Bakery food company Britannia Industries Ltd on Tuesday reported a 40.4 per cent decline in consolidated net profit at Rs 555.66 crore for the third quarter ended December 2023.
The company had posted a net profit of Rs 932.40 crore in the October-December quarter a year ago, Britannia Industries said in a BSE filing.
Its net sales during the third quarter of the current fiscal grew 2.2 per cent to Rs 4,191.83 crore against Rs 4,101.49 crore in the year-ago period.
“In a progressively recovering demand environment with heightened competition, our performance this quarter reflects our resilience and competitiveness. Over the last 24 months, we achieved a robust 19% growth in revenue, coupled with a commendable 52% increase in operating profit," said Vice Chairman & Managing Director Varun Berry.
The net profit base in the year-ago quarter was higher as the company had gains on the sale of a 49 per cent equity stake held in Britannia Dairy Private to French cheese maker Bel SA.
The company's profit before exceptional items and tax was at Rs 761.13 crore, which was 1.62 per cent down from Rs 773.71 crore of the December quarter of FY23.
Its revenue from operations in the December quarter was at Rs 4,256.33 crore, up 1.41 per cent.
Total expenses of Britannia Industries, which owns popular brands such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold, was up 1.98 per cent to Rs 3,544.42 crore in the December quarter.
"We continued to expand our direct reach and accelerate our rural journey, partnering with more than 29,000 rural distributors during the quarter. As a result, our focus states outperformed other regions in terms of growth, despite a generally subdued rural demand," he said.
Its total income was at Rs 4,306.89 crore, up 1.4 per cent in the December quarter of FY23.
"On Cost & Profitability front, we will stay vigilant of the commodity prices & evolving geopolitical situation. We will continue to invest behind our brands and stay price competitive with a clear objective of driving market share while sustaining profitability," said Berry.
Shares of Britannia Industries Ltd on Tuesday settled 2.24 per cent lower at Rs 5,006.20 apiece on the BSE.
