Britannia expects double-digit volume growth post-election: MD Varun Berry

Britannia Industries, a leading food products company, is expecting a robust "double-digit growth" in volumes following the general elections and the monsoon season, driven by manageable inflation, according to Vice Chairman and Managing Director Varun Berry.

Berry expressed optimism regarding a recovery in consumption for the fiscal year, citing expectations of stable inflation and favourable monsoon conditions. He highlighted an anticipated "healthy inflation" of around 3 per cent for FY25, which is expected to contribute to faster topline growth.

"Last quarter's volume growth was twice the revenue growth. So I think volume growth this year, we expect them to be quite solid," Berry stated during a post-earnings conference call.

Britannia, renowned for brands like Good Day, Marie Gold, Tiger, Bourbon, and Milk Bikis biscuits, foresees double-digit volume growth for most of FY25, particularly post-elections and post-monsoon.

Despite investing in innovations, brand building, and other market-related projects, the company aims to maintain its high margins. Berry emphasized continuity in their strategy, expecting no significant deviation from the current trajectory.

In terms of inflation, Berry projected a flat first quarter, with expectations of a subsequent uptick post-elections, possibly reaching around 4 per cent. While certain commodities like sugar and wheat pose concerns, others like palm, laminates, and corrugated boxes have remained stable.

Britannia is closely monitoring commodity prices and strategizing to navigate potential challenges, with a focus on driving market share while sustaining profits.

The company also anticipates revenue expansion from its adjacent categories, which currently contribute approximately 25 per cent of total revenue. The commercialization of its cheese factory near Pune is expected to yield significant results this year.

Under its route-to-market 2.0 strategy, leveraging Data Analytics and Artificial Intelligence, Britannia aims to expand market reach and multiply revenues from adjacent businesses while strengthening its core operations. Strategies include targeting high-potential outlets, increasing sales force presence, and enhancing sales capabilities.

(With PTI inputs)