Britannia sees uneven international recovery as supply chains ease

Hargave said supply-chain constraints in the international business began normalising towards the latter part of the quarter, helping the business recover sequentially. The recovery was not broad-based. Africa, led by Kenya, performed well. The Middle East, including Saudi Arabia, and North America remained challenging.

The overseas recovery comes against a backdrop of elevated logistics and input costs. Hargave said the West Asia conflict resulted in a steep increase in fuel and shipment charges across both domestic and international operations. Palm oil prices had increased more than 20% from February levels, while sugar, milk and industrial fuel remained areas of cost pressure.

The company has offset the pressure through a combination of buying efficiencies, packaging changes, alternate fuels, and productivity measures. Advertising and brand-building spends grew ahead of sales during the quarter.

On the domestic front, Hargave said most key categories had gained sequential momentum, with the company exiting the quarter with mid-teens revenue growth. General trade, Britannia's largest channel, recovered after disruptions related to the implementation of dual pricing. E-commerce continued to post strong growth, with quick commerce now accounting for around 80-85% of Britannia's e-commerce business.