Britannia Industries, a major player in the FMCG sector, is anticipating a manageable level of commodity inflation in fiscal 2025, reported Money Control.
During a post-earnings conference call, Varun Berry, Managing Director of Britannia, expressed an optimistic outlook for inflation, projecting it to be around 3% for FY25. However, the company acknowledged potential challenges.
Britannia highlighted the good condition of the wheat crop but pointed out relatively low government reserves. Anticipated government buying for various programs could lead to a rise in wheat prices, especially after upcoming elections. Additionally, sugar production hasn’t been robust, suggesting a likelihood of inflation in sugar prices as well.
The company’s management emphasized their commitment to taking necessary measures to maintain product quality despite potential cost pressures. Britannia has already begun procurement activities and implemented strategies to secure the best prices for commodities.
Britannia acknowledges the persistence of challenging economic conditions from the previous year for a few more months. However, they anticipate improvements with the arrival of the monsoon season and the outcome of the elections.
