3 weeks ago
Britannia sees uneven international recovery as supply-chain pressures ease
A big biscuit and snack company called Britannia had trouble getting its products to other countries because of problems with shipping and world events.
In the last few months, those shipping problems started to get better, so the company's business in other countries began to recover a little.
But the recovery was uneven: business in Africa, especially Kenya, was doing well, while the Middle East and North America were still hard places to sell.
The troubles also made fuel and shipping cost more, which is expensive for the company.
Even so, Britannia made more money than it did a year ago, and it sold more products too.
The company saved money by being smarter with packaging, fuel and energy, including using more renewable energy.
In India, its home country, most of its products sold well, and online shopping grew strongly.
Most of its online sales now come from very fast delivery services called quick commerce.
The company also spent more on advertising to keep its brands popular.
Britannia's international business recovered sequentially in the June quarter as supply-chain disruptions eased toward the end of the period.
Africa, led by Kenya, was a bright spot, while the Middle East, including Saudi Arabia, and North America remained challenging markets.
Britannia reported a 14% year-on-year rise in consolidated net profit to ₹593 crore in Q1 FY27, with revenue up 9.5% to ₹4,964 crore.
Operating profit grew 12.7% during the quarter, while the West Asia conflict drove up fuel and shipment costs across domestic and overseas operations.
Quick commerce now accounts for around 80-85% of Britannia's e-commerce business, which continued to post strong growth.
The company offset cost pressure through buying efficiencies, packaging optimisation, alternate fuels, productivity measures and greater use of renewable energy.
Advertising and brand-building spends grew ahead of sales during the quarter, and most domestic key categories exited the quarter with mid-teens revenue growth.
- Who
- Britannia Industries, led by CEO and managing director Rakshit Hargave
- What
- Reported an uneven sequential recovery in international business and a 14% rise in consolidated net profit to ₹593 crore, with revenue up 9.5% to ₹4,964 crore
- Where
- Africa, led by Kenya, as a bright spot; the Middle East, including Saudi Arabia, and North America remained challenging; domestic market is India
- When
- The June quarter (first quarter of FY27), with the article published on August 9, 2026
- Why
- Supply-chain disruptions linked to the West Asia conflict eased toward the end of the quarter, boosting international operations, though elevated fuel, shipment and input costs persisted
Key facts
- Company
- Britannia Industries
- CEO and Managing Director
- Rakshit Hargave
- Quarter
- Q1 FY27 (June quarter)
- Consolidated net profit
- ₹593 crore, up 14% year-on-year
- Revenue from operations
- ₹4,964 crore, up 9.5% year-on-year
- Operating profit growth
- 12.7% during the quarter
- Challenging markets
- Middle East (including Saudi Arabia) and North America
- Bright spot
- Africa, led by Kenya
Quotes
Rakshit Hargave
Chief executive officer and managing director of Britannia Industries
“The West Asia conflict has resulted in a steep increase in fuel and shipment charges across Britannia’s domestic and international operations.”
thehindubusinessline.com
Sources
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