Tag Britannia Industries Ltd.

Britannia Ltd
Britannia Q3 FY25 Results: Net Profit Rises 5% to ₹582 Crore, Revenue Up 7.9% YoY

Britannia Industries Ltd: Overview 

Britannia Industries Limited is one of India’s leading food companies, best known for its wide range of biscuits, dairy products, and bakery goods. With a rich legacy of over a century, Britannia has established itself as a household name, consistently delivering high-quality, innovative, and nutritious products. The company operates in multiple food categories, including biscuits, cakes, breads, rusk, and dairy products like cheese, milk, and yogurt. Britannia has a strong distribution network across India and continues to expand its presence in international markets, catering to consumers in over 60 countries. The company has strategically invested in production facilities, research and development, and brand-building initiatives to maintain its leadership position. Innovation remains a key focus area, with Britannia introducing new product variants and health-oriented options to cater to evolving consumer preferences. Its commitment to sustainability and responsible sourcing further strengthens its market credibility and long-term growth prospects. The Indian packaged food industry has been experiencing steady growth, driven by rising urbanization, increasing disposable incomes, and changing consumer lifestyles. The demand for ready-to-eat and convenience foods has surged, particularly in urban centers where busy schedules have led to greater reliance on packaged food products. Britannia benefits from this trend as it continues to innovate and expand its product portfolio. The growth of e-commerce and digital grocery platforms has opened new avenues for distribution, allowing companies like Britannia to reach a wider consumer base. Despite facing challenges such as inflationary pressures on raw material costs, fluctuating commodity prices, and regulatory changes, the packaged food sector remains resilient. With government initiatives promoting the food processing industry and increasing foreign investments, the long-term outlook for Britannia and the broader industry remains positive. 

Latest Stock News 

In the third quarter of FY25, Britannia Industries reported a Profit after Tax (PAT) at 13.0% of total revenue, reflecting the impact of an economic slowdown and persistently high food inflation, which has led to muted consumer demand. Inflationary pressures have remained a challenge, with key household essentials witnessing significant price increases cereals rising by 6.5%, oils and fats by 14.6%, vegetables by 26.6%, and fruits by 8.5% as of December 2024. The GDP recorded its lowest growth in Q2 FY25 over the last two years; however, a recovery is anticipated in the second half of the fiscal year, with nominal growth expected to reach 10.5%. The revival is likely to be led by improvements in the agriculture and manufacturing sectors, which are expected to drive economic momentum. Britannia’s product portfolio has continued to show resilience despite macroeconomic headwinds. The croissant category remains on a strong double-digit growth trajectory, while rusk has maintained healthy volume and value growth, benefiting from increased consumer preference. The wafer segment is progressing well, supported by continuous innovations and a growing distribution network. The cheese business is leveraging in-house capabilities to remain competitive, ensuring sustained market presence and growth. Meanwhile, the drinks category continues to perform exceptionally, demonstrating robust double-digit growth backed by strong demand. On the international front, Britannia’s business has performed well, particularly in non-Middle East markets, delivering steady growth while maintaining healthy operating margins. The company remains focused on expanding its global footprint and optimizing efficiencies to navigate inflationary challenges while sustaining long-term profitability. 

Business Segments 

  • Biscuits Segment: Britannia’s biscuit segment remains the company’s core business, contributing significantly to overall revenues. Popular brands such as Good Day, Marie Gold, Bourbon, and Treat continue to dominate their respective categories. The company has been actively diversifying within this segment by introducing premium, health-focused, and indulgent variants to cater to different consumer segments. 
  • Dairy Segment: Britannia’s dairy division is a growing contributor to its overall business, featuring a range of products including cheese, butter, milk, yogurt, and ghee. The company has focused on value-added dairy products, such as flavoured yogurts and functional dairy drinks, to capture evolving consumer preferences. The increasing health consciousness among consumers is expected to drive further growth in this segment, with the company poised to introduce new, innovative dairy offerings. 
  • Bread and Bakery Segment: Britannia holds a significant market share in the bread and bakery category, with its fresh and packaged bread lines being a staple in many Indian households. The bakery segment, which includes cakes and rusks, has also seen steady growth, driven by increasing consumer demand for convenient and indulgent snacks. 
  • International Business: Britannia has been expanding its global footprint by entering new markets and strengthening its presence in existing ones. To cater to international consumers, Britannia has localized some of its products, aligning them with regional tastes and preferences. The company is also exploring manufacturing opportunities outside India to reduce costs and enhance supply chain efficiency. 

Subsidiary Information 

  • Britannia Dairy Private Ltd: Britannia Dairy Private Limited is a wholly-owned subsidiary of Britannia Industries Ltd., focusing on the company’s dairy segment. It plays a crucial role in expanding Britannia’s presence in the dairy market with products like cheese, milk, yogurt, and ghee. The subsidiary has been instrumental in driving premiumization in the dairy sector, launching value-added dairy products tailored to changing consumer preferences. 
  • Britannia and Associates (Dubai) Private Company Ltd: This subsidiary is responsible for managing Britannia’s international operations, particularly in the Middle East and Africa. Based in Dubai, it serves as a strategic hub for exports and local manufacturing, helping Britannia strengthen its foothold in the growing overseas markets. Britannia continues to invest in its global subsidiary to drive sales growth through market-specific product innovations and localized marketing strategies. 
  • Britannia Nepal Private Ltd: Britannia Nepal Private Limited is a key subsidiary responsible for manufacturing and distributing Britannia products in Nepal. The company benefits from strong brand recall and consumer trust, enabling it to maintain a dominant market share. Britannia Nepal Private Limited continues to focus on market expansion, increasing product availability, and strengthening its distribution network. 
  • Britannia Bangladesh Private Ltd: As part of Britannia’s global expansion strategy, Britannia Bangladesh Private Limited was established to cater to the growing demand for bakery and dairy products in Bangladesh. The subsidiary has capitalized on the strong consumer preference for Britannia’s biscuits and bread products. With a growing market for packaged food, the subsidiary is well-positioned to drive further expansion and contribute significantly to Britannia’s international revenue. 
  • Sunrise Biscuit Company Private Ltd: Sunrise Biscuit Company Private Limited was acquired by Britannia to strengthen its presence in India’s eastern market. This subsidiary primarily focuses on the production of biscuits and related bakery products, supporting Britannia’s expansion in key regions like West Bengal and Odisha. The subsidiary plays a strategic role in Britannia’s growth plan, ensuring efficient production and distribution while maintaining product quality and affordability. 

Q3 FY25 Earnings 

  • Revenue of ₹4593 crore in Q3 FY25 up by 7.9% YoY from ₹4256 crore in Q3 FY24.  
  • EBITDA of ₹843 crore in this quarter at a margin of 18% compared to 19% in Q3 FY24. 
  • Profit of ₹582 crore in this quarter compared to a ₹556 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 4256 4593 16301 16769 
Expenses 3437 3750 13470 13603 
EBITDA 820 843 2831 3167 
OPM 19% 18% 17% 19% 
Other Income 48 62 597 211 
Net Profit 556 582 2316 2134 
NPM 13.1% 12.7% 14.2% 12.7% 
EPS 23.1 24.2 96.4 88.8 
Britannia Industries Q2 Earnings
Britannia Industries Q2 Earnings: 9.6% Decline in Net Profit, 8% Volume Growth Achieved

Company Overview

Britannia Industries Ltd., one of India’s leading FMCG companies, has established a prominent position in the food and beverages sector, primarily focusing on bakery products. Known for its vast portfolio of biscuits, bread, cakes, dairy products, and other snacks, Britannia enjoys high brand recognition and consumer trust across India and in various international markets. Britannia is best known for its biscuit brands, commanding over 30% market share in India. Britannia has established a strong distribution network of 30000, reaching both urban and rural markets, helping it maintain a leading position in India’s competitive biscuits market. Britannia has a growing international presence, operating in over 70 countries, including the Middle East, Africa, North America, and Southeast Asia. Britannia has 13 manufacturing facilities across India, producing a wide range of products with a focus on quality and efficiency. It also has an extensive network of third-party manufacturing units. Britannia’s robust portfolio, brand strength, extensive distribution, and continuous innovation place it at a strong position within India’s FMCG sector.

Industry Outlook

The Indian Fast-Moving Consumer Goods (FMCG) industry is one of the most robust and dynamic sectors, driven by strong demand, population growth, rising income levels, and increased urbanization. The Indian FMCG sector is projected to grow at a CAGR of 10-12% over the next five years, driven by rural market expansion, rising incomes, and a favourable demographic dividend.  As of recent estimates, the FMCG market in India is valued at over $110 billion, making it the fourth-largest sector in the Indian economy. Rural demand now contributes to 45-50% of total FMCG sales and is expected to continue growing. Rising disposable incomes are shifting consumption patterns toward premium and value-added products. Online FMCG sales have grown rapidly, particularly in urban areas, and are expected to account for 10-12% of FMCG sales by 2025.

Financial Summary

INR Cr.Q1 FY25Q2 FY25FY23FY24
Revenue425046681630116769
EBITDA75378028313167
OPM18%17%17%19%
PBT68171530332913
Net Profit50553223162134
NPM11.8%11.4%14.2%12.7%
EPS20.9922.0696.3988.84
C&CE215250198446

Business Segments:

  • Bakery Business: It involves many sub segments in it, Biscuit is a major part of this segment and is continued to grow. Cakes are in category continuous to grow in of ₹5-10 price points products and large priced products are having substantial growth. Rusk is having some tough competition from its strong new entrants. In bread category, it is having a great growth as more demand from consumers with over turnover of ₹450 crore.
  • Dairy Business: It involves cheese and drinks like Lassi which is showing a healthy double digit growth. Packaged liquid milk remains a key growth driver of the industry, healthy demand and growth is also expected in cheese, yogurt and other value added dairy products.
  • Adjacent Business: This segment has Wafers which is highly fragmented market of ₹1000 crore. Croissant is also a product of Britannia in this segment, able to achieve good growth in urban areas. Salted snacks or packets is a growing at double digit rate and is most profitable and high volume category.
  • International Business: International Business for the Company is largely centered on Middle East, Americas, Africa and Asia Pacific. The business environment in these geographies is highly competitive with the presence of large local and international players. And exports contribute around 6% in the revenue.

Subsidiary Information:

These are majorly big subsidiaries of Britannia Industries established in India and all over the world. But, there are total over 25+ subsidiaries under it.

  • Manna Foods: Manna Foods allows Britannia to tap into the health and wellness market, expanding its footprint in the packaged foods segment. The yearly turnover for this subsidiary is ₹367 crore, It provides traditional and health-focused foods like millet-based products and ready-to-cook items.
  • AI Sallan Food Industries: This subsidiary helps Britannia access new markets and diversifies revenue streams outside of India. It manufactures and distributes bakery products, primarily in Oman and the Middle East. It had a main focus of international expansion and it has a turnover of ₹ 231 crore in FY24.
  • Britannia Nepal Pvt Ltd: This entity manufactures and distributes Britannia’s core product lines in Nepal, catering to local demand and establishing a stronger footprint in South Asia. Enables Britannia to reduce logistics costs and gain market share in Nepal’s packaged food sector.
  • Strategic Foods International Co. Ltd: It is based in Dubai have product categories of biscuit, cookies and cakes. Predominantly in the Middle East and Africa, where it taps into a growing demand for packaged food and snacks. It plays a key role in diversifying Britannia’s revenue streams beyond India, supporting the company’s goal of becoming a global food brand.

Q2 FY25 & Business Highlights

  • Revenue of ₹4668 crore in Q2 FY25 up by 5.29% YoY from ₹4433 crore in Q2 FY24.
  • EBITDA of ₹780 crore in this quarter at a margin of 17% compared to 20% in Q2 FY24.
  • Profit of ₹532 crore in this quarter compared to a ₹586 crore profit in Q2 FY24.
  • Metro FMCG growth rate is lower compared to Urban and Rural regions of India.
  • Adjacent Businesses are doing really well in cake, wafers, Rusk, Cheese and Drinks.
  • Commodity prices of Sugar, Cocoa, Flour Oils, etc. are increasing due to inflation, which will affect the profitability.
  • Capex of ₹450-₹500 crore is planned to use in FY25, through internal accruals, long-term debts and cash and use it to expand in India and International markets.

SWOT Analysis:

Strengths

  1. Established brand with strong recognition.
  2. Wide-ranging product portfolio.
  3. Broad and effective distribution network.

Weaknesses

  1. Heavy reliance on the biscuits segment.
  2. High sensitivity to input cost fluctuations.

Opportunities

  1. Expansion into dairy and health food categories.
  2. Potential growth in untapped rural markets.
  3. Opportunities for mergers, acquisitions, and partnerships.

Threats

  1. High levels of competition in the market.
  2. Volatility in raw material prices.
  3. Potential impacts from economic slowdowns.
  4. Rising health consciousness shifting consumer preferences.