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Britannia continues to increase ad spends

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MUMBAI: Britannia Industries Ltd (BIL) has joined its peers in increasing ad spends in the first quarter ended 30 June 2012. The company increased its advertising and promotion spending by 19.93 per cent in the first quarter to Rs 986.7 million from Rs 822.7 million a year earlier.

BIL‘s ad spend in the first quarter accounted for 8.03 per cent of its standalone revenue, a 0.6 percentage point increase from last year‘s 7.43 per cent.

The company reported a 10.92 per cent increase in its standalone revenue to Rs 12.29 billion in the first quarter from Rs 11.08 billion a year earlier. It also reported an increase of 3.95 per cent in its net profit in the first quarter to Rs 434.5 million from Rs 418 million a year earlier.

Britannia has enhanced its premium cream portfolio with launch of several differentiated products including Bourbon Cappuccino, Pure Magic Praline and a new range of creamy flavours for Treat.

BIL managing director Vinita Bali said, "Our focus on strengthening the shape of our business has resulted in a 120 basis points increase in operating margin. We continue to work on the three priority areas of revenue management, cost management and innovation to improve the operational performance of all our categories - biscuits, bread, cake, rusk and dairy, both in India and overseas."

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