In a post-earnings conference call, the management said Britannia is seeking double-digit volume growth this year.
Managing Commodity Inflation
Britannia Industries, a leading FMCG company, expresses hope for manageable levels of commodity inflation in fiscal 2025. Managing Director Varun Berry highlights expectations of healthy inflation, projecting it at 3 percent for the fiscal year.
Potential Challenges Ahead
While the wheat crop is in good condition, low government reserves and anticipated post-election government buying may lead to a rise in wheat prices. Similarly, subdued sugar production raises concerns about potential inflation in sugar prices.
Strategic Interventions
To navigate these challenges, Britannia emphasizes proactive interventions to maintain quality and secure favorable commodity prices. The company has initiated procurement strategies to ensure optimal pricing and quality standards.
Navigating Economic Conditions
Acknowledging persistent economic challenges, Britannia anticipates improvements with the onset of the monsoon season and post-election outcomes. The company aims to prioritize top-line growth amidst evolving economic dynamics.
Short-Term Margin Adjustments
Britannia remains prepared for short-term margin adjustments resulting from ongoing projects and initiatives. However, these adjustments are not expected to significantly deviate from the company’s current position.
Market Potential and Growth Prospects
Despite recent subdued volume growth trends, Britannia sees the market poised for a return to growth. Optimism stems from anticipated improvements in economic conditions, paving the way for positive outcomes for consumer businesses like Britannia.
Forecast for Resurgence
The company anticipates a resurgence in growth driven by favorable economic conditions. Despite challenges, the company remains optimistic about its growth trajectory for the fiscal year, emphasizing a strategic focus on driving top-line growth.