Britannia Industries, a leading biscuit manufacturer in India, has reported a challenging year due to inflationary pressures and economic slowdown. The company stated that consumer demand remained subdued for most of the year, with high input costs for key commodities such as wheat, edible oil, and cocoa being a significant concern. Despite this, Britannia posted a 7% increase in revenues at Rs 17,943 crore during FY25, while net profit rose 2% to Rs 2,178 crore.
The company’s leadership noted that the competitive intensity in both organized and unorganized segments continued to put pressure on pricing and margins, particularly in price-sensitive markets. However, Britannia maintained its market leadership by focusing on distribution expansion, consistent brand investments, and competitive pricing. The company also invested in supply chain optimization and technology-driven solutions to mitigate rising costs and ensure product availability across urban and rural markets.
Rural markets began to show signs of recovery, supported by a rise in agricultural income and increased manufacturing activities in some sectors. However, demand for daily groceries, household, and personal products worsened to a two-year low in the March quarter, with FMCG volume sales growth slowing to 3.5% in the January-March quarter.
Britannia’s executive vice chairman and managing director, Varun Berry, saw his remuneration fall 8% to Rs 15.74 crore during the year. In contrast, the median remuneration of employees increased by 13.37%. The company’s annual report highlighted the challenges faced by the industry, including inflationary pressures and competitive intensity, but noted that Britannia’s strategic investments and cost efficiency programs helped mitigate these challenges.
Overall, Britannia’s performance was affected by the challenging business environment, but the company’s focus on distribution expansion, brand investments, and cost efficiency programs helped it maintain its market leadership. The company remains cautious about the future, citing concerns about input costs and competitive intensity, but is hopeful about the recovery of rural markets and the growth of the Indian economy.