Britannia Industries (BRITANNIA) Q2 24/25 earnings summary

Executive summary

• Revenue from operations for Q2 FY25 was ₹4,667.57 crore, up 4.5% year-over-year, with sequential growth as well.

• Net profit for Q2 FY25 was ₹531.55 crore, down 9.6% year-over-year, but up 5.1% sequentially.

• Operating in a challenging environment marked by weak urban demand, high inflation, and strong rural growth.

• Market share in biscuits remains strong, supported by distribution expansion and brand investments.

• Strategic focus on distribution, marketing, innovation, adjacent businesses, cost efficiency, and sustainability.

Financial highlights

• Net sales for Q2 FY25 were ₹4,667.57 crore, up 4.5% year-over-year; volume growth at 8%.

• Operating profit for Q2 FY25 was ₹707 crore, down 11.7% year-over-year but up sequentially.

• Profit after tax margin stood at 11.6%; PAT declined 9.6% year-over-year.

• Earnings per share for Q2 FY25 were ₹22.06, down from ₹24.41 in Q2 FY24.

• Salary costs rose sharply due to stock appreciation rights, with a one-time impact of ₹50 crore this quarter.

Outlook and guidance

• Price increases of 4%-5% are planned over the next two quarters to offset commodity inflation.

• Focus remains on balancing volume and pricing to sustain long-term growth, with careful monitoring of inflation and competition.

• Margins expected to remain stable as price hikes offset input cost inflation.

• Continued investments in brands, value engineering, and operational efficiency.