Britannia Industries Pvt.Ltd is one of India’s leading food companies that manufactures breads, biscuits, cakes, and dairy products.
Britannia’s Market Capitalisation
The market capitalisation of the company, as of March 2018, is close to Rs.58,100 crore.
Britannia’s Wealth and Recent Performance
Q1 FY 2018-19
The key highlights of the company’s financial performance for Q1 FY 2018-19, ended 30 June 2018 are as follows:
- The company recorded an increase in consolidated net profit by 19.41% which stood at Rs.258.08 crore, up from Rs.216.12 crore during the same period in the previous year.
- The total income stood at Rs.2,585.84 crore and was up from Rs.2,375.01 crore in Q1 FY 2017-18.
- The consolidated revenue recorded a growth of 12.4% and stood at Rs.2,544 crore as against Rs.2,264 crore in the same period in the previous year.
- The EBITDA (earnings before interest, tax, depreciation and amortisation) registered an increase of 18.5% (YoY) to Rs.389.4 crore.
- Total expenses in the quarter increased by 7.2% and stood at Rs.2,193 crore.
The key highlights of the company’s financial performance for the full FY 2018-19, ended 31 March 2018 are as follows:
- The company registered a growth in the net profit by 14% which stood at Rs.1,004 crore, as against Rs.885 crore in 2016-17.
- The total income jumped to Rs.10,156.47 crore, up from Rs.9,474.65 crore in 2016-17.
- The company's board recommended a dividend of Rs.25 per share of Rs 2 each.
The key highlights of the company’s financial performance for the Q4 FY 2018-19, ended 31 March 2018 are as follows:
- The company recorded a growth in the revenue of 13.1% YoY which stood at Rs.2,537 crore.
- The net profit jumped 24.8% YoY and stood at Rs.263.2 crore.
- The EBITDA (Earnings before interest, tax, depreciation and amortisation) recorded an increase of 28.9% and stood at Rs.397.1 crore.
- EBITDA Margin was 15.6%, as against 13.7% for the same period in the previous year.
- The net sales of the company were up by 13.1% and stood at Rs.2,537.5 crore.
- The other income jumped by 32.5% and stood at Rs.44.4 crore.
- The company’s cost efficiency program delivered savings of Rs.225 crore.
- The depreciation cost recorded an increase by 31.5% YoY and stood at Rs.42.4 crore.
- The company reported a 19.6% increase in consolidated net profit at Rs.263.65 crore for the third quarter ended December 2017. The operating profit raised 29% at Rs.366 crore on an yearly basis.
- Britannia’s total income was up 8.81% to Rs 2,603.42 crore during the period.
- The company’s consolidated net profit for nine months’ period of FY18, was at Rs.740.8 crore while the revenue was Rs.7,452.58 crore. The net profit registered a growth of 9.96% while the revenue growth was at 6.34% respectively on an yearly basis.
- Britannia recorded a growth of 9.01% with a consolidated revenue of Rs 2,567.48 crore, up from Rs.2,355.27 crore in Q3 FY18.
- The company continued product expansion as it entered into a joint venture with the Greek firm Chipita SA for producing and selling ready-to-eat croissants in India in March 2017.
- By 2020, Britannia plans to add 50 new products to the portfolio under existing as well as new categories.
Britannia Stock Trends in 2018
- The opening price of the share on January 1, 2018 was Rs.4,750 on NSE and Rs.4,705 on BSE. The share price was down at Rs.4,690 by the end of the month.
- During the beginning of February, the share price did not increase much and was around Rs. 4,870. Britannia revealed outcome of the board meeting and conducted an investor presentation in this month.
- At the beginning of March, the share price crossed Rs.4,900 mark.
- At the beginning of March, the stock price had a great start and opened at Rs.4,985. It fell marginally towards the end of the month and stood at Rs.4,964.
- The price of the stock in April picked up the pace and crossed the Rs.5,000 mark at the beginning of the month. It increase by more than 460 points and ended the month at Rs.5,463.
- The scrip increased further in the month of May by around 300 points. By the end of May, the price of the stock stood at Rs.5,800.
- In the month of June, the price of the stock crossed Rs.6,000. The opening price of the stock by the end of June stood at Rs.6,150
- The stock price picked up the pace and increased throughout the month of July. It ended the month at Rs.6,379.
- In the month of August, the scrip jumped further and reached Rs.6,851. The opening price of the stock by the end of June stood at Rs.6,690.
- As on 14 September 2018, the price of the stock stood at Rs.6,069.
Britannia Stock Trends in 2016 and 2017
- The stock price on January 1, 2016 was Rs.2,962 on NSE and Rs.2,963 on BSE. At the end of the month the price was down to Rs.2,685 on NSE and Rs.2,688 on BSE.
- Towards end of May, the stock price hit Rs.3,000 mark on NSE and it kept increasing till August 2016 when the company recorded a 13% increase in net profit for Q1.
- At the beginning of September 2016, the stock price was Rs.3,466 while at the end of October 2016 it had fallen to Rs.3,311.
- In the early January 2017, the stock price was Rs.2,900 on NSE while at the end of the month it was Rs.3,150. The price did not change much throughout February.
- At the end of March 2017, the share price was at Rs.3,380 after Britannia announced a joint venture with Greek baking company Chipita.
- During mid May, the price was high at Rs.3,705 while the it crossed Rs.4,000 mark in early August. The share price continued to increase and was Rs.4,750 at the end of October.
- In mid November, the price of the stock hit Rs.4,900 while at the end of December 2017, the price was at Rs.4,665.
Should you invest in Britannia?
Britannia is a pioneer in the Indian consumer goods section for over 100 years. The company’s revenue increased 11% between FY13 and FY17. On the other hand, profit margins have increased by 10% from 4% to 14% in the five-year period. From FY09 to FY13, Britannia’s revenue was 12.42% while the profit was 5.25% respectively. The stock price of the company has showed a consistent increase from 2016 till 2018. Hence, investing in the firm for a longer term could be favourable.
Headquartered in Bengaluru, Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and Yoghurt. The company has presence in more than 60 countries worldwide. Britannia’s products are exported across the world, which include Gulf Cooperation Council Countries (GCC), African Countries and American Countries. Good Day, Nutrichoice, Pure Magic, Bourbon, Little Hearts are some of the most popular biscuits from Britannia.
History of the Company
Founded in 1892 in Kolkata, Britannia operates in the food segment and manufactures bakery and dairy products. The company was incorporated in 1918 as a public limited company under the name of “The Britannia Biscuit Company Ltd.” In 1921, Britannia became the first biscuit company to import machinery in India to install and run a gas oven plant. The iconic Bourbon biscuits were launched in 1955 while the popular Britannia cakes were launched in 1963. The company name was changed to "Britannia Industries Limited" in 1979. In 1993, Wadia Group became an equal partner with Group Danone by acquiring a claim in Britannia. The company became India’s first Zero Trans Fat Company.
Varun Berry - Managing Director, Britannia Industries
Varun joined Britannia in 2013 as an Executive Director and was soon appointed as the Managing Director on April 1, 2014. With more than 27 years of work experience, Varun has worked with premier companies like Pepsico and Hindustan Unilever for Indian as well as international markets. Varun worked with Jumbo Electronics in the UAE prior to joining PepsiCo in India in 1993. He has been a part of the Global Leadership Program at IMD Switzerland. Varun holds a graduate degree in Mechanical Engineering from the Punjab University.
Manoj Balgi - General Manager, Britannia Industries
Manoj Balgi has been associated with Britannia since 2009. As the General Manager for Procurement at Britannia, his responsibilities include managing procurement of raw materials, packing materials, capex and projects. Manoj holds a B.E. (Mechanical) from Pune University and a PG in Industrial Management from National Institute of Industrial Engineering.
Britannia Listings in NSE, BSE and Indices
The stocks of Britannia can be bought and sold on the two major stock exchanges in the country - National Stock Exchange and Bombay Stock Exchange. The codes for the same are mentioned below.
BSE - 500825
NSE - BRITANNIA
ISIN - INE216A01022
Sector - Food processing
Britannia Industries Listing and Indices:
Britannia Industries forms a part of different indices and they are mentioned below:
- BSE 100
- BSE 200
- S&P BSE 500
5/1A Hungerford Street,
Kolkata -700 017
Britannia Industries Limited
Prestige Shantiniketan, Tower C,
The Business Precinct, 16th & 17th Floor,
Whitefield Main Road, Mahadevapura Post,
Bangalore - 560 048
Ph: 080 - 3940 0080
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