Result Analysis: Britannia Industries Limited (CMP: Rs.4369) Result Update: Q3FY23

Britannia Industries (“Britannia”) is one of India’s leading food companies with a 100-year legacy. Britannia is among the most trusted food brands, and manufactures India’s favorite brands like Good Day, NutriChoice, Tiger, Milk Bikis, and Marie Gold which are household names in India. Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusks, and Dairy products including Cheese, Beverages, Milk, and Yoghurt. Britannia is a brand that many generations of Indians have grown up with and the brands are cherished and loved in India and the world over. Britannia products are available across the country in close to 5 million retail outlets and reach over 50% of Indian homes.

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    Stock Details
    Market Cap. (Cr.) 105243
    Equity (Cr.) 24.09
    Face Value 1
    52 Wk. high/low 4535 / 3050
    BSE Code 500825
    Book Value (Rs.) 84.72
    Sector FMCG


    Key Ratios
    Debt-equity: 0.75
    ROCE (%): 41.14
    ROE (%): 49.66
    TTM EPS: 76.33
    P/BV: 51.6
    TTM P/E: 57.24

    Result Highlights:

    • Total Consolidated Revenue of Britannia grew by 16.17% on YoY basis whereas it shrunk on QoQ basis by 5.44% to Rs. 4,101.49 in Q3FY23. Company has clocked PAT of Rs. 932.40 cr. in the Dec. quarter, growth of 90.06% QoQ and 152.56% YoY.

    • The PAT margin of the company has increased sequentially by 1142bps and 1227bps on YoY basis to 22.73%, as a result of profit on sale of 49% stake in Britannia Dairy Private Limited to Bel SA.

    • EBITDA margin of the company has increased sequentially by 353bps and 432bps on YoY basis to 21.17%.

    • Joint Venture Agreement (“JVA”) entered into between BIL, BEL and BDPL to undertake the development, manufacturing, marketing, distribution, trading and selling etc, of cheese products in India and certain other countries.

    • The company expanded the footprint of a few of its adjacent categories including croissant & cakes and made entry into new categories.

    • Britannia relaunched products like Pure Magic Chocolush & Rusk with improved recipes. Some of its new launches like Biscafe, Golmaal, NC Seeds & Herbs and Marble cake have done extremely well & continue to grow aggressively quarter on quarter.

    Financial  Performance:

    Shareholding Pattern:

    Particulars %
    Promoters & Promoter Group 50.55%
    FIIs 19.81%
    DIIs 15.21%
    Public 14.01%
    Others 0.42%

    Management Commentary:

    • Varun Berry, Vice Chairman & Managing Director, said; “Our Go-to-market strategy and investments in brands & innovation have helped us register a robust topline growth of 16% YoY. Continued focus on enhancing direct reach coupled with Rural agenda have helped us deliver solid growths over the past few quarters. We supported our brands & innovations with the requisite investments in the digital & mass media space. In line with our ambition to become responsible total foods company, we entered into a strategic partnership with Bel, the renowned French cheese maker, to offer Indian consumers a world-class range of nutritious, delicious and accessible cheese products. Cheese is an under-penetrated category and this partnership will help us expand the nascent but fast growing cheese category in India and being a leader in fulfilling evolving consumer needs.”


    Britannia reported in-lined results in the December quarter of FY23 with growth in revenue on YoY basis along with improved margins. The company’s pricing actions and intensified cost efficiency program helped mitigate the inflation, and due to revision in new tax regime announced in the Union Budget 2023-24 the consumer would have more disposable income which could be beneficial for the FMCG industry, hence good for the company’s revenue. For the nine months of FY23 Britannia has reported the earnings of Rs.73.20 and we expect the company to close the FY23 at the eEPS of Rs.91.50. Based on the estimated earnings the company is available at PEx of 47.74 at the current market price.


    Particulars (In Rs. Cr.) Q3FY23 Q2FY23 Q3FY22      QoQ %          YoY% 9MFY23 9MFY22          YoY%
    Revenue from Operations 4,101.49 4,337.59 3,530.70 -5.44% 16.17% 12,092.88 10,436.32 15.87%
    Other Operating Revenue 95.31 42.02 44.28 126.82% 115.24% 184.49 149.49 23.41%
    Other Income 50.75 53.24 55.13 -4.68% -7.94% 159.49 169.00 -5.63%
    Total Income 4,247.55 4,432.85 3,630.11 -4.18% 17.01% 12,436.86 10,754.81 15.64%
    Cost of material consumed 2,098.26 2,245.94 1,818.26 -6.58% 15.40% 6,303.55 5,615.30 12.26%
    Purchase of stock in trade 289.55 466.34 412.99 -37.91% -29.89% 1,147.58 1,013.22 13.26%
    Change in inventories -23.13 -37.71 -11.65 -38.66% 98.54% -75.75 -68.09 11.25%
    Employee benefits expense 178.24 162.57 127.91 9.64% 39.35% 487.80 420.84 15.91%
    Other Expenses 836.30 830.77 687.75 0.67% 21.60% 2,384.17 1,952.71 22.10%
    EBITDA 868.33 764.94 594.85 13.52% 45.97% 2,189.51 1,820.83 20.25%
    EBITDA Margin (%) 21.17% 17.64% 16.85% 353 bps 432 bps 18.11% 17.45% 66 bps
    Finance Cost 38.13 54.14 37.38 -29.57% 2.01% 134.24 110.54 21.44%
    Depreciation & Amortization expense 57.96 51.66 50.38 12.20% 15.05% 160.58 149.61 7.33%
    Share of profit/(loss) in associated and JV 1.47 0.06 -0.71 2350.00% -307.04% 1.38 -0.28 -592.86%
    Net exceptional gain/(loss) 375.60 0.00 -0.98 -38426.53% 375.60 -0.98 -38426.53%
    Profit Before Tax 1,149.31 659.20 505.40 74.35% 127.41% 2,271.67 1,559.42 45.67%
    Tax 216.91 168.62 136.22 28.64% 59.24% 512.95 421.39 21.73%
    Profit After Tax 932.40 490.58 369.18 90.06% 152.56% 1,758.72 1,138.03 54.54%
    PAT Margin (%) 22.73% 11.31% 10.46% 1142 bps 1227 bps 14.54% 10.90%  bps
    EPS (in Rs.) 38.71 20.48 15.41 89.01% 151.20% 73.20 47.53 54.01%
    Source: Company website, EWL Research

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