Britannia on Thursday reported a 14% year-on-year (Y-o-Y) decline in consolidated profit after tax (PAT) at Rs 336 crore for the June quarter of FY23. The profit dropped 11.6% on a sequential basis—the profit for the quarter missed by 18%. The company reports that consolidated revenue increased 8.7% year on year to Rs 3,701 crore. On a sequential basis, the revenue grew 4.2%.
According to the company’s MD Varun Berry, “We have been delivering consistent topline growths in this challenging economic environment, reflecting our team’s execution strength & Go-To-Market strategy and evident in our consistent market share gain over the last 36 quarters”.
He further said that the company continue to expand its market leadership through reach and diligent market practices. Remarkably, the rural footprint has witnessed further additions. This indicates that rural is outperforming urban.
As far as cost and profitability are concerned, global factors continue to impact the economy. Certain commodities, including wheat and rice, have witnessed steep sequential inflation during the quarter. On the other hand, drop in prices of some commodities like Palm Oil & Crude may help sustain & improve profitability in the coming quarters”.
EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter was 10%. While on a sequential basis, the EBITDA remains down 9%. EBITDA margins at 13.5% for the quarter have contracted by 280 bps (Basis points) on year and by 200 bps (Basis points) on quarter.
Britannia closed Rs 5.05 higher at Rs 3,775.05 on Thursday at the National Stock Exchange. The stock has been trading higher by five% over the past year. But it has been flat over the past one month.