Britannia Industries (BRITANNIA) Q4 01/02 earnings summary

Executive summary

• FY02 sales rose 9% to Rs 14,510m; operating profit increased 17% to Rs 1,122m and profit after tax before exceptional items rose 30% to Rs 827m.

• After exceptional items, including the dairy business transfer surplus, profit before tax was Rs 2,591m and profit after tax was Rs 2,032m.

Financial highlights

• Sales were Rs 14,510m versus Rs 13,325m; operating profit Rs 1,122m versus Rs 962m; profit before tax before exceptional items Rs 1,223m versus Rs 1,022m.

• Profit after tax before exceptional items reached Rs 827m, up 30% YoY; cash flow generation before exceptional items was Rs 1,098m, up 27%.

• Exceptional items totaled Rs 1,369m, including Rs 1,257m surplus on dairy transfer, Rs 167m reversal of liabilities and Rs 56m VRS costs.

• EPS was Rs 75.67 including the dairy transfer; excluding the transfer, EPS was Rs 33.60 versus Rs 25.33 in FY01.

Outlook and guidance

• Economic slowdown is expected to persist; maintaining historical topline growth will be challenging amid pressure on FMCG volumes and market share.

• Priorities include new launches, product renovation, stronger distribution, cost savings and productivity improvements; outlook described as cautiously optimistic.

• Cake volumes were expected to improve in coming months following supply disruption related to outsourcing operations.