Britannia Industries to increase prices by 3% in coming quarters
After reporting a 16.09 percent increase in consolidated net profit to Rs 303.03 crore for the second quarter ended September 2018, FMCG major Britannia Industries on Tuesday said the company would look to increase prices of its products by 3 percent in the coming quarters.
After reporting a 16.09 percent increase in consolidated net profit to Rs 303.03 crore for the second quarter ended September 2018, FMCG major Britannia Industries on Tuesday said the company would look to increase prices of its products by 3 percent in the coming quarters.
In an interview to CNBC-TV18, Varun Berry, managing director, said Britannia is likely to maintain the current growth trajectory as the market seems to be responding to all the innovations brought by the company.
Berry said Britannia had taken long positions in some of the commodities and it has helped the company, adding that the expectation for input basket inflation for next half is around 4 percent.
The margin improvement seen in this quarter is on the back of upgradation in terms of premiumisation of products, he said, adding that Britannia has always been significantly tight on overhead costs.
With regards to innovation launches, Berry said Britannia account for 5 percent of the company’s revenues and would also look at newer capacities for new launches.
Going forward, there would be numerous launches in biscuits, cakes, bars etc., he added. However, the ad spends in second half will be lower, because in the first half they spent a lot on completion of 100 years, Berry said.
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