Britannia shares zoom 7.5% as its distribution network expands

Britannia shares surge: The shares of Britannia Industries, on Monday, surged by 7.5 per cent to Rs 5103.70 after the company released its earnings for the last quarter of the financial year ended March 31, 2024 (Q4FY24). 

Britannia announced a consolidated net profit of Rs 536.61 crore for the March quarter, marking a slight decline of 3.76 per cent compared to the same period last year. 

Despite this dip in profit, the company's total revenue stood at Rs 4,069.36 crore, reflecting an increase of 1.14 per cent from Rs 4,023.18 crore recorded in the corresponding quarter of the previous year. 

Brokerages had previously estimated a slightly higher growth rate for the company's revenue, predicting around a 2.4 per cent year-on-year increase in the top line.

Post Q4 results, the company board has proposed a final dividend of Rs 73.5 per share for the fiscal year concluding on March 31, 2024.

As of 12:21 pm, the shares of the FMCG major were trading 7.5 per cent or 355.80 points higher at Rs 5110.15 apiece on BSE. 

According to Varun Berry, Vice Chairman and Managing Director, Britannia Industries, the strategic price actions and intensified investments in the brands have allowed the company’s market share to rebound. 

The company has expanded its distribution network to approximately 27.9 lakh outlets directly and added around 2000 rural distributors over the past year. 

In the last six months, the company's shares have seen an increase of approximately 6.2 per cent. In contrast, the Nifty 50 index has surged by about 16 per cent over the same period.