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earnings | IST

Britannia Industries Q1FY22 earnings preview: Street expects 7.5% decline in revenues

Britannia's margins are expected to contract on a higher cost of raw material and impact of packaging as well.

Britannia Industries will report its Q1FY22 results today and this time around biscuits are likely to lose their crunch and that is because of a high base.
CNBC-TV18 poll expects it to be a weak quarter because in the same period last year the company had 22 percent volume growth. It was the first time there was a lockdown and also people had actually stocked up their pantries. On that unfavourable base counter-intuitively, Britannia will report a weak set.
Margins are expected to contract on a higher cost of raw material and impact of packaging as well.
So, all of that put together a 7.50 percent decline in revenues, 22 percent dip in EBITDA, and 24 percent dip in the profit is what the street is working with this time around.
Domestic volumes likely to contract by nearly 8 to 10 percent. This comes on an unfavourable base of 22 percent growth at the same period last year.
Price/mix lead growth will be anywhere between 2 to 3 percent because of higher raw material prices, higher packaging, and inflation in palm oil prices. The company had increased their cost by nearly 2 to 3 percent odd.