Britannia announces Q3 profits

India’s Britannia Industries Ltd, a dairy and bakery supplier, has reported consolidated third quarter revenue growth of 10%, and 12% for the year up to December 31, 2015, at $325.4m (Rs. 2,224 crores) and $939m (Rs. 6,417 crores) respectively.

Making the announcement, managing director Varun Berry also noted that the company’s new factory and R&D center in Karnataka is nearing completion.

Berry said, "I am pleased to announce that our new factory and R&D center in Karnataka is nearing completion and is expected to be commercialized soon. We strongly believe that our initiatives in building future-ready capability along with tight control on all elements of cost shall help us in delivering profitable revenue growth for our company going forward."

Consolidated profit from operations increased 57% in Q3 and 65% for the nine-month period at $43m (Rs. 294 crores) and $124.8m (Rs. 853 crores) respectively. Consolidated net profit increased 51% in Q3, and 18% for the nine months, at $30.4m (Rs. 208 crores) and $90.1m (Rs. 616 crores) respectively.

Excluding the one-time profit on sale of land and building in Q2 of the previous year of $18.1m (Rs. 124 crores) (post-tax), net profit for the nine-month period increased 55%. 

On a standalone basis, revenue growth was 11% in Q3 and 12% for the three quarters, at $297.3m (Rs. 2,032 crores) and $859.9m (Rs. 5,875 crores) respectively.

Inroads into weak states

Profit from operations increased 66% in Q3 and 69% for the nine months at $41m (Rs. 280 crores) and $117.2m (Rs. 801 crores) respectively. Net profit increased 61% in Q3 and 17% for the nine months at $117.2m (Rs. 193 crores) and $82.6m (Rs. 565 crores) respectively.

“Our strategy of focussing on execution and commercializing potential consumption opportunities helped us deliver double digit revenue growth,” Berry said.

We achieved this in a sluggish demand scenario aggravated by floods in Tamilnadu and a dampened Diwali. Our initiatives to make in-roads in our weak states have progressed very well and helped us bolster the growth.”