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Britannia increases ad spend 18%

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MUMBAI: Biscuits and dairy products maker Britannia Industries Ltd increased its advertising spend 18 per cent to Rs 1.18 in the second quarter ended 30 September from Rs 1 billion a year earlier.

Its ratio of advertising spend to total income too rose in the second quarter to 8.33 per cent from 7.72 per cent a year earlier.

Britannia‘s revenues for the second quarter were up 9.34 per cent to Rs 14.17 billion from Rs 12.96 billion a year earlier.

Its net profit increased by 20.48 per cent to Rs 456 million from Rs 378.5 million a year earlier.

In the first half of the year ended 30 September, Britannia increased its ad spends by 18.03 per cent to Rs 2.16 billion from Rs 1.83 billion a year earlier. The ratio of ad spends to total income also went up to 8.17 per cent from 7.62 per cent a year earlier.

The company‘s revenue for the first six months was Rs 26.45 billion, up 10.07 per cent from Rs 24.03 billion a year earlier. The net profit for the first half rose 11.80 per cent to Rs 890.5 million from Rs 796.5 million a year earlier.

Britannia MD Vinita Bali said, "Despite a sharp and unexpected increase in commodity & fuel costs, we continue to drive profitable growth through focusing on three priority areas of revenue management, cost management and innovation. On a consolidated basis, the dairy & international operations are accretive and contribute positively to both revenue and profit."

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