Bengaluru: Britannia Industries reported a 14% year-on-year rise in net profit to Rs 593 crore for the June quarter, helped by growth across key product categories and stronger sales through ecommerce and traditional retail channels. Total income rose 8.2% to Rs 5,061 crore from Rs 4,679 crore a year ago.Britannia said it managed to navigate a sharp increase in fuel and shipping costs caused by the conflict in West Asia. The rise in costs affected both its domestic and international businesses.“The year started with the West Asia conflict, leading to a steep increase in cost of fuel and shipment charges across our domestic and international businesses,” CEO and managing director Rakshit Hargave said.The company delivered healthy volume and value growth during the quarter, while also gaining ground against competitors, he added. Profits grew faster than the topline on a year-on-year basis.Britannia said most of its key product categories recorded positive momentum as the quarter progressed. It exited the quarter with revenue growth in the mid-teens, supported by the rapid expansion of ecommerce and robust growth in general trade, which includes neighbourhood stores and other traditional retail outlets.Higher spending on advertising, influencers and promotions also aided growth.The company continued to invest in mass-media campaigns for brands such as Marie Gold, NutriChoice and Little Hearts. It also stepped up regional marketing efforts, including a Milk Bikis campaign in Tamil Nadu.Britannia said product innovation remained an important growth driver. Its recent launches included the Dubai Kunafa Croissant, aimed at the impulse and indulgence category.Its international business also recovered sequentially as supply-chain constraints began easing towards the end of the quarter.The company said it would continue to monitor developments in West Asia and volatility in crude oil prices, given their potential impact on overseas operations, shipping costs and domestic input expenses. It expects improving demand in India, new products and cost-control measures to support growth.
