Bangalore-based food products company, Britannia Industries (BIL), has reported that its net profit has been stagnant at Rs 46.1 crore for the third quarter ended December 31, 2008, as compared to Rs 45.3 crore in the corresponding quarter last fiscal. Higher operational expenses like rise in cost of raw materials impacted the company's net profit growth. Its overall expenses went up by 26 per cent to Rs 761.2 crore compared to the same quarter last year.
Its sales for the period went up by 24.8 per cent to Rs 828 crore compared to the same period last year. The operating profit for the third quarter rose by 15 per cent to Rs 58.8 crore as against the same quarter last year. The company's sales were driven by a healthy blend of volume, mix and price, the company said in a release.
Commenting on the performance, Vinita Bali, managing director, BIL said: "In the current economic scenario, we have focused on a diversity of packaging and price points to keep the purchase and consumption momentum. Going forward, there will be greater emphasis on operational excellence to contribute to margin expansion. Britannia continues to evolve its portfolio to offer a diversity of brands, packs and price points. Our latest offering of 'Good Day' at Rs 5 per pack has got good traction. Additionally, Tiger Cream was renovated with superior packaging, better taste and a wider choice for consumers with 3 new exciting flavours."