Britannia Industries (BRITANNIA) Q4 99/00 earnings summary

Executive summary

• FY00 sales rose 14% to Rs 11,698 Mn; operating profit increased 38% to Rs 704 Mn and profit after tax rose 29% to Rs 510 Mn.

• Growth came from core bakery operations and the expanding dairy business, supported by volume gains, cost savings and productivity improvements.

Financial highlights

• Sales were Rs 11,698 Mn versus Rs 10,301 Mn; operating profit before depreciation was Rs 876 Mn versus Rs 670 Mn.

• Profit before tax and exceptional item increased 37% to Rs 790 Mn; reported PBT was Rs 771 Mn after a Rs 19.6 Mn VRS charge, and PAT was Rs 510 Mn.

• Cash flow generation rose 26% to Rs 718 Mn; shareholders’ funds increased 25% to Rs 1,865 Mn.

• Capital expenditure was Rs 120 Mn, directed to fixed assets and capital work-in-progress.

Outlook and guidance

• Plan to protect topline growth with low-cost quality products, brand renovation and new launches; cost savings and productivity gains targeted to support earnings.

• Strategic aim is to strengthen the core bakery business and build the newer dairy operations amid intense competition.