Indian food group Britannia Industries saw its profits fall by 46% in its second quarter on the back of rising raw-material costs.
The biscuit maker booked net profit of INR318.7m (US$7.2m) for the three months to the end of September, down from INR590.7m a year earlier.
The fall in profits came despite a 27.5% rise in sales to INR10.95bn. Sales growth accelerated from the pace booked in the first quarter, when sales rose 24.8%.
MD Vinita Bali said: “In an intensely competitive market we continue to accelerate volume and revenue growth ahead of total industry growth. Unprecedented and unabated inflation in commodities has adversely impacted industry margins and our focus is on driving cost effectiveness, operational efficiencies and better sales mix for margin improvement. Our innovation pace has also increased with several new launches to tap new opportunity segments.”
Over the first six months of Britannia’s fiscal year, its net income was down 39.2% at INR647m. Sales increased 26.2% to INR20.06bn.