One of India’s favorite brand and makers of Good Day and Bourbon biscuits Britannia, reported a 14% rise in its fourth quarter profit because of higher sales of its biscuits.
The Net profit rose from Rs 167.25 crore to Rs 190.23 crore, for the fourth quarter ended March 31, a year earlier. Net sales and net of excise duty rose 7.7% to Rs 2189.83 crore.
Varun Berry, Managing Director, Britannia Industries Ltd said that in a situation where FMCG growths were slow, Britannia’s double digit volume value growth is a vindication of its optimistic strategy to offer the best products under a world class brand and a clear focus on building a robust distribution throughout the country with thrust on rural and weak states...While the category growths are expected to remain subdued, the brand is confident of keeping its momentum going.
Revenue from rival Hindustan Unilever's packaged food business, known for its Kissan jam and Knorr soup, rose about 12% to Rs 532.5 crore during the same period on a standalone basis. ITC's FMCG vertical, which excludes cigarettes, but includes biscuits, rose 5.4% to Rs 2,704.1 crore during the March quarter.
Berry, a former PepsiCo executive took over as the company head three years ago and stated that the biggest challenge in the near term would be to generate consumer demand.
Britannia, which declared a dividend of Rs 20 per share, is expected to raise biscuit prices this fiscal to offset a rise in commodity prices.