Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Investor Presentation (August 2013)
25 slides from Britannia Industries's investor presentation, Aug 30, 2013
Slide 1: Analyst Meet 30 August, 2013
Analyst Meet 30 August, 2013 th
Slide 2: Disclaimer
Disclaimer 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 views being expressed. Po
Slide 3: BRITANNIA
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Slide 4: Food is a Rs 12,50,000 Crore opportunity
Branded food growing faster than overall food and non-food Food is a Rs 12,50,000 Crore opportunity Growth driven by rising income, quality consciousness and Bakery, other than biscuits, convenience seeking is a growth opportunity for Britannia Biscuit is the largest category in branded Dairy brande
Slide 5: Business Update
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Slide 6: Highlights
Highlights • Powerful brands well supported • Strong Go-to-Market • People • Core Category Focus • Momentum in Revenue and Profit Growth • Slowing economic environment • Commodity prices
Slide 7: Nominal GDP vs Britannia Growth
Nominal GDP vs Britannia Growth 16.8 14.9 14.2 13.5 13.6 % Growth YoY 12.9 12.5 12.1 10.8 8.7 GDP (Nominal) BIL Revenue (Standalone) Q1 Q2 Q3 Q4 Q1 12-13 12-13 12-13 12-13 13-14 Source: CSO, Analyst Estimates, Company Financials
Slide 8: Slow down in Biscuit category
Slow down in Biscuit category 112 100 96 Indexed Market Growth (YoY) Q1 12-13 = 100 51 35 Q1 Q2 Q3 Q4 Q1 12-13 12-13 12-13 12-13 13-14 Source: Nielsen
Slide 9: Amidst challenging economic situation
Amidst challenging economic situation Source: Business Standard
Slide 10: Some commodity prices remain steady but elevated
Some commodity prices remain steady but elevated Flour Price Sugar Price (FY 11-12 = 100) (FY 11-12 = 100) 132 131 123 126 122 121 113 111 100 100 105 98 FY Q1 Q2 Q3 Q4 Q1 FY Q1 Q2 Q3 Q4 Q1 11-12 12-13 12-13 12-13 12-13 13-14 11-12 12-13 12-13 12-13 12-13 13-14 Source: Market Prices
Slide 11: While others are on an upward trend
While others are on an upward trend Butter Price Mfg Fuel (FY 11-12 = 100) (FY 11-12 = 100) 100 116 98 110 108 93 93 93 104 105 91 100 FY Q1 Q2 Q3 Q4 Q1 FY Q1 Q2 Q3 Q4 Q1 11-12 12-13 12-13 12-13 12-13 13-14 11-12 12-13 12-13 12-13 12-13 13-14 Source: Market Prices
Slide 12: 3 areas that continue to drive operational excellence
3 areas that continue to drive operational excellence Newness & Innovation • New delightful offerings • Higher value realization Operational Excellence Restructuring Cost Base Revenue Management • Comprehensive projects from • Differentiated brands design to delivery • Differential Pricing • Continu
Slide 13: Elaborated further…
Elaborated further… Product Organoleptic Outside Efficient Caring People In Simplicity of operation
Slide 14: Building efficiency across the value chain: Sales, an example
Building efficiency across the value chain: Sales, an example In Right With Right For Right Right Skill Place Effort Result KPI Revenue/Salesperson Value/Transaction Retail Availability
Slide 15: Customer Profitability
Customer Profitability Reconfiguring Improving Increasing portfolio to simplify Productivity business size handling through training Split portfolio for Supply Faster settlement more focussed management to to free up working selling reduce inventory capital
Slide 16: Supporting our brands to leverage their strength
Supporting our brands to leverage their strength A&SP (% of NSV) 9.0 8.4 8.1 8.4 8.4 8.4 7.5 7.8 7.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 11-12 11-12 11-12 11-12 12-13 12-13 12-13 12-13 13-14 Source: Company Financials
Slide 17: Resulting in strong double digit growth of our pillar brands
Resulting in strong double digit growth of our pillar brands Source: Company
Slide 18: Strong brands leveraged through steady investment
Strong brands leveraged through steady investment with a focus on the fundamental levers of operations has powered profitable growth in an otherwise challenging macro- economic environment
Slide 19: Financial Performance
Financial Performance BRITANNIA Eat Healthy, Think Better
Slide 20: Profitable Growth – Standalone
Profitable Growth – Standalone 1,600 9.0% NSV 1,500 8.0% Profit from operations % 8.1% 1,400 7.9% 7.0% Rs. Crs % NSV 1,300 6.0% 1,200 5.7% 5.0% 5.2% 5.3% 3.7% 4.9% 1,100 4.0% 4.1% 4.3% 1,000 3.0% Q1 11- Q2 11- Q3 11- Q4 11- Q1 12- Q2 12- Q3 12- Q4 12- Q1 13- 12 12 12 12 13 13 13 13 14 NSV (Growth %)
Slide 21: Profitable Growth – Consolidated
Profitable Growth – Consolidated 7.7% 1,700 8.0% NSV 1,600 Profit from operations % 7.7% 7.0% 1,500 1,400 5.3% 6.0% Rs. Crs % NSV 5.3% 4.7% 4.8% 1,300 5.0% 4.3% 5.2% 1,200 3.1% 4.0% 1,100 1,000 3.0% Q1 11- Q2 11- Q3 11- Q4 11- Q1 12- Q2 12- Q3 12- Q4 12- Q1 13- 12 12 12 12 13 13 13 13 14 NSV (Growth
Slide 22: Key Performance Indicators - Standalone
Key Performance Indicators - Standalone Particulars 2011-12 2012-13 Q1 2013-14 Book Value Per Share (Rs.) 43.5 53.2 60.8 Profit from Operations % 4.7% 5.7% 8.1% Profit before Tax% 5.1% 6.0% 8.9% Profit after Tax% 3.8% 4.2% 6.1% Debt : Equity Ratio 0.8 0.3 0.0 Source: Company Financials
Slide 23: Key Performance Indicators - Consolidated
Key Performance Indicators - Consolidated Particulars 2011-12 2012-13 Q1 2013-14 Book Value Per Share (Rs.) 34.3 46.1 54.0 Profit from Operations % 4.6% 5.7% 7.7% Profit before Tax% 4.9% 5.8% 8.3% Profit after Tax% 3.7% 4.2% 5.8% Debt : Equity Ratio 1.5 0.7 0.3 Source: Company Financials
Slide 24: Financial Performance
Financial Performance Stand Alone FY 12-13 FY 13-14 Growth Q1 Q2 Q3 Q4 Q1 Sales 10.8% 8.7% 16.8% 13.5% 14.9% PAT 3.9% 20.5% 5.3% 65.7% 98.6% Consolidated FY 12-13 FY 13-14 Growth Q1 Q2 Q3 Q4 Q1 Sales 11.9% 9.5% 16.4% 11.7% 14.2% PAT 18.4% 36.4% 11.0% 50.5% 92.5% Source: Company F
Slide 25: [email protected]
[email protected] BRITANNIA Eat Healthy, Think Better
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