Britannia Q4 Results Preview: Tiger biscuit maker's margin may shrink by 90 bps; here is why

Britannia Q4 Results Preview: FMCG major Britannia is all set to report its financial results for the January-March period on Friday, May 3. Analysts expect the Kolkata-headquarter company, whose popular biscuit brands include Good Day, Tiger, Marie Gold, Milk Bikis and Nutrichoice, to face some margin pressure in the fourth and final quarter of the financial year 2023-24 due to increases in grammage owing to stiff competition and higher advertising expenditure amid mild growth in sales volumes. 

According to Zee Business research, Britannia is estimated to register a consolidated net profit of Rs 539 crore for the quarter ended March 31, down 3.4 per cent compared with the corresponding period a year ago. The analysts expect the FMCG firm's fourth-quarter revenue to expand to Rs 4,084 crore from Rs 4,023 crore a year ago.

Britannia is expected to log Rs 780 crore in quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), down 2.6 per cent on a year-on-year basis, according to the research. 

Zee Business analysts estimate Britannia's margin, a key measure of profitability, to shrink by 90 basis points (bps) to 19 per cent for the March quarter. They see the biscuit maker's sales volumes to increase by 4-5 per cent on a year-on-year basis. 

Key things to track in Britannia Q4 earnings

Here are some of the key things analysts will track closely in the FMCG company's upcoming earnings report: 

• Remarks on rural demand environment
• Outlook on raw material cost, core biscuit portfolio 
• Market share trends

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