Britannia surges on robust Q2 performance | Stock Market LIVE Updates
5 mins • Updated: November 2, 2023, 11:17 AM
Shares of the FMCG company are up 3.5% after its Q2 profit surpassed the street estimate. In the September quarter, the net profit rose by 19.5% year-on-year to ₹586 crore. The management said that the commodity prices have started to soften this quarter.
Britannia shares surge on robust Q2 performance
Shares of the FMCG company are up 3.5% after its Q2 profit surpassed the street estimate. In the September quarter, the net profit rose by 19.5% year-on-year to ₹586 crore. In the same period, the company’s total revenue also rose 1.2% to ₹4,432 crore.
Britannia's net profit was higher than the street expectations of ₹549 crore. However, the revenue was lower than the market estimate of ₹4,474 crore.
Costs of materials increased marginally by 1.6% to ₹2,282 crore in the September quarter. This gave a boost to the company’s profitability. The company's operating margin stood at 18% in Q2FY24, compared to 15% percent in Q2FY23.
The management said that the commodity prices have started softening in the September quarter. And, in a bid to remain competitive, Britannia took strategic price cuts in some of its key brands. This helped the company to recover market share.
But, the management also highlighted that the global commodity prices remain volatile amid rising geopolitical tensions. “We are being watchful of the situation and its impact on our business,” said the management.
Commenting on Q2 performance, the management said, “We delivered a good performance in a challenging environment on the back of 2 years of high inflation. Our innovation this quarter was led by Jim Jam Pops and 50-50 Golmaal, delivering a robust performance.” It added that Britannia has launched differentiated cheese formats this quarter making focused inroads to retail shelves.
The management also said that it is looking to make deeper inroads in rural India. “Our potential in rural areas continues to remain high and hence, expansion in rural distribution continued despite reported rural slowdown,” said the management.
November 2, 2023 11:17 AM