Britannia CEO Rajneet Singh Kohli Resigns as FMCG Major Faces Margin Pressures

The cookie maker, Britannia Industries, has announced that its Executive Director and CEO, Rajneet Singh Kohli, has resigned. He is set to leave effective March 14, according to the firm's exchange filing.

Kohli cited his decision to pursue an opportunity outside the company as the reason for stepping down.

"The Board of Directors of the Company, via a Circular Resolution passed today, i.e., March 6, 2025, has noted the resignation of Mr. Rajneet Singh Kohli, and he shall be relieved from the services of the Company, effective the close of business hours on March 14, 2025," the company said.

Kohli has been at the helm of Britannia Industries since September 2022. Prior to that, he served as President and Chief Brand Officer of Domino's India.

"I am grateful for the opportunity and humbled to lead the largest and most loved iconic Britannia brand, work with a talented team, and contribute to the company's success. We have made real progress," he said in his resignation letter.

After the announcement, shares of Britannia's shares closed lower by 0.58% lower at Rs 4,692.85 apiece on the BSE.

Cookie Maker Faces Margin Pressures

The cookie maker, which sells Tiger, Jim Jam and NutriChoice biscuits, among others, posted a 7.9% YoY sales growth to Rs 45.9 billion, 4.2% higher than estimates, driven by 6.5% value growth and 6.4% volume growth. The biscuits category saw a 5.5% volume growth, with management attributing its outperformance in a subdued demand environment to strong branding and expanded distribution.

However, the company's EBITDA margin declined by 90 basis points YoY to 18.4% in Q3, due to higher inflation, which led to a 520 basis point YoY contraction in gross margin.

According to an Elara Capital report, Britannia is currently facing raw materials inflation of 11%, driven by the rising cost of wheat, palm oil, and cocoa. To counter this, the company plans a total price hike of 6.0-6.5% by Q1 FY26.