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Britannia Posted Robust Set of Numbers For March 2015 Quarter

Britannia is one of the leading food companies India delivering products in over 5 categories through 3.5 million retail outlets to more than half the Indian population. Britannia was one of the first companies in India to pioneer category defining innovations like Cream Cheese and introducing a host of international flavors for its cubes & spreads in India.

Britannia recently announced March quarter FY15 result, the revenue of the company rose by 1.49 per cent to Rs. 2064 crore comapred to Rs. 2033 crore in Dec qurter FY14. The total expenses increased by 0.75 per cent beacuse of increased in employee benifit expense, depreciation, advertise & promotional expenses. The cost of material consumed decreased by 1.58 per cent. The employee benifit expenses increased by 6.34 per cent. The depreciation increased by 51.8 per cent, and the huge increment in depreciation beacuse the company has revised depreciation rates of fixed assets as per usefull life. The advertising & promotional expenses incerased by 21.56 per cent, as the firm spent more on advertising and promotions during the quarter to support new product launches and to participate in large marketing events such as the ICC Cricket World Cup. The other expenses decreased by 0.25 per cent on sequencial basis.

The EBITDA increased by 15.23 per cent in March quarter FY15 compared to Dec quarter FY14,  EBITDA margin increased by 146 basis points to 12.26 per cent beacause the stable ingredient costs and new launches, higher sales due higher advertising and marketing spending, helped the firm expand margins.  The other income of the company increased by 44.09 per cent, the finance cost decreased by 18.18 per cent. The net profit of the company increased to Rs. 167 from Rs. 137 crore and rose by 21.83 per cent on sequential basis.

The anual performance for FY15 compraed to FY14 of the company was more than expected, the revenue stood up at Rs. 7858 crore compared to Rs. 6913 crore, increased by 13.68 per cent, company has outstanding revenue growth despite subdue business environment during the period, this was achived through straightening fundamentals for distribution and tight mangaement of fixed cost. On year on year basis, the total expenses of the company also increased to Rs. 7139 crore from Rs. 6368 crore because the increased in cost of materials by 12.65 per cent, employee cost by 6.82 per cent, advertsing and promotional expenses by 11 per cent and decreased in depreciation by 68.13 per cent, as company reduced its fixed assets during this year.

The other income increased by 161.86 per cent, the finance cost decreased by 53.44 per cent the tax expense increased by 50.4 per cent. The net profit of the company  was Rs 689 crore compared to Rs 395 crore increased by 74.18 per cent, year on year basis. As per the director statement, Steady prices of wheat and sugar helped the firm boost its margins, “the bottomline, we’ve been helped by commodity prices,” said managing director Varun Berry.

In November, company had launched an expensive version of its Good Day biscuits called Good Day Chunkies, priced at Rs.50 for six cookies.

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