Britannia Management Guidance Tracker

Capital expenditure for FY24 expected to be around INR 400-450 crore, primarily for ongoing factory expansions in Ranjangaon, Bihar, and Orissa.

Capital expenditure expected to be lower, around INR 150-200 crore, as new plants provide sufficient capacity headroom.

Capital expenditure for the full year is planned at around INR 100 crore, significantly lower than prior years, given adequate capacity.

Advertising and sales promotion spend will stay around 3.5-4% of revenue, normalized post-COVID.

Management expects volume growth to improve as pricing actions annualize and market conditions normalize, with high single-digit volume growth possible.

Management aims to return to double-digit volume growth, though not expected in the next quarter.

Non-biscuit categories (cakes, rusk, cheese, etc.) targeted to grow at least 50% faster than biscuits.

Management aims for double-digit volume growth post-elections and monsoon, driven by market recovery and RTM 2.0.

Adjacent businesses (non-biscuits) are targeted to grow at one and a half times the rate of the biscuit portfolio.

Management expects volume growth to continue at high single digits, with potential to reach double digits as rural recovery strengthens.

Tangible gains from the sales transformation project with Bain & Co are expected from Q4 FY25 or Q1 FY26.

By mid-November 2025, the entire portfolio will have the required grammage increases and pricing adjustments from GST pass-through.

Management expects e-commerce share to move from high single digits to early teens by FY27, driven by category penetration and dark store expansion.

Expects the dual-pricing impact on wholesale/rural channels to resolve and growth to recover to high single digits.

Consumer cheese business aims to reach INR 1,000 crore in five years, driven by innovation and distribution.

If commodity inflation materializes, Britannia may take selective price increases of around 4-5% across brands.

Management plans to implement 4-5% price hikes across the portfolio, primarily in large SKUs, to offset raw material inflation.

Management plans to implement total price increases of 6-6.5% to offset 11% commodity inflation, with 2% already taken in Q3, 2.5% in Q4, and 1.5% in Q1 FY26.

Management hopes to return to double-digit revenue growth over time, with Q4 FY25 at 9%.

Management expects the gap between volume and revenue growth to persist at 6-8% for the next two to three quarters as pricing benefits continue.

Management expects to achieve double-digit top-line growth in due course, driven by GST tailwinds, grammage increases, and regional competitiveness.

Management plans selective price hikes and grammage adjustments starting Q1 FY27 to offset input cost inflation.

Management indicated 19% EBITDA margin is aspirational peak; future focus on growing absolute profit through aggressive top-line growth.

Wheat and sugar are expected to be slightly inflationary, with overall inflation manageable at 3-4%.

The company continues to target 2% cost efficiencies every year through supply chain optimization.

Management is doubling down on cost efficiency and value engineering projects to mitigate inflation impact.

Management aims to maintain cost efficiency at 2.5% of revenue in FY26, with potential to exceed current year's target.

CFO stated cost savings target for FY26 is over 2.5% of top line.

With commodity prices stabilizing and price increases fully implemented, management expects gross margins to improve from Q1 levels.

Management may accept a slight margin reduction to fund aggressive top-line growth and competitive pricing, to be evaluated in Q3.

Cost efficiency initiatives (10x vs 2013-14) will continue, targeting savings to offset inflation.

Route-to-Market 2.0 project will pilot in H2 FY25 and take 11-12 months for full implementation.

Pilot in 25 cities covering 44 distributors and 50,000 outlets showing encouraging results; full implementation expected to cover 100 cities and 4.5 lakh outlets.

Focus states (15% of revenue) growing at 1.3-1.4x overall, with rural distribution expanding to 31,000 distributors.

New CMO will drive umbrella branding for adjacencies (cake, rusk, croissants, wafers) with higher media spend and innovation.

Manufacturing for North America moved back to Mundra from Oman to bypass West Asia shipping disruptions.

Management does not foresee additional price hikes unless commodity trends worsen, with remnants of current hikes flowing into Q1.

CEO Varun Berry indicated succession planning will be clear within the next three to four months.

Management expects most competitors to move to INR 5/10 price points by end of Q4, reducing channel disruption.