Britannia Q4 Results: Net profit drops 3% to ₹538 crore, revenue up 3% YoY; dividend declared

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The company’s board recommended a final dividend of ₹73.5 per equity share for FY24 which will be declared at the annual general meeting (AGM) on August 12, 2024. “Recommended the final dividend for the financial year ended 31st March, 2024 @7350 per cent i.e., Rs. 73.5 per equity share of Re. 1 each to be declared at the 105th annual general meeting of the company,” said Britannia in a regulatory filing to the stock exchanges on Friday.

“The final dividend if declared, will be paid within the timelines prescribed under the law. Fixed the date of 105th Annual General Meeting to be held on Monday, 12th August, 2024,” added the company in the exchange filing.

Britannia Q4 Results – Key Metrics

The record date for the AGM and final dividend is Monday, August 5, 2024. Over the past 24 months, Britannia has achieved a strong 19 per cent growth in revenue, accompanied by a notable 43 per cent increase in operating profit. Britannia expanded its distribution network, reaching approximately 27.9 lakh outlets directly and added around 2,000 rural distributors over the past year.

The growth in net profit was aided by resilient demand from urban consumers. Consumer goods makers have seen steady demand for certain food items such as chocolates and biscuits, especially in urban areas, while prices of key raw materials including wheat, milk and sugar have eased, helping their bottomline.

Britannia sells Jim Jam and NutriChoice biscuits. “Our market share rebounded as the year progressed as a result of strategic pricing actions to maintain competitiveness and intensified investments in brands, supported by distribution expansion,” said Varun Berry, Vice Chairman & Managing Director.

“Our focus states surpassed other regions in terms of growth, despite a generally subdued rural demand. We bolstered our abilities to capitalise on rapidly growing channels like Modern Trade and Ecommerce, both of which experienced double-digit growth compared to the previous year,” added Berry.

On the operating performance, Britannia’s earnings before interest, taxes, depreciation, and amortization (EBITDA) during the March quarter dropped 1.7 per cent to ₹785.5 crore, compared to ₹800.9 crore in the year-ago period. The company’s margins fell 50 basis points (bps) to 19.4 per cent in the fourth quarter of FY24, compared to 19.9 per cent in the same period last year.

“On the cost and profitability front, we will stay vigilant of the commodity prices and evolving geopolitical landscape. Our cost-efficiency programme continues to yield operational savings of around 2 per cent of revenues, ensuring healthy operating margins. We will continue to invest behind our brands and stay price competitive with a clear objective of driving market share while sustaining profits,” said Varun Berry.

Ahead of the announcement of Q4 results, shares of Britannia settled 0.32 per cent lower at ₹4,745.15 apiece on the BSE.

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Published: 03 May 2024, 08:35 PM IST