Britannia (Buy Commodities, Sell Brands)

1.Britannia took price hike
2.palm oil price fell 50% from high in may-June
3. New products introduction
4. Every FMCG company given great result ITC NESTLE HUL

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One thing evident in this mega inflation enviornment is that urban/premium is doing much better than rural…hence urban focussed FMCG faring better… Britannia seems to have a unique proposition here, their products are urban focussed but even in rural, plain biscuits can prove cost effective snacks/food . Similar thing was observed during lockdown etc. When biscuits everywhere in India seemed to substitute many food articles not readily available…in both urban and rural…

Disc. Invested since long…Not added since long because not sure about corporate governance but business seems solid hence could not exit also. Views maybe biased. I can be wrong in all my assessments and not eligible for any recommendations

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https://twitter.com/blitzkreigm/status/1589184860484427776

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This has been clarified by Management, that they borrowed 1000+ crore for Dairy unit capex, at a rate of 5.6%. And their treasury yields were much higher than this. This was put up in the latest tweet by Mangalam Maloo himself (author of the above original post)

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britannia and varun beverages leads the fmcg pack

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Britannia Q2FY24 Concall Summary

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  • Britannia Industries Ltd reported a 40% decrease in its consolidated net profit for the quarter ended December 31, 2023.
  • The net profit amounted to Rs 556 crore compared to Rs 932 crore in the same period last year.
  • Analysts‚Äô expectations were not met, with a poll of six brokerages predicting a net profit of Rs 566 crore.
  • Sequentially, Britannia‚Äôs profit slipped 5% from Rs 587 crore.
  • Factors contributing to the muted growth include a high base effect, some price cuts, high competition, and low single-digit volume growth.
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Tweet from Analyst Mohalla

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