Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Q1 FY2019-20 Earnings Presentation
18 slides from Britannia Industries's earnings presentation, Aug 9, 2019
Slide 1: Analyst Meet Q1'19-20 Results Conference Call
Analyst Meet Q1’19-20 Results Conference Call 9th Aug 2019 1
Slide 2: Disclaimer / Safe Harbor Statement
Disclaimer / Safe Harbor Statement This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves risks and uncertainties that could cause actual results to differ materially from the current v
Slide 3: We Delivered growths outpacing the market
We Delivered growths outpacing the market… FY 17-18 (10%) FY 18-19 (12%) FY 19-20 (6%) 2,855 2,827 2,764 2,677 2,537 2,558 2,510 2,527 2,225 Rs. Crs. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Growth% 14% 13% 11% 10% 6% 24 month growth% 20% 21% 25% 24% 20% High base Healthy 24 month growth Consolidat
Slide 4: And strengthened our market leadership
And strengthened our market leadership Britannia Largest Competitor 33.0 32.0 Biscuit Market Share % 31.0 30.0 29.0 28.0 27.0 26.0 25.0 24.0 12-13 13-14 14-15 15-16 16-17 17-18 18-19 YTD 19-20 As per AC Nielsen 4
Slide 5: In our journey to become a Total Foods Company
In our journey to become a “Total Foods Company”… We entered new categories… 5
Slide 6: And got a good response from consumers
And got a good response from consumers… Wafers Milk Shakes Q3'19 Q4'19 Q1'20 Q3'19 Q4'19 Q1'20 • Launched Pan India • Launched ahead of Summer • No. 3 Brand in less than a year of launch • Expanded distribution footprint • No. 2 Brand in less than a year of launch 6
Slide 7: With categories Redefining bakery showing promise
With categories Redefining bakery showing promise Baked Salted Snacks Croissant Groovy Chips Fun Sticks 2 Variants: • Chocolate • Vanilla • Joint Venture with Chipita Q4'19 Q1'20 • Manufacturing & RM sourcing - a tad challenging • New variant added – TimePass Fun sticks • Took a bit of time to stabi
Slide 8: And Redefining biscuits with technology led innovation
And Redefining biscuits… with technology led innovation Treat Burst Treat Stars Pure Magic Deuce • Democratized Centrefills • Open Cream Biscuit • Chocolate Slab on Biscuit • Finding traction in market • First of its kind • First of its kind • Scaling up distribution • New summer pack launched Work
Slide 9: With our Adjacent business on firm footing
With our Adjacent business….on firm footing International • While Middle East continues • In line with our promise to enter to be challenging, America One new geography every year…. & Asiapac growing Foray into another South East double digits. Asian country is underway • Nepal local operations comm
Slide 10: While our economy is going through a tough phase
While our economy is going through a tough phase… Slowing GDP growth NBFC liquidity Crisis (+) Bank NPA crisis Credit squeeze Stress in the Rural Reduced real income economy from agriculture 10
Slide 11: We continued to drive distribution
We continued to drive distribution… Sustaining Direct Reach Sustaining Rural distribution 21.0 21.3 18k 19k 18.4 In Lakhs Preferred Dealers) No of RPDs (Rural 15.5 14k 12.6 10k 10.0 8k 7k 7.3 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Exit Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Exit Steady increase in Nu
Slide 12: Invest in people, capability & structures
Invest in people, capability & structures… Britannians InviTING IgniTING MAKE CreaTING RespecTING TINGS HAPPEN Build Enriching Careers Do the right ‘Ting’ Come Home to Britannia Fuel the Hunger Britannians are owners Culture of innovation Britannia for Britannians Integrity above all else Tech enabl
Slide 13: And continued to invest in Brand Equity despite the growth slowdown
…And continued to invest in Brand Equity despite the growth slowdown “Britannia Khao World cup Jao” campaign 8 weeks of TV Campaign Digital Campaign across 7 platforms Print Campaign MT Visibility & Large Visibility Drive in GT Strong PR Campaign Outdoor Campaign Activation 13
Slide 14: While keeping a close watch on costs
While keeping a close watch on costs… Taken an aggressive Cost efficiency target for the year Focus on reducing costs across the supply chain … 4.5 4.7 4.5 3.1 2.2 1.8 1.0 13-14 14-15 15-16 16-17 17-18 18-19 19-20 target Indexed to year 13-14 14
Slide 15: Overall commodity inflation is moderate @ ~4%
Overall commodity inflation is moderate @ ~4% with strategic positions on key raw materials Rs./kg Rs./kg Flour Sugar Q1 inflation: 11% Q1 Inflation: 1% RPO Rs./kg Milk Rs./Ltr Q1 Deflation : 15% Q1 Inflation: 10%
Slide 16: Profits have grown
Profits have grown… However profitability impacted due to growth slowdown PAT% FY 17-18 (10.2%) FY 18-19 (10.5%) FY 19-20 10.6% 10.6% 10.5% 10.2% 10.6% 10.3% 10.3% 10.0% 303 300 294 9.7% 261 264 263 258 267 Consolidated PAT 216 Rs. Crs. Q Q Q Q Q Q Q Q Q 1 2 3 4 1 2 3 4 1 Q1 Q2 Q3 Q4 Q1 # Growth% 19
Slide 17: Financials
Financials 17
Slide 18: Key Financial Lines – Consolidated
Key Financial Lines – Consolidated Rs. Crs. Particulars (Consolidated) Q1’19-20 Growth % Net Sales 2,677 6% Profit Before Tax (Excl. Exceptional items) 407 4% Profit After Tax (Excl. Exceptional items) 267 3% Profit After Tax (Reported) 251 -3% Particulars 19-20 12-13 13-14 14-15 15-16 16-17 17-18 1
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