Notice from FSSAI on Preservative Use
Shares of Britannia Industries declined by 2.54%, closing at Rs 4,769.35, following the company’s announcement of receiving a notice from the Food Safety and Standards Authority of India (FSSAI). The notice concerns the compliance of one of its product batches with the Food Safety and Standards (Food Products Standards and Food Additives) regulations, specifically regarding the use of a preservative in one of the batches exceeding the prescribed limits.
Impact on Operations and Financials
Despite the notice, Britannia Industries assured that the situation would not have any material impact on its financials, operations, or other activities. The company emphasized that the issue pertains to a single batch and does not affect its broader product portfolio or business performance.
Britannia’s Financial Performance
In its latest earnings report for Q2 FY25, Britannia Industries reported a 9.37% drop in consolidated net profit, which stood at Rs 531.55 crore. However, the company saw a 4.48% increase in revenue from operations, reaching Rs 4,566.23 crore compared to Q2 FY24. Despite the profit decline, the company remains one of India’s leading FMCG manufacturers, primarily producing biscuits, bread, rusk, cakes, and dairy products.
Company’s Response and Future Outlook
Britannia Industries has stated that it is addressing the issue with FSSAI and is committed to complying with all food safety regulations. The company’s continued focus on maintaining high standards in production is expected to mitigate any long-term effects from the notice.
