributing more to sales, led by premiumization efforts.
New Product Innovations & Adjacencies:
Pure Magic Choco Frames (Harry Potter-themed product) launched for e-commerce & modern trade.
Rusk ₹5 pack launched to penetrate lower price segments.
Winkin’ Cow Grow (fortified milk) introduced in the dairy segment.
Triple Chocolate Croissant & New Cake Portfolio Relaunch in progress.
Cost Leadership & Efficiencies:
Achieved 2.5% revenue savings through cost efficiency initiatives.
Targeting further 2.5%+ cost reductions in FY26.
Strategic Focus & Outlook
Market Share Stability: Volume growth in line with revenue (~6%), indicating stable pricing strategy.
Pricing Strategy Adjustments:
Cumulative 6.5% price hikes planned by Q1FY26.
Competitive pricing pressure from local & national players.
Capex Plans:
Lower capex (~₹150-200 Cr) in FY26, as major expansions were completed in recent years.
Non-Biscuit Portfolio Growth:
Croissants & dairy products growing in high double digits.
Non-biscuit portfolio targeting 15-20% revenue contribution in the long term.
Here is Britannia Industries’ financial performance for the last three quarters (Q3FY25, Q2FY25, and Q1FY25):
| Metric | Q3FY25 | Q2FY25 | Q1FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | ₹4,196 Cr | ₹4,015 Cr | ₹3,905 Cr |
| Profit After Tax (PAT) (₹ Cr) | ₹590 Cr | ₹564 Cr | ₹550 Cr |
| EBITDA (₹ Cr) | ₹713 Cr | ₹678 Cr | ₹660 Cr |
| EBITDA Margin | 16.9% | 16.8% | 16.9% |
| Gross Margin | 38.5% | 38.2% | 38.7% |
| EPS (₹) | ₹4.36 | ₹4.17 | ₹4.08 |
| Revenue Growth (YoY) | 6.5% | 5.8% | 5.3% |
| PAT Growth (YoY) | 4.8% | 4.2% | 3.9% |
| Market Share | Flat YoY | Stable | Stable |
| Price Hike Impact (%) | ~2% implemented | ~1.5% implemented | No major hikes |
Recent updates:
Highlights from last concall:
Financial Performance Highlights
Revenue Growth: 6.5% YoY
Profit After Tax (PAT): 4.8% growth
Operating Profit Growth: 3%
EBITDA Margin: Stable at ~16-17% despite inflationary pressures
EPS (Earnings Per Share): ₹4.36
Market Share: Flat YoY, but improving towards Q4 exit