Britannia Q2 Review - Core Continues To Perform Well But New Products Scalability Uncertain: ICICI Securities
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ICICI Securities Report
Broadly in-line revenue print (two-year compound annual growth rate of 8.8%) but weak (and a miss) volume print (possibly) highlights the imperils of a (largely) price-point product portfolio – price hikes for Britannia Industries Ltd. would have been a combination of higher maximum retail prices and lower grammage.
We had highlighted in our channel checks that demand after being strong in Q1 (second wave-led) had normalised as mobility improved.
Britannia continues to benefit from strong brand positioning, direct distribution expansion and execution edge.
Going forward, we believe success of (at least few) new segments – salty snacks, wafers, croissants and ramp-up of adjacent categories – dairy, rusks, cakes and now Milk Bikis in biscuits are imperative for re-rating.
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