Britannia Industries (BRITANNIA) Q4 00/01 earnings summary

Executive summary

• FY2000-01 sales rose 14.4% to Rs. 13,384 million despite a sluggish economy; operating profit increased 37% to Rs. 962 million.

• Net profit reached Rs. 705 million, up 38%, including exceptional items; growth reflected higher sales, cost reduction and productivity gains.

Financial highlights

• Sales were Rs. 13,384 million vs. Rs. 11,698 million; operating profit before depreciation and amortization was Rs. 1,151 million vs. Rs. 876 million.

• Profit before tax and exceptional items was Rs. 1,022 million, up 29%; profit after tax before exceptional items was Rs. 634 million, up 21%.

• Reported profit after tax was Rs. 705 million vs. Rs. 510 million; EPS was Rs. 25.33 vs. Rs. 18.31.

• Net cash from operating activities was Rs. 308 million vs. Rs. 534 million; net cash used in investing activities was Rs. 985 million.

Outlook and guidance

• Economic sluggishness is expected to continue; maintaining historical sales growth will be challenging amid competitive pressure and the biscuit excise increase.

• Priorities include new product launches, product renovation, focused marketing, cost savings and productivity gains to support sales and profits.

• ERP implementation is underway, with the first phase expected to be completed by next year.