Britannia Q1 net rises 19.41% to Rs 258.08 crore

NEW DELHI, Aug 6:FMCG major Britannia Industries today reported a 19.41 per cent rise in consolidated net profit at Rs 258.08 crore for the quarter ended June 30, 2018, driven by double-digit volume growth.
The company had posted a net profit of Rs 216.12 crore in the April-June period a year ago.
Its total income stood at Rs 2,585.84 crore in the quarter under review. It was Rs 2,375.01 crore in the corresponding period of the previous fiscal, Britannia Industries said in a BSE filing.
The company said the reported revenue, part of total income, for the quarter ended June 30, 2018, is not comparable to the revenue reported in the previous period due to implementation of GST with effect from July 1, 2017.
“Excise duty has subsumed into GST, and hence revenue from sale of goods for the period commencing July 1, 2017 does not include excise duty,” it added.
“We have witnessed positive momentum in the market over the last few quarters. Our double-digit growth for the quarter is backed by a double-digit volume growth primarily due to our investment in brands and widening our distribution network through focus on direct reach, rural market and weak states,” Britannia Industries MD Varun Berry said.
Britannia said its international business remained flat due to slow-down in geographies like Middle East and Africa.
“The growth in dairy business has been subdued due to our focus on driving value added products and reducing our play in the less profitable commoditised products, which has helped us improve our profitability,” Britannia said.
The company said in its 100th year it will enter into ” many unchartered territories” to secure disruptive growth.
In a separate filing, the company said its board of directors has recommended and approved issuance of secured redeemable non-convertible debentures as bonus debentures of Rs 60 in the ratio of 1 bonus debenture for every 1 equity share held by shareholders of the company.
The company said it would issue 12,01,59,147 bonus debentures of Rs 720.95 crore.
“The company will utilise balance in retained earnings to the extent of Rs 869.11 crore including deemed dividend tax,” it added.
It further informed that a meeting of the board of directors will be held on August 23, 2018, to consider the sub-division of equity shares of the company of face value of Rs 2 each.
Shares of Britannia Industries were trading at Rs 6,356.25 apiece, down 0.61 per cent, on BSE. (PTI)