Britannia Industries reports a partial rebound in its overseas markets amid easing supply-chain disruptions, but faces challenges from geopolitical tensions and rising input costs, impacting margins and growth strategies.
Britannia Industries said its overseas business started to recover in the June quarter as supply-chain disruptions eased late in the period, but performance remained patchy, with Africa, especially Kenya, outperforming while the Middle East and North America stayed weak. Chief executive Rakshit Hargave said the company was still watching geopolitical tensions and crude oil volatility closely because both could affect international sales and domestic input costs.
The recovery came after months of pressure from the West Asia conflict, which lifted fuel and shipping expenses across Britannia’s operations. In March, the company had said manufacturing was not materially affected by industrial gas concerns and that it had enough finished stock to meet demand, while later comments pointed to greater fuel flexibility at plants and adequate inventory as ways to keep operations steady. Even so, the broader cost environment remained difficult, with palm oil prices rising by more than 20% from February levels and sugar, milk and industrial fuel also adding strain.
Britannia reported a 14% rise in first-quarter consolidated net profit to ₹593 crore, with revenue from operations up 9.5% to ₹4,964 crore and operating profit increasing 12.7%. The company said it was using purchasing efficiencies, packaging changes, alternate fuels, productivity gains and higher renewable energy use to soften the blow from costs. It also kept spending on advertising and brand-building ahead of sales, suggesting the company is still investing for growth even as margins face pressure.
On the domestic side, Hargave said most core categories gained momentum through the quarter and the company exited with mid-teens revenue growth. General trade, Britannia’s largest channel, recovered after disruption tied to dual pricing, while e-commerce continued to grow strongly. Quick commerce now makes up about 80% to 85% of Britannia’s e-commerce business, underlining how quickly the channel mix is shifting even as companies across the consumer sector raise prices and trim pack sizes to cope with higher input costs.
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