INDIA – The Indian food-products corporation, Britannia Industries has said consolidated net profit for the quarter ended June 2018 increased by 19.41% to US$37.56 million helped by double-digit volume growth, ET Retail reports.
Total income rose to US$376m compared to US$345m in the corresponding period of the previous fiscal.
According to BSE filing by the company, reported revenue, part of total income, for the quarter ended June 30, 2018, was not comparable to the revenue reported in the previous period due to implementation of GST.
The government of India introduced lower rates on goods and services tax (GST) effective July 1, 2017 with a goal protect consumers from any runaway price rise post the roll out.
Companies were then required to pass on any benefits from a lower GST rate to consumers on a mandatory basis.
“Excise duty has subsumed into GST, and hence revenue from sale of goods for the period commencing July 1, 2017 does not include excise duty,” it added.
Speaking on the results Britannia Industries MD Varun Berry said: “We have witnessed positive momentum in the market over the last few quarters.
Our double-digit growth for the quarter is backed by a double-digit volume growth primarily due to our investment in brands and widening our distribution network through focus on direct reach, rural market and weak states.”
International business remained flat due to slow-down in geographies like Middle East and Africa but dairy business achieved significant growth mainly due to focus on driving value added products and reducing our play in the less profitable commoditised products.
The company plans to enter many unchartered territories in order to achieve disruptive growth.
In the fourth quarter ended March 31 results statement, it revealed it was setting up a US$22.83 million manufacturing facility in Gujarat with a focus on the export market.
It then reported a 25% growth in net profit boosted by high demand met through a wide distribution reach across its market.
Recently, the biscuits company invested US$29m in a new greenfield manufacturing facility in Assam.