Britannia Industries posts 3 per cent drop in Q4 profit due to higher commodity prices

NEW DELHI:  Leading biscuits manufacturer Britannia Industries on Tuesday reported consolidated profit at Rs 360.1 crore for the quarter ended March 2021, a decline of 3.3 per cent  year-on-year mainly due to rise in commodity prices. Consolidated total revenue from operations during the quarter under review stood at Rs 3,130.75 crore as against Rs 2,867.7 crore in the year-ago period, up 9 per cent.

“Despite the adverse conditions, we managed to deliver good results in terms of topline growth, profitability improvement and market share gains. During the last quarter of the year, we implemented three transformational digital projects an Online Dealer Management System, an Integrated Vendor Management System, and S4 HANA,’’ said MD Varun Berry.  

“We are confident that with all the core systems getting upgraded and integrated we are well poised to take our business efficiencies to the next level while leveraging the large amounts of data available to build business intelligence and analytics.”

The company, said that it incurred higher expenses in the fourth quarter at Rs 2,701.87 crore as compared to Rs 2,488.88 crore in the corresponding period previous year. The cost of materials consumed stood at Rs 1,532.35 crore during the quarter as against Rs 1,307.97 crore in the corresponding period previous fiscal.

Berry added that on the commodity cost front, packing material, palm oil, as well as dairy products registered steep increases, while strategic buying helped the company manage the cost increases in a better way.