Impossible to figure out demand in these times, says Britannia MD Varun Berry | Economic Times

New Delhi: Britannia Industries, the country’s largest listed cookies maker, reported a slowdown in the sale of at-home items in the September quarter after stockpiling in the immediate aftermath of the lockdown drove sales in the previous three-month period.But Britannia also witnessed a moderate increase in the sale of out-of-home consumption items in the three months to September as the economy was unlocked in phases.“Diversified spending has started. There is a little bit of down-trading that we are seeing in the market. There is pent-up demand for non-essential items,” managing director Varun Berry said in an investors’ call.Britannia was the biggest loser on the benchmark Nifty 50 on Tuesday, sliding 6% after the earnings.The maker of Good Day and Tiger biscuits posted a 6% fall in standalone net profit in the second quarter after weak sales in August.“We had a double-digit growth in the first month of the quarter. The second month was slow with single-digit growth. Then in the third month, growth came back,” Berry said. “It was impossible to figure out demand in these circumstances.”While the FMCG demand has seen some down-trading in the last few months with consumers shifting to smaller packs and cheaper items, Britannia has not been in a position of disadvantage, Berry said.The company has seen improved profitability in breads and its rusk business has done well, with increased adoption in north India. However, cakes as a category have been impacted due to a slowdown in modern trade retail. On the dairy side of the business, cheese sales have done well, Berry said.The company posted a net profit of ₹462 crore on revenue of ₹3,299 crore for the quarter ended September 30.Britannia said it was creating a medium-term strategy keeping a close watch on macroeconomic factors, changes in law and evolving consumer behaviour.“We are monitoring consumer insights, which change almost every day. We are making sure to incorporate these in our medium term strategies so that we do not lose sight of what happens in this extremely confusing situation we face in the world today,” Berry said.