Britannia posts 20% yoy rise in Q3FY18 consolidated PAT; dairy business muted

Britannia's consolidated net profit was at Rs 263.65 crore in Q3FY18, rising by 19.60% from Rs 220.44 crore in the corresponding period of the previous year.

Britannia Industries dairy category. Photo: Official Website

FMCG-player Britannia Industries posted double digit year-on-year (YoY) growth in its consolidated net profit during third quarter ended December 2017 (Q3FY18) period.

Britannia's consolidated net profit was at Rs 263.65 crore in Q3FY18, rising by 19.60% from Rs 220.44 crore in the corresponding period of the previous year. Q3FY18 consolidated profit just 1% as against Rs 261.03 crore in the preceding quarter.

Operating profit came in at Rs 366 crore growing by 29% on yearly basis.

Consolidated revenue from operation stood at Rs 2,567.48 crore, witnessing a growth of 9.01% from Rs 2,355.27 crore in Q3FY18 and gradually higher by 0.87% versus Rs 2,545.29 crore in Q2FY18.

Varun Berry, Managing Director at Britannia Industries, said, "We have witnessed positive growth momentum in the domestic market over the last few months. Our double digit domestic growth of 15% for the quarter is backed by a double digit volume growth on the back of investment in brands and widening our distribution network through focus on direct reach, rural and weak markets."

On standalone basis, Britannia's profit and revenue stood at Rs 249.17 crore and Rs 2,411 crore in Q3FY18, increasing by 17.82% and 10.10% respectively on yearly basis.

Talking on international business, Berry says," continued to grow slower on account of deteriorating geopolitical situation and currency fluctuations in geographies like Middle East and Africa."

He said, "While the growth in dairy business has also been subdued, profitability has improved due to our focus on driving products with high profitability and reducing our play in the less profitable commoditized categories."

For nine months’ period of FY18, Britanni's consolidated net profit and revenue now stands at Rs 740.8 crore and Rs 7,452.58 crore, registering rise of 9.96% and 6.34% respectively on yearly basis.

Berry said, "We are actively working on bridging portfolio gaps in our biscuits business and other adjacent macro snacking business opportunities to ensure we stay ahead of market and achieve profitable growth to take our company to next level."