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Britannia’s Rural Market Growth Outpaces Urban, While Commodity Prices Pose Risks

Britannia’s rural market share clocked higher growth than urban showing signs of green shoots in consumption growth in a market that remains critical for the wider FMCG industry.

“We continue to make positive strides in Rural as we expand distribution footprint and enhance product offerings to align with regional preferences, and well positioned to benefit from the consumption growth in Rural. As a result, rural market share grew at a faster clip than Urban,” said Britannia MD Varun Berry in an exchange listing.

However, Britannia also said that it continues to remain vigilant of the commodity price fluctuations & evolving geopolitical landscape.

“On Cost & Profitability front, we remain vigilant of the commodity price fluctuations & evolving geopolitical landscape. Our Cost Efficiency Program continues to yield operational savings, ensuring robust operating margins,” it said.

Britannia on Friday reported that its June quarter consolidated profit rose 10.5 per cent year-on-year (YoY) to Rs 506 crore while revenue rose 4 per cent YoY to Rs 4,130 crore. The ETNOW poll had pegged the PAT at Rs 513 crore and revenue at Rs 4,202 crore.

Its operating profit margins expanded 50 bps YoY to 17.7 per cent whole EBITDA also rose around 9 per cent YoY to Rs 753 crore.

Ahead of the announcement of the quarterly numbers, the company’s shares ended Friday’s session marginally higher at Rs 5,751 on BSE.

Meanwhile, consumer goods makers have reported mixed results in the first quarter of FY2025. Hindustan Unilever reported higher earnings as product price cuts led to increased demand while KitKat maker Nestle India reported its slowest growth in eight years as price increases drove consumers away.

Source: Economic Times