Britannia Industries shares rise up to 10% on expansion of market share in Q4FY24

Britannia Industries Ltd shares gained nearly 10% on Monday, May 6, after the company reported a revival in market share in the fourth quarter of the financial year 2023-24.

Shares of the FMCG giant gained as much as 9.71% to an intraday high of ₹5,205.45 per piece on the NSE on Monday, after the company reported its financial results for the quarter and year ended on March 31, 2024.

The leading Fast Moving Consumer Goods (FMCG) manufacturer witnessed its stock price soaring to the highest level in three months despite declining over 6% so far in 2024. The stock climbed over 4.3% in the past week. The company’s market capitalisation has surpassed ₹1.22 lakh crore with the recent rally in the share price.

Britannia Industries reported a consolidated net profit of ₹536.61 crore for the quarter ending in March 2024, down 3.76% on a year-on-year (YoY) basis from ₹557.6 crore in the same period a year ago. The bottomline also fell from ₹555.66 crore witnessed in the preceding quarter.

The company’s total revenue from operations gained slightly by 1.14% to ₹4,069.36 crore in the final quarter of FY24 as compared to ₹4,023.18 crore in the year-ago period, while dipping significantly from ₹4,256.33 crore in the December 2023 quarter.

The FMCG giant’s operating margin also declined to 17.29% in the quarter ended in March 2024 from 18.38% in the same quarter of the previous fiscal year. On the other hand, the net profit margin dropped to 13% from 13.67% in the year-ago period.

However, despite poor numbers, Britannia Industries witnessed a revival in its market share during the March-ended quarter, led by the pricing action conducted by the company to remain competitive, along with increased investments in brands supported by distribution expansion.

The company’s executive vice chairman and managing director, Varun Berry stated in the earnings conference call that Britannia is expected to multiply its adjacent business revenues through route-to-market 2.0, which is set to take off in the second half of the ongoing financial year.

The mega-cap company has recommended a final dividend of ₹73.5 per share of Re 1 each for the financial year 2024, which will be declared at its 105th Annual General Meeting (AGM).

Shares of Britannia Industries closed 6.6% higher at ₹5057 apiece on the NSE.