Biscuit and food maker Britannia Industries Ltd said first quarter profits rose 66.9% to Rs 189.66 crores on improved consumer off take and operational efficiencies. Income from sales, a measure on the business, for the April to June quarter rose 13% to Rs 2,002.51 crore. Revenue, including other operating income, stood at Rs 2,018.60 crore.
Britannia reported profits of Rs 113.66 and revenue of Rs 1,786.99 crore between April and June 2014. "Our results are a reflection of our focus on driving consumer off-take & operational efficiencies to generate sustainable and profitable growth, despite the slowdown that is being witnessed in the FMCG sector," said Varun Berry, managing director of Britannia said in a statement.
Britannia stock closed at Rs 3,177.40, 1.34% or Rs 42.15 higher on the Bombay Stock Exchange. Britannia's volumes increased as it sold more biscuits to its consumers across the country, while passing on the lower commodity prices to consumers.
The company is pushing for higher premium products such as Good Day, while consolidating its volume brands. The company launched "Pure Magic Chocolush," a premium product during the quarter. "We have passed off the benefits of benign commodity prices and made our brands more affordable to the consumers. We continued our efforts to expand our distribution footprint and ensure efficiency in operations through reduction in wastage's and tight management of fixed costs," Berry said in the statement.
In Febraury, Britannia had said that it had increased its distribution, both in the urban and rural markets while focusing investment in key brands. Italso planned new investments over the next year in adding manufacturing capacity.
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