War impact: Britannia initiates price hikes

Rakshit Hargave, Managing Director & Chief Executive Officer, Britannia said the company has taken steps to mitigate any potential implication on the business, including input cost inflation, arising out of the ongoing West Asia conflict, and remain watchful of the evolving developments.

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The company is initiating calibrated price increases from first quarter of 2027, as per its investor presentation.

Other mitigation measures include optimizing sourcing between India and International manufacturing facilities for key geographies to mitigate supply-related challenges. This expected to be fully operational by mid-May, Britannia said.

The company said it is also accelerating cost optimization and efficiency initiatives across the business.

Due to the West Asia conflict, Britannia said its International Business revenues and profitability were impacted during fourth quarter of 2026 owing to vessel unavailability, slowdown in demand.

There was significant increase in fuel costs, ocean freight rates, it said.

No material disruption to production operations at our India manufacturing facilities on account of industrial fuel supply constraints, the company noted.

“The business witnessed a steady start to the quarter, with growth of 9 per cent in the first two months, before moderating to a lower number in March, primarily on account of supply disruptions in the International Business following the West Asia conflict,” Hargave said.

Over the year, we made significant strides in scaling our presence in the rapidly growing e-commerce channel, now contributing 6 per cent to the domestic business, driven by e-commerce-first launches and a premium mix of offerings. Adjacent categories, including Croissant and Wafers, continued their strong momentum, while flagship brands such as Little Hearts and Jim Jam recorded robust double-digit growth, the company said.

Britannia’s fourth quarter  consolidated net profit increased 21.6 per cent to Rs 680 crore when compared to same period last year, while sales grew 7.1 per cent to Rs 4,686 crore.

For FY 2026, the net profit grew 16.5 per cent to Rs 2,537 crore, while sales increased 7.5 per cent to Rs 18,858 crore.

The company has declared a final dividend of Rs 90.5 a share.

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