The first quarter results were largely in line with the brokerage’s estimates, with growth momentum remaining largely in line with the fourth quarter. They noted that the gross margin saw lower-than-expected sequential expansion. This resulted in Ebitda falling below estimates.
Jefferies highlighted Britannia’s healthy 9.8% product sales growth, but expressed concern over the management’s remarks on the heightened competitive landscape across product categories.
Analysts estimate that the underlying first quarter volume growth was around 4%. Britannia saw double-digit growth across the four focus states and in bakery categories such as rusk, wafers, and croissants.
The company said it remained focused on sustaining a healthy growth trajectory while protecting margins amid intensified competition across product categories.
“We await clarity on the reasons for the QoQ flattish gross margin performance. Further, we look for details on underlying demand trends,” Jefferies said.
