Britannia Industries Q1 Results: Net profit may jump 56% to ₹525 cr; revenue seen up 11% YoY led by 5% volume growth

livemint.com:

Britannia Industries, the FMCG major, will announce its Q1 results today. The company is expected to witness decent earnings growth on the back of healthy demand and moderating input cost inflation. The demand environment for the FMCG sector remained stable.

The urban market continues to lead growth while rural is also showing signs of improvement in demand both sequentially and yearly, as companies have started to pass on the benefits of lower commodity costs to consumers. Britannia Industries is expected to post a sharp jump of 56.3% year-on-year (YoY) in its Q1 net profit to ₹525 crore, as per brokerage poll by Livemint. The company has seen some uptick in demand for biscuits and adjacencies, while new launches continue to gain traction and customer acceptance, analysts said.

Britannia Industries’ revenue for the quarter ended June 2023 is expected to rise 11.45% YoY to ₹4,125 crore, led by 5% volume growth, as per average estimates. Food inflation eased during the quarter on a YoY basis, which is expected to support operating performance of the company. Earnings before interest, taxes, depreciation and amortization (EBITDA) in Q1FY24 is likely to jump by 57% to ₹786 crore, while EBITDA margin may expand by around 530 basis points (bps) YoY to 18.8%.

Brokerage firm Motilal Oswal Financial Services Britannia Industries to post 7% volume growth in the base business during the quarter under review. It expects gross margin and EBITDA margin improvements of 470 bp and 390 bp YoY, respectively. The FMCG sector is expected to witness a gradual recovery in demand, led by moderating inflation, improving consumer confidence, and an increase in government spending.