Capex of INR 400-450 crore for FY24
Capital expenditure for FY24 expected to be around INR 400-450 crore, primarily for ongoing factory expansions in Ranjangaon, Bihar, and Orissa.
BRITANNIA / guidance tracker
Keep management guidance in view.
Britannia · forward-looking guidance across the available source record.
Research layer active
Guidance tracker
What management said would happen.
capex
A&P spend to remain at 3.5-4% of revenue
Advertising and sales promotion spend will stay around 3.5-4% of revenue, normalized post-COVID.
Volume growth expected to recover through the year
Management expects volume growth to improve as pricing actions annualize and market conditions normalize, with high single-digit volume growth possible.
Volume growth to sustain high single digits
Management expects volume growth to continue at high single digits, with potential to reach double digits as rural recovery strengthens.
Selective pricing actions of 4-5%
If commodity inflation materializes, Britannia may take selective price increases of around 4-5% across brands.
Cost efficiencies target 2% annually
The company continues to target 2% cost efficiencies every year through supply chain optimization.
Bain project benefits from Q4 FY25
Tangible gains from the sales transformation project with Bain & Co are expected from Q4 FY25 or Q1 FY26.
Revenue growth to remain transaction-led with volume-revenue delta of 6-8% for 2-3 quarters
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.
Capex to be ~INR 100 crore for FY26
Capital expenditure for the full year is planned at around INR 100 crore, significantly lower than prior years, given adequate capacity.
Gross margins expected to improve sequentially
With commodity prices stabilizing and price increases fully implemented, management expects gross margins to improve from Q1 levels.
Price increase of 4-5% over next two quarters
Management plans to implement 4-5% price hikes across the portfolio, primarily in large SKUs, to offset raw material inflation.
Route-to-Market 2.0 full rollout in 12-15 months
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.
Cost efficiency programs to overachieve targets
Management is doubling down on cost efficiency and value engineering projects to mitigate inflation impact.
Return to double-digit revenue growth
Management expects to achieve double-digit top-line growth in due course, driven by GST tailwinds, grammage increases, and regional competitiveness.
Full portfolio grammage increase by mid-November
By mid-November 2025, the entire portfolio will have the required grammage increases and pricing adjustments from GST pass-through.
Potential margin haircut for growth
Management may accept a slight margin reduction to fund aggressive top-line growth and competitive pricing, to be evaluated in Q3.
Aspiration for double-digit volume growth
Management aims to return to double-digit volume growth, though not expected in the next quarter.
Adjacent businesses to grow 50% faster than base
Non-biscuit categories (cakes, rusk, cheese, etc.) targeted to grow at least 50% faster than biscuits.
Cheese business target of INR 1,000 crore in 5 years
Consumer cheese business aims to reach INR 1,000 crore in five years, driven by innovation and distribution.
19% EBITDA margin is peak; focus on profit growth via top line
Management indicated 19% EBITDA margin is aspirational peak; future focus on growing absolute profit through aggressive top-line growth.
Cumulative price increase of 6-6.5% by Q1 FY26
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.
Cost savings target of 2.5% of revenue for next year
Management aims to maintain cost efficiency at 2.5% of revenue in FY26, with potential to exceed current year's target.
CapEx to be INR 150-200 crore in FY26
Capital expenditure expected to be lower, around INR 150-200 crore, as new plants provide sufficient capacity headroom.
Focus states to drive rural growth
Focus states (15% of revenue) growing at 1.3-1.4x overall, with rural distribution expanding to 31,000 distributors.
E-commerce salience to reach early teens by FY27
Management expects e-commerce share to move from high single digits to early teens by FY27, driven by category penetration and dark store expansion.
Adjacencies to benefit from increased brand investment
New CMO will drive umbrella branding for adjacencies (cake, rusk, croissants, wafers) with higher media spend and innovation.
GST price points expected to stabilize by end of Q4
Management expects most competitors to move to INR 5/10 price points by end of Q4, reducing channel disruption.
Target double-digit volume growth in H2 FY25
Management aims for double-digit volume growth post-elections and monsoon, driven by market recovery and RTM 2.0.
Expect 3-4% inflation in commodities post-elections
Wheat and sugar are expected to be slightly inflationary, with overall inflation manageable at 3-4%.
Adjacencies to grow at 1.5x biscuit growth
Adjacent businesses (non-biscuits) are targeted to grow at one and a half times the rate of the biscuit portfolio.
RTM 2.0 pilot in H2 FY25, full rollout by FY26
Route-to-Market 2.0 project will pilot in H2 FY25 and take 11-12 months for full implementation.
Double-digit revenue growth aspiration
Management hopes to return to double-digit revenue growth over time, with Q4 FY25 at 9%.
No further price increases expected near-term
Management does not foresee additional price hikes unless commodity trends worsen, with remnants of current hikes flowing into Q1.
Cost savings target >2.5% of revenue in FY26
CFO stated cost savings target for FY26 is over 2.5% of top line.
CEO succession clarity in 3-4 months
CEO Varun Berry indicated succession planning will be clear within the next three to four months.
Calibrated price increases from Q1 FY27
Management plans selective price hikes and grammage adjustments starting Q1 FY27 to offset input cost inflation.
Domestic growth to normalize by end of Q1 FY27
Expects the dual-pricing impact on wholesale/rural channels to resolve and growth to recover to high single digits.
International supply chain fully operational by mid-May
Manufacturing for North America moved back to Mundra from Oman to bypass West Asia shipping disruptions.
Continued aggressive cost efficiency programs
Cost efficiency initiatives (10x vs 2013-14) will continue, targeting savings to offset inflation.