Britannia Industries eyes double-digit sales volume growth in FY25

“The concern connected measurement and gross for the past year, they are astir astatine par. However, if you look astatine it by quarter, it's a precise antithetic story. In the past quarter, the measurement maturation was 2 times the gross growth. This twelvemonth we expect measurement maturation to beryllium rather solid, barring the introduction into the year, which is beauteous akin to the twelvemonth that's gone by. I would deliberation that station election, station monsoon, we would beryllium aiming towards a double-digit measurement maturation for sure," Varun Berry, vice president and managing director, Britannia Industries, said during the company’s post-earnings telephone connected Monday.

On Friday, the institution reported a 3.1% emergence successful consolidated income for the 4th ended 31 March to ₹4,014 crore. Profit fell 3.7% year-on-year to ₹536.61 crore. For the fiscal twelvemonth ended March, consolidated gross grew 3.5% to ₹16,546 crore.

In FY24, the shaper of Good Day and Milk Bikis biscuits reported a 4% summation successful income volumes.

The institution has seen a softening of prices of palm, laminates, and corrugates—overall commodity costs remained brushed successful the March quarter. However, the institution warned of a flimsy inflationary unit connected wheat and sugar.

“Our outlook connected this twelvemonth is not deflationary, our outlook connected this twelvemonth is somewhat inflationary, which is simply a steadfast ostentation of 3% oregon thereabouts. The harvest seems to beryllium good arsenic acold arsenic wheat is concerned. The authorities holding has been reasonably low. So, determination is going to beryllium authorities buying due to the fact that of their programs. I would deliberation that the wheat outlook is somewhat inflationary during the year…Similarly sweetener has not been a large crop—it’s not bad, but it's not arsenic bully arsenic past year’s crop. So sweetener volition beryllium somewhat inflationary. We are making definite that we instrumentality immoderate interventions that are required to get to our planned numbers arsenic acold arsenic commodity is concerned," Berry said.

The institution expects commodity ostentation to hover astatine 3% to 4% post-elections successful FY25. On Friday, it said it volition enactment vigilant connected commodity prices and the evolving geopolitical landscape.

The company’s comments travel respective different ample packaged goods makers that are present chasing measurement maturation aft 2 years of price-led growth. A precocious inflationary situation had prompted companies to hike prices crossed the board, resulting successful consumers cutting down connected purchases of regular goods arsenic good arsenic switching to cheaper competing brands.

However, the inclination whitethorn present beryllium reversing.

Last week, Nestle India excessively hinted astatine ramping up volumes. “My nonsubjective is to guarantee that, immoderate beryllium the marketplace circumstance, I should beryllium successful the apical quartile of performance. There was a clip we had 8% to 9% measurement growth, truthful we person to ramp up," Suresh Narayanan, president and managing director, Nestlé India said during a media roundtable. For the 3 months ended 31 March, the institution reported an underlying measurement maturation of 5%.

Similarly, India’s largest user goods shaper Hindustan Unilever Ltd reported a 2% emergence successful measurement maturation for the March quarter.

“Volume is simply a bully happening to pursuit astatine this time. It is the astir virtuous happening to bash - to get much consumers, much consumption, and premiumizing them done merchandise mix. That strive is making our institution stronger. We are focused astatine this signifier connected what we tin truly control, which is to thrust much measurement and spell to fast-growth spaces," Rohit Jawa, CEO and managing manager of Hindustan Unilever told Mint last month.

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Published: 06 May 2024, 06:41 PM IST