Indian food group Britannia Industries has blamed “unprecedented” commodity cost hikes after the company booked a slump in quarterly profits.
Britannia booked third-quarter net profit of INR291m (US$6.3m) for the three months to the end of December, a fall of almost 37% on the year.
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The drop in earnings came despite a 25% rise in sales to INR8.18bn, boosted by volume, mix and price.
MD Vinita Bali warned that Britannia would increase prices if commodity cost prices continue to climb.
“Whilst we have continued to insulate our consumers from this cost inflation, profits and profitability have been adversely impacted. All round cost effectiveness and improved sales mix will remain the building blocks of Britannia’s profit improvement plan, but if the current situation continues, judicious price increases may be inevitable,” Bali said.
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