Britannia Fears Geopolitical Tension, Climate Change To Hit Rusk & Dairy Biz

In the upcoming quarter, Britannia has anticipated threats in its rusk and dairy categories due to rising health expectations, preference for local players, rise in milking prices, and input costs like labour and raw materials. In the fiscal year 2024, Britannia Industries' biscuits faced headwinds due to geopolitical tension and climate change, the FMCG firm said in its annual report. Other immediate threats in the biscuit category are increasing competition and high commodity prices due to climatic changes and other macroeconomic factors, the company stated.

The company's global operations may encounter challenges as a result of rising Middle Eastern oil prices, geopolitical unrest, a large-scale exodus of expatriates, workforce localisation, shifting trade restrictions, and volatile currency exchange rates.

For the second consecutive year, Britannia's worldwide business saw double-digit value growth across all areas. The FMCG company stated that increased sales from local operations in Egypt and Kenya, deflation in commodity prices, and sustained double-digit growth in developed countries due to improved penetration and portfolio development were the main growth drivers.

Consolidated net profit for Britannia decreased from Rs 2,321 crore in FY23 to Rs 2,139 crore in FY24, a 7.8 per cent drop. Its operating income increased by 2. per cent to Rs 16,186 crore. Britannia made Rs 50 crore in net profit during the June quarter of FY25.

The organisation predicted that geopolitical tensions, subdued global financial expectations, and unusual agricultural patterns will cause stress in the coming months. "The short-term prospects could be impacted by changes in the prices of input commodities like wheat, sugar, milk, chocolate, and edible oil," it stated in its most recent annual report. On the other hand, a favourable monsoon might bring about good harvests and support price and demand stability.