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Bakery food company Britannia Industries Ltd on Wednesday reported a 19.55% increase in consolidated net profit at Rs 586.50 crore in the second quarter ended September 2023 due to softening commodity prices.

The company had posted a net profit of Rs 490.58 crore in the July-September quarter a year ago, Britannia Industries said in a BSE filing.

Its net sales were marginally up to Rs 4,370.47 crore during the quarter under review as against Rs 4,337.59 crore in the year-ago period.

Its revenue from operations in the September quarter was at Rs 4,432.88 crore, up 1.21%.

“While the sales growth over last year is 1%, the 24-month growth is 23%,” said an earnings statement from Britannia Industries.

Total expenses of Britannia Industries, which owns popular brands such as Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold, was down 2.33% to Rs 3,685.56 crore.

Executive Vice-Chairman and Managing Director Varun Berry said: “We delivered a good performance in a challenging environment on the back of 2 years of high inflation.”

“Our potential in rural continues to remain high and hence, expansion in rural distribution continued despite reported rural slowdown. We have progressed well on our digital journey with digital marketing gaining momentum and leveraging digitalization to enhance decision making and fine-tuning distribution reach,” he said.

During the quarter, the company witnessed hightened competition as commodity prices has started to soften and has reduced price of some key brands.

“As the commodity started to soften this quarter, we have seen pricing activity by competition in certain categories. To ensure that we remain competitive, we took strategic pricing corrections in some of our key brands & SKUs. As a result, our market share recovered this quarter,” Berry said.

Over the outlook, he said with the ongoing strife in the Middle East and Russia, the global commodity prices remain volatile.

“We are being watchful of the situation and its impact on our business. Our strategy will remain focused on driving market share while sustaining profitability,” he said.

Shares of Britannia Industries Ltd on Wednesday settled 0.50% lower at Rs 4,400.80 apiece on the BSE.