Bakery food company Britannia Industries Ltd on Tuesday reported a 40.4 per cent decline in consolidated net profit at ₹555.66 crore for the third quarter ended December 2023.

The company had posted a net profit of ₹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 ₹4,191.83 crore against ₹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 per cent growth in revenue, coupled with a commendable 52 per cent 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 ₹761.13 crore, which was 1.62 per cent down from ₹773.71 crore of the December quarter of FY23.

Its revenue from operations in the December quarter was at ₹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 ₹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 ₹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 ₹5,006.20 apiece on the BSE.