Q1 2025 Britannia Industries Ltd Earnings Call Transcript
Key Points
- Britannia Industries Ltd (BOM:500825) reported a 4% growth in revenue from operations, reaching INR4,130 crores.
- Operating profit grew by 10% on a 12-month basis and 51% on a 24-month basis, indicating strong profitability.
- The company has seen a resurgence in rural growth, driven by better monsoons, moderate inflation, and high rural employment.
- Britannia's market share continues to grow, with significant gains in both urban and rural markets.
- Investments in e-commerce and digital marketing have shown promising results, with e-commerce now contributing 4% of total sales.
- Commodity costs, including flour, sugar, and cocoa, are rising, which may impact future profitability.
- The company's performance in focus markets, particularly the Hindi belt, has been average and below expectations.
- Despite investments, the dairy business remains small, with cheese and drinks contributing only INR460-470 crores out of a total INR700 crores.
- The company's margins have decreased to 18.2% from 19% in previous quarters, partly due to increased ad spends.
- There is significant competition from regional players in the biscuit market, which could impact market share and growth.
Ladies and gentlemen, good day, and welcome to Britannia Industries Limited Q1 FY25 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mayank Mundra from Investor Relations. Thank you, and over to you, Mr. Mundra.
Thanks, Nirav. Good morning, everyone. This is Mayank from the Investor Relations team. I welcome you all to the Britannia earnings call to discuss the financial results of Q1 '24-'25. Joining us today on this earnings call is our Vice Chairman and Managing Director; Mr. Varun Berry; Executive Director and CEO, Mr. Rajneet Singh Kohli; Executive Director and CFO; Mr. N. Venkataraman; Chief Commercial Officer, Sales and Replenishment; Mr. Vipin Kataria; Chief Manufacturing and Procurement Officer; Mr. Manoj Balgi; and Chief Marketing Officer, Mr. Amit Doshi.
The analyst deck is uploaded on our website. Before I pass it on to Mr. Varun Berry, I would like to draw your attention to the safe harbor
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