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Britannia net profit dips 31%

Britannia Industries Ltd, the leading biscuit, confectionery and dairy products maker, is mulling a price hike by 5-10 per cent in the short term.

business Updated: Aug 09, 2010 21:35 IST
HT Correspondent

Britannia Industries Ltd, the leading biscuit, confectionery and dairy products maker, is mulling a price hike by 5-10 per cent in the short term.

Britannia Industries chairman Nusli Wadia told shareholders at the company’s 91st annual general meeting on Monday that so far the industry had refrained from raising prices due to the harsh competitive environment but the time has now come where the industry needs to take a call.

"We will pass on the impact of commodity inflation as biscuit industry is the only one which is yet to raise prices," Wadia said.

"While our volume growth has been 20 per cent in April-June, value growth was 26 per cent which came from price hike impact," said Vinita Bali, managing director, Britannia.

She also said that Britannia has already raised prices in April-June quarter and raising prices again would be difficult across categories as some products like glucose is highly competitive.

While Britannia had already acquired two units in West Asia, Bali said the company is about to enter Saudi Arabia and Gulf Cooperation Countries for exports to Africa and Australia.

Britannia on Monday reported a drop of 30.7 per cent in April-June net profit to Rs 32.8 crore from Rs 47.37 crore in the year-ago period.

Standalone net sales increased to Rs 912.8 crore from Rs 731.2 crore during the period.

"While turnover grew, net profit was down as we took a beating on sugar whose prices were volatile...we have bought lots of sugar to maintain availability for our supply chain," Wadia said.