Britannia looks to hike prices by 4.5%

BENGALURU: Britannia Industries plans to increase prices by about 4.5% by the end of the fiscal year, the company said during its post-earnings investor call on Friday. The company raised prices by 2% in the third quarter, which added Rs 100 crore to the revenues in the quarter.

The company reported consolidated revenue from operations of Rs 4,463 crore for the third quarter, a 6.5% year-on-year growth. Profit after tax rose 4.5% to Rs 582 crore.

"Everyone's been late to the party of price increases. Everyone is becoming alive to the fact that this inflation is not going away," said vice chairman Varun Berry. He noted that initial expectations of a short-term impact from govt-imposed palm oil duties and normalising cocoa prices have not materialised.

The price adjustments come amid a sustained inflationary environment, with food inflation remaining high. "If you look at the Consumer Food Price Index (CFPI), it was almost in double digits in this quarter," Berry said. He cited price increases across key commodities, including cereals at 6.5%, oils and fats at nearly 15%, and vegetables and fruits at high single-digit or double-digit levels.