Britannia Industries Ltd.(BIL) reported consolidated Net Profit year-on-year growth of 117% at Rs. 546 crores for the Quarter ended on June 2020. Consolidated revenue growth increased by 26% for the Quarter at Rs. 3384 crores. India’s largest biscuit maker doubled the net profit of Rs. 248.64 crores in the corresponding quarter last year despite nationwide lockdown due to COVID-19 pandemic.
The FMCG major said that as soon as the lockdowns eased the company focused on bringing back the supply chains and distribution channels to pre-COVID-19 levels. Subsequently, they increased their rural and hinterland reach when the lockdown restrictions were eased. During this period, launching innovative products such as ‘Winkin Cow Lassi’ and a Rs. 5 Layer Cake also helped in expanding their reach and delivering a healthy profitable growth.
“Given the dynamic nature of the pandemic & associated uncertainty, we were quick to resort to cost efficiencies through the extraction of supply chain efficiencies, reduction in wastages and fixed costs leverage. We also rationalized the media spends considering the constraints of inventories due to higher market demand. These measures helped us improve the shape of our business and record a massive increase in operating profit during the quarter,” Varun Berry, Managing Director said.
The above measures helped in recording a massive 670 bps increase in operating profit. The Wadia Group Company expects the prices to be stable going forward given the positive view on monsoon and harvesting period.