Britannia Industries (BRITANNIA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue from operations reached INR 4,130 crore, up 4% year-over-year and 13% over two years, with operating profit at 16.5% and 10% growth year-over-year.

• Net profit attributable to owners for Q1 FY25 was INR 524 crore, up 14% year-over-year and 55% over two years.

• Market share rebounded in Q1 FY25 after challenges in FY24, supported by distribution expansion, rural outperformance, and brand investments.

• Volume and value growth for the FMCG industry were both around 6.5%-6.6%, with rural growth rebounding due to better monsoons, moderate inflation, and high rural employment.

• Strategic pillars include distribution, marketing, innovation, cost efficiencies, and sustainability, with notable progress in each.

Financial highlights

• Revenue from operations reached INR 4,130 crore, a 4% increase year-over-year and 13% over two years.

• Operating profit was INR 680 crore (16.5% of net revenue), up 10% year-over-year and 51% over two years.

• Profit before tax (before exceptional items) reached INR 706 crore, up 13% year-over-year and 52% over two years.

• PAT margin stood at 12.2%.

• Basic and diluted EPS (consolidated) for Q1 FY25 was INR 20.99, up from INR 19.00 in Q1 FY24.

Outlook and guidance

• Expectation of manageable inflation (4%-5%) in coming quarters, with selective pricing actions as needed.

• Focus remains on driving top-line growth and market share, even if margins stabilize at lower levels.

• FMCG industry expected to see consumption-led growth in FY25, aided by better monsoon, moderate inflation, and reducing unemployment.

• Continued investments in brands and innovation, with measured pricing actions in specific channels.

• Volume growth is targeted to remain in high single digits to double digits, with continued efforts to sustain and improve.