Mumbai: Britannia Industries reported quarterly earnings below market expectations on Friday, as branded consumer goods makers face stiff competition from smaller rivals offering cheaper alternatives, Reuters reported.
Britannia, known for its Jim Jam and NutriChoice biscuits, reported a consolidated net profit of Rs 506 crore ($60.44 million) for the first quarter ended June 30, up from Rs 458 crore a year earlier.
Analysts, on average, had expected a profit of Rs 536 crore, the report said, citing data from LSEG.
Regional consumer goods makers in India are leveraging easing commodity prices to challenge branded rivals like Hindustan Unilever and Britannia, prompting them to reduce prices to maintain market share.
For Britannia, this strategy was insufficient to fully counter the competition.
Britannia's revenue grew by 6% to Rs 425 crore during the quarter, a slowdown from the over 8% growth in the same quarter the previous year.
Total expenses increased by 4.5%, with Managing Director Varun Berry noting that Britannia "is vigilant of the commodity price fluctuations." Consumer goods makers have reported mixed results.
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