Britannia Q3 Results Preview: Profit likely to decline 40%; margins may remain muted

Biscuit maker Britannia Industries is all set to announce its financial results for the October-December period (Q3 FY24) on Tuesday, February 6. The Kolkata-headquartered FMCG major is widely expected to register a dip in quarterly net profit, owing to a high base a year ago, with some pressure on the margin front owing to higher advertising expenses.

According to Zee Business research, Britannia is estimated to report a consolidated profit after tax (PAT) of Rs 558 crore for the fiscal third quarter, translating into a 40 per cent fall compared with the corresponding period a year ago which included an exceptional gain of Rs 359 crore. The analysts peg the private sector FMCG company’s quarterly revenue to grow 1.5 per cent to Rs 4,261 crore, supported by price hikes and an estimated 1-2 per cent 1-2 per cent increase in volumes.

Zee Business analysts peg Britannia’s earnings before interest, tax, depreciation, and amortisation (EBITDA) for the fiscal third quarter at Rs 829 crore, as against Rs 818 crore a year ago.

According to the research, the margin, a key measure of profitability, of the biscuit maker, whose popular brands include Tiger, Bourbon, Milk Bikis and Marie Gold, is estimated to remain unchanged at 19.5 per cent compared with the year-ago period.

Analysts will track the Britannia management’s commentary on the rural demand environment, raw cost outlook, market trends and the outlook for its core biscuits portfolio.

How Britannia fared in July-September (Q2 FY24) period

For the July-September quarter, the company posted an increase of 19.6 per cent in consolidated net profit to Rs 586.5 crore amid softening commodity prices.

Its revenue from operations increased 1.2 per cent to Rs 4,432.88 crore for the fiscal second quarter, according to a regulatory filing.

Britannia Industries shares: Past performance

Britannia Industries shares have grown over 10 per cent in the past year, underperforming a 19 per cent rise in the headline Nifty50 index.

On Monday, the Britannia stock settled lower by Rs 34, or 0.7 per cent, at Rs 5,112.7 apiece on BSE.

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