Britannia Industries (BRITANNIA) Q4 00/01 earnings summary

Executive summary

• FY01 sales rose 14.4% to Rs 13,384 million; operating profit increased 37% to Rs 962 million despite a broad economic slowdown.

• Profit after tax, including exceptional items, grew 38% to Rs 705 million; EPS increased 38% to Rs 25.33.

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 rose 29% to Rs 1,022 million; profit before tax, after exceptional items, was Rs 1,139 million vs Rs 771 million.

• PAT before exceptional items was Rs 634 million vs Rs 522 million; PAT after exceptional items was Rs 705 million vs Rs 510 million.

• Exceptional items included Rs 41 million in VRS costs and a Rs 158 million reversal of prior-year liabilities.

Outlook and guidance

• Economic sluggishness was expected to continue, making historical sales growth challenging; plans focused on launches, product renovation, market spending, cost savings and productivity.

• Biscuit excise increases had pressured the bottom line; cost savings and productivity gains were intended to offset the impact and support profit growth.

• Dairy growth plans centered on wider distribution, low-price packs, consumer schemes, brand building and scale in key varieties.