Its consolidated profit for Q4 declined 3.3 per cent though, and share prices dipped by 2 percent after declaration of March quarter results.
Britannia Industries, one of India’s largest food and beverages company has posted a consolidated revenue growth of 13 per cent at Rs 12,833 crore for the 2021 fiscal. Its consolidated operating profit for the year increased 39 per cent to Rs 2,311 crore. The company’s managing director has attributed the growth to the adoption of new technologies that helped it improve efficiencies and navigate its way through the pandemic. However, its consolidated profit in Q4, has registered a 3.3 per cent decline compared to the same period in the last year and on April 28, a day after the company declared its March quarter results, the company’s share prices dropped by around 2 per cent.
Britannia Industries has been on a steady path to capturing market share across recent years, and its operating profit has gone from 4 per cent in 2009-10 to 18 per cent in the current year, making it one of the world’s most profitable food companies.
Varun Berry, Managing Director, Britannia Industries, said about the company’s performance: “The year has been difficult and challenging in every possible way. Despite the adverse conditions, we managed to deliver good results in terms of topline growth, profitability improvement and market share gains.
“During the last quarter of the year, we implemented three transformational digital projects namely S4 HANA, an Online Dealer Management System and an Integrated Vendor Management System. The delivery of these projects necessitated shutdown of operations for a few days in March which impacted primary billing for the quarter. We are confident that with all the core systems getting upgraded and integrated we are well poised to take our business efficiencies to the next level while leveraging the large amounts of data available to build business intelligence and analytics.
“During the quarter, we continued focusing on the basic building blocks of our business, direct reach, rural distribution and brand building. Our cost efficiency programme for the year delivered the targeted results giving us strong cost leadership. On the commodity cost front, palm oil, packing material and dairy products witnessed sudden and steep increases while strategic buying helped the company manage the cost increases better. We are evaluating the long-term impact of these increases to action necessary price increases while ensuring competitiveness.”
Berry also mentioned the measures the company is taking to ensure the safety and wellbeing of its employees through the current times. “In these unprecedented times, we have put the physical and emotional wellbeing of our employees and their families above everything else. A 24/7 medical concierge desk has been set up for the employees. The desk provides support for tests, reports, has a 24/7 doctor on call, ambulance pickups and hospital admissions. A counsellor is on call to help employees cope with emotional trauma. Employees who are working in the frontline are provided financial protection through insurance and other means in addition to special leaves and unstinted organisational support. Safety of employees and their families shall remain the most important endeavour of the company as we navigate these difficult times.”