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Britannia Q2 Results: Net profit drops 23% to Rs 382 crore, misses Street estimates

Britannia Q2 Results: Net profit drops 23% to Rs 382 crore, misses Street estimates

Britannia Q2 Results: Net profit drops 23% to Rs 382 crore, misses Street estimates
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By CNBCTV18.com Nov 8, 2021 4:16:29 PM IST (Published)

Britannia reported a 22.9 percent year-on-year drop in net profit to Rs 381.8 crore for the quarter ended September. Revenue rose 5.5 percent to Rs 3,607.4 crore.

FMCG major Britannia on Monday reported a net profit of Rs 381.8 crore for the quarter ended September, missing Street estimates by a wide margin. The net profit fell 22.9 percent on a year-on-year basis. The company reported revenue of Rs 3,607.4 crore for the second quarter of the current financial year, up 5.5 percent on year.

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Analysts in a CNBC-TV18 poll had predicted the company's net profit at Rs 495.2 crore over revenue of Rs 3,560 crore.
The company's earnings before interest, taxes, depreciation and ammortisation (EBITDA) stood at Rs 558 crore in the July-September period, down 17.4 percent on year.
The EBITDA margin came in at 15.5 percent in the three months to September 30, as against 19.8 percent in the year-ago period.
Analysts in the CNBC-TV18 poll had estimated the Kolkata-based FMCG company's EBITDA at Rs 595 crore, and EBITDA margin at 16.7 percent.
Britannia said it is witnessing unprecedented inflation in input raw material. The FMCG major said it has been able to partially mitigate the impact through strategic forward covers and accelerated cost efficiency programs.
“During the quarter, the impact of the second wave of COVID-19 started receding, and the economic activity started picking up. However, inflationary trends remained rampant around the globe, across sectors... In line with our strategy, we continued our focus on increasing direct distribution and improving our rural footprint. In this year, we saw higher growth in market share and as a result, we significantly reinforced our market leadership," said Britannia Managing Director Varun Berry.
The company initiated necessary price increases across its portfolio, which would address the cost push and normalise profitability, he said. "We are confident that our resilient brands and strategic growth initiatives will hold us on a path of profitable share gain in the future as well," Berry added.
Britannia shares ended 1.6 percent higher at Rs 3,708 apiece on BSE ahead of the earnings announcement. The headline Sensex index ended a volatile session with a gain of 0.8 percent.
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