homeearnings NewsStreet food absence a boost for biscuit consumption; 21% margin unsustainable: Britannia MD Berry
Street food absence a boost for biscuit consumption; 21% margin unsustainable: Britannia MD Berry
Things are looking "reasonably good" and the company is producing at full capacity, Britannia Industries MD Varun Berry told CNBC-TV18.
Last week, the company reported a strong set of numbers for the June quarter, with net profit more than doubling and revenue from operations rising over 26 percent year-on-year.
He declined to make any forecast for the full year performance, but said there were tailwinds for the packaged snacks industry.
Berry said absence of street food had led to increased consumption of biscuits by households.
Berry cautioned investors that a 22 percent volume growth and 21 percent margin were tough to sustain. He also said that the promoters were not looking to sell a stake in the company.
Following are the highlights from the interview:
On markets:
The company's focus towards rural market development is paying off
Rural growth has been aided by good monsoon and demand for agriculture produce
Growth in rural markets will continue to outpace that in urban markets
Once the weakest market, UP is now the second-largest market for the company ow
On product categories:
Health and hygiene are the focus categories of the future.
The company is selling more of premium products now
The reduction in ad spends by the company is temporary
On operations:
Don't think 22 percent volume growth is sustainable
Don't think 21 percent margins can be maintained
Raw material basket saw 3 percent inflation; commodity costs not an issue this year
On capex:
Will spend Rs 720 crore over next 24-30 months in capex
Looking at starting 4 new facilities
First Published: Jul 20, 2020 11:12 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Supreme Court says it may consider interim bail for Arvind Kejriwal due to ongoing Lok Sabha polls
May 3, 2024 4:57 PM
10% discount on fare on Mumbai Metro lines 2 and 7A on May 20
May 3, 2024 2:40 PM