Parle and Mondelez India Face Profit Squeeze as Costs Rise
Two major players in India's biscuits and confectionery sector, Parle Biscuits Pvt. Ltd and Mondelez India Foods Pvt. Ltd, reported sharp declines in their net profits for the fiscal year ending March 2025. Financial data from Tofler reveals that both companies struggled with increasing material costs throughout the industry. Neither company is publicly listed on stock exchanges.
Parle Biscuits Reports 29% Profit Drop
Parle Biscuits experienced a significant downturn in profitability despite growth in sales. The company's net profit for fiscal 2025 stood at ₹979.5 crore, a sharp decline from ₹1,607 crore in the previous year. This represents a 29% year-on-year decrease.
Sales at Parle Biscuits actually increased by 8.5% YoY, reaching ₹15,568.5 crore compared to ₹14,349.4 crore in FY24. However, rising costs severely impacted the bottom line. The company's expenses surged to ₹14,881.3 crore in FY25, marking a nearly 15% increase from ₹12,979.4 crore in the previous fiscal year.
Operating margins at Parle dropped dramatically to 5.3% from 10.6% in the prior year. Net profit margins also fell to 6% from 10.7% a year earlier. The company's extensive portfolio includes popular brands such as:
- Parle-G, one of the world's top-selling biscuit brands
- Hide & Seek
- Monaco
- Melody
Mondelez India Sees 99% Profit Plunge
Mondelez India, formerly known as Cadbury India, faced an even more severe profit contraction. The company reported a staggering decline of more than 99% in net profits for FY25, dropping to just ₹10.5 crore from ₹2,081.9 crore in the previous year.
This dramatic fall occurred primarily because the company's other income shrank substantially. Other income decreased to ₹98.7 crore in FY25 from ₹1,097.5 crore in the prior fiscal year.
Mondelez India also experienced declining sales alongside rising expenses. Sales dropped by 1.91% to ₹12,503 crore in FY25 from ₹12,747 crore a year earlier. Expenses increased to ₹12,549.1 crore from ₹11,082.4 crore in the previous financial year.
The company's profit margins collapsed to just 0.1% from 15% a year ago. Operating margins also declined significantly to 8% from 19.4%. Mondelez India's brand portfolio includes:
- Cadbury chocolates
- 5 Star
- Tang
- Bournvita
- Oreo
Market Leader Britannia Shows Resilience
Parle Biscuits and Mondelez India compete directly with market leader Britannia Industries, which holds approximately 38% of India's biscuits market according to June 2025 data from India Brand Equity Foundation. Parle ranks second with a 32% market share.
Britannia Industries, which is listed on Indian stock exchanges, reported more stable financial results. The company recorded a 2% increase in consolidated net profits to ₹2,177.86 crore in FY25 compared to ₹2,134.22 crore in the previous year.
Britannia also faced rising material costs, with total expenses increasing by over 8% to ₹15,207.66 crore in FY25 from ₹14,063.89 crore in FY24. However, the company managed to grow its revenues from core operations by 7% YoY to ₹17,942.67 crore from ₹16,769.27 crore in the prior year.
On Wednesday, shares of Britannia Industries closed 0.22% lower at ₹5,906.30 on the Bombay Stock Exchange.
The financial results highlight the challenging environment facing India's FMCG sector, particularly for biscuit and confectionery manufacturers. Rising input costs continue to pressure profitability across the industry, though companies are responding with different levels of success in managing these challenges.
