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Revenue
₹4,011 Cr
verified against source
Revenue YoY
9%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Britannia reported Q1 FY24 revenue growth of 9% YoY, driven entirely by transaction growth, with operating profit surging 37% YoY. EBITDA margin came in at 15.6%, reflecting cost efficiencies and benign input costs, though down sequentially from Q4's elevated levels due to price reversals (~1.8%) and higher A&P spends. Volume growth was flat as the company ceded grammage to stay competitive amid local player aggression, especially in rural and traditional trade. Management flagged sluggish market conditions but expects volumes to recover as pricing actions annualize. Innovation contributed ~4% of revenue, led by dairy and new categories. Risks include sustained local competition and potential wheat inflation. Capex guidance of INR 400-450 crore for FY24.
Colored figures show movement against the previous available record.
Guidance to track
- Capital expenditure for FY24 expected to be around INR 400-450 crore, primarily for ongoing factory expansions in Ranjangaon, Bihar, and Orissa.
- 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.
Risks flagged
- Local players have gained market share by offering aggressive pricing and schemes, particularly in biscuits and rusk categories.
- Flour prices have seen low single-digit inflation and could rise further due to poor production, potentially pressuring margins.
- Rural markets and traditional trade have been sluggish, impacting volume growth; recovery timeline uncertain.
- Price reversals of 1.8% and increased A&P spend have compressed margins sequentially; further price cuts could weigh on profitability.
Key quotes
- Our revenue growths were 9%, which actually incorporated a transaction growth of 9% as well. Operating profits grew by 37%, and our market share was stable.
- The local players, because of the pricing actions that they're taking in their small vicinities, have gained a little bit of market share. That's a phenomena that we've seen in the past as well.
- The priority for us is growing our top line and making sure that we get the volumes and the shares which are required, and with that will come the margins.
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