In Q2 FY25, profit before exceptional item and tax (PBIT) stood at Rs 715.30 crore, down 10.43% as compared with Rs 798.63 crore in Q2 FY24. Exceptional item stood at Rs 0.15 crore during the quarter, the cost was incurred towards contract labourers of the factory.
Total expenses increased 8.39% to Rs 3994.87 crore in Q2 FY25. Cost of material consumed stood at Rs 2578.05 crore (up 12.94%), employee benefit expenses was at Rs 232.28 crore (up 45.29% YoY) and finance cost stood at Rs 34.64 crore (down 35.16% YoY) during the period under review.
Varun Berry, vice chairman & managing director, said, “A approximately 8% volume growth with a sequential increase in revenue and operating profits are satisfactory results in the face of severe commodity inflation leading to a tepid consumer demand scenario in most FMCG categories
In the context of steep rise in prices of key commodities such as Wheat, Palm, Cocoa etc, we demonstrated agility in initiating focused pricing actions and identifying new levers for cost optimization across the value-chain. As a result, we maintained a healthy operating margin of ~15.5% during the quarter.
Our agenda of being a “Total Global Foods Company” is progressing well with our adjacent businesses such as Croissant, Milk Shakes, Wafers and International growing at a healthy pace. Making strides in this direction, we are working on redefining our distribution strategy to optimize range distribution and improve outlet servicing, and the preliminary results of the pilots across 25 cities covering more than 50,000 outlets are encouraging.”
Britannia Industries (BIL) is one of India's leading FMCG companies. The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.