BRITANNIA INDUSTRIES: Volumes and margins disappoint in 1QFY23; rich valuations lead to downgrade (BRIT IN, Mkt Cap USD11.4b, CMP INR3778, TP INR3670, 3% Downside, Downgrade to Neutral) After displaying resilience in 4QFY22 volumes despite steep price hikes, BRIT’s 1QFY23 result was disappointing with a low single-digit volume decline. With further price increases likely i 2QFY23 (cumulative 6-7% price hike in 1HFY23), the effective price hike will be ~20% YoY. This might delay the eventual ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
A director at Britannia Industries Ltd sold 24,425 shares at 3,556.600INR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two ...
Britannia Industries: In line results; FY19 ends with accelerated market share gains (BRIT IN, Mkt Cap USD9.6b, CMP INR2786, TP INR3350, 20% Upside, Buy) Consolidated sales increased 10.3% YoY to INR28b (v/s our est. of INR27.5b). Standalone sales grew 11.7% YoY to INR26.7b with 7% volume growth in the base business (v/s our est. of +6%). Consol. EBITDA grew 9.9% YoY to INR4.4b (v/s our est. of INR4.4b), while consol. PAT grew 11.7% YoY to INR2.9b (v/s our est. of INR3b). gross margin exp...
Britannia Industries: Sustained growth with margin improvement; Moderate RM inflation outlook (BRIT IN, Mkt Cap USD10.5b, CMP INR3113, TP INR3630, 17% Upside, Buy) sales grew 10.7% YoY to INR28.4b (our estimate: INR28.1b) in 3QFY19. Base business volume growth stood at 7% YoY (our estimate: 6% YoY). EBITDA increased 13.4% YoY to INR4.5b (our estimate: INR4.5b), while PAT grew 14.1% YoY to INR3b (our estimate: INR3b). gross margin expanded 260bp YoY to 41.3%. RM inflation was at 4%, wi...
THE CORNER OFFICE (Britannia Industries) — Growth momentum accelerating; Business prospects improving on BRIT’s robust innovation pipeline Mr. Varun Berry, Managing Director Mr. Varun Berry has served as the Managing Director of Britannia Industries Limited since 1 April, 2014. A mechanical engineer from Punjab, Mr. Berry also attended a course in Strategic Management from Wharton University and the Global Leadership Program at IMD, Switzerland. He has over 27 years of experience in the con...
Britannia Industries: Topline and margin outlook upbeat; maintain Buy (BRIT IN, Mkt Cap USD9.6b, CMP INR5815, TP INR6765, 16% Upside, Buy) Britannia Industries reported 12.7% consolidated sales growth to INR28.7b in 2QFY19 (est. INR28.8b). Base business volume growth was around 11% (press release states double-digit volume growth) (est. 10%). Consolidated EBITDA grew 20.3% YoY to INR4.5b (our est. INR4.6b), while consolidated PAT increased 16.2% YoY to INR3b (our est. INR3.2b). Consolid...
Britannia Industries: Robust launch pipeline boosts growth prospects; maintain Buy (BRIT IN, Mkt Cap USD10.8b, CMP INR6200, TP INR7165, 16% Upside, Buy) BRIT's consol. sales increased 12.4% YoY to INR25.4b (our estimate: INR27.6b) in 1QFY19. We expect base business volume growth to be around 11% (press release states double-digit volume growth; our estimate: +15%). gross margin expanded by 130bp YoY (in-line) to 40%. Higher other expenses (up 30bp YoY to 20.4% of sales) and staff costs...
YTD sideways congestion for the MSCI ACWI ex-US and an intact downtrend for the MSCI EM index continue to point to a risk-off environment for international equity markets, and supports our neutral outlook (at best)... see page 2. We continue to recommend avoiding broad indexed exposure in favor of selectivity. In today's report we highlight actionable country- and Sector-specific themes: • Norway and India are leadership. Norway's Oslo OBX and India's SENSEX remain global leaders. Overweight ...
bRITANNIA | Annual Report Update: Expanding distribution reach, a key entry barrier; ‘Audacious, ambitious and consistent’ pipeline to boost growth (BRIT IN,Mkt Cap USD11.2b, CMP INR6434, TP INR7300, 15% Upside, Buy) We went through BRIT’s FY18 annual report. Our key takeaways: BRIT ended FY18 with 9.5% sales growth, 17.5% EBITDA growth, and 13.6% adjusted PAT growth. Gross margin expanded 10bp to 38.4% and EBITDA margin expanded 100bp to 15.1%. Consolidated ad spends (not disclosed on ...
Britannia Industries: Robust volume and margin outlook; Maintain Buy (BRIT IN, Mkt Cap USD10.2b, CMP INR5469, TP INR6400, 17% Upside, Buy) BRIT reported 13.1% consol. sales growth to INR25.4b (est. of INR25.8b) in 4QFY18. We expect base business volume growth to have come in at ~11% (press release states double-digit volume growth; our estimate was 12%). gross margin expanded 50bp YoY (in-line) to 38.5%. EBITDA margin expanded 190bp YoY to 15.6% (est. of 15.4%). Apart from gross margin...
Britannia Industries: Volumes up in double-digits; Margins surprise positively (BRIT IN, Mkt Cap USD8.9b, CMP INR4759, TP INR5995, 26% Upside, Buy) BRIT’s consol. sales grew 13% YoY to INR25.6b in 3QFY18, exactly in line with our estimate. We assume base business volume growth of ~11% (company press release states double-digit volume growth), in line with our estimate. EBITDA, thus, grew by a healthy 31% YoY (est. of +26%) to INR3.9b (est. of INR3.7b). Consol. PAT growth – albeit healthy ...
Britannia Industries is looking towards strengthening its position in packaged food, primarily in biscuits and baked goods. In August 2017, the company announced its plan to build a large plant in Maharashtra via investment of INR10 billion and a focus on expanding biscuits and cake production. Euromonitor International Local Company Profiles are a concise set of briefings detailing the strategic direction taken by a company. Discover key contact details, the company background and their compet...
BRITANNIA: Growth momentum getting stronger; Continuing new launches in low unit packs aiding growth(BRIT IN, Mkt Cap USD8.9b, CMP INR4733, TP INR6100, 29% Upside, Buy)Britannia’s (BRIT) recent launch of lower unit packs (LUPs) in the creams segment (under Treat JimJam brand) offers ‘value for money’ and also caters to customer aspirations. The creams category is large (INR18b) and highly profitable (net margins 2x that of category), but has so far been urban-focused. We note that the comp...
​Britannia Industries: Best-of-breed earnings growth visibility commands premium multiples(BRIT IN, Mkt Cap USD8.9b, CMP INR4741, TP INR5845, 23% Upside, Buy)BRIT reported 7.4% YoY consolidated sales growth in 2QFY18. Standalone sales too were up by 7.8% YoY. This implies that subsidiary sales grew decently by 1.8% YoY, despite a difficult operating environment in the Middle East. Base business volume growth is expected to be ~5% (press release states mid-single-digit volume growth), as agains...
​Britannia Industries: Best-of-breed earnings growth visibility commands premium multiples(BRIT IN, Mkt Cap USD7.6b, CMP INR4061, TP INR4660, 15% Upside, Buy)BRIT's consolidated sales grew 6% YoY (est. of +4%) in 1QFY18. Standalone (S/A) sales increased 6.6% YoY, but subsidiary sales were down 5.9% YoY. We expect base business volume growth to have come in at ~2%, as against our estimate of flat volumes. This is on a base of 10% volume growth in 1QFY17. Consol. gross margin contracted 120bp Y...
​Britannia | FY17 Annual REport: Well positioned in a high-potential market; Scouting for more growth opportunities to stay ahead of competition(BRIT IN, Mkt Cap USD6.8b, CMP INR3832, TP INR4450, 16% Upside, Buy)Key takeaways from Britannia’s (BRIT) FY17 annual report:-Considerable investments toward R&D in recent years leading to the launch of a slew of products Exhibited massive improvements in distribution, particularly direct distribution Ambitious expansion plans signify management's co...
​Britannia Industries: Sales broadly in-line; margins far better than expectations(BRIT IN, Mkt Cap USD6.1b, CMP INR3419, TP INR4050, 18% Upside, Buy)BRIT’s consol. sales grew 5.2% YoY (est. of +7%) in 4QFY17. Standalone sales rose 6.6% YoY, but subsidiary sales fell 11% YoY, likely due to weak performance in the Middle East. Biscuits volume growth was 2% (est. of +3%), but this was on a base of 10% growth in 4QFY16. EBITDA grew 6.1% YoY (est. of -4.2%) to INR3.1b. Adj. PAT grew 5.9% YoY (es...
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