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Britannia: snacks strategy pays off - Views on News from Equitymaster
India's largest bakery products manufacturer Britannia Industries has reported a 28% surge in its net profit to Rs 130 m in 2QFY2000. The turnover was up by 15% to Rs 3,054 m during the same period.
(Rs m)
2QFY2000
2QFY1999
Change
Net Sales
3,054
2,655
15.0%
Other Income
26
35
-25.7%
Expenditure
2,827
2,489
13.6%
Interest
21
14
50.0%
Depreciation
40
39
2.6%
Profit before Tax
192
148
29.7%
Tax
62
46
34.8%
Profit after Tax
130
102
27.5%
Net profit margin
4.3%
3.8%
Britannia's strategy of positioning itself as a snack food company, with a presence in dairy products segment has helped the company expand its consumer base and hence its bottom line. The company's expenditure went up by 14% to Rs 2,827 m during the period. The company has managed to improve its margins to 4.3% from 3.8% in 3QFY99.
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Britannia declared results for the quarter ended September 2015 recently. While revenues were up by 12% YoY for the quarter, profits came in lower by 20% YoY.
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