Britannia shares fall on Iran war margin concerns
Britannia shares fell 5% as rising costs from the Iran war pressured margins. While profit met estimates, slowing sales growth led to planned price hikes.
BRITANNIA INDUSTRIES LTD shares fell 5% to 5,624 rupees Friday after the company announced price hikes to offset rising costs linked to the Iran war. The decline marks the worst session for the India-based biscuit maker in 18 months. The company cited freight expenses and crude oil prices as primary drivers for the adjustments.
Britannia has not specified the exact percentage of the planned price increase from the first quarter. Consumer goods consultant Akshay D'Souza said these hikes may not fully offset the impact of rising expenses. Volume growth remains critical as firms attempt to maintain market share while protecting profitability.
