CHENNAI/BENGALURU (Reuters) -India’s Britannia Industries reported quarterly earnings below market expectations on Friday, as branded consumer goods makers face tough competition from smaller rivals that offer cheaper alternatives.
Britannia, which sells Jim Jam and NutriChoice biscuits, reported a consolidated net profit of 5.06 billion rupees ($60.44 million) for the first quarter ended June 30, compared with 4.58 billion rupees a year earlier.
Analysts, on average, had expected a profit of 5.36 billion rupees, according to data from LSEG.
Regional consumer goods makers in India are building on easing commodity prices to put up a tough fight with branded rivals, including Dove soapmaker Hindustan Unilever and Britannia, forcing them to cut prices to protect market share.
For Britannia, the move was not enough to fend off competition fully.
Britannia’s revenue increased 6% to 42.5 billion rupees during the quarter, slowing from a more than 8% increase in the corresponding quarter a year earlier.
Total expenses rose 4.5%, with Managing Director Varun Berry saying Britannia “is vigilant of the commodity price fluctuations.”
Consumer goods makers have reported mixed results.
Dove soapmaker and Hindustan Unilever reported higher earnings as product price cuts led to increased demand while KitKat maker Nestle India reported its slowest growth in eight years as price increases drove consumers away.
($1 = 83.7250 Indian rupees)
(Reporting by Ashna Teresa Britto in Bengaluru and Praveen Paramasivam in Chennai; Editing by Mrigank Dhaniwala)
