Britannia Industries (BRITANNIA) Q4 98/99 earnings summary

Executive summary

• FY ended Mar 31, 1999 sales reached Rs 10,301m, up 22% YoY; operating profit rose 42% to Rs 511m and PAT rose 37% to Rs 396m.

• Earnings growth reflected higher sales, cost savings and productivity gains; core bakery operations grew satisfactorily and the dairy business consolidated.

• Cricket World Cup promotion received a good consumer response and boosted volumes in Q4.

Financial highlights

• PBT increased 36% to Rs 576m; EPS rose 37% to Rs 21.31 from Rs 15.58 YoY.

• Operating profit before depreciation was Rs 670m versus Rs 478m; depreciation was Rs 159m versus Rs 118m.

• Cash flow generation increased 31% to Rs 572m; capital expenditure was Rs 218m.

• Sales crossed Rs 10bn despite continued economic stagnation.

Outlook and guidance

• Priorities include becoming a low-cost producer through process improvements, modern equipment and packaging systems, while sustaining product quality and productivity.

• New product introductions and consumer-focused taste and nutrition remain priorities; management expressed optimism for bakery and dairy businesses amid intense competition.

• Manufacturing upgrades and expansion will emphasize new product technology and state-of-the-art packaging systems.