Britannia Industries Q2 Results, Profit Down 9%: Britannia Share Price Falls by 8%

Britannia Industries Q2 results FY25 disclosed a 9.36% year-on-year fall in the consolidated net profit. On the Britannia Industries results date which was November 11, 2024, the Britannia share price was at ₹5,434.65. On November 12, 2024, Britannia share price closed at ₹5,027.55.

Britannia Industries Q2 Results FY25: Key Highlights

• Britannia Industries Q2 results pointed out that consolidated net profit of ₹531.5 crores, down 9.36% over ₹586.5 crores in the year-ago period.
• Britannia Industries quarterly results​ showcased that the Q2 was hurt by weaker demand for consumer goods, particularly in urban areas amid high inflation.
• The revenue from operations came in at ₹4,667.6 crores in the reported quarter, up 5 percent compared to ₹4,432.88 crores in the same period of the previous financial year.
• Operating Margins declined by 286 bps to 17.08% as per the Britannia Industries results.
• Britannia share price generated negative returns of 7.5% in the last 1 day (as on November 12, 2024).

Britannia Industries Q2 Results: Management Commentary

Mr. Varun Berry, Vice Chairman & Managing Director of Britannia Industries said that – “A~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. We are committed to investing in capability enhancement and brand development with the clear objective of driving market share and sustaining profits.”

Britannia Industries Q2 Results: Future Outlook

The company is working on becoming a “Total Global Foods Company” and is progressing well in the adjacent businesses such as Croissant, Milk Shakes, Wafers, and International growing at a healthy pace. Making strides in this direction, Britannia is working on redefining its distribution strategy to optimize range distribution and improve outlet servicing. The preliminary results of the pilots across 25 cities covering more than 50,000 outlets are encouraging as mentioned in the press release of Q2 results of Britannia.

Highlighting the Britannia share price performance, it has generated a negative return of 10.3% in the last 1 week (as on November 12, 2024). Keep exploring stocks and open demat account with SMC Global Securities. Stay tuned for the upcoming Nifty 50 companies quarterly results.

References
https://www.smctradeonline.com/research/equity-analysis/242
https://economictimes.indiatimes.com/britannia-industries-ltd/stocks/companyid-13934.cms

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