Britannia Industries, the Indian food group, has reported a 10% rise in its third-quarter sales amid what the company called “sluggish” demand in its domestic market.
The company posted consolidated revenue of INR22.24bn (US$327.6m) for the three months to the end of December. Britannia’s top-line growth slowed slightly from the 12% rise in sales the company saw in the first half of its financial year but the third quarter marked another period of double-digit gains.
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“We achieved this in a sluggish demand scenario aggravated by floods in Tamil Nadu and a dampened Diwali,” MD Varun Berry said. “Our initiatives to make inroads in our weak states have progressed very well and helped us bolster the growth.”
Profit from operations was up 57% at INR2.94bn. Net profit grew 51% to INR2.08bn.
Over the first nine months of Britannia’s financial year, the company saw revenue increase 12% to INR6.42bn. Profit from operations jumped 65% to INR8.53bn. Net profit was up 18% at INR6.16bn. Britannia said if the proceeds from the sale of assets in the previous financial year’s second quarter was excluded from the numbers, its net profit grew 55% in the first nine months of 2015/16.
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Britannia is set to open a factory and R&D centre in the state of Karnataka. Berry said the facilities were “nearing completion and … expected to be commercialised soon”.
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By GlobalDataThe company, meanwhile, has also announced it is de-merging its Daily Bread Gourmet Foods arm. In 2014, Britannia made a provision for an impairment of INR200m on the unit and said it was looking to sell the business.
Britannia said today the de-merger would see the stand-alone Daily Bread Gourmet Foods retain its business-to-business operations, while the consumer-facing assets, which include retail outlets, would move to the company.
Daily Bread Gourmet Foods accounts for 0.08% of Britannia’s turnover, the group added.
