Britannia (BRIT) 1QFY22 result was in-line with our estimates. Peak-out base quarter led to optically flat revenue growth during 1QFY22. Strength in domestic business continued to improve with market share gains in biscuit portfolio. Positively, revenue growth in Milk-Bikis portfolio is significantly higher compared to other BRIT brands.

Commenting on the result review, IDBI Capital said, "We are bullish on BRIT’s ability to premiumize glucose customers to Milk-Bikis. In adjacency category; on-th-go products were impacted due to lockdown while in-home consumption related products performed well. In international market; Nepal continued to report strong double-digit growth driven by market share gains (similar to India business).

In export; container issue availability impacted top-line growth, albeit temporarily. Gross margin impacted due to high inflation (c. 8-9%YoY including fuel cost).  BRIT expects to take calibrated price hikes to offset inflation. Accordingly, we have revised our EPS estimates downwards by 5-6% during FY22-23E. Our revised TP stands at Rs 4,351. We maintain BUY."

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